Sunday, January 18, 2015

European Bank Runs Are Spreading

While many corporate controlled news outlets assure its viewers daily that all is well with the financial world and that at least the US economy has strongly recovered from the 2008 Lehman collapse even though 0% interest is the prevailing policy, they do so at the expense of the truth with the latest example being the insolvency of Banco Santander.
Banco Santander, one of the largest continental European banks headquartered in Spain, announced without warning that it needed the equivalent of 8 billion dollars to keep its doors open, resorting to the calling of numerous loans to close the gap.
Its banks in the United Kingdom witnessed a 30% withdrawal of funds in a massive bank run which has received scant attention.
Interviewed in King World News, Dr Philippa Malmgren  warned that the bank runs could easily spread - not just throughout Europe but also to the United States since US banks, as with Banco Santander, have significant interrelated exposure to emerging markets which have been beaten by currency devaluations and economic stagnation.
We have maintained that the banking problems of 2008 and earlier were never resolved by forced liquidation of bad loans and undercapitalized banks. Instead, the Rothschild's Federal Reserve engineered 24 trillion USD of payoffs, wealth transfers, and thefts to paper over the banking insolvencies.
The Federal Depositor's Insurance Corporation, though granted a 500 billion USD line of credit in 2009 would only be able to cover losses by using money printed by the criminal Federal Reserve. In any event, the FDIC does not have the resources to bailout depositors and takes years and decades to pay off depositors, if ever it does. There are many account holders from the Savings and Loan crisis of the early 1990s who have never been paid, and never will be paid.
The idea that depositors would be promptly paid in the event of bank collapses are absurdities cultivated through lies and imbecilities.
Furthermore, the 2005 bankruptcy law changes made depositors creditors who must take a junior position in the hierarchy of claimants on a failed banks' assets. This means that most depositors will not be paid any insurance claims, or at best be paid at a fraction of their losses.
The bail-ins which occurred in Cyprus in 2013 will be re-enacted in the US should bank runs begin in earnest.
The economic catastrophes looming in Europe have been engineered to justify the European Union Central Bank beginning wholesale quantitative easing, a program begun in the United States to buy bad and good loans from banks as a way of cleaning up their balance sheets and liquefying them for further operations. As it is, the Federal Reserve is insolvent, and could not withstand widespread bank runs.

Former White House Official – Europe In Danger Of Mega-Bank Runs That Jeopardize The World, King World News, January 18, 2015, accessed 1/18/2015.

Copyright 2015 Tony Bonn. All rights reserved.

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