How Resource Limits Lead to Financial Collapse
Great post by Gail Tverberg:
Canadian Federal Budget Contains ‘Bail-in’ Process That Will Use Depositors’ Funds
Canadians might want to wake up to the fact that the latest Federal budget contains a new ‘bail-in’ procedure for Canadian banks that is similar to how Cyprus has deal with the issue. You can read more here (http://theeconomiccollapseblog.com/archives/cyprus-style-bank-account-confiscation-is-in-the-new-canadian-government-budget) and here (http://globaleconomicanalysis.blogspot.ca/2013/03/canada-discusses-forced-depositor-bail.html).
If you have money in a Canadian bank, you might want to think about getting it out while you can!
March 31, 2013 ‘Signs’ Introductory Post
The crises in Europe continues unabated. In the latest crisis, Cypriot citizens and businesses with uninsured deposits were hit with a ‘one-time tax’ that could be as high as 80% (see this). The narrative the media was sharing at one point was that rich, Russian oligarchs would be the main ones to be hit in this, as Cyprus supports an off-shore banking ‘haven’ for these plutocrats (see this). The Russians have NOT been pleased about this and after already moving ships off the coast of Syria (see this), they began an unannounced war games exercise in the Black Sea, a stone’s throw from entering the Mediterranean (see this). This was after the ECB’s first proposal that ALL depositors be hit with a ‘one-time tax of almost seven percent for insured deposits and close to ten percent for uninsured deposits (see this). Governments were being told to take money from their citizens in return for loan guarantees to help bail-out insolvent banks. This has changed from using the taxation system to support bail-outs; the taxpayer was not to be used to bail-out the banks. It would seem, however, that someone leaked the news to the Russian and British off-shore depositors, as they seemed to have moved their money out already (see this and this), leaving the citizens of Cyprus to bail-in the banks. Most certainly, it is beyond obvious that the crises in Europe are not over and is likely to continue to deteriorate (see this).
In light of this change, many are beginning to wonder if the elite have suddenly changed the rules (or put in place something that they’ve been planning) (see this). Marc Faber, the author of the Gloom and Doom Report website, suggests that developed nations the world over are likely to follow this model: to begin to implement a ‘wealth tax’ for anyone above an arbitrary cut-off (see this). This could mean that all of your assets are considered and a ‘one-time tax’ will be implemented to help support the banks (see this); you know, those institutions that have gambled their depositors’ property that they were entrusted with.
The Canadian government is actually preparing for something along these lines. Their first move has been for the federal government to hide in their latest budget a provision for a ‘depositor haircut’ (see this and this). A more general wealth tax may be in the future…
There is little doubt Canadian governments at all levels are testing the waters with respect to what they can force upon their citizens. As a vice-prinicipal, I have been subjected to the Ontario government’s latest salvo at educators, Bill 115 (see this). This bill was used to impose contracts on educators across the province. The government spun a tale that focused upon a wage freeze and the media conveniently played along, while the unions attempted their own spin by focusing on the constitutionality of collective bargaining rights. Regardless of the intent, what I found most distressing about the bill was the section that stated the government’s actions were above the rule of law, beyond the purview of the courts to judge (see this).
We also see the Canadian military pursuing the use of unmanned drones over Canadian territory (see this) and the media is trumpeting it (see this). Unmanned ‘eyes-in-the-sky’ have been increasingly used over Canadian skies by the RCMP and various local police forces (see this). So, is the Canadian government preparing to restrict the freedoms of its citizens in the future through the more widespread use of these drones? What better way to ensure the masses do not stray from their confines, as Noam Chomsky reminds us (see this).
Couple this with the American precedent to use such drones to assassinate ‘terrorists’ within their domestic borders (see this) and we are a stone’s throw away from a state that could not only spy on our every move, both aerially and digitally (see this), but target us for ‘elimination’ if we are deemed terrorists. Given that the definition of who is considered a terrorist shifts as governments deem fit (see this and this), the door is open for anyone who disagrees with or challenges the government to be labelled a ‘domestic terrorist’. But there could be more brewing here as there are some suggesting that the American government could be preparing for a potential civil war (see this and this). Where would the Canadian government lay its allegiance in such a war and what would be the impact on Canada considering that the U.S. is our most significant trading partner; and we have the world’s longest, unguarded border?
History and prehistory point to examples of governments and societies collapsing because of such trends and actions (see this and this).
As geopolitical tensions rise, environmental concerns escalate, and economic sustainability and trust are increasingly questioned, one has to wonder when the tipping point will be reached and cause our hyper-complex, interconnected world to crack and crumble…
I stand before this faceless crowd
and I wonder why I bother
so much controlled by so few
stumbling from one disaster to another
I’ve heard it all so many times before
it’s all a dream to me now
a dream to me now
And if we’re lost
then we are lost together
Blue Rodeo, 1992
Lost Together, Lost Together