Will They Take All Your Money?

Will They Take All Your Money? By Jeff Thomas.

Step 1: Your bank deposit is merely an unsecured debt of the bank.

Most people assume that, if they have money on deposit in a bank, they own that money. That’s not necessarily the case. Decades ago, some of the world’s most powerful countries began to pass legislation that, if you deposit money in the bank, it becomes the property of the bank. In those countries, if you open a bank account and make a deposit, you sign off legal title to that cash. It becomes an asset of the bank.

The reason they got away with this obvious “theft through legislation” was that the banks were required to henceforth regard your deposit as a debt in your favour. So, technically, you were still owed the money, as a bank liability, even though it was no longer truly yours.

Step 2: You cannot always reclaim the debt — allowances and bail-ins.

What if there were a financial crisis, such as in Greece, where an anticipated run on the banks was circumvented by freezing all accounts, then partially reopening them? If that were the case, the bank in question could allow small amounts of cash to be withdrawn by its depositors each week or each month until the crisis had been safely averted. … The end of the Greek banking crisis has never been acknowledged and depositors have to accept whatever the banks choose to allow them to withdraw, long after the crisis ended. …

A [US] law was passed in 2010 that allowed any bank, if it declared a bank emergency, to confiscate deposits in such a way that the liability could be diminished or eliminated by the bank unilaterally. In effect: a license to steal. This law was then tested. A trial balloon went up in Cyprus, where deposits were confiscated as a result of a declared but unannounced bank emergency. Since Cyprus is merely a small island nation, most people outside the country paid the event little heed, but it established the principle that it was all right to confiscate deposits if the bank felt an emergency condition existed. (And remember, the bank wasn’t required to announce the emergency prior to confiscation.)

Since the trial balloon was so successful, Canada also passed confiscation legislation (in 2013), as did the EU (in 2014).

Step 3: Governments can help themselves

Then, in 2017, Greece began seizing bank accounts due to alleged unpaid taxes. It’s important to bear in mind that, since these confiscations were taken directly from bank accounts, the seizures were not a part of any agreement of level of debt between the taxpayer and the government, but were determined by the government, unilaterally, then taken.

Governments moved off gold by 1971, and are now reducing the utility of cash (no large denominations, increasing restrictions on use). It’s not hard to imagine a future where if a citizen says something his government doesn’t like, his finances are just withheld or disappeared — and you have no choice but to participate in such a financial system, because the alternatives are outlawed.

Where’s Robin Hood when you need him?

Read it all.