by Sam Parker and Joe Mhlanga
February 10, 2018
from Behind-The-News Website
How the Elites
plan to steal your Money...
ice-nine was a poly morph of water, a rearrangement of the molecule H2O.
ice-nine has two properties that distinguish it from regular water.
When ice-nine water was
released into a large body of water, the entire water supply on
earth - from rivers, lakes and oceans - would eventually become
frozen solid and all life on earth would cease.
Ice-nine fits with an understanding of financial markets as complex dynamic systems.
Financial panics spread in the same way.
It normally starts with a run on a small bank. The panic spreads until it hits Wall Street and starts a stock market crash. Today, panic starts in a computer system, which triggers pre-programmed sell orders that cascade into other computers until the system spins out of control.
Risk managers use the word "contagion" to describe the dynamics of financial panic.
Elites are preparing for a financial ice-nine with no vaccine. They will quarantine your money by locking it inside the financial system until the contagion subsides.
The elite ice-nine plan is far more ambitious than any plan before it.
Ice-nine goes beyond banks to include,
It went beyond orderly liquidation to include a freeze on transactions.
Ice-nine would be global rather than case-by-case.
In Cyprus and Greece, matters came to a head and banks blocked depositors from their own money. Cyprus was a conduit for Russian flight capital. Two leading banks, Laiki Bank and the Bank of Cyprus became insolvent.
A run on the entire
banking system ensued. Cyprus was a Eurozone member and used the
euro as its currency. This made the crisis systemic despite the
Cypriot economy's small size.
...which drew a line over Cyprus.
The Rothschilds had
fought hard to preserve the euro in 2011, and did not want to see
that work undone.
The Bank of Cyprus was
restructured by the government, where only a part of depositors'
funds were converted into equity. Even shareholders and bondholders
lost a large part of their holdings, and were given some equity in
the bank in exchange for their losses.
Investors around the world shrugged and treated Cyprus as a one-off event.
Depositors in more advanced countries forgot the incident and adopted an attitude that said, "It can't happen here". They could not have been more wrong.
A G20 summit of world leaders met in Brisbane, Australia in November 2014, shortly after the Cyprus crisis.
A new regulator was established by the G20, and was not accountable to the citizens of any member country.
The FSB issued a report that provides the template for future bank crisis.
The report says bank losses,
In this context "creditor" means depositor.
The crisis came to a head in July 2015, when Germany ran out of patience with the Greeks and presented a financial ultimatum, to which Greece finally agreed. It was not clear if the Greek banks would survive or whether depositors would be bailed in under the Brisbane rules.
The banks had no choice
but to shut down access to cash and credit until their status was
Depositors now realized their money in the bank was not safe, and was actually a bank liability, and could be frozen at any time.
That was just a beginning.
On July 23, 2014, the US SEC approved a new rule that allows money market funds to suspend investor redemptions. Now money market funds could act like hedge funds and refuse to return investor money.
In the next financial
panic, not only will your bank account be bailed-in, your
money market account will be frozen.
Cash consists of $100 bills, E500 notes, or Swiss Fr1000 notes. These are the highest denominations available in hard currency.
Gold coins consist of various gold coins such as South African Kruger Rands, American Gold Eagles, Canadian Maple Leafs, or other widely available coins. Obtaining cash and coin in this fashion allows people to survive ice-nine account freezes. Global elites understand this, which is why they have started a war on cash.
Eliminating cash helps
the suppression of alternative markets.
Manufacturers reduce prices to sell goods and reduce wages, so labor costs are down.
A negative real interest rate occurs when the inflation rate is higher than the nominal interest rates on borrowings.
If inflation is 4 % and the cost of money is 3%, then the real interest rate is negative 1% (3-4 = -1). Inflation erodes the dollar's value faster than interest accrues on the loan. The borrower gets to pay back the bank in cheaper dollars.
Negative real rates are
better than free money because the bank pays the borrower to borrow.
Negative real rates are a powerful inducement to borrow, invest and
spend which feeds inflationary tendencies and offsets deflation.
Part of your money
Large depositors have no
recourse against negative interest rates unless they invest their
cash in stocks and bonds. That's exactly what the elites want them
to do. The elite drumbeat against cash and in favor of negative
interest rates is deafening.
A variety of incentives
are offered to the consumers. These take the form such as "cash
back", or to "gain points " which can be redeemed at various stores,
and similar variations. It is costing the banks a pretty penny, but
what they lose now, would be gained many-fold when the crunch comes.
These banks quickly imposed negative interest rates on their own customers. These banks all took money from client's accounts under the umbrella of negative interest rates. Some banks charge a "service fee".
Of course, a fee is the same as negative interest rates.
war on cash and the rush to
negative interest rates are advancing in lockstep, two sides of the
Today, the 4 largest banks in the US,
...are bigger than they were in 2008, and control a larger percentage of the total assets of the US banking system.
These 4 banks were
originally 37 separate banks in 1990, and were still 19 separate
banks in 2000. What was too big to
fail in 2008 is bigger today.
In November 2014, the FSB issued proposals to require the 20 largest globally systemic important banks to issue debt that could be contractually converted to equity in the event of financial distress.
Such debt is an automatic
ice-nine bail-in for bondholders that require no additional action
by the regulators.
This prohibition is
ice-nine applied to bank shareholders.
If ice-nine is applied to
money market funds, the run will move to bond markets. If any market
is left outside the ice-nine net, it will immediately become the
object of distress selling when the other markets are frozen. In
order for the elite plan to work, it must be applied to everything.
This standstill rule is called an "automatic stay", is designed to avoid a mad scramble for cash and securities that enriches some and disadvantages others.
The automatic stay in bankruptcy gives courts time to fashion an equitable asset distribution. In May 2016, the Federal Reserve a new rule, whereby no creditor or counterparty can take advantage of other creditors in a bankrupt entity.
This abandonment of early termination rights extends to the counterparties of the banks such as bond firms and asset managers. Big banks and institutional investors will now be treated the same as small savers when ice-nine is applied.
They will be frozen
In May 2016, David Lipton, a deputy managing director of the IMF made a speech in which he stated that destination countries for investors have to change their tax and banking rules to discourage short-term debt and encourage equity and long-term bonds. In a liquidity crisis, equity and long-term debt are easy to lock down by closing brokers and stock exchanges.
Any short-term debt can
then be locked down with capital controls on countries.
Is it really...?
This overview shows stock exchanges can be closed, ATMs shut down, money market funds frozen, negative interest rates imposed, and cash denied, all within minutes.
Your money may be like a jewel in a glass case at Cartier; you can see it but not touch it.
Savers do not realize the ice-nine solution is already in place, waiting to be activated with an executive order, a few phone calls, and the tapping of a few computer clicks.
History shows the opposite.
A survey of financial
panics in the past 110 years beginning with the Panic of 1907 shows
banks and exchange closures with losses by depositors and investors
Banks that were insolvent were allowed to fail. In between that were solvent but temporarily liquid were required to pledge assets for cash in order to meet depositors withdrawals.
At no point was there any
thought of bailing out every bank in New York.
Importantly, the panic
was contained and did not spread to every bank in the city.
Then there came the Panic of 1914, just when World War 1 broke out.
This was followed by the
Crash of 1929. The global financial system stabilized after 1933,
then collapsed again in 1939, with the advent of World War 2.
The seminal event was the July 1944 Bretton Woods conference. An alternative to periodic panic and lock down is a system that is coherent, controlled, and rigorously rule based.
The international system of capital controls and fixed exchange rates overseen by Washington was complemented by a regime of financial repression.
At the end of World War 2, the US debt-to GDP ratio stood at 120%. Over the next 20 years, Washington and the FED engineered a monetary regime in which interest rates were kept artificially low and mild inflation was allowed to persist. Neither rates nor inflation surged out of control.
This low inflation was
barely noticed by the public.
By 1965, the US
debt-to-GDP ratio was down to 40%.
The US controlled over
50% of the world's gold, as well as the dollar - the only forms of
money that mattered.
Washington refused to
make structural changes or to revalue gold. Over the next 5 years
many countries with surplus dollars began cashing them in for gold.
A full-scale run on Fort Knox ensued.
Nixon put up a "HOUSE CLOSED" sign for the world to see.
The ice-nine process had been reversed.
With floating exchange
rates, an ice age ended, and the world was awash in a sea of
liquidity. There was no problem that could not be solved with low
rates, easy money, and more credit.
In addition, there were
market panics in October 1987, in April-June 2000 and September
This new system was not always neat and tidy.
Investors suffered losses on their real value of their principal in the 1870s and 1980s. Still, the system itself stayed afloat. Washington solved the Latin American debt crisis by issuing bonds. The IMF and the FED provided rescue funds in the 1997-98 crises.
The crisis began with the
Thai currency in July 1997. The IMF gave emergency loans to Korea,
Indonesia, and Thailand in the first phase of that global liquidity
The task was left to the Federal Reserve Bank of New York (the FED), which supervised the banks that stood to fail if LTCM defaulted.
A month later, in
September 1998, the FED cobbled together a $4 billion bailout to
stabilize the fund. Once the bail-out was closed, the FED assisted
banks with an interest rate cut, the next day.
The storm passed, markets stabilized, economies grew, and asset prices reflated.
By 2016, the policy of
flooding the world with liquidity was widely praised.
ratios were higher. Losses loomed in sovereign debt, junk bonds, and
emerging markets. Derivatives passed the one quadrillion (one
thousand trillion) in notional value - more than 12 times global
The FED expanded its balance sheet from $800 billion to $4.3 trillion by 2015 to quench the 2008 crisis.
What would it do the next
time? A comparable percentage increase would leave the balance sheet
at $20 trillion, equal to the GDP of America.
That didn't happen.
Instead growth stayed weak. Markets looked to central banks to keep
the game going with easy money. Seven years of complacency had
lulled markets to sleep regarding risks of leverage.
The Bank of International Settlements (BIS) is the central bank for the globes many central banks. It is the mother of central banks. And it is a Rothschild entity.
The BIS began to issue many warnings.
A financial think tank in Geneva offered this shocking synopsis:
The report referred to
the impact of excessive debt on the world economy as "poisonous."
Expansion of leverage,
asset values, and derivatives volumes continued unabated.
Elites were not warning
everyday citizens; they were warning one another.
They were given time to adjust their portfolios and avoid losses that would overtake the small investor.
The elites were also laying a foundation so when crisis struck they could credibly say,
This despite the fact that most investors scarcely knew of the warnings when they were sounded.
This foundation makes
it easier to enforce the ice-nine solution. Because
investors ignored clear warnings, they would have no one to blame
The ice-nine apparatus was ready to seize the largest global banks, freeze money market funds, close exchanges, limit cash, and order money managers to suspend redemptions by clients.
Only one question remained.
There was no doubt about government's capacity to impose ice-nine.
Still, would citizens
give in as they had previously, or would there be a descent to
disorder? If money riots broke out, authorities in the western world
were prepared for that too.
This is not the stuff of
If events spin out of control faster than elites expect, more radical measures may be needed.
Such measures may involve property confiscation.
If resistance is
encountered, martial law backed up by militarized police will carry
out the orders of the head of state.
Yet that is not the kind of crisis we are facing.
As the next crisis begins, and then worsens, measures described here will be rolled out, one by one.
The question arises -
will everyday citizens stand for it...?
the next crisis, as confiscatory
solutions are employed, the popular response is likely to involve
The American people are
not. And exactly the same sort of emergency facilities and emergency
powers have been put into place by all the western governments - and
done very quietly.
A liquidity injection of the kind seen in 1998 and 2008 will not suffice because central bank balance sheets are stretched. There will be little time to respond.
Ice-nine account freezes will be used to buy time, but investors will grow impatient with ice-nine.
Governments would not go down without a fight.
The response to money
riots will be confiscation and brute force. Governing elites will be
safe in their heavily guarded mountain, or island retreats, or
heavily fortified gated communities.
There is no force on earth that can stop the desperation of a hungry stomach.