America, Anger, angry, Atomic bombings of Hiroshima and Nagasaki, Bankruptcy, Charlie LeDuff, Congress, crime, Democrats, Detroit, dysfunctional, Europe, Federal Government, global, GOP, greed, LeDuff, Lindsey Graham, lust, Michigan, Middle East, older, politicians, politics, Poverty, power, power-hungry, Republicans, shallowness., U.S, United States, vanity, white males, world
“Fifty years after the atom bomb, Hiroshima and Nagasaki are gleaming, thriving metropolises. After 50 years of failed government promises in Detroit, the money has dried up, welfare has run out and the city is headed for fire sale. With cities and states across the USA not far behind and teetering on the brink of bankruptcy, Detroit is no longer just a punch line. It is a warning of the future to come for millions of Americans.”
‒ Charles Hurt
This is a story about the politics of anger. The quote above forms the last paragraph of a review of Charlie LeDuff‘s gut-wrenching book, Detroit, An American Autopsy. It’s a powerful book that speaks volumes not only about Detroit but also about most big cities in America today – cities where petty crime, gang violence, drug addiction, prostitution, poverty, vandalism, vagrancy, filth, abandoned buildings, arson, and despair have been on the rise for decades. Remarkably, LeDuff’s chronicle of Detroit’s descent avoids partisan rancor. His is a story of a city suffering from a chronic condition that has taken an ugly turn and become terminal. And, yes, he’s angry; very angry.
There’s a lot of anger in America, Europe and the Middle East and, come to think of it, everywhere. Anger like everything else has gone global. We recognize it when we see it – in others, that is – but it’s here, too, it’s on the rise, and it explains as least as much about politics in contemporary America as such other deadly sins as greed and power lust. In fact, it’s probably more central as a motivating force behind our dysfunctional politics than either.
Take Charlie LeDuff, for example. LeDuff’s anger is visceral. He makes no attempt to hide it – and no apologies. He’s angry with leaders who don’t lead and politicians who make promises they don’t even try to keep. He spares no one and directs his anger at both of our major political parties. And, of course, he’s right to do so.
Australia, bail-in, bailout, banks, Canada, collapse, corruption, Cyprus, Deposit account, depositors, derivatives, Dodd–Frank Wall Street Reform and Consumer Protection Act, Economy, EU, European Union, fraud, governments, greed, IMF, International Monetary Fund, mega-banks, money, New Zealand, stealing, The Great Cyprus Bank Robbery, theft, Too big to fail, U.K., U.S
Cyprus-style confiscation of depositor funds has been called the “new normal.” Bail-in policies are appearing in multiple countries directing failing TBTF banks to convert the funds of “unsecured creditors” into capital; and those creditors, it turns out, include ordinary depositors. Even “secured” creditors, including state and local governments, may be at risk. Derivatives have “super-priority” status in bankruptcy, and Dodd Frank precludes further taxpayer bailouts. In a big derivatives bust, there may be no collateral left for the creditors who are next in line.
Shock waves went around the world when the IMF, the EU, and the ECB not only approved but mandated the confiscation of depositor funds to “bail in” two bankrupt banks in Cyprus. A “bail in” is a quantum leap beyond a “bail out.” When governments are no longer willing to use taxpayer money to bail out banks that have gambled away their capital, the banks are now being instructed to “recapitalize” themselves by confiscating the funds of their creditors, turning debt into equity, or stock; and the “creditors” include the depositors who put their money in the bank thinking it was a secure place to store their savings.
The Cyprus bail-in was not a one-off emergency measure but was consistent with similar policies already in the works for the US, UK, EU, Canada, New Zealand, and Australia, as detailed in my earlier articles here and here. “Too big to fail” now trumps all. Rather than banks being put into bankruptcy to salvage the deposits of their customers, the customers will be put into bankruptcy to save the banks.
Americans, ATMs, Bank account, bank accounts, banks, Canada, citizens, corruption, Cyprus, Deposit account, dirty politics, Dodd–Frank Wall Street Reform and Consumer Protection Act, Economy, EU, European Union, FDIC, Federal Deposit Insurance Corporation, Federal Reserve, finance, greed, Legislation, looting, mega-banks, middle class, money, New Zealand, Poor, power, power-hungry, stealing, The Great Cyprus Bank Robbery, theft, U.S, uninsured, United States, unsafe., Wall St., Wall Street
Finance is a new form of warfare. It’s more powerful than standing armies. Banking giants run things. Money power has final say.
Economies are strip-mined for profit. Communities are laid waste. Ordinary people are impoverished. Even their bank accounts aren’t safe.
Officially they’re called “bail-ins.” It’s code language for grand theft. Instead of breaking up, nationalizing, or closing down failed banks, depositor funds will keep them operating.
Money printing madness can’t go on forever. Regulators, like FDIC, haven’t enough money to insure depositors. It’s simple mathematical logic.
Ordinary people and richer ones have trillions in bank accounts. It’s low-hanging fruit. It’s a treasure trove begging to be looted. Legislative shenanigans legitimize it.
It’s happening offshore. It’s approved in Canada. It’s coming to America. “What happened in Cyprus isn’t a ‘one-off,’ ” said Summers. When systemic crisis hits, things happen “FAST and FURIOUS.”
Cpyriot bailout talks continued for months. “And then the entire system came unhinged in one weekend.”
Banks closed. Capital controls were imposed. People couldn’t write checks. They lost access to their money. Limited amounts only were permitted. Insiders were tipped off. They exited early. Others uninformed now suffer.
Think it can’t happen here? Think again. It’s coming. Proposed FDIC legislation lets it “TAKE CONTROL OF BANKS IT DEEMS SYSTEMATICALLY IMPORTANT AND WRITE DOWN YOUR SAVINGS (AND OTHER BANK ACCOUNTS) AS PART OF THE BAIL-IN.”
It’s wrongheaded. It provides a veneer of regulatory cover. It’s a scam. It’s laden with false diagnoses and fatal flaws. It lets Wall Street continue business as usual.
It’s secret provision permits looting depositor bank accounts. Four months ago, formal strategy was drafted. It’s ready when America’s next crisis hits. Graham outlined three steps:
(1) Designate systematically important banks.
(2) Control those deemed at risk of default.
(3) Write-down depositor savings in value. In other words, loot them. Money thought safe is gone.
Few Americans understand. It’s not publicly acknowledged. Legislation already was drafted. FDIC implementation rules are ready. Eventual crisis is virtually certain. Only its timing is unknown.
Now’s the time to protect assets too important to lose. Forewarned is forearmed.