Watch Your Cash: New BAIL-IN Rules Will Force “Failed Bank Losses on Investors”

Bank Error

When the Cypriot government forced account holders to cover bank losses earlier this year most of the world assumed this was a one-off event, limited only to the people of Cyprus.

Though warnings urging depositors to get their money out of banks spread across the world, few have taken them seriously.

Perhaps now they’ll reconsider.

We’re all familiar with bail-outs, as in the government rescuing failed institutions, namely banks, by injecting them with tens of billions of dollars to prevent collapse.

But have you ever heard of a bail-in?

Japan’s Financial Services Agency will enact new rules that will forced failed bank losses on investors, if needed, via a mechanism known as a “bail-in,” according to The Nikkei. Mitsubishi UFJ (MTU), Mizuho Financial (MFG) and Sumitomo Mitsui (SMFG) are among those proposing amendments to allow them to issue the types of preferred shares or subordinated bonds that would be used in such cases, the report noted.

Cyprus was a test run. It worked.

This is now the official policy of the country of Japan, and is a serious consideration throughout the Eurozone and the United States.

Euro zone finance ministers will discuss on Thursday how to decide which creditors will lose money and in what order during future bank rescues by the bloc’s bailout fund, the European Stability Mechanism.

Just so we’re clear, we are all bank creditors by these definitions, thus the regulations being created apply not to just large bond holders, but every individual depositor.

Notice how they didn’t say “in case future bank rescues are necessary.” That’s because they know what’s coming.

The collapse of the global financial system is a foregone conclusion and it has just been confirmed by finance ministers around the world.

When the next banking crisis hits the United States you can be assured that creditors (i.e. individual depositors) will be forced to ‘bail them in.’

Given that that billionaire insiders are rapidly unloading millions of shares of financial stocks  as we speak, there is a strong possibility that this scenario may soon unfold.

So, if you’ve got any significant amount of money at financial institutions, you’d better think twice about how safe it is.

Of course, this is the United States of America, where nothing of the sort could ever happen. According to Federal Reserve Chairman Ben Bernanke, here in the U.S. the crisis is contained and poses no risks to the broader economy or financial markets.

So, you can probably just move along and ignore this warning.

Nothing to see here… It’s just Japan and Europe, after all, and they are all the way on the other side of the ocean.

SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You

Larwyn’s Linx: Six Alinsky Rules That Explain Obama’s Words and Deeds

Send us tips! Bloggers: install a Larwyn’s Linx widget. Get real-time news, 24/7, at BadBlue.


Six Alinsky Rules That Explain Obama’s Words and Deeds: Kerwick
Not the most terrible of things: Owens
Democrat blames Aurora shooting victims for not defending themselves: Scoop

Illegal immigration surging despite WH claims to the contrary: GWP
‘Bam’nesty boosts 454,000 immigrants: Post
Why Hillary is less ‘inevitable’ than you think: WFB

Army lists Christians, Catholics and Jews as Religious Extremists: GWP
Some examples of the impact of gun bans on murder rates: Lott (2010)
Cops warn Chicago tourists soon will be armed: Bennett


Here Comes Obama’s Raid on Your Retirement: Denninger
Another One! Beretta Flees Maryland Over Gun Control Laws: RWN
Miami code enforcement to nuns: Stop feeding the poor: Miami Herald

Kentucky’s Runaway Pensions: Williamson
Back from fundraisers, President Obama hits the links: Twitchy
Companies still cutting employees’ hours because of Obamacare: Twitchy

Authorities Seize $ 50 Million In Gold From Private Owner: SHTFplan
Sprott: Why SocGen Is Wrong About Gold’s Imminent ‘Demise’: ZH
Firearms Company Relocating To North Texas: CBS Dallas

Scandal Central

How DC insiders launder insider market information for the rich: Boing Boing
Bloomberg’s Anti-Gun Pennsylvania Mayor Drunkenly Seeks Oral Sex — at Gunpoint: RSM
‘Billions and Billions and Billions’: Biden Has No Comment on Fisker Failure: RSM

Climate & Energy

New EPA regs give coal plant just two-week window to begin construction: Exam
Senate GOP blasts EPA for release of private business info to environmental groups: Hill
USA meets Kyoto protocol goal – without ever embracing it: Watts


Long Overdue Brutal Honesty: RSM
Univision Wins Peabody Award for Fast and Furious Documentary: Guns
Rahm is Everywhere!: SCC

Four AP Reporters Make Excuses, All Unacceptable, for Weak March Jobs Report: Blumer
Frum: Shooting off his mouth… and other parts of his anatomy: Daily Pundit
MSNBC’s Hayes: Let Released Gitmo Detainees Live in U.S., with Paid Restitution: NB


Ex-CIA Analyst Expects North Korea to Attack South Korea Before Tensions End: Wired
US Secretly Deploys B-1 Strategic Bombers, E-6 “Doomsday” Planes Near North Korea?: ZH
Once-Prosperous Italian Couple Kills Themselves Amid Austerity Measures: Gawker

Israel Hacks Anonymous Back, Posts Israeli National Anthem On Their Site: WZ
Reuters: “Five die in Christian-Muslim clashes in Egypt”: Atlas
Images of war: A child wanders amid the rubble and dust of a town he called home: DailyMail

Sci-Tech (courtesy

Top 10 Tech This Week: Mashable
Designer Purses for Concealed Guns: NBC Bay Area
IRS High-Tech Tools Track Your Digital Footprints: Yahoo!


Who Sedit?: C&S
Mid-fight in the Organic Garden of Good and Evil: MOTUS
And Now A Jawa Report Palate Cleanser: Jawa

Image: Images of war: A child wanders amid the rubble and dust of a town he called home
Today’s Larwyn’s Linx sponsored by: Are you ready? Visit BadBlue Prep

QOTD: “The North Korean regime is a crime syndicate that has through cruelty, starvation, and torture duped the masses into believing it is something else.

The problem — I fear — is that Kim Jong Un has himself been duped. I could very well be wrong, but my concern is that unlike his father and grandfather, he’s come to believe the propaganda. Like Hitler in the bunker ordering that non-existent armies be moved into position, I fear he doesn’t realize that his country is, militarily speaking, like a giant bee. It can deliver a horrible sting, but once it does, it will die.

I also think he’s more than a few fries shy of a Happy Meal. People used to say he spent time in the West and so he can’t be all bad or too crazy. I love this kind of horsehockey. You know who else spent time in the West? Lenin, Marx, the Ayatollah Khomeini, Pol Pot, Ho Chi Minh, Sayyid Qutb, and Michael Jackson just to name a few.” —Jonah Goldberg

Doug Ross @ Journal

Obama Moves To Authorize Domestic Drone Strikes: “The Rules Outside Of The United States Are Going To Be Different Than The Rules Inside Of The United States”

The Department of Homeland Security recently advanced a plan to deploy “public safety” drones in the skies over America, an action Congress authorized last year and called for the deployment of 30,000 drone surveillance vehicles by 2020.

While DHS head Janet Napolitano says the primary mission for domestic drones is for situational awareness in “large public safety [matters] or disasters”, President Obama may have a different idea for how best to implement this next generation of frightening surveillance technology.

Well known for his obsession with remote drone attacks, reportedly going so far as to personally sit in on unmanned aerial vehicle missions, the President was recently asked about concerns from American citizens about the possibility of extra-judicial military drone strikes within the borders of the United States.

Obama has not only failed to deny that he has such plans, but makes it clear that his administration is working closely with Congress to develop a legal framework that will allow the Chief Executive and his subordinates the leeway to initiate strikes right here at home.

First of all… there’s never been a drone used on an American citizen, on American soil.

We respect and have a whole bunch of safeguards in terms of how we conduct counter-terrorism operations outside of the United States. The rules outside of the United States are going to be different than the rules inside of the United States.

I am the head of the Executive branch and what we’ve done so far is to try to work with Congress on oversight issues.

Part of what I’m going to have to work with Congress on is to make sure that whatever it is we’re providing Congress, that we have mechanisms to also make sure that the public understands what’s going on, what the constraints are, what the legal parameters are.

That’s something that I take very seriously.

I am not somebody who believes that the President has the authority to do whatever he wants or whatever she wants, whenever they want,  just under the guise of  counter-terrorism.

There have to be checks and balances on it.

One can only conclude that military and law enforcement drone strikes will soon be business as usual, and likely the preferred method for dealing with, as the Patriot Act outlines, those who “intimidate or coerce the civilian population” or attempt to “influence government policy” – pretty much anyone who disagrees with what the government is doing.

As Chris Carrington rightly points out about pre-emptive government prosecution, under the National Defense Authorization Act “individuals who have committed no crime can be arrested and incarcerated at the will of the government without proven cause.” Will this new legal framework now expand on Patriot Act and NDAA to allow for a militarized government response to potential threats?

For those who would call for such extreme action as firing a military grade remote Hellfire missile at a domestic target, as the media recently suggested we should do during the hunt for Chris Dorner, consider that Global Research recently reported that over 40% of drone casualties are innocents – often children.

But such collateral damage would never happen in America, right? The NYPD, for example, would never randomly open fire in the middle of a busy street and shoot civilians. Likewise, the LAPD would never overreact and send a barrage of bullets at two innocent newspaper carriers who happen to be in a vehicle matching the description of what a suspect may be driving.

With drones, such incidents would be reduced or all but eliminated right? This legal framework being developed by President Obama’s administration with the help of Congress would ensure that no innocents will be killed, right? Law enforcement and military would never target criminals or terrorists if it would endanger innocent Americans who might be in their direct vicinity, right?

And never would they be used to target American citizens unless actionable intelligence of an impending threat was real and confirmed by, as President Obama notes, a “whole bunch of safeguards.”

To paraphrase President Obama, Diane Feinstein and the many Congressional representatives who support a safer America, it’s time we start disarming those who have access to these weapons of mass destruction. These military style assault weapons have no use in hunting or sporting, and have no business being on the streets of America.

SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You