You cannot at the same time have the government telling you that the banks are safe and sound and at the same time preparing to, or actually, seizing your funds. That is felony grand theft and fraud — period.
That is not confined to Cyprus. Now Canada intends to put the same system in place. Buried on page 144 and 145 of their latest budget document is the following ditty: http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf
The Government proposes to implement a â€•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.
Systemically important banks will continue to be subject to existing risk management requirements, including enhanced supervision and recovery and resolution plans.
But note that there is no recompense when that “enhanced supervision” fails.
When you deposit funds into a bank the cash the bank now has is an asset. The deposit is a liability. What they are talking about is you, the depositor, being the one who is tagged for that “very rapid conversion” — that is, they’re simply going to steal your money.
This, coming in the paragraph before they claim to have enhanced supervision, is an all-on joke. Either that supervision is an obligation of the government upon which you have a right to depend or it is an active and intentional fraud intended to lead you to leave money on deposit through deception when in point of fact doing so is not safe.
Which is it?