The alternative media can be cheap, often looks like its filmed in a bedroom with a webcam. And there is a lot of flaky junk, but it does report stuff the mainstream media glosses over. The G20 met last month in Australia you might have noticed. The G20 was specifically created in the wake of the 2007-8 financial crisis. It includes the central bankers from the top 20 nations. So when the G20 meet you know they are talking about the banking industry. This might have got lost in the mainstream over questions of Putin and who stood next to who in the photo op. Here is a small gem of an interview explaining what was decided. In a nutshell the top 30 international banks will not be bailed out by governments. (A good thing you might think). All the nations offer assurance that deposits up to a certain level will be protected, but the reason these governments chose to bail out the banks last time was there is not enough money to protect deposits. Essentially its a bluff. The assurance is ok if one bank goes down, but not if the system fails or comes close to failing like 2008. If the deposit protection had been invoked you would have seen governments failing....as they nearly did a little later with the sovereign debt crisis. If the system blows and it is going to blow again these banks are going to reach into accounts and Cyprus their depositors...and you are not going to get a warning. the banks will close on a Friday there will be announcements over the weekend that the banks wont be reopening on Monday. Prime ministers and Presidents will address their nations to tell us everything is orderly. But what has been agreed at the G20 is that the small folk like me and you are way down the list of priority creditors. Despite assurances you think you have your money will not be protected and you will be Cyprused. Bottom line is big banks are not a safe place to keep your money...if you have any :-/. As Brown points out what we really need is small local and municipal banking....like it used to be...maybe the system will reset back to that but we are going to have one heck of a banking crash and a lot of pain first.
Posted on: Fri, 12 Dec 2014 11:26:47 +0000