Tag Archive | global economic crisis

Rothschild Bank under Criminal Investigation over Missing $4bn in Global Corruption Probe*

Rothschild Bank under Criminal Investigation over Missing $4bn in Global Corruption Probe*

But what happened to the previous investigations…..

By Jay Syrmopoulos

Last year the veil of invincibility seemingly came off the secretive Rothschild banking empire, as Baron David de Rothschild and his company the Rothschild Financial Services Group were indicted by French prosecutors for allegedly defrauding British pensioners in a scheme that saw large sums of money embezzled.

Only two months ago, we reported on the Swiss branch of the Edmond de Rothschild Group announcing that they were the target of a French criminal probe “regarding a business relationship managed by a former employee.”

Now, the Luxembourg unit of Rothschild banking empire is being investigated by the Luxembourg state prosecutors office — alleged to have sent hundreds of millions of dollars to an account at a bank in Luxembourg that originated from 1Malaysia Development Berhad (1MDB).

The fund, 1MBD, was established by Malaysian Prime Minister Najib Razak in 2009 as a government investment fund. There have been widespread accusations of corruption surrounding Razak after $1 billion dollars in deposits into his personal bank accounts were revealed. The deposits totaled hundreds of millions of dollars more than had previously been exposed by probes into state fund 1MDB, according to the Wall Street Journal.

The Luxembourg investigation stems from an international probe of money that may have flowed from the Malaysian government investment fund, which is at the center of various worldwide corruption probes.

According to a report in the WSJ:

“The Luxembourg unit of Edmond de Rothschild Group, a private bank that manages money on behalf of wealthy clients, said it is “cooperating” with an official investigation of money that may have flowed from a Malaysian government investment fund at the center of various world-wide corruption probes…”

The Luxembourg investigation widens probes of 1MDB already under way by authorities in Switzerland, Malaysia, Singapore, Hong Kong and Abu Dhabi. Swiss authorities said in January that 1MDB-related losses from misappropriation could reach $4 billion. The Luxembourg prosecutor said its case was connected to the investigation in Switzerland.

1MDB was created to invest in local energy and real-estate projects to boost the Malaysian economy. The fund amassed $11 billion in debt which it has struggled to repay. Last July, The Wall Street Journal reported that almost $700 million was transferred to Mr. Najib’s bank accounts via a web of entities, money which investigators believe originated with 1MDB. 1MDB has denied sending money to Mr. Najib’s accounts and denied wrongdoing and said it is cooperating with probes

“Edmond de Rothschild Europe is actively cooperating in the judicial proceedings,” a spokeswoman for the Edmond de Rothschild Group told the WSJ.

The Edmond de Rothschild Group oversees roughly $164 billion in assets, according to Bloomberg. The private bank and asset management firm to the elite was founded by Edmond de Rothschild in Paris in 1953. Edmond’s son Benjamin de Rothschild succeeded his father as head of the group in 1997. Last year, Benjamin appointed his wife, Ariane, chairwoman of the executive committee. The Swiss unit traces its roots to the acquisition of Banque Privee in Geneva in 1965.

But the history of the Rothschild banking empire stretches far further back in time.

moneyblackholeAccording to The Richest:

The Rothschild Family as we know it is descended from Mayer Amschel Rothschild, who was born in what is now Frankfurt, Germany. The son of Jewish moneychanger and trader Amschel Moses Rothschild, Mayer Amschel Rothschild was the fourth of 8 children, and went on to establish a huge international banking empire.

Through his 5 sons, Mayer Amschel Rothschild expanded his banking business, which was founded in the 1760s, to international areas and, as such, managed to bequeath his huge wealth, unlike many rich members of the Jewish community at the time. Mayer Amschel’s 5 sons were each stationed at one of the major European financial centres, one in Frankfurt, London, Naples, Vienna, and Paris.

This passing on of Mayer Amschel’s wealth and business meant that his sons could continue to build on the foundations of their father’s success. In the 19th century the Rothschild Family were at the height of their powers, and were known all around the financial world. Their great fortune and ingenious business minds meant that they carried great power during this time. They utilised this power by affecting some very significant events in human history in order to profit greatly from it. This included backing the British forces with huge sums of money during the Napoleonic Wars (more on that later) and funding Brazil’s claim for independence from Portugal.

The Rothschild banking dynasty is a family line that has been accused of pulling the political strings of many different governments through their control of various economic systems throughout the world. Historically, there is ample evidence to show that the family has used insider trading to bilk money from both private and public funds.

Towards the end of the Napoleonic Wars, in 1813, Nathan Mayer Rothschild saw Napoleon’s war efforts as a threat to his business practices and decided to step in to help defeat the French conqueror. He became the most important financier of the British war effort pouring the equivalent of $900 million dollars in today’s dollars in 1815 alone. The defeat of Napoleon, and subsequent ending of the Napoleonic Wars, which started in 1803 and raged throughout the continent for 12 years before finally coming to an end in 1815.

During the Battle of Waterloo in the Napoleonic wars, Nathan Rothschild was responsible for one of the oldest cases of “insider trading,” which led to the Rothschild family robbing a whole nation blind. When the battle of Waterloo took place in 1815, horse messengers were the fastest method of communicating information. The Rothschild’s took advantage of this by having their own spies on the frontlines of the battle that would then expedite the information to the family faster than the messengers used by the military.

When the British won the battle, Nathan Rothschild, was, of course, the first to know, and he immediately went to the stock exchange and started selling stocks while putting out the rumor that the French had won the war. This created a panic on the floor of the stock exchange and investors all over England began frantically selling their stocks. With the price of all stocks plummeting Rothschild was able to buy out the whole English market for a fraction of its cost. When word returned that the English had actually been victorious, the value of the market soared, and overnight Nathan Rothschild expanded his family’s wealth and cemented their position as one of the richest, and most influential families in the world.

Although the Rothschild family now keeps a very low public profile, they still have significant business operations across a wide spectrum of sectors. While you may not find any one particular Rothschild on the Forbes’ most rich list, the family is estimated to control $1 trillion dollars in assets across the globe, thus having a strong voice across the geopolitical spectrum that many perceive as a hidden hand manipulating events silently from behind a veil of virtual secrecy and silence.

Source*

Related Topics:

Luxembourg unit of Rothschild Under Criminal Investigation Over Missing $4 Billion In Global Corruption Probe*

Rothschild Bank Now Under Criminal Investigation*

Only 3 Countries Left Without a ROTHSCHILD Central Bank!*

Rothschild Family Wealth Is Five Times That of World’s Top Billionaires Combined*

Rothschild Billion Dollar Money Laundering Plot in Africa*

President Putin has Banned Rothschild Family from entering Russian territory “under any circumstances”*

Rothschild’s Summit Fine-tuning Capitalism into Global Economic Tyranny*

The Global Money Supply Flows in One Direction!

Behind the Global Financial Reset*

Only 3 Countries Left Without a ROTHSCHILD Central Bank!*

Only 3 Countries Left Without a ROTHSCHILD Central Bank!*

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The Rothschild family is slowly but surely having their Central banks established in every country of this world, giving them incredible amount of wealth and power.

In the year of 2000 there were seven countries without a Rothschild owned or controlled Central Bank:

  1. Afghanistan
  2. Iraq
  3. Sudan
  4. Libya
  5. Cuba
  6. North Korea
  7. Iran

It is not a coincidence that these country, which are listed above were and are still being under attack by the western media, since one of the main reasons these countries have been under attack in the first place is because they do not have a Rothschild owned Central Bank yet.

The first step in having a Central Bank establish in a country is to get them to accept an outrageous loans, which puts the country in debt of the Central Bank and under the control of the Rothschilds.

If the country does not accept the loan, the leader of this particular country will be assassinated and a Rothschild aligned leader will be put into the position, and if the assassination does not work, the country will be invaded and have a Central Bank established with force all under the name of terrorism.

rothschild bank

Rothschild-owned or controlled Central Banks

Central banks are illegally created private banks that are owned by the Rothschild banking family.

The family has been around for more than 230 years and has slithered its way into each country on this planet, threatened every world leader and their governments and cabinets with physical and economic death and destruction, and then emplaced their own people in these central banks to control and manage each country’s pocketbook.

Worse, the Rothschilds also control the machinations of each government at the macro level, not concerning themselves with the daily vicissitudes of our individual personal lives. Except when we get too far out of line.

The only countries left in 2003 without a Central Bank owned or controlled by the Rothschild Family were:

  1. Sudan
  2. Libya
  3. Cuba
  4. North Korea
  5. Iran

The Attacks of September 11th were an inside job to invade Afghanistan and Iraq to then establish a Central Bank in those countries.

Case Closed: JFK Killed After Shutting Down Rothschild’s Federal Reserve

The only countries left in 2011 without a Central Bank owned or controlled by the Rothschild Family are:

  1. Cuba
  2. North Korea
  3. Iran

After the instigated protests and riots in the Arab countries the Rothschild finally paved their way into establishing Central Banks, and getting rid of many leaders, which put them into more power.

Source*

Related Topics:

Rothschild’s Summit Fine-tuning Capitalism into Global Economic Tyranny*

There Were 88 Media Companies… Now There Are 6 which get their News from Rothschild*

Bolivia with Newfound Economic Independence Rejects Rothschild Banks*

Rothschild Family Wealth Is Five Times That of World’s Top Billionaires Combined*

Top Rothschild Bankster Pushes Corrupt Communist to Lead U.N.*

Rothschild Bank Now Under Criminal Investigation*

Hungary Becomes First European Country to Ban Rothschild Banks*

Once a Rothschild, always a Rothschild Bankster Replaces Hollande’s Economic Minister*

Anonymous Takes 9 Rothschild Central Banks Offline*

Rothschilds, The Crown & Nugan Hand Bank

Hoarding Gold: Deutsche Bank Takes up Rothschild’s Offer*

German Police Officers Take Off Helmets & Marched With German Citizens Against Rothschild European Central Bank!

Iceland Continues To Grow Using ‘Startups’ By Replacing ‘Banks’: Iceland Refused To Bailout Rothschild’s Corrupt Banking Cabal.

President Putin has Banned Rothschild Family from entering Russian territory “under any circumstances”*

Rothschild Crime Syndicate in Israel *

Five Spanish Banksters Jailed*

Five Spanish Banksters Jailed*

Archive photo from a demo against bankers. Photo: AFP

Archive photo from a demo against bankers. Photo: AFP

Archive photo from a demo against bankers. Photo: AFP

A Spanish court has jailed five former executives who got millions in severance pay from a struggling bank that later had to be nationalised, a first in a country still reeling from banking bailouts.

“These are people who managed a savings bank that had to be rescued by the state,” Spain’s top-level National Court said in a ruling seen by AFP on Tuesday, adding it had taken the decision to avoid allowing former bankers to enjoying “impunity”.

The ruling could act as a precedent for the other, more high-profile trial of former economy minister and ex-IMF chief Rodrigo Rato over alleged embezzlement when he was president of Bankia, another bank that was rescued during the financial crisis.

In 2010, as the crisis raged in Spain, the five then managers and executives at Novacaixagalicia (NCG) left their posts, but not before obtaining compensation of nearly €19 million ($20.3 million) although they knew the bank was in dire straits.

The following year, NCG was nationalised to avoid bankruptcy as were other banks – and cash-strapped Spain eventually asked the European Union for a 41.3-billion-euro bailout of the banking sector in 2012.

NCG received a total of €9 billion in aid, and in 2013, Spain sold it to Venezuelan bank Banesco for €1 billion.

The five men, currently aged 59 to 85, had already been found guilty of embezzlement in 2015 and were then given a two-year jail sentence, which their defence asked to be suspended.

In Spain, it is usual for first offences for non-violent crimes carrying a sentence of two years or less to be suspended.

But the National Court said that in this case,

the gravity of the offence given its macroeconomic impact means it is necessary that the five go to prison, in the interest of avoiding impunity.”

They added that the former executives had not paid a fine owed, and ruled against suspending the sentence.

Source*

Related Topics:

Spanish Judge Makes Bank President and Former IMF Chief Pay for Financial Crimes*

Hiding in the U.S Ireland to Prosecute Top Banker for Destroying Their Economy*

Italy and Spain Have Funded a Massive Backdoor Bailout of French Banks*

Global Bankster Mafia Caught Rigging Markets to Destroy Middle Class*

Corrupt Icelandic Officials to Free Jailed Banksters*

Two British Banksters Go on Trial in Libor Interest Rate-Rigging Scandal*

Top Rothschild Bankster Pushes Corrupt Communist to Lead U.N.*

Banksters are Buying Baltimore’s Debt, Hiking Interest then Taking Families’ Homes*

The Clintons and their Bankster Friends, 1992-2016*

Once a Rothschild, always a Rothschild Bankster Replaces Hollande’s Economic Minister*

Iran Removes Chiefs of 4 Banks over ‘unusually high salaries’*

‘I’ for Iceland and Now Ireland Collaring the Real Criminals, the Banksters*

#WeShallNotBeMoved: Civil Rights Groups March on Washington*

#WeShallNotBeMoved: Civil Rights Groups March on Washington*

Then

Now

This year’s Martin Luther King Jr Day march takes on added significance in the face of Trump’s looming attacks on civil rights.

Thousands are expected to march on Washington on Saturday as part the annual Martin Luther King Jr. Day march organized under the umbrella of Rev. Al Sharpton’s National Action Network.

Dubbed the #WeWillNotBeMoved March, the action looks to put Trump and the rest of the U.S. on notice that civil rights are non-negotiable.

“We will rally and put the next Administration (and the nation) on notice that there are some things that will not be changed no matter who is president and what party dominates the House and Senate,” organizers said in a statement.

Endorsed by a broad coalition of civil rights groups- including Planned Parenthood, National Council of La Raza, the NAACP, the Hip Hop Caucus and the National Council of Black Women- the march comes less than a week before the inauguration of a President celebrated by white nationalists, and days after the Republican-controlled Congress began rolling back the Affordable Care Act.

“Protecting the civil rights of citizens and the voting rights of people that have been excluded, providing healthcare for all Americans and equal opportunity should supersede any of the beltway partisan fights that we are inevitably headed into. Groups come and go, elections come and go, but some things must remain constant and non-negotiable,” wrote march organizers in their call out.

While this is the first of many major anti-Tump marches and actions in the days surrounding the inauguration, organizers are also putting Democrats on notice.

“The Democrats have said that they want to work with incoming President Trump where they can and not in other areas,” Rev. Al Sharpton told .Mic.

“We’re saying voting rights, criminal justice reform — that includes police misconduct — health care, jobs and economic justice should be off the table.”

Sharpton and his organization have come under criticism in the past for not making room for a younger generation of activists, and the march is notably lacking official endorsements by the Movement for Black Lives or prominent LGBTQ organizations.

Despite this, or perhaps because of it, Sharpton says the National Action Network has explicitly turned to millennial organizers to set strategy and mobilize other activists.

“All of what we’re saying has more to do with the interests of millennials than it does the older crowd,” Sharpton claimed.

Monday is the national Martin Luther King Jr. Day holiday which marks the birthday of the iconic civil rights leader. While a largely sanitized version of King is widely celebrated, in the year before his assassination King was viciously attacked by liberals for his forceful denunciation of U.S. imperialism and the Vietnam War.

Black Lives Matter D.C. is also organizing a series of events over the holiday weekend under the banner #Reclaim MLK.

Source*

Related Topics:

Trumps Seems to be Doing the Cabals Bidding with Goldman Sachs Heavily Entrenched in his Administration*

Obama Authorizes DHS to Overturn Election*

Thousands March on Washington DC, 400 Arrested*

‘Justice or Else’ Muslim-led Million Man March Hits Washington*

U.S. Citizens March on CDC Headquarters to Protest Vaccine Corruption*

Traditional Marriage in D.C. has become a March*

U.S. Whitewash of Israel Didn’t Curtail 20,000 Protesters March on White House*

Vets, Truckers and those Who Can Verging on Washington

March Against U.S. Aggression Revitalizes Anti-War Movement

The 9/11 March Against Islamophobia

JPMorgan Chase Fined $264mn for Bribery and Corruption in China*

JPMorgan Chase Fined $264mn for Bribery and Corruption in China*

Many of these banks are multinationals; carrying out their recklessness in the United States, and in countries where regulations are weak. Even when these banks are caught red-handed engaging in illegal activities, instead of jailing those responsible, the United States only issues a fine, leaving those responsible off the hook to do it again.

By Amando Flavio

We all know that the 2008 financial crisis was a result of the recklessness of the big banks, especially those in the United States. In Iceland, the government saw the problem and jailed the bankers — with some of the bankers still serving their jail sentences. The economy of Iceland is now thriving, and is one of the best in Europe today. But in the United States, nothing happened to the bankers. The government rather ridiculously went to the rescue of them instead.

This essentially made the banks untouchable. Many of these banks are multinationals; carrying out their recklessness in the United States, and in countries where regulations are weak. Even when these banks are caught red-handed engaging in illegal activities, instead of jailing those responsible, the United States only issues a fine, leaving those responsible off the hook to do it again.

This story is just one of many discussing such fines. One of the country’s multinational banking and financial services, JPMorgan Chase, has been fined up to $264 million for engaging in bribery and corruption in China.

According to the United States Security and Exchange Commission (SEC), JPMorgan and its subsidiary in Hong Kong used vast foreign bribery schemes that may have spread to a number of Wall Street banks.

Iranians don’t play games when it comes to protecting their people from corrupt bankers and kleptocrats . . . capital punishment awaits such high-level swindlers

 

SEC investigators revealed the case centered on JPMorgan’s hiring practices in China. The bank is said to have hired the children of powerful and influential Chinese leaders to win business in the country. The quid pro quo (a favor or advantage granted in return for something) strategy adopted by the bank ensured that unqualified persons were employed at the bank. This means JPMorgan clearly violated United States law governing foreign bribery. The executives of the banks, who authorized the hiring, should have been jailed by now. But unfortunately, they are still free men and women, receiving huge salaries and throwing their weight about in public.

Investigators stated that JPMorgan hired more and more employees based on referrals from powerful Chinese leaders. Senior bankers in several instances, explicitly tied those jobs or internships to securing deals with Chinese government-run companies. To be hired, a referred candidate had to have, in the bank’s own words, a “directly attributable linkage to business opportunity,” a scheme that enabled the company to win or retain business resulting in more than $100 million in revenue for the bank or its affiliates, investigators have said.

“The common refrain that this is simply how business is done overseas is no defense. This is no longer business as usual; it is corruption,” said Robert L. Capers, the United States attorney in Brooklyn, whose office helped lead the criminal investigation into the bank.

 

In fact, many of these unqualified employees were transferred to work in the United States, Europe and other places in Asia. The SEC said it lowered the fine to this amount because JPMorgan cooperated extensively well with investigators.

It is unclear when the bank adopted this damning practice. But in August 2013, The New York Times reported that United States regulators are scrutinizing the hiring practice of JPMorgan in China. The Times quoted a confidential United States government document detailing how the bank was involved in hiring children of powerful Chinese officials in order for the bank to win lucrative business in the country.

When United States federal officials announced this fine against JPMorgan, the bank admitted wrongdoing, saying it stopped the scandalous hiring practice in China in 2013, just after it came under federal investigation.

“We’re pleased that our cooperation was acknowledged. The conduct was unacceptable. We stopped the hiring program in 2013 and took action against the individuals involved. We have also made improvements to our hiring procedures and reinforced the high standards of conduct expected of our people,” Brian Marchiony, a JPMorgan spokesman said in a statement.

Although the bank admitted wrongdoing, investigators failed to recommend any criminal prosecution against executives of the banks who decided to employ such a wicked strategy to win business. Even the fine, the SEC indicated, was lowered simply because the bank cooperated during investigation. Can you see the problem with the United States – why the bankers would continue to act recklessly? The rule is simply for the bankers. Just commit all the crimes, and when you are caught, you cooperate with investigators.

According to SEC officials familiar with this case against JPMorgan, it could lay the groundwork for investigators to pursue penalties against other big banks. The New York Times reports that banks, including HSBC, Goldman Sachs and Deutsche Bank have hinted that they face investigations into their hiring practices in China, which began in 2013. The Head of Enforcement at the SEC, Andrew J. Ceresney stated “We do not expect this to be the last action resulting from that sweep.”

This current fine has topped a growing list of regulatory problems at JPMorgan. In addition to the $6 billion so-called London whale trading scandal, the bank reached a $13 billion settlement with the Justice Department over its sale of mortgage securities in the lead-up to the 2008 financial crisis.

What worries us is the fact that for these criminal activities perpetrated by the banks, no top bankers have gone to jail since the financial crisis. This has allowed the bankers to continually mislead and dupe the world. Bankers who act recklessly this way certainly deserve nothing less than prison.

Source*

Related Topics:

Indonesia Terminates All Business Relationships with JPMorgan after Downgrade*

U.K. Financiers Bankrolling Dakota Access Pipeline Builder*

The Fiat Money System and Lehman Brothers

Bolivia with Newfound Economic Independence Rejects Rothschild Banks*

Iceland Jail Top Bankers For 46 Years, Europe ‘Outraged’*

Iran Files Complaint against Bankrupt U.S. Theft of Funds*

Iran Removes Chiefs of 4 Banks over ‘unusually high salaries’*

Brexit: 2 Minute Pound Crash ‘Suspicious’ Says Bank of England*

Rothschild Billion Dollar Money Laundering Plot in Africa*

E.U. Desperate to Raises Taxes Starts Cashless Society Project November 2017*

E.U. Desperate to Raises Taxes Starts Cashless Society Project November 2017*

By Graham Vanbergen

A few months back The Guardian ran an article stating that “Swedes are blazing a trail in Europe, with banks, buses, street vendors and even churches expecting plastic or virtual payment” as if the cashless society was something to be celebrated by modern society.

“I don’t use cash any more, for anything,” said Louise Henriksson, 26, a teaching assistant.

“You just don’t need it. Shops don’t want it; lots of banks don’t even have it. Even for a candy bar or a paper, you use a card or phone.”

Cash transactions are already outdated in Sweden. According to central bank the ‘Riksbank’, cash transactions will make up up barely 0.5% of the value of all payments made in Sweden by 2020.

Likewise and according to The Independent, Denmark has moved one step closer to becoming the world’s first cashless society, as the government proposes scrapping the obligation for retailers to accept cash as payment – because, as they say, its to do with the “burden of managing change and notes.”

Strange then that all this is happening in an environment where EUR bank note circulation is still rising.

The European Payments Council (EPC), a subdivision of the European Central Bank, are taking steps in their quest to fully eliminate all cash. The reason is not to lift the burden off retailers or to make transactions more convenient but in reality to raise desperately needed taxes.

Highly respected ‘ArmstrongEconomics reports that the EPC are going full steam ahead to enable immediate payment systems throughout not just the Eurozone but the entire European Union. The Single European Payments Area (SEPA) has been devised with the ultimate goal of eliminating ATM cash machines and force everyone to use their mobile phones or plastic cards, the project starting as early as November 2017.

In the absence of confirmed information on this point, it is likely that tourists and business people will be forced to pre-pay Euro’s onto an App if they come from a country outside the Eurozone, currently made up of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.

The final goal of the E.U. Commission is best described in their own words:

The Single Euro Payments Area (or “SEPA” for short) is where more than 500 million citizens, over 20 million businesses and European public authorities can make and receive payments in euro. SEPA also means better banking services for all: transparent pricing, valuable guarantees ensuring that your payments are received promptly and in full, and banks assuming responsibility if something goes wrong with your payment.

This year, meetings and conferences called “Towards a cashless society” were started to get the information transfer across to the infrastructure, supported very heavily by the banks.

It looks as though the initial battleground for banning cash will be … Greece.

From KeepTalkingGreece (27/11/16) –

Greek banks propose a series of measures to combat tax evasion, strengthen the electronic transactions and limit the use of cash in the economy. One of the measures proposed is a special tax on cash withdrawals. Bankers reportedly stress that cash money can easily and largely be channeled in the black economy. Therefore, a tax on cash withdrawals will drastically reduce cash transactions and by extension the black economy.”

The proposal includes reforming the tax system by introducing a revenue-expenditure system. Households and/or workers will only be taxed on the amount of income that is has not been spent. In this way, people will have a strong incentive to seek receipts for any expenditure in order to increase their expenditure and reduce the tax amount they will have to pay. There will also be an obligation for all businesses and regardless of their size to pay electronically every salary and wage.

There is another tactic in play to push the cashless society even quicker. As Sratfor Global Intelligence reports:

The eurozone has found a new scapegoat for international crime: the 500-euro note. The Continent’s leaders are seriously discussing decommissioning the euro’s highest denomination, which is favored by crime groups for transferring massive sums across international borders. Eliminating the bank note could help temper criminal activity, but in reality the implications are much broader. The idea is just the most recent step in an ongoing process moving Europe, and indeed the world, closer to an entirely cashless economy.”

None of this will go down well in both Germany and Austria who experienced periods of extreme hyperinflation after the world wars. This, along with life under dictatorships and in high-surveillance societies, has given both populations a fierce desire to protect their privacy (please note) — something that is afforded by the anonymity of using cash — and to keep wealth in physical form to avoid relying on systemic institutions.

There is another more sinister reason for forcing a cashless society. TruePublica reported last September that a deal had been signed by the administrations of the U.S., U.K. and E.U. when it comes to bank depositors. We said that “procedures in the event of the failure of a systemically important bank clearly states that depositors are to be protected – that is, until options have ceased to exist. Next time, the state will be last in line, not first. Depositor bail-in schemes are now a reality.” In other words, if a big bank fails you will be unable to cause a run on a bank by withdrawing your cash.

Indeed, the rescue of Italy’s Banca Monte dei Paschi di Siena, reported by all the press as imminent has one other thing in common, none of them are sure if this will be full or partial nationalisation, state bail-out or a depositor bail-in.

What the authorities want to do is avoid this nightmare scenario that happened on Britain’s streets: The Economist (Sept 2007 just before the full blown financial crisis erupted) –

The queues that formed outside Northern Rock, the country’s fifth-biggest mortgage lender, represented the first bank run in Britain since 1866. The panic was prompted by the very announcement designed to prevent it. Only when the Bank of England said that it would stand by the stricken Northern Rock did depositors start to run for the exit. Attempts by Alistair Darling, the chancellor of the exchequer, to reassure savers served only to lengthen the queues of people outside branches demanding their money. The run did not stop until Mr Darling gave a taxpayer-backed guarantee on September 17th that, for the time being, all the existing deposits at Northern Rock were safe.

In addition to all of this, the use of negative interest rates, never implemented in 5,000 years since the invention of money, is designed to force money out of the banks and into the economy which can be manipulated simply by changing the rate when required. The holy grail of economic measurement is rising GDP, which has eluded the ECB policymakers since the financial crash reared its ugly head leaving wave after wave of social crisis. Its answer was to print money and push 50% more into the economy and yet achieved an inflation rate barely above zero. Taxing cash at ATM’s or forcing it out of banks via punitive interest will be the norm in a few years.

Finally, with all money moving electronically the banks and government have another distinct advantage over you. Eighteen months ago, there was a run on the banks in Greece so the central bank imposed capital controls, highly restricting the amount of cash that could be withdrawn daily. In the few weeks prior to those controls ¢45billion was withdrawn and stuffed under mattresses. This won’t happen again if there are no ATM’s and cash transfers have all but been eliminated.

One way to the other – in the end, you are not going to be in control of your own money in a cashless society, that’s for sure.

Source*

Related Topics:

India: Millions Rise Up Against New World Order Ban on Cash*

Indian Economy Crashes As Modi’s ‘Black Money’ Theory Collapses*

A New Digital Cash System was Just Unveiled at a Secret Meeting for Bankers In New York*

Islamic Crypto-currency E-Dinar Coin Released*

More Banks Preventing Cash Withdrawals*

Cashless Society: Push of a Button can Empty Your Credit Card Account*

Hurricane Sandy Challenges a Cashless Society!

Global Elites Are Getting Ready To Blame You For The Coming Financial Crash*

The World Bank’s Identification for Development*

E.U. Passed Tax ID Numbers for Everyone*

NWO: France Clamping Down on Cash in the Name of Terror*

Zimbabwe to Start Issuing Bond Notes Today*

Six Seconds to Hack a Credit Card*

Drone Pilots have Bank Accounts and Credit Cards Frozen by Feds for Exposing US Murder*

Ten Reasons Why I Don’t Have a Credit Card*

You Pay more while Banks Profiteer in a Cashless Society…that’s the Convenience*

Why Central Banks HATE Cash and Will Begin to Tax It Shortly*

Financing the New World Order*

Dallas Pension System Suspends Withdrawals*

Dallas Pension System Suspends Withdrawals*

By Tyler Durden

Two days after the Mayor of Dallas, Mike Rawlings, filed a lawsuit against the Dallas Police and Fire Pension system to block withdrawals, which he referred to as a “run on the bank” of an “insolvent” pension system in “financial crisis, the Pension’s board has finally taken steps to halt further withdrawals.  Of course, this delayed action has come only after $500 million in deposits have been withdrawn since just August.

According to the Dallas Daily News, an incremental $154mm in withdrawal requests were pending at the time the decision was made earlier today.

The Dallas Police and Fire Pension System’s Board of Trustees suspended lump-sum withdrawals from the pension fund Thursday, staving off a possible restraining order and stopping $154 million in withdrawal requests.

The system was set to pay out the weekly requests Friday. Pension officials said allowing the withdrawals would leave them without the liquid reserves required to sustain $2.1 billion fund.

“Our situation is currently critical, and we took action,” Board chairman Sam Friar said.

While Dallas citizens cheered the decision, even opponents of the Mayor’s admitted that the redemptions had to be halted if the city had any chance of saving the pension system from insolvency.

Rawlings on Thursday afternoon told a crowd gathered at a Dallas Regional Chamber that “the bleeding has stopped. We can turn this ship around.”

The crowd responded with cheers after the mayor’s announcement of the board’s decision.

At the pension board meeting, the mood was more sombre.

Council member Scott Griggs said he couldn’t let the $154 million “go out the door” on Friday.

His council colleague, Philip Kingston, a board trustee, said the mayor “unquestionably” forced the pension board’s hand. He said Thursday was “the worst day I’ve had in public office.”

“Unfortunately, financially, this had to happen,” he said.

The fund has about $729 million in liquid assets. It needs to keep about $600 million on hand, meaning the restrictions could have been coming at some point even without the mayor’s actions. The withdrawal requests this week alone would have meant the fund would dip below that level.

Of course, not everyone was happy with the decision as at least one retired police officer threatened a lawsuit to force the fund to honor redemption requests while another declared that Mayor Rawlings had “successfully screwed over the retirees, the firefighters and the police officers.”

One retired police sergeant, Pete Bailey, suggested a lawsuit could be in the offing if the system didn’t pay out the requests that were made Tuesday. Friar understood that they might deal with more litigation.

“We may just have to deal with that, but that’s what the board decides,” Friar said.

“We acted in the best interest of the pension fund today.”

Retired Dallas police officer Jerry Rhodes, a pension meeting fixture, said he believed the board did what it had to do. Then he sarcastically lauded Rawlings.

“Merry Christmas, mayor,” he said. “Hopefully you have a good Christmas because you have successfully screwed over the retirees, the firefighters and the police officers.”

Perhaps future ponzi schemes pension systems will take note of Dallas’ current situation prior to guaranteeing 8% returns on retirees’ pension balances.  Who could have ever guessed that a decision like that could have backfired so badly?

For those who missed it, here is what we recently posted after Mayor Rawlings sued to halt pension withdrawals.

Last week, Dallas Mayor Michael Rawlings sent a scathing letter to the Dallas Police and Fire Pension (DPFP) Board demanded that withdrawals be halted immediately until the “solvency and actuarial soundness of the Pension System is restored.”  That said, the Mayor’s request was seemingly ignored as he has now filed a lawsuit with the Dallas District Court to force the pension board to halt withdrawals amid a “run on the bank.”

Within the suit, Rawlings notes that $500 million in lump-sum withdrawals have been made from the DPFP since August 2016 with $80 million of that amount being withdrawn in the first 2 weeks of November alone.  The suit continues on to allege that “this mass exodus of DROP funds amounts to a “run on the bank” and is exacerbating the financial peril of the Pension System as a whole.”

In performing these ministerial duties, the Board has a duty to ensure that programs, such as the Pension System’s optional Deferred Retirement Option Plan (“DROP”), which is not a constitutionally protected benefit (or “benefit” at all), do not impair or reduce the Pension System’s core constitutionally protected benefits, e.g., service retirement benefits. The Board is willfully failing to perform these ministerial duties.

The Pension System, which the Board oversees, is in the midst of a financial crisis. In early 2016, the Board was warned by its own actuary that absent radical change, the Pension System would become insolvent within 15 years—irrevocably eradicating the constitutionally protected service retirement benefits (and other constitutionally protected benefits) of police and firefighter personnel of the City and their beneficiaries.

Critically, this 15-year projection of insolvency was based upon two overly optimistic assumptions that the Board has now known to be incorrect for several months. First, the actuary assumed that the Pension System’s $2.7 billion in assets would remain stable, even though approximately 56% of these assets were composed of optional DROP funds, which have historically been permitted to be withdrawn in lump-sums upon demand (even though this option was used infrequently before this year). Second, the actuary assumed that the Pension System would achieve its targeted 7.25% return or more on its investments for the next 15 years.

Publication of this looming insolvency scenario prompted some DROP Participants to withdraw their DROP funds in lump-sum, which created a “snowball”effect, leading a staggering number of other DROP Participants to withdraw nearly $500 million in optional lump-sum DROP funds from the Pension System from August 13, 2016 to present. Over $80 million of these lump-sum DROP withdrawals have occurred within the first two weeks of November 2016 alone. Over this three-month time period, the Board has knowingly allowed DROP funds to continue to be withdrawn at record levels even though it is aware that doing so is irreparably harming the Pension System’s solvency and liquidity.

Lump-sum DROP withdrawals for 2016 are now on pace to be over 15 times higher than their historical average. This mass exodus of DROP funds amounts to a “run on the bank” and is exacerbating the financial peril of the Pension System as a whole.

The DPFP controversy comes as hundreds of police and firefighters have poured millions into “DROP” accounts in which they were guaranteed exorbitant returns of 8% while the pension board has proposed a $1 billion bailout from the city of Dallas.

The city estimates that, as of November, 517 police and firefighters have DROP accounts containing more than $1 million. One, belonging to an unnamed first responder, has $4.3 million in it, city figures show. On average, the city estimates that the average DROP account contains nearly $600,000.

The controversy all comes at a time when the board has asked the cash-strapped city for a bailout over $1 billion. The board’s position is that they legally can’t stop the withdrawals, but the mayor disagrees.

Of course, this all begs the question of whether the Dallas Police and Fire Pension will be the first pension ponzi to burst?

Here is the full lawsuit filed by Dallas Mayor Michael Rawlings:

Source*

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