Sunday, March 31, 2013

Depositor's Beware - Harper's Budget supports Canadian Banks - not Depositors

The banking crisis in Cypress has made every EU holder of an EU Bank aware that their deposits are subject to confiscation without recourse.

One thing that most people do not realize is that when a deposit is made into a bank account, the money no longer belongs to the depositor, it has been loaned to the bank and the depositor must make a claim, usually in the form of a withdrawal or transfer request, to have their money back. If the bank goes belly up, then your money is technically lost with the exception of claims through liquidation.

That is all about to change. The Harper Government has decided to consider converting depositors deposits into bank shares in the event of crisis in certain banks - just as Cyprus is doing - by using a Bail-in. Totalitarianism and it's marching partner Fascism are on the upswing in Canada.

This policy is clearly shown in the proposed 2013 Government of Canada Budget on pages 144 and 145. The budget can be found here.  It says:

Depositor Beware!