Russian Roulette: Taxpayers could be on the hook for Trillions in Oil Derivatives
The sudden dramatic collapse in the price of oil appears to be an act of geopolitical warfare against Russia.
The result could be trillions of dollars in oil derivative losses; and depositors and taxpayers could be liable, following repeal of key portions of the Dodd-Frank Act signed into law on December 16th.
On December 11th, Senator Elizabeth Warren charged Citigroup with “holding government funding hostage to ram through its government bailout provision.” At issue was a section in the omnibus budget bill repealing the Lincoln Amendment to the Dodd-Frank Act, which protected depositor funds by requiring the largest banks to push out a portion of their derivatives business into non-FDIC-insured subsidiaries.
Continue reading report here: Russian Roulette with Taxpayers Money
Watch the following interview explaining the details about The Confiscation of Bank Deposits & the Derivatives Debt
On December 11, 2014, the US House passed a bill repealing the Dodd-Frank requirement that risky derivatives be pushed into big-bank subsidiaries, leaving our deposits and pensions exposed to massive derivatives losses.
The bill was vigorously challenged by Senator Elizabeth Warren; but the tide turned when Jamie Dimon, CEO of JPMorganChase, stepped into the ring. Perhaps what prompted his intervention was the unanticipated $40 drop in the price of oil. As financial blogger Michael Snyder points out, that drop could trigger a derivatives payout that could bankrupt the biggest banks. And if the G20’s new “bail-in” rules are formalized, depositors and pensioners could be on the hook.
The new bail-in rules were discussed in my last post. They are edicts of the Financial Stability Board (FSB), an unelected body of central bankers and finance ministers headquartered in the Bank for International Settlements in Basel, Switzerland. Where did the FSB get these sweeping powers, and is its mandate legally enforceable?
Those questions were addressed in an article I wrote in June 2009, two months after the FSB was formed, titled “Big Brother in Basel: BIS Financial Stability Board Undermines National Sovereignty.” It linked the strange boot shape of the BIS to a line from Orwell’s 1984: “a boot stamping on a human face—forever.” The concerns raised there seem to be materializing, so I’m republishing the bulk of that article. We need to be paying attention, lest the bail-in juggernaut steamroll over us unchallenged…
Continue reading from original source here: The Global Bankers Coup: Bail-In and the FSB
For the first time in 170 years, the British Parliament is going to debate how money is created.
The debate will be broadcast live on Thursday, November 20th starting between 12.30 & 1.00PM GMT, or 07.30 EST on the Parliament TV Channel; Link to the UK Parliament Channel
From Bill Still, director, narrator, and producer of the documentary films The Money Masters and The Secret of Oz, both of which critique the system of monetary control by the U.S. Federal Reserve System.
The parliament refused to vote the harsh conditions demanded by the IMF. I am not sure what this means. Perhaps it is just a tactic to force the parliament to do as the IMF says. Or perhaps Yat, Washington’s stooge, has realized that IMF or no IMF, Ukraine’s economy is imploding and wants to get out of the blame.
The point for now is that I checked the BBC, the New York Times, and CNN and there is not one word about the collapse of the government of Ukraine.
I did notice that the BBC, now a reliable element of Washington’s Ministry of Propaganda, reported, as if it were true, State Department spokeswoman Marie Harf’s claim that the Russian military is shelling Ukrainian forces. When Harf tried this out today on a roomful of journalists, they laughed her out of the room. Evidence, evidence! they demanded. Why, Harf was asked, do you think something is made true by you saying it!?
So, as usual, real news is missing from the Western press, but fake news is reported.
Professor Michael Chossudovsky has provided an account of the collapse of the Ukrainian government on Global Research. http://www.globalresearch.ca/collapse-of-ukraine-government-prime-minister-yatsenyuk-resigns-amidst-pressures-exerted-by-the-imf/5393168
The new IMF proposal led with Christine Lagarde: Debt cuts for over-indebted states are to be performed more effectively in future by defaulting on retirement accounts held in life insurance, mutual funds and other types of pension schemes, or arbitrarily extending debt perpetually so you cannot redeem.
The new IMF paper describes in great detail exactly how to now allow the private sector, which has invested in government bonds, to be expropriated to pay for the national debts of the socialist governments.
The IMF working paper from December 2013 states boldly:
“The distinction between external debt and domestic debt can be quite important. Domestic debt issued in domestic currency typically offers a far wider range of partial default options than does foreign currency–denominated external debt. Financial repression has already been mentioned; governments can stuff debt into local pension funds and insurance companies, forcing them through regulation to accept far lower rates of return than they might otherwise demand.”
Already in October 2013, the International Monetary Fund (IMF), suggested the Euro Crisis should be handled by raising taxes.
The IMF lobbied for a property tax in Europe that should be imposed where there are no such taxes.
The IMF has advocated for a general “debt tax” in the amount of 10 percent for each household in the Eurozone, which also has only modest savings.
The money people have saved, the IMF maintains should be used for debt service by sheer force.
To reduce the enormous national debt, they maintain that government has the right to directly usurp the savings of citizens. Whether saving money, securities or real estate, about ten percent could be expropriated. This is the IMF view.
Because the government debt of the euro countries has increased a total of well over 90 percent of gross domestic product, they suggest that the people should sacrifice their savings for the benefit of the state.
Socialism is no longer to help the poor against the rich, but to help the government against the people. The definition has changed.
In January 2014, the Bundesbank joined the IMF project focusing on a “wealth tax”. In its monthly report they had announced:
“In the exceptional situation of an imminent state bankruptcy a one-time capital levy could but cheaper cut than the then still relevant options”
if higher taxes or drastic limitations of government spending did not meet, or could not be implemented.
In the latest June 2014 working paper of the IMF, they have set forth yet another scheme – extending maturity;
So you bought a 2 year note?
Well, the IMF possible solution would be to simply extend the maturity.
Your 2 year note now become 20 year bond.
They do not default, you just can never redeem.
Possible remedy. The preliminary ideas in this paper would introduce greater flexibility into the 2002 framework by providing the Fund with a broader range of potential policy responses in the context of sovereign debt distress, while addressing the concerns that motivated the 2002 framework.
Specifically, in circumstances where a member has lost market access and debt is considered sustainable, but not with high probability, the Fund would be able to provide exceptional access on the basis of a debt operation that involves an extension of maturities (normally without any reduction of principal or interest).
Such a “reprofiling” operation, coupled with the implementation of a credible adjustment program, would be designed to improve the prospect of securing sustainability and regaining market access, without having to meet the criterion of restoring debt sustainability with high probability.
Now the June 2014 report has a new, far-reaching proposal.
This shows how lawyers think in technical definitions of words. There is no actual default if they extend the maturity.
You could buy 30-day paper in the middle of a crisis and suddenly find under the IMF that 30 day note is converted to 30 year bond at the same rate!?
Warning: Graphic images. Scenes may be disturbing. Viewer discretion advised.
Vote “NO to Conflict” & NO More killing!
Global decision makers never appear to be in harms way, yet their policies enforced are taking too many lives & too frequently!
Too often individuals in positions of power from around the globe, while sitting comfortably behind a desk in a secure office far from danger, are promoting force & aggressive actions that get people killed!
The goals presented too often to justify their actions & beliefs being sold to the public are rarely achieved, & are normally challenged years later with hidden agendas contradicting the real motives behind the campaigns for destruction & loss of families, which coincidently always seems to the benefit the few with business interests in the areas being destabilised.
No one wins with war, everyone loses.
Stop the battles of dictatorship, vote “No More”