WARNING Bank Deposits Will Soon No Longer Be Considered Money But Paper Investments

Economic Policy Journal ^ | NOVEMBER 13, 2014 | Kenneth Schortgen Jr

[dontreadthis]

This weekend the G20 nations will convene in Brisbane, Australia to conclude a week of Asian festivities that began in Beijing for the developed countries and major economies. And on Sunday, the biggest deal of the week will be made as the G20 will formally announce new banking rules that are expected to send shock waves to anyone holding a checking, savings, or money market account in a financial institution.

On Nov. 16, the G20 will implement a new policy that makes bank deposits on par with paper investments, subjecting account holders to declines that one might experience from holding a stock or other security when the next financial banking crisis occurs. Additionally, all member nations of the G20 will immediately submit and pass legislation that will fulfill this program, creating a new paradigm where banks no longer recognize your deposits as money, but as liabilities and securitized capital owned and controlled by the bank or institution.

In essence, the Cyprus template of 2011 will be fully implemented in every major economy, and place bank depositors as the primary instrument of the next bailouts when the next crisis occurs...

[palmer]

Yes, looks like a rough exponential decay back to $5 or maybe $10. But I have to believe there are going to be other exogenous events that will break the technical trends. Some of those events are downside, some are upside. I don’t see a lot of potential for downside events like tight money right now.

[laplata]

Thanks for that. Good perspective.

“The US has tremendous strengths and, with the right leadership and policies, a bright future as well”.

That is the key.

[laplata]

Good point.

[Rockingham]

Doubters should consider the consequences of the election of Ronald Reagan in 1980 as a compelling example of how the right leader and policies can change history. In less than a decade, the US went from Carter as president, faltering and humiliated by Iran, to triumphant under Reagan, with a revived economy and military, a national sense of confidence, and on the cusp of victory in the Cold War.

[laplata]

Absolutely!!

[1010RD]

Good and rational comments throughout this thread. If I wanted to sell off my gold at a profit this is the thread I would post on FR.

[OneWingedShark]

Section V has a problem:

The power of the Congress to assume debt is hereby restricted: the congress shall assume no debt that shall cause the total obligations of the United States to exceed one hundred ten percent of the amount last reported by the Secretary of the Treasury.

The "amount last reported" is assumed to be valid/correct. When we trust the government to be honest, we generally deceive ourselves.

I know — one working copy had punishments for misreporting, but I couldn't figure out a way to make it entirely just. (It is, after all, a working draft and subject to revision.)

I'm quite open to suggestions.

[PAR35]

banks no longer recognize your deposits as money, but as liabilities

Someone apparently not familiar with banking.

Deposits have always been liabilities to the bank, loans are assets.

subjecting account holders to declines that one might experience from holding a stock or other security when the next financial banking crisis occurs.

Apparently equally unfamiliar with deposit insurance and how it works.

[PAR35]

You shouldn’t listen to idiots.