Putin Leaves G20 Very Early – Snubbed by Western Leaders – Really Stupid Indeed
Western leaders merely ganged up on Putin rather than trying to work out a deal nice and quietly. You cannot push someone up against the wall and not expect a reaction. The FT reports of tensions between Putin and even the Canadian Prime Minister Stephen Harper who seems to dance whenever Obama plays the fiddle. Harper said to Putin: “I think I’ll shake your hand, but I have to tell you only one thing. You have to pull out of Ukraine”
Well – geopolitical smarts clearly lawyers do not possess, The Cold War is back and there is a danger it will turn Red Hot – let’s hope it does not move all the way to White Hot. Putin has been demonstrating he can bomb even Brussels and fly into US air space. You would think these idiots masquerading as world leaders would understand he is trying to show that they should respect Russia. Instead, they presume it is just a scare tactic with no teeth. They are SERIOUSLY wrong. Failing to show Putin and Russia respect is step one in creating war.
The G20 Question from the Canadian Perspective
QUESTION: Martin, thank you very much for all that you have done for the middle class reader. I am a Canadian that only discovered you about a year ago. In this short time your teachings have still had a positive impact on my financial situation. I was one of the Gold believers but have sold most of my positions based on your daily writings and the Gold report. I would be in a much better position if I would have discovered you before 2012. When you talk of moving money to the stock market; is it safe to keep stocks in a trading house or should they be in certificate or DRS form? Is it only cash accounts like checking and savings accounts that are at risk or are RRSP’s held at banks also at risk? Thanks again for all the good that you’re doing for those of us that aren’t in the financial position to make use of your management services. There are not many people like you, willing to help others without asking for anything in return. You are one of the good ones!
SC
ANSWER: I have pretty good sources because everyone contributes to what we do. In that way, it is in everyone’s self-interest to share info to achieve the correct answer. So we will scrutinize the end result very carefully.
It is a difficult question with the banking system as is. I invite those in the banking community that would like to carve out a new notch in business that this is the time. Nevertheless, from a Canadian perspective this is what has been going down up there contributed by our Canadian sources.
There were some changes recently to the types of securities that can be issued by Canadian banks with some additional changes coming in early 2015. I am certainly not an expert on the subject but I will pass along what I believe to be correct. The changes have come into the preferred and sub debt securities. The Senior Deposit Note changes are expected in the first half of 2015.
1) NVCC Preferred Shares — “non viable contingent capital” – currently these are just being issued by the Banks and RBC has done one. Rules for insurance companies will follow. The concept is that if the price of the Bank’s share price hits a certain price determined by a multiple, then the pref share become equity as well on a 5 for 1 basis.
2) NVCC Sub Debt – replaces all previous sub debt on maturity/ refinancing. The concept is similar to the pref shares, however, when the shares hit a certain price, then there is a predetermined formula to determine that price and when hit, the Sub debt get an immediate conversion to equity.
They are still contemplating Bail-ins for Senior Deposit Notes and I will keep you apprised as I hear anything new.
Of course, if we go into that Phase Transition and the Dow hits 40,000, where will we put the money at that point? That is the end game and at that point I believe we will emerge with a new monetary system 2.0.
The Truth About G20 Banking Directive
Apparently my post is now being taken up and regurgitated by others rewriting what I have written that your bank account has been stolen, and somehow this is the end of money to just about aliens have landed. These exaggerations are obviously written by people lacking the legal understanding of this issue.
LEGALLY MONEY IN A BANK HAS NEVER BEEN YOUR’S – nothing has changed. What has changed is that government is reneging on the New Deal andSocialism. The entire reason for creating the FDIC was for the government to regulate banks and thus guarantee them. The money is simply NOT yours andNEVER was once you deposit it into a bank. You become the same as a shareholder possessing merely a claim as an UNSECURED creditor in the case of a bankruptcy.
G20 is recognizing this LEGAL status and simply saying – HEY, there is NOobligation to bail anyone out. Remember I explained the Constitution is NEGATIVEnot POSITIVE and that means there is NO legal obligation upon government to do anything for society but restrain its own actions.This is part of the DEFLATIONARYwarning I have been saying all along and getting a ton of shit for. This is NOT going down the road of HYPERINFLATION – this is DEFLATION. The destruction of capital not the expansion of it. I have warned this is the COLLAPSE of Socialism. That means government walks away from its promises – it will not print money into oblivion.
Governments are walking away from Socialism. That is the ONLY change – nothing else. Nobody stole your bank account because it was NEVER yours to begin with. This is being completely misreported once again. If you do NOTunderstand the system, how can you make claims about it? People will act in the exact wrong manner with false info.
BEWARE of sophistry here. These statements are NOT true. Money did not dienor did anyone take your account, which was legally NEVER yours to start with. When you deposit money in a bank, you are agreeing to allow them to lend it out meaning its is not your’s anymore. If you deposit a $20 bill, you do not get the same exact $20 bill when you withdraw.
I do not know how I can explain this any better. They simply reneged on bailing out the banks. The last collapse 2007-2009 has been devastating. I keep warning liquidity is down 50%, then they are hunting money like crazy stopping global capital flows resulting in higher systemic unemployment with greater volatility on the horizon. Go ahead and withdraw $20,000 in cash. Then the police will stand right behind you and confiscate it under Civil Asset Forfeiture presuming the MONEY is guilty without having to prove you committed any crime. Reasonable people for not carry $20,000 in cash – you must be a criminal in their view.
This is a serious issue that should NOTbe spun to scare people. Come on. These stories can seriously hurt people. This is the collapse in Socialism – the government walking away from its promises. That is the bottom line. Your credit cards will still work and they will move faster toward electronic money and that will prevent bank runs. How will you take your money out of a bank? Say please, put it on this CD-ROM?