Banks go bankrupt, withdraw your money, do not sell land and buy gold
Krassimir Ivandjiiski - Красимир Иванджийски
Germany's "golden" body movement on the gold market continues.
At the end of 2016, the German Bundesbank declared its intention to repatriate half of its gold reserves back home by 2020, but they retrieved it well ahead of schedule by three years.
As per official sources, Germany holds the largest gold reserves in the world (after the US) of about 3 380 tons, which value is reckoned at more than 120 billion euros. According to data by the Bundesbank dated August 23, 2017, Germany already got back 91 tons of gold from Paris, thus completely liquidating its gold reserves in France.
In thus doing, Berlin achieved its goal to store half of its gold reserves back in the state. They left 1 238 and 432 tons of gold in the United States and London respectively.
According to the Bundesbank, the election of President Trump or the Brexit of England out of the EU have nothing to do with the subject.
There are speculations, however, that the evacuation of German gold from Paris aims to prevent its arrest by creditors of the Eurozone countries in the case of the collapse of the zone.
Thus, we came to the center of things - whether the Eurozone faces bankruptcy.
Unlike Germany, the situation in the other EU member states goes from bad to worse.
For example, the German Federal Constitutional Court questions the competence of the anti-crisis program of the European Central Bank.
This recent decision of the Constitutional Court has closed a case that lasted more than three years. The legal proceedings against ECB were initiated when the Governor of the Bank, announced back in 2012 that the bank planned to buy government bonds in unlimited quantities in order to reassure the financial markets.
The above statement put Berlin on alert since this program would allow financially bankrupt countries to receive money through bond issues, while Germany would be held jointly and severally liable and it would have to take the whole burden of the buyout.
Thus, the image starts to get form. In fact, Germany prepares for the collapse of the European banking system while all media and so-called experts keep silent about planned measures to restrict financial freedom of citizens, and namely, about the plans within the Eurozone to empower the Central Banks to freeze any bank accounts in the event of a crisis. Moreover, this actually means freezing and seizure of all deposits, which do not exceed 100 000 euros. Thereby, the authorities intend to insure credit institutions should mass outflow or withdrawal of capital occur.
Let us put it simply: due to the beginning of the second or third phase of the crisis, the banks will have the right to block any accounts in any bank across the EU.
In the light of the above trends, Eurozone countries wish to give their financial regulatory authorities the right to block all accounts, while the only requirement to activate this mechanism would be subject to prerequisites for so-called ”bank runs” or escape from banks and that is the scenario that Eurozone bank customers should expect.
All interpretations of the term “prerequisites” shall be within full discretion of the respective financial regulator.
We could put it even more simply. If the authorities in any Eurozone country decide that there is a risk to the local banking system, they have a legitimate right to block the money on the accounts for 5 or 20 days, and during that period, clients will not be allowed to make withdrawals or bank-to-bank transfers. In fact, we talk about temporary eviction or seizure of people's property. If we bring into account the present shape of all banks, this means final confiscation for an indefinite period.
According to the official story, this measure should protect Eurozone banks from loss of liquidity and subsequent bankruptcy. This plan was proposed by Estonia, which lead the Presidency of the EU in the first half of 2017.
The mechanism was a response to the mass leak of capital from the Spanish Banco Popular, which went bankrupt due to escape of assets towards other banks.
The EU Commission wanted Eurozone central banks to be allowed to block bank accounts since November 2016. However, it referred to amounts that exceeded 100,000 euros and now we are talking amounts below 100 000 euros or literally about any account in any bank.
The Eurozone is doomed. The recipe for printing billions of euros by the ECB's printers with subsequent cash-inflow to bankrupt banks and countries has turned out to be useless.
However, the private banks that hold toxic assets would take the chance to be saved by selling this trash to the ECB and thereby bankers could avoid the inevitable bankruptcy caused by their own financial crimes and at the expense of the taxpayers.
Today the probability of embracing a decision to block accounts of up to 100 000 euro in case of crisis is more than ever on the table.