Big Banks Will Take Depositors Money In Next Crash -Ellen Brown

4By Greg Hunter’s USAWatchdog.com 

The G-20 met recently in Australia to make new banking rules for the next financial calamity.  Financial reform advocate Ellen Brown says these new rules will allow banks to take money from depositors and pensioners globally.  Brown explains, “It became rules we agreed to actually implement.  There was no treaty, and Congress didn’t agree to all this.  They use words so that it’s not obvious to tell what they have done, but what they did was say, basically, that we, the governments, are no longer going to be responsible for bailing out the big banks.  These are about 30 international banks.  So, you are going to have to save yourselves, and the way you are going to have to do it is by bailing in the money of your creditors.  The largest class of creditors of any bank is the depositors.” 

It gets worse, as Brown goes on to say, “Theoretically, we are protected by deposit insurance up to $250,000 in the U.S. and 100,000 euros in Europe.  The FDIC fund has $46 billion, the last time I looked, to cover $4.5 trillion worth of deposits.  There is also $280 trillion worth of derivatives that the five biggest banks in the U.S. are exposed to, and under the bankruptcy reform act of 2005, derivatives go first.  So, they are basically exempt from these new rules.  They just snatch the collateral.  So, if you had a big derivatives bust that brought down JP Morgan or Bank of America, there is no way there is going to be collateral left for the FDIC or for the secured depositors.  This would include state and local governments.  They all put their money in these big banks.  So, even though we are protected by the FDIC, the FDIC is not going to have the money. . . . This makes it legal for these big 30 banks to take our money when they become insolvent.  They are too-big-to-fail.  This was supposed to avoid too-big-to-fail, but what it does is institutionalizes too-big-to-fail.  They are not going to go down.  They are going to take our money instead.” 

Part of the coming financial calamity will involve hundreds of trillions of dollars in un-backed derivatives.  Brown contends, “If the derivative bubble pops, nobody knows what is going to happen, and it’s obvious it has to pop.  It can’t just keep growing.  Depending on who you read, some people say it is up to two quadrillion dollars.  It’s virtual money, and it cannot keep going on.”

When a financial crash does happen, you can forget about getting immediate access to your money.  Brown says, “The banks will say, well, we don’t have it.  All the money goes into one big pool since Glass Steagall was repealed.  They are allowed to gamble with that money and that’s what they do.  I think maybe Bank of America is the most vulnerable because of Merrill Lynch.  Everybody is concerned, and they do very risky deals and they are on the edge.  I think they have over $50 trillion in derivatives and over $1 trillion in deposits. . . The Dodd-Frank Act says we, the people, are no longer going to be responsible for the big banks when they collapse.  It is not clear the FDIC will even be able to borrow from the Treasury, but even if they could, who is going to pay that money back?  Let’s say they borrowed $1 trillion.  Who is going to pay that $1 trillion back?  It will bankrupt all the small banks that had to contribute to this premium.  They will say we’re raising your premium to everything you got, basically.  Little banks will go out of business, and who is going to survive–the big banks. . . . What we’re going to have left is five big banks, and everybody else is going to be bankrupt.”

Join Greg Hunter as he goes One-on-One with Ellen Brown from the Web of Debt Blog. 

(There is much more in the video interview.)

After the Interview:

4Ellen Brown is an expert on public banking.  In 2013 she wrote “The Public Bank Solution: From Austerity to Prosperity.”  For a copy of this book, click here.  Brown is working on a new book which will be about bail-ins and big global banks.  She has not set a release date.  If you would like to keep up with articles Brown writes, you can follow her work on the Web of Debt Blog which can be found on EllenBrown.com.

 

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Comments
  1. Mr. Impatient

    Greg,

    Please please please for the love of God when you ask these people a question, just ask the question and then stop talking for 3o more seconds and elaborating on and on and on!!!! My goodness, I was screaming at the computer listening to this great interview saying shut up and let her just answer the question !!!!!! Now go back and listen to your awesome interview and you’ll see what I mean. And if you don’t see it, ask someone to watch it that you trust and let them tell you!!!!!!!!!!! Sorry man, I love your interviews but you’re killing me here.

    • Smaulgld

      Disagree Greg’s interjections are often helpful requests for clarification

      • Ellen Brown

        I like it that he gets excited and interjects and goes on. Makes for a fun interview!

      • john

        I agree 100% with your commit …. also she seems to ramble on and on and on…

      • Bexaida

        Agreed xcept for yelling at the screen. It is nerve wracking at best be ause there is little know how on making do with little revenue. We the small fry ususlly get eaten up. Will there be money for Social,Security? And Health care?

      • Judy hundley

        When is this going to take action

    • redgreen

      He’s no Dick Cavett.

  2. Silence is Golden

    Greg,

    Ellen has a lot of smarts. She is factual in her account and she avoids hyperbole.
    I am glad she mentioned Collateral. That topic just doesn’t get enough “Air” time in my view. It should because of the leverage in the system. Simply put…there is not enough collateral to settle all the outstanding debt (FDIC is a ruse as is Dodd Frank – where has the Risk been mitigated ??) . The QE program (re-capitalisation of the Big Banks) establishes that fact. Ellen may be right that the last men standing could be the 5 Big Banks (pooling and sharing and first rights over assets etc.), but I do find it irresistible not to mention, that unless they regulate to make Derivatives trading Illegal, then they are all DEAD. QUID PRO QUO. ALL of them currently are technically bankrupt.
    The concept of less regulation as postulated by Ellen is something out of an Orwellian revisit to 1984. DE-Regulation by the maestro Greenspan did wonderful things for the Financial and BANKING sectors. He gave them a license to SELF – REGULATE because he believed in de-centralisation…….I mean …shut the front door …Really !! “They were supposed to follow the policy and free markets were supposed to be self correcting. Self interest and Greed were and still are the essential part of Banking. What he allowed has manifested itself into the biggest bubble ever known to man.

    As for the notion of keeping cash it may be worthwhile re-visiting what Fiat Money is.
    In essence it is a Debt. A DEBT that is owed by the FRBNY and The US Treasury.
    When it comes to the ability of those two institutions to be able to honour their obligations one has to determine whether there is capacity to fulfil it.
    Q: Do you wish to own a Debt (Fiat) which has an ever decreasing likelihood of being honoured or do you want to have something that will have some value. To answer that question look at the actions of those who are most exposed to the Debt (US Fiat FRN).
    It comes down to a matter of Trust…trust in the ability of the stewards of the Monetary system to complete their side of the bargain. Why hold DEBT…when it is the scourge of the Globe. Here’s where things get really bizarre….whilst people and business are either taking on new debt or trying to get out of debt…..those that hold cash …are Holding a Debt Instrument…which in itself is compounding the problem. We are surrounded by DEBT. Remove yourself from the Debt paradigm…hold physical assets that you can control.

    • Greg Hunter

      Thank you SIG for adding additional analysis to this post!
      Greg

    • neidermeyer

      Greenspan was delusional when he deregulated … it must have been an Atlas Shrugged inspired action ,,, big banks good! bigger banks better! regulation and government bad! In Ayn Rands books the heroes had a moral code they lived up to and they self regulated and limited themselves … that’s not how Wall Street works.

    • allen ols

      sig

      Another Manipulation Monday with Andrew Hoffman. Listen in as we discuss:

      Plunging oil prices
      Shale is 15% of U.S. junk bond market – $210 billion
      Energy bonds in freefall
      Merger mania will paralyze big oil
      Plunging currencies worldwide
      Liquidity vaccuum caused by global economic collapse
      Record valuations of insolvent government bonds
      Chinese gold, Indian silver, U.S./Canadian silver demand will exceed 2013′s record levels in 2014
      Swiss “no” was second to last chance for West to try to save itself. This weekend, Japan snap election is second.
      Abe likely to win, as Yen amid 40% plunge, Japan CPI at multi-year highs, and massive recession.
      Household survey NEGATIVE jobs, “Labor Market Index” declined today
      Further decline in labor participation

      http://sgtreport.com/2014/12/andy-hoffman-hello-global-recession/

      • Silence is Golden

        Allen,
        You would be interested to know that the 2IC to Christine Laggard over at the IMF (Min Zhu) has publicly stated that the WORLD is in a DEPRESSION. This guy is THE most astute person in the matter of world Economics. Oh and btw……he also states that the Central Banks and Political Leaders of the West are not doing what is necessary to rectify this malaise = WRONG POLICY.
        It may pay to get to know this Guy. He has a substantial amount of respect amongst world leaders. He is also grooming the World for a NWO. One in which the IMF supposedly plays a significant part.
        https://www.imf.org/external/np/omd/bios/zm.htm

        • allen ols

          sig
          Not sure what a 21 C is. I did chk the site. tks. al

          • Charles H.

            Second in charge? Pretty cryptic language lately.

          • Silence is Golden

            2nd In Charge. 😉
            Not someone to disrespect.

          • Paul from Indiana

            Brother Al, I’m guessing he meant “#2 In Charge”, in other words, somebody in succession to Christine Legard (big deal). They can all speak in numerology, I guess. Best always. PM

    • Fish

      How did Ellen do in predicting what would happen in 2008? Did she get that one (or other crashes previous) right? What are her credentials? I’d also like to know what she thinks we should do with our money, seeing as at some point the Banks plan to have it all.
      What’s she doing with ‘her’ money? So many questions via the fear-mongers. So few answers or advice.

      • ldm

        Fish: My exact observations. I would also like answers to your questions but am finding none. Glenn Beck says to run to your credit union but is that any different? Physical gold and silver: how would you spend a krugerrand in a crisis? I heard that our deposits are basically unsecured loans we make to the banks that won’t be paid back.

        Has anything changed since this was written (ie: since Trump was elected)?

  3. AL

    Karen Hudes notes a massive gold stockpile put aside to rescue humanity
    Let’s hope that the derivatives crash does not see the ‘people’ given a choice – you can pay down the debt with your savings and future earnings, or we can pay it off with this secret gold stockpile we’ve just uncovered. I’m sure the average Joe would vote ‘yes’ if it came to that.

    • Thomas1

      Sorry Al, I don’t think that stockpile exists. I believe she claims it’s underground in Hawaii. We’re too close to a crash, and who could afford to not be in precious metals.

      • paul

        Thomas1 … another “Gold Stockpile” that does not exist is what the “Dis-information Cabal” claims is so plentiful on the Moon … with all these STOCKPILES OF GOLD who in their right mind would want to buy gold?

        The subtle message the Cabal is planting in our minds is … “we better hurry up and sell our gold to the idiots who want to buy it” … like the Russians, the Chinese, the Germans, the French, the Swiss, etc. … “see how the price keeps going lower … sell … sell … sell” … (while the Cabal buys with both hands and goes around the world looting all the gold they can steal (Libyan gold, Ukrainian gold, Saudi gold, etc.)

    • andyb

      The only massive gold stockpile existing is that owned by the Rothschilds and their cabal of criminal banksters. Trust me, they are not looking out for you. Hudes, in my opinion is just “controlled” opposition. She worked for the World Bank, for God’s sake.

      • SmokeySteve

        Investing in precious metals NOW is a fool’s errand. Anyone who was going to make a killing in Gold and Silver has already made it and gotten out. You first clue is when it was offered to Average Joe Shmoe. Other than some commercial electronics use, gold and silver are assigned value by the banks. As soon as people realize that they have no magic properties or actual value, it is all just useless metal. The real investment is in firearms and ammunition. That’s what is protecting Americans from the banks doing exactly what this paranoid story foretells.

        • Silence is Golden

          You going to shoot people to get the food and water you need under that scenario. What happens when they start shooting back ? Defense is one thing…..but what are you defending ? Your guns and ammunition ?

        • Charles H.

          I respectfully disagree SS. Banks do NOT assign the value of precious metals: this perception is shallow in view of history; AND repatriation of gold to Central Banks. And silver is a natural antibiotic in colloidal form. Please tell me the billions of people around the world who wear jewelry – that precious metals are “useless metals”. Puh-leeze.
          Firearms and ammunition? If you “carry”: you must be able to kill. Any questions?