As I write this, the European Union has just announced a possible $15 billion aid package to Ukraine (including 8 billion euros in fresh credit). Everybody has read the headlines about Europe: record unemployment, no end in sight and so on. So you might be wondering just where the European Union, and its constituent nations, scrapped together the money to propose aid for the Ukraine. Well, wonder no more, because the following eight events might give you an idea of where governments go to get a little extra cash:
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- In March 2009, Ireland seized 4 billion euros from its Pension Reserve fund in order to rescue its banks. In November 2010, the remaining savings of 2.5 billion euros was seized to support the bailout of the rest of the country.
- In December 2010, Hungary told its citizens that they could either remit their private pension money to the state or lose their state pension funds (but still have to pay for it nonetheless).
The geopolitical stakes in Ukraine have brought us to a quasi Cold War redux, as Western powers the European Union and the United States have made it clear their intention to “support” (read: meddle in) Ukraine. In the meantime, Russia has sent troops to the border of Ukraine in what are being called exercises.
Turkey is experiencing protests and violence due to corruption by the government, and Venezuela is also experiencing protests and violence. The “global political awakening” has gone hot on multiple continents.
Although one week ago mainstream press worldwide spoke about Ukraine as if it were in the midst of a popular uprising, a different picture has become clearer, as communist and fascist sympathizers seem poised to gain the most out of the chaos. “Conspiracy” aside, it is a no-brainer that major powers can have the most influence in these sorts of situations, and we are seeing this develop. Already, European-style bank policies are being implemented in the unstable region.
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The news is pouring in: After .1 percent growth in the fourth quarter of 2013, Italy’s recovery has begun. (That 2012 $600 billion bailout clearly worked for Italy.)
But this .1 percent growth might not be enough to put the minds of politicians at ease. Another less reported Italian-based event has taken place in the shadows.
The European Union and its constituent nation-states are scrambling to get all of the pieces in place before collapse. Cyprus made headlines nearly one year ago when it enacted a bail-in against savers. I reported last week’s revelation of savings confiscation in Europe. One main point of each article was that this is not the end. This will only continue, and what’s likely is it is coming to your nation soon.
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If you have cash in a U.S. bank, you can expect to have the Federal government take it all the next time U.S. banks find themselves in trouble.
The days of the Federal government’s stealing money from taxpayers or borrowing it from the Federal Reserve to save troubled banks — as in it did in the 2008 crisis — may be over. Congress is considering imitating the theft in Cyprus and letting troubled banks “bail in” depositor money in order to make themselves solvent.
Jim Sinclair, chairman and CEO of Tanzania Royalty Exploration Corp., and whose family started Goldman Sachs, Salomon Brothers, Lehman Brothers, and others, has been warning of this for a while:
Bail-ins are coming to North America without any doubt, and will be remembered as the “Great Leveling,” of the “Great Flushing.” Not only can it happen here, but it will happen here… It stands on legal grounds by legal precedent both (sic) in the U.S., Canada and the UK.”
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