Wednesday, December 7, 2016

Much Ado about Nothing...for NOW

Leave it to Shakespeare, the bard of Avon to understand all the commotion that can be generated before the fact. The world has had three big election results in 2016 and the before, during and after  BS never stops. There is one great positive. All the experts had it wrong, and the populist movement is a major setback for the elites.
The first vote was in England. The shills in the media claimed that Britain would go into a  depression which could take the global community, if it leaves the EU. It left, but only on paper. Nothing has changed as the behind the scenes elites seek a way to stop the people from their will. They see this unforeseen result as a loophole in their strategy for One World government under their rule. It appears that the results of this election will be put off until 2018 to give the elites time for their plan - B. This is what Europe calls democracy. There will be problems economically, but more civilly.
US Election
Another setback for the elites who already had their playbook out with a Hillary win. The stock market is going to the moon in belief that Trump will trump all legal handicaps for big business. Anything goes or I should say, "goes out the window" like air pollution or clean water as the Sioux will soon find out even with their short-term victory against the pipeline company. Time will tell what will actually happen. Demographics and pension shortfalls will play a huge part in it. Civil unrest is also on the table.
Matteo Renzi said if the people did not accept his ideas that he would quit. He's gone. The elites are scrambling for a way around the will of the people in this latest setback in their plans. Behind the scenes, the EU will step up their pressure for Italian banking reform. This is the real, future danger for anyone and everyone who has money in a bank. This is what is central in the Italian results. Renzi wanted the power to change their constitution which would allow him to use a corrupt idea, the bail-in.
Bail Out, Bail-in
Central banks always have the backs of their banking system. However, with the people seeing this one-sided protection in the crisis of 2008, a new plan is surfacing among central banks, the bail-in. This is corruption at its highest.
Our deposits are only backed by faith just like our currency. The FDIC gave everyone peace of mind and we no longer have runs on banks due to their missteps. Dear reader, when we deposit our money at a bank, we are actually lending the bank our money for them to do whatever they want with it. Whether its greed or survival, banks make mistakes. The FDIC protected us against those occurrences. Now, the concept of bail-in is emerging. This is an idea to recapitalize banks if they become insolvent. The FDIC won't be utilized. FDIC lacks funding anyway and they could never cover a "too big too fail" institution. The bank would just seize our money as their asset and use it to recapitalize itself. We would be robbed!
This is already happening in Europe. For centuries aristocrats stole from their people. This is what Renzi was planning to do. It is another example of small thinking from behind the scenes elites in the EU. The EU put pressure on Renzi by implying that no bail out for the Italian banking system was in the cards. At present, it is estimated that Italian banks hold $400 billon in non-performing loans(NPL). These are loans that are 90 days past due with no hope to be repaid. This figure represents 18% of all outstanding loans and makes up 20% of GDP. Serious problem. No wonder the people said, "No!" I would too.
With negative rates and now, the bail-in, world banking is in a terrible position. Dear reader, the template has already been tried with the Cyprus crisis of 2013. It started with capital controls to stop or limit withdrawals. Then, they made a bank holiday. When the banks reopened, everyone took a haircut to recapitalize the banks - the bail-in. They took their depositors money. The EU is perfecting the method. Our central bank, the Fed is studying their playbook. We need to unite to crush this thinking or we all will end up in poverty.
P.S. Soon the Dutch, the French, and the Germans will go to the polls. The elites will try to scare the people while they attempt to get a new election in Great Britain...and the beat goes on.