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The Mother of all Bank Runs!

OWoN: If this unfolds, what then?

It is what happens when confidence erodes to the point it has.


Crowd gathers outside NYSE


The Mother of all Bank Runs!


Miles Franklin
By Bill Holter
8 December 2014

Do you remember seeing old pictures of the Great Depression which depicted “lines?” There were two types, bread lines and also lines to the front doors of banks. While we don’t see any bread lines today, trust me, there are bread lines in every single state and long ones at that. Nearly 50 million people in the U.S. survive on SNAP, EBT cards or whatever they are called in your state. Can you imagine the “confidence” it would instill if each day on your way to work you saw massive lines of people waiting for breakfast? Or, when you came home from work you turn on your television only to see long lines again, this time for supper? I can see it now, some reporter out on the street giving us the “good” unemployment, inflation or GDP news with a line of people in the background waiting for food. My point? False economic news would be harder to “sell” and even harder to “stomach” (pun intended).

Back during the Great Depression there were also the other type of lines, these formed in front of banks. Many banks either “ran out of money” or had poor investments which led to their demise. We also had this type of activity in the U.S. in 2008-09 …but again, we just didn’t see them. There were “electronic runs” of all sorts which we either didn’t hear about or never saw …but they did happen. This is why so many banks, brokers and mortgage companies were rolled up together and merged. The failures had to be hidden as best they could from the public’s eye because fear would have bred more fear. This cannot be allowed in a system built and standing alone on “confidence”.

I mention the above because another situation is now arising, another “line” is beginning to form. The current line formation is unfortunately the scariest imaginable, we are facing the Mother of all Bank Runs! This past week Willem Middlekoop uncovered another central bank asking for their gold back, Belgium. We already know Germany had publicly requested their gold back beginning in early 2013 and gotten very little so far. Just a couple of weeks back, The Netherlands announced the repatriation of 122.5 tons of gold …after the fact. When the announcement came, it said the transfer and transaction had already been done. Several days afterwards, a leading candidate for France’s next election also brought up the possibility of French gold being repatriated …and now it’s Belgium!!!

Notice I used three exclamation points, I did so because of all the central banks to request their gold back; Belgium in my opinion would be the very last to do so with one “caveat.” The caveat being “unless something REALLY big has changed,” let me explain. First, Belgium is the “seat” of the European Union, this is where all European decisions are made and announced (with Germany’s approval of course). The decision to repatriate gold from the “safe haven” of New York and to do it publicly raises eyebrows on its own, but this is Belgium, not “just some country” in Europe. Brussels is where the EU itself is headquartered. We are talking about a dealing between the #1 and #2 Western central banks in the world, did the EU or ECB in Frankfurt give the OK to ask for repatriation? Yes I understand, Belgium’s central bank is not the ECB but would they or any other central bank request repatriation without ECB approval? The same could be asked of both Germany and The Netherlands, they must have had prior approval before asking for their gold back?

Looking at this a little further, I remind you of earlier in the year when it was discovered “Belgium” was holding some $400 billion worth of Treasury securities. This was termed the “Belgian bulge” and not really explainable because Belgium as a country did not have the wherewithal to have purchased this amount. Either this was done via proxies or with ECB help or some other manner, it has never been explained to my knowledge. I mention this because of the important “tie” apparently between the U.S. and Belgium. If “Belgium” trusted us so much to have purchased $400 billion worth of Treasuries, then why repatriate their gold? Belgium has 227 tons of gold, we found out in 2011 that 86 tons of this amount were on lease, leaving approximately 141 tons at the FRBNY. This is only worth in current dollars somewhere close to $5 billion. The “ratio” if you will is better than 80 to one, Treasuries to actual gold “held” but not leased (hopefully?).


Soup Kitchen reportedly sponsored by Al Capone


Why does it even matter what the ratio is? Let’s walk this through, because we are talking about the issue of “trust”. The only reason one would repatriate gold is because they want it in hand. If you believed your gold was safe and sound, protected and “actually there,” no one would ask for their gold back. Belgium has displayed their confidence by holding $400 billion worth of U.S. Treasuries …but apparently not with the U.S. holding less than $5 billion worth of gold? Why the dichotomy of trust? Actually, I will use a better word, “bifurcation” of trust, and yes there is a pun within this one too.

Another piece of news out of the ECB (Belgium) this week was the classification of member’s gold reserves. Koos Jansen brought this to our attention which on its own is very big news but has now been overshadowed by the repatriation news though most definitely connected. The member states it seems they are being told to differentiate between allocated and unallocated gold, and to also break down swap positions and receivables. Theoretically this should make gold holdings less opaque and more clear to view, but why? Why change the reporting and why now during the repatriations…?

I of course do not have the answer but we can speculate something has and is definitely changing, and this “something” is HUGE! I say huge because these events are a change to policy which has stood the test of 70 years’ time. For the last 70 years, the world has stored their gold at the New York Fed and never asked for it back. Other than Germany withdrawing 1,000 tons from the Bank of England in 2001, Venezuela is the only country to ask for their gold back…until now. The only way to describe what is beginning to happen is to call it a bank run, The Mother of all Bank Runs and an “old fashioned one” at that!

This will be very interesting to watch exactly because of the “old fashionedness” and the scramble for what we have been told and taught for so long to be a worthless barbarous relic, gold. Current day bank runs as you know have been papered over time and again, just look at Fed, ECB and BOJ balance sheets to understand this fact. They continually printed new monies and bought failing paper from dying banks to keep them alive. The creation of new money was the key, the fact that gold cannot be created out of thin air is the sticking point.

As this bank run progresses, please keep in mind the central banks will be telling anyone willing to listen, what the true definition of money is …by their actions…without actually saying it. As central banks fight over gold, they will be standing publicly and buck naked telling the world exactly what money is and what it isn’t. Watch as the central banks fight over what today are meaningless dollar amounts of gold. Do you understand what I am trying to say here? For central banks to even care about a few billion dollars is a ridiculous thought, but maybe it’s not “just a few billion dollars?” Maybe they are beginning a fight over “all the money in the world?” Please understand, this is for all the marbles! One last note, if it turns out Belgium does decide to repatriate their gold, this would mean Germany, Holland and Belgium have all done the same exercise. I would add that Austria would probably be next …which would mean what? The stage would then be set for a likely breakup of the formal EU into “north and south” regions. These nations while holding gold in hand would benefit from a markup in gold prices and allow for a “northern euro,” backed partially or on a ratio basis to gold. The line is forming and the back of the line is no place to be!

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14 comments :

  1. Very Good article. My parents were both born before the Depression and learned a lot from both of them. They told me about the bread lines and bank runs. Dad knew the soup and bread lines well, mom grew up on a dairy farm were they had plenty.

    Bottom line is the NY Fed doesn't have the gold. The writer is quite right, countries storing their gold with the NY Fed don't want to be last in line asking for it back. That soup pot is empty.

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  2. Deposing the current system will allow the world to prosper. Staying here and buying time is not a luxury. According to many indicators we are "in a second great depression now..."

    I recall being told about the "bankers" committing suicides? Or as today, we realize that this is part of a mass cover up with hundred of trillions of dollars being stolen from the citizens...this has global implications...

    It's time for our leaders to be held accountable...mass engineering of the entire world population...their Agenda has been exposed and will be stopped.

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    1. Agree Fedup, staying in this debt based system is not in anyone's best interests. Although disagree about being in a 2nd Great Depression now, don't think we are far off either. There are countries though that are dealing with their own regionalized Great Depressions. Where economic reality brings little opportunity for those other than the corrupt. Although am thinking of Moldova and a number of island nations, know there are more.

      Something that showed up today that says it well....

      When the UNITED STATES declared bankruptcy, pledged all Americans as collateral against the national debt, and confiscated all gold, eliminating the means by which you could pay, it also assumed legal responsibility for providing a new way for you to pay, and it did that by providing what is known as the Exemption, an exemption from having to pay for anything. In practical terms, though, this meant giving each American something to pay with, and that ”something” is your credit.

      Your value to society was then and still is calculated using actuarial tables and at birth, bonds equal to this ”average value” are created. I understand that this is currently between one and two million dollars. These bonds are collateralized by your birth certificate which becomes a negotiable instrument. The bonds are hypothecated, traded until their value is unlimited for all intents and purposes, and all that credit created is technically and rightfully yours. In point of fact, you should be able to go into any store in America and buy anything and everything in sight, telling the clerk to charge it to your Exemption account, which is identified by a nine-digit number that you will recognize as your Social Security number without the dashes. It is your EIN, which stands for Exemption Identification Number.

      cont. below

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    2. Cont. from above

      This post is getting much attention on my blog at the moment. The sooner this information gets out to the masses, the sooner we will be able to put an into the fraud, lies, deceit and corruption, once and for all. For those in doubt, don’t take my word for it, conduct your own research and I’m certain you will draw the same conclusions..

      “The birth certificate created a FICTION (the name of the baby in upper case letters). The state/ province sells the birth certificate to the Commerce Department of the corporations of USA, which in turn places a bond on the birth certificate thereby making it a negotiable instrument, and placing the fiction, called a STRAWMAN, into the warehouse of the corporations of USA. Representation for the created fiction was given to the BAR (British Accredited Registry/Regency), owned and operated by the Crown, for the purpose of contracting the fiction (which most of us think is ourselves) into a third party action. Do not underestimate the power behind this trick. It is to con us into contracting with the feds so that they can ‘legally’ confiscate our property. All these contracts have only our signatures on them because corporate fictions cannot contract (only natural beings have the right to contract – and the right not to contract).

      Because there is no full disclosure – we are never told that we have just signed away what we believe to be our property – these contracts are fraudulent, and hence, we are still the lawful owner and the profit earned by the feds from selling securities (our property) belongs to us and must go into a fund for our benefit, otherwise it would be fraud. Not wanting to be charged with fraud, the feds had to create a remedy for us ... and hope we wouldn’t discover it.” For even a deeper understand of the Birth Certificate (registration) process click here.

      “The best example of the effects of registration is the birth certificate. A bankrupt entity – city, state/ province, country – cannot operate in commerce. So how do they manage? Since USA has been bankrupt for decades, having no substance such as gold and silver to back it, the only asset it has are men and women and our labour. We are the collateral for the interest on the loan of the World Bank.

      Each of us is registered, via the application for a birth certificate. The Treasury issues a bond on the birth certificate and the bond is sold at a securities exchange and bought by the Federal Reserve Bank which then uses it as collateral to issue bank notes. The bond is held in trust for the Feds at the Depository Trust Corporation. We are the surety on said bonds. Our labour/energy is then payable at some future date. Hence we become the ‘transmitting utility’ for the transmission of energy. The United States Government, in order to provide necessary goods and services, created a commercial bond (promissory note), by pledging the property, labour, life and body of its citizens, as payment for the debt (bankruptcy). This commercial bond made chattel (property) out of us all. We became nothing more than ‘human resources’ and collateral for the debt. This was without our knowledge and/or our consent, via the filing (registration) of our birth certificates. When mums apply for a birth certificate, the application is registered. The legal title of her baby is then transferred from mum to the State. Mum is left with equitable title of her..

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    3. Yes P,
      I do understand the entire fiat money system based upon debt...however, everywhere there are Rottenchild's central banks... everyone of the countries are under the same tyranny...we are dealing with a global culture now, and as America goes so goes majority of the world...Now, with the BRICS and other nations joining a new economic bloc...some countries might be able to pull out before the curtain fail.

      We are considered nothing but "human capital" to the extent of human resources; thus we do not get money for our labor we go further into debt because we are paid with a debt instrument...those bonds are traded and who sees the money...this they can use to borrow from other nations to pay for wars,...much of our society is paid by loans from other nations...all of the tax dollars collected from each working person goes off shore and not spent within our economy.

      The world impact of UsA's isolation is spread across the central banks...with the level of unemployment, and inflation, and monetary policies...money is out of circulation and cannot create the the economy to support trade and population. This is the reason for war...but wars are banker's wars.

      They created this slave system, they created the work week, they created the system; which is evil and became wealthy on the back of workers...always keeping us wanting (Advertisement/Marketing); thus a job is Just Over Broke...this is the meaning of the acronym "JOB."

      The whole system is broken because it's based upon a lie, and these lies have come home to roost.

      The markets are manipulated, monetary policies and wealth extraction is created by them, libor rates and mortgages and loans are manipulated, the value of the dollar (inflation) is created and manipulated, our tax laws are enforced although unenforceable, oil spills, radiation, fluoride, chemtrails, pharmaceuticals and GMO have contaminated much of our environment,. Education and science is a lie, religion is a creation by them, all corporations are owned by them. They own practically all the land on the face of the earth, and slowly they are performing land grabs. We are under constant surveillance, and each and everyday more and more executive orders and other regulations are strangling us...and many parts of the world because we are all connected...

      I am a bean counter and numbers and understanding finance and markets, banking etc...is what I do.

      They have stolen our wealth...we go to the bank to make loans; which is already paid, and they are charging us to borrow our own money. Instead of us being the debtor we are actually the creditor...they have stolen all of the value and wealth out of the system under the guise of government...the wealth of this nation was created on our backs...we are a debtor nation and "they" are the debtors...

      So, my take is that they are the useless eaters because anyone can incorporate a business and use unfair trade practices to keep others our and hire everyone to do the work, while they rake in profits...it doesn't take rocket science.

      All of this is set to implode, and it should...You ever wonder how many times your bond was traded on the market? You can find out because your birth certificate and ss# does have certificate numbers...these are the bond numbers.

      Since around the year 2000 our economies went Global...Global 2000; this was happening way before this year but many got on the band wagon with the GAFTA, etc...Most Favored Nation Status, etc...Free Trade Agreements...now they're trying to implement TTIP...

      WE are under admiralty law, not the law of the land...constitutional law...common law...all of this is going to change...they owe a debt and it has to be paid, they will find out sooner rather than later.



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    4. Thank you Fedup, you wrapped that up very well. Agree it is a global issue, with the many tentacles of this "thing" reaching far and wide into the world's central banks and beyond. All based on debt. Think you would agree it's about time we got off this Merry-go-round created by the globalists and their bankers and create something far better.

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    5. P,
      Absolutely...and I am prepared to see this whole system done away with.

      Did you read that the new government budget bill for $1.1 T has a clause to repeal Dodd-Frank?
      I wonder what else is in that budget bill...I know that it has been said that Homeland Security received no additional funding...???

      From the Stage2Omega Daily Digest:
      Sen. Warren Calls on House to Strike Repeal of Dodd-Frank Provision in Funding Bill
      http://www.stage2omega.com/sen-warren-calls-on-house-to-strike-repeal-of-dodd-frank-provision-in-funding-bill/


      Thank you P...

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    6. Fedup, sorry didn't. Am working on a few things to make things better for the stock and for what's in my pocket to go farther. Have weather coming and need to finish it up by late tomorrow, but will look after get done. Am sure the cabal would like to repeal that act, it may not be perfect, but it does require banks to do business in a better way without so much gambling with their client's money.

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  3. Every Major Bank To Receive Survival Kits
    http://beforeitsnews.com/survival/2014/12/huge-new-dooms-on-clue-every-major-bank-to-receive-survival-kits-what-do-they-know-that-we-do-not-know-2550976.html

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  4. Thank you Fedup and P for this wonderful summation.

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  5. Bravo FEDUP, your post at 6:22 pretty much sums up mankind's way of life under the evil Central Banks and tyrannical Governments.

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  6. http://www.cnbc.com/id/102263144?trknav=homestack:topnews:3
    Furor Over Move to Aid Big Banks in Funding Bill
    The ''push-out'' regulation — a measure to ensure that banks trade their riskiest financial instruments without the protection of the Federal Deposit Insurance Corporation or the Federal Reserve's backup — was controversial from the start. Hundreds of billions of taxpayer dollars were shoveled into Wall Street banks after instruments like credit default swaps became worthless in the financial crisis, but even some crucial Democrats were unsure if Congress went too far when it voted to include push-out in the landmark Dodd-Frank law to regulate Wall Street in 2010. ''If Wall Street banks want to gamble, Congress should force them to pay for their losses and not put the taxpayers on the hook for another bailout,'' the two wrote on Thursday to House and Senate leaders.''I love the American political system, I really do, but the ability to sneak in substantive policy measures and make it take it or leave it, I think it's appalling,'' said Simon Johnson of the Massachusetts Institute of Technology's Sloan School of Management and a former chief economist at the International Monetary Fund, who is a prominent critic of the nation's big banks.

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    Replies
    1. More....
      The push-out legislation assumed outsize importance, not only because of what it does but because the biggest Wall Street companies have fought it since it was proposed.

      The language in the spending bill was inserted by Representative Kevin Yoder, Republican of Kansas, but he did not write it. Citigroup did. In 2013, the bank and its allies were able to corral a bipartisan vote to pass the rollback out of the House Financial Services Committee. In an analysis by The New York Times of Citigroup emails, more than 70 lines of the committee's 85-line rollback bill came from Citigroup's recommendations.

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      Post by goldengriff on 12 minutes ago

      www.sanders.senate.gov/newsroom/press-releases/wall-street-runs-washington-sanders-says-in-proposing-to-break-up-big-banks-


      Wall Street Runs Washington, Sanders Says in Proposing to Break Up Big Banks

      Saturday, December 13, 2014


      WASHINGTON, Dec. 13 – Sen. Bernie Sanders (I-Vt.) said he will introduce legislation to break up Wall Street megabanks that are using a bill before the Senate today to put taxpayers on the hook for the banks’ risky investments.

      Sanders outlined the proposal as the Senate, in a rare Saturday session, prepared to take up a House-passed bill that would roll back a law limiting risky investments like those that caused the financial crisis of 2008 and the recession that followed.

      “Over the last several days, it has become abundantly clear that Congress does not regulate Wall Street but Wall Street regulates Congress. If Wall Street lobbyists can literally write a provision into law that will allow too-big-to-fail banks to make the same risky bets that nearly destroyed our economy just a few years ago, it should be obvious to all that their incredible economic and political power is a huge danger to our economy and our way of life,” Sanders said.

      Lobbyists for Citigroup drafted the measure and JP Morgan CEO Jamie Dimon reportedly called congressmen to lobby for the provision that would gut a key provision of Dodd-Frank, the Wall Street reform law passed in 2010.

      “Enough is enough,” Sanders said. “Today, almost all of the too-big-to-fail banks are bigger and even more powerful than they were before we bailed them out. The six largest financial institutions have over $9.8 trillion in assets — the equivalent of more than 60 percent of GDP. They issue over half of the mortgages and more than two-thirds of the credit cards in America.

      “If Congress cannot regulate Wall Street, there is just one alternative. It is time to break these too-big-to-fail banks up so that they can never again destroy the jobs, homes, and life savings of the American people.

      “At the beginning of the new Congress, I will be introducing legislation that will break these behemoth banks up once and for all. If a financial institution is too big to fail, it is too big to exist. I look forward to working with both progressive and conservative Senators who have the courage to stand up to Wall Street and protect the working families of this country,” Sanders said.

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