Europe Considers Wholesale Savings Confiscation, Enforced Redistribution
At first we thought Reuters had been punk'd
in its article titled "EU executive sees personal savings used to plug long-term financing
gap" which disclosed the latest leaked proposal by
the European Commission, but after several hours without a retraction, we
realized that the story is sadly true. Sadly, because everything that
we warned about in "There May Be Only Painful Ways Out Of The Crisis" back in September of 2011, and everything that the depositors and
citizens of Cyprus had to live through, seems on the verge of going continental.
In a nutshell, and in Reuters' own words, "the savings of the
European Union's 500 million citizens could be used to fund long-term
investments to boost the economy and help plug the gap left by banks since the
financial crisis, an EU document says." What is left unsaid
is that the "usage" will be on a purely
involuntary basis, at the discretion of the
"union", and can thus best be described as
confiscation. [Also coming to America, of
course.]
The source of this stunner is a document
seen be Reuters, which describes how the EU is looking for ways to "wean" the
28-country bloc from its heavy reliance on bank financing and find other means
of funding small companies, infrastructure projects and other investment. So as
Europe finally admits that the [Rothschild-owned] ECB has failed to unclog its
broken monetary pipelines for the past five years - something we highlight every
month (most recently in No Waking From Draghi's Monetary Nightmare: Eurozone Credit
Creation Tumbles To New All Time Low), the
commission’s report finally admits that "the economic and financial crisis has
impaired the ability of the financial sector to channel funds to the real
economy, in particular long-term investment."
The solution? "The Commission will ask the
bloc's insurance watchdog in the second half of this year for advice on a
possible draft law "to mobilize more personal pension savings for
long-term financing", the document said."
Mobilize, once again, is a more palatable
word than, say, confiscate.
And yet this is precisely what Europe is
contemplating:
Banks have complained they are hindered from lending to the economy by post-crisis rules forcing them to hold much larger safety cushions of capital and liquidity.The document said the "appropriateness" of the EU capital and liquidity rules for long-term financing will be reviewed over the next two years, a process likely to be scrutinized in the United States and elsewhere to head off any risk of EU banks gaining an unfair advantage.
But wait: There's more!
Inspired by the recently introduced "no
risk, guaranteed return" collectivized savings instrument in the US better known
as MyRA, Europe will also complete a study by the end of this year on the
feasibility of introducing an EU savings account, open to individuals
whose funds could be pooled and invested in small companies.
Because when corporations refuse to invest
money in Capex, who will invest? Why you, dear Europeans. Whether you like it or
not.
But wait: There is still more!
Additionally, Europe is seeking to restore
the primary reason why Europe's banks are as insolvent as they are:
securitizations, which the persuasive salesmen and sexy saleswomen of Goldman
Sachs et al sold to idiot European bankers, who in turn invested the
money or widows and orphans only to see all of it disappear.
It is also seeking to revive the securitization market, which pools loans like mortgages into bonds [toxic “assets”] that banks can sell to raise funding for themselves or companies. The market was tarnished by the financial crisis when bonds linked to U.S. home loans began defaulting in 2007, sparking the broader global markets meltdown over the ensuing two years.
The document says the Commission will "take into account possible future increases in the liquidity of a number of securitization products" when it comes to finalizing a new rule on what [worthless] assets banks can place in their new liquidity buffers. This signals a possible loosening of the definition of eligible assets from the bloc's banking watchdog.
Because there is nothing quite like
securitizing feta cheese-backed securities and selling it to a whole new batch
of widows and orphans.
And topping it all off is a proposal to
address a global change in accounting principles that will make sure that an
accurate representation of any bank's balance sheet becomes a distant
memory:
More controversially, the Commission will consider whether the use of fair value or pricing assets at the going rate in a new globally agreed accounting rule "is appropriate, in particular regarding long-term investing business models".
To
summarize: Forced savings "mobilization", the introduction of a collective
and involuntary CapEx funding "savings" account, the return and expansion of
securitization, and finally, tying it all together, is a change to accounting
rules that will make the entire inevitable catastrophe smell like roses until it
all comes crashing down.
So, aside from all this, Europe is "fixed."
[Are the Rothschild Moneychangers smart or what?]
The only remaining question is: Why leak
this now? Perhaps it's simply because the reallocation of "cash on the
savings account sidelines" in the aftermath of the Cyprus deposit
confiscation, into risk assets was not forceful enough? What better way to give
it a much needed boost than to leak that everyone's cash savings [and pension
funds] are suddenly fair game in Europe's next great wealth redistribution
strategy. [America, here we come!!!]
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