Get ready Canada... it's "haircut" time... Cyprus style

It seems that there is a provision buried in the 2013 Canadian national budget...

Titled ECONOMIC ACTION PLAN 2013 and tabled in the House of Commons by Minster of Finance James Flaherty on March 21st, the official 2013 Canadian budget contains an explicit provision that Canada will pursue the bail-in model for systemically important banks for future bank failures!

wait... there's more!

from Page 144:

“The Government also recognizes the need to manage the risks associated with systemically important banks—those banks whose distress or failure could cause a disruption to the financial system and, in turn, negative impacts on the economy. This requires strong prudential oversight and a robust set of options for resolving these institutions without the use of taxpayer funds, in the unlikely event that one becomes non-viable.”

from Page 145:

The Government proposes to implement a bail-in regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital. This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada. Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants…

There you have it... Haircuts have officially come to North America. But don't worry... this could NEVER happen in America. I bet the Japanese Americans who were put in prison camps thought that as well... NEVER in America.

Link to budget PDF

Link to story

I'm glad I'm poor.

Edit: I was responding to the headline. I read and looked a bit further and my brain screamed!

From the actual budget pdf:

The Government proposes to implement a "bail - in" regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital . This will reduce risks for taxpayers. The Government will consult stakehol ders on how best to implement a bail - in regime in Canada . Implementation ti melines will allow for a smooth transition for affected institutions, investors and other market participants.

BANK LIABILITIES:

What a bank owes, including most notably customer deposits. Bank liabilities are typically listed on the right-hand side of a bank's balance sheet. Bank assets, what a bank owns, are listed on the left-hand side of a bank's balance sheet. Net worth is the difference between assets and liabilities. The most important liability category of most bank is checkable deposits, which is part of the economy's M1 money supply. The largest liability category includes other types of deposits (especially savings deposits, certificates of deposit, and money market deposits) that enter into the M2 and M3 monetary aggregates.

Most notably customer deposits!? Wth.
Well, I will be emailing my elected official here in Saskatchewan and see what answer he comes up with. This shouldn't even be an effin thought in their mind! I will also be letting my bank know that this is the reason why I will not be dealing with them again.

I wish if I spent all my money, someone would give me more.

reply to post by OptimusSubprime



Hey Canadians... may I recommend that if you have any savings in the bank, that you remove it and buy some Canadian silver Maple Leafs (or gold Maple Leafs if you can afford it) Then you won't have to worry about this.

So, theft of a nation's citizen's funds is now just supposed to be a common practice? All over?

Nice.

I'm glad I don't have money (to put) in the bank..

S&F

Originally posted by superman2012
I'm glad I'm poor.

Edit: I was responding to the headline, when I read the link to story, I was skeptical as they want to sell you silver to hedge against this.
From the actual budget pdf:

The Government proposes to implement a "bail - in" regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital . This will reduce risks for taxpayers. The Government will consult stakehol ders on how best to implement a bail - in regime in Canada . Implementation ti melines will allow for a smooth transition for affected institutions, investors and other market participants.

BANK LIABILITIES:

What a bank owes, including most notably customer deposits. Bank liabilities are typically listed on the right-hand side of a bank's balance sheet. Bank assets, what a bank owns, are listed on the left-hand side of a bank's balance sheet. Net worth is the difference between assets and liabilities. The most important liability category of most bank is checkable deposits, which is part of the economy's M1 money supply. The largest liability category includes other types of deposits (especially savings deposits, certificates of deposit, and money market deposits) that enter into the M2 and M3 monetary aggregates.

Most notably customer deposits!? Wth.
Well, I will be emailing my elected official here in Saskatchewan and see what answer he comes up with. This shouldn't even be an effin thought in their mind! I will also be letting my bank know that this is the reason why I will not be dealing with them again.

I wish if I spent all my money, someone would give me more.

edit on 27-3-2013 by superman2012 because: (no reason given)

Silver Doctors is a financial news site, mostly in regards to metals. The Bullion site they have is actually pretty new... they haven't been in the business of selling metals for very long. Silver Doctors is linked to quite often on various alternative news sites like SGT Report... SHTFPlan... Max Keiser... Etc The bottom line is that people should have a serious problem with a government even mentioning confiscation of deposits in any way, shape or form. The fact that the idea is even being floated should make people worry.

Originally posted by OptimusSubprime
reply to post by OptimusSubprime

 

Hey Canadians... may I recommend that if you have any savings in the bank, that you remove it and buy some Canadian silver Maple Leafs (or gold Maple Leafs if you can afford it) Then you won't have to worry about this.

Those leaves will be worthless if everyone takes your advice. If you are going to withdraw all of your money, buy guns, ammo, alcohol, drugs, gas, and food.... because you're gonna need it.

Originally posted by Bone75

Originally posted by OptimusSubprime
reply to post by OptimusSubprime

 

Hey Canadians... may I recommend that if you have any savings in the bank, that you remove it and buy some Canadian silver Maple Leafs (or gold Maple Leafs if you can afford it) Then you won't have to worry about this.

Those leaves will be worthless if everyone takes your advice. If you are going to withdraw all of your money, buy guns, ammo, alcohol, drugs, gas, and food.... because you're gonna need it.

Well yes... the way I think is that I assume that all of those needs are taken care of. Silver/gold is the absolute LAST thing one should buy when prepping.

reply to post by OptimusSubprime

Sorry, I edited my post. I didnt mean to imply the source was wrong.

reply to post by Bone75

Those leaves will be worthless if everyone takes your advice. If you are going to withdraw all of your money, buy guns, ammo, alcohol, drugs, gas, and food.... because you're gonna need it.

I hope that at this point, with various governments either outright stealing the citizens' money, or talking about it being a possibility in such an open manner, that everyone is doing something to prepare for the possibility.

My strategy is to wean off of the system now by becoming more self sufficient.

Originally posted by superman2012
reply to post by OptimusSubprime

 

Sorry, I edited my post. I didnt mean to imply the source was wrong.

I know what you meant... it's cool

reply to post by daryllyn


As soon as I hear from my MLA and MP I will post exactly what they say in this thread. Good job Optimus, I probably would not have looked for this or noticed it unless it was on ATS...too concerned with Iran, NK, Cyprus.

“The Government also recognizes the need to manage the risks associated with systemically important banks—those banks whose distress or failure could cause a disruption to the financial system and, in turn, negative impacts on the economy. This requires strong prudential oversight and a robust set of options for resolving these institutions without the use of taxpayer funds, in the unlikely event that one becomes non-viable.” Translated, Without the use of taxpayer funds means via depositor funds. And the meat of the provision,

Oh, I see and the savers are not tax payers? Is that right.

I can see all banks worldwide following suit so that there is no safe place to bank. Another though I had was that the Canadian government must know something that is not publicly available, like they have some insolvent banks already.

Originally posted by superman2012
reply to post by daryllyn

 

As soon as I hear from my MLA and MP I will post exactly what they say in this thread. Good job Optimus, I probably would not have looked for this or noticed it unless it was on ATS...too concerned with Iran, NK, Cyprus.

Well, that's what snake in the grass government officials count on... that we are distracted and not paying attention

reply to post by OptimusSubprime


Agreed. I sent both emails out already. Last time I did asking them why my government closed the Iranian Embassy I did not get the courtesy of a reply. This time I will be following up as I know where both of their offices are and they are not far from me. Hard to ignore someone asking you questions when they are in the same room.

reply to post by GrantedBail


What their saying is, be careful who you bank with. If the bank of your choice goes underwater all assets become fluid and under their control before tax dollars will be spent to help out. I especially like the word "rapid" is used. To me this means it would go down exactly like in cyprus. One day is peachy and the next the bank is closed and the ATM's are dry.

Scary stuff.

By the way, all the quotes in this thread have been verified. I took the boring task to read thru checking context and verbage. Crazy crazy stuff here.

Originally posted by OptimusSubprime
Hey Canadians... may I recommend that if you have any savings in the bank, that you remove it and buy some Canadian silver Maple Leafs (or gold Maple Leafs if you can afford it) Then you won't have to worry about this.

I've done this myself with about 20% of my savings invested in physical silver. Everyone thinks I'm crazy or weird, but time will tell...

I recommend buying the semi-numismatic Wildlife series coins instead of the maples, as they tend to increase in value due to the collectability, and are only a buck or two more than the maple leafs per ounce.

Silver is very cheap right now too. It costs about 20 - 26 dollars per ounce to get the stuff out of the ground and smelt it, and spot price is 28 dollars. Not to mention global production of silver is decreasing, and demand is rising... couple that with the inflation of currency and it is a solid hedge.

A huge part of me wishes that we could pull an Iceland, jail the banksters... and just start over.

I don't which we be more painful. Iceland? Or the alternative?

All of these stories set off huge red flags for me. Definitely time to step up the prepping.

reply to post by litterbaux


Be careful?? How are you to know when the fox is watching the hen house? The regulators are as crooked as the banks.

Uncounted Liabilities

One of the most interesting issues of what has happened in Cyprus is where was the problem three weeks ago? There was not a mention, not a hint of anything that was wrong. All of the banks in Cyprus had passed each and every European bank stress test. The numbers reported out by the ECB and the Bank for International Settlements indicated nothing and everything reported by any official organization in the European Union pointed to a stable and sound fiscal and monetary policy and conditions. The IMF, who monitors these things as well, did not have Cyprus or her banks on any kind of watch list.

What happened?

Let me assure you it was not some "Miracle on 34th Street" that took place overnight while everyone was in bed and counting sheep. I can also assure you it was not because some bean counter in Brussels or Frankfurt stumbled over some new bit of data and informed his superiors. Nothing of the sort. The culprit is what is counted and not counted in the European financial system and the quite real consequences of uncounted liabilities.

www.zerohedge.com...

Originally posted by daryllyn

I hope that at this point, with various governments either outright stealing the citizens' money, or talking about it being a possibility in such an open manner, that everyone is doing something to prepare for the possibility.

My strategy is to wean off of the system now by becoming more self sufficient.

You and I (and many other ATSers) are on the same page, but the reality is that there are multitudes of people out there that couldn't care less about all of this stuff. An economic collapse is going to very rough, especially considering our lack of a Plan B.

My strategy is to keep prepping heavily and to keep working on a Plan B for all of us.

i totally saw this coming years ago and made sure i had no savings in my savings account. Oh the rewards of vigilance!