Cyprus-Style Deposit Theft Coming To Canada?!

Last month in March of 2013, Canada released their 2013 Annual Budget. As you would expect, it is a lengthy 442 page document outlining the various socio-economic forecasts, budget and financial direction of the British Commonwealth country for the year ahead.

Sadly, very few people outside of the political arena have the time or interest in reading this novel sized document, let alone those inside of the arena. Most of it is regurgitated from years gone by and much of the discussion, debates and policies surrounding this new budget takes place well in advance of it being released to the media and public.

With this said something VERY disturbing appears on pages 144 and 145. The heading of the section in question reads:

"Establishing a Risk Management Framework for Domestic Systemically Important Banks"

The goal of this section is to find a way to rescue “systemically important banks” without the use of taxpayer funds in the event of another financial collapse (which IS coming)…
This section states:

Canada’s large banks are a source of strength for the Canadian economy. Our large banks have become increasingly successful in international markets, creating jobs at home.

The Government also recognizes the need to manage the risks associated with systemically important banks — those banks whose distress or failure could cause a disruption to the financial system and, in turn, negative impacts on the economy. This requires strong prudential oversight and a robust set of options for resolving these institutions without the use of taxpayer funds, in the unlikely event that one becomes non-viable.

So if taxpayer funds will not be used to bail out the banks, how will it be done you may ask? Well, the Canadian government is actually proposing that a “bail-in” regime be implemented…
It continues to say:

The Government proposes to implement a “bail-in” regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital. This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada. Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants.

So if the banks take extreme risks with their money and lose, “certain bank liabilities” (i.e. deposits/your savings) will rapidly be converted into “regulatory capital” and the banks will be saved.  In other words, the banks will just be allowed to grab money directly out of your bank accounts to recapitalize themselves.

That may sound completely and utterly insane to us, but this is how things will now be done all over the western world - as seen recently in Cyprus.

According to RT, the European Parliament will soon be voting on a new law which will make Cyprus-style bank account confiscation a permanent part of the solution when major banks fail throughout the EU…

What's troubling is that the Cyprus issue only happened recently and the 2013 Canadian budget was only released to the public last month, which means that these plans had been discussed potential upto 12 months ago or longer, BEFORE the drama in Cyprus. To make matters worse, Canada is part of the British Commonwealth and the Australian 2013 Budget is due to be released in May of 2013. It will be very interesting to see if the same plan has been put into place, if it has and is outlined in the Australian budget, whilst I am no financial planner, it would be a very brave person to keep all or much of their savings in any financial institution going forward.

Are you starting to understand?

See or download the full Canadian Economic Action Plan 2013.

Funnily enough the front cover of this plan states "Jobs, Growth and Long Term Prosperity". How on earth does one prosper when his or her money is literally stolen from under their eyes and it is deemed lawful to do so?!