Canadezen bezorgd, Cyprus is blauwdruk voor de banken, Economisch Actie Plan 2013

The politicians of the western world are coming after your bank accounts. In fact, Cyprus-style bank account confiscation is actually in the new Canadian government budget. When I first heard about this I was quite skeptical, so I went and looked it up for myself. And guess what? It is right there in black and white on pages 144 and 145 of "Economic Action Plan 2013" which the Harper government has already submitted to the House of Commons. This new budget actually proposes "to implement a 'bail-in' regime for systemically important banks" in Canada. "Economic Action Plan 2013" was submitted on March 21st, which means that this "bail-in regime" was likely being planned long before the crisis in Cyprus ever erupted. So exactly what in the world is going on here? In addition, as you will see below, it is being reported that the European Parliament will soon be voting on a law which would require that large banks be "bailed in" when they fail. In other words, that new law would make Cyprus-style bank account confiscation the law of the land for the entire EU. I can't even begin to describe how serious all of this is. From now on, when major banks fail they are going to bail them out by grabbing the money that is in your bank accounts. This is going to absolutely shatter faith in the banking system and it is actually going to make it far more likely that we will see major bank failures all over the western world.

What you are about to see absolutely amazed me when I first saw it. The Canadian government is actually proposing that what just happened in Cyprus should be used as a blueprint for future bank failures up in Canada.

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A senior lawmaker told Reuters the Cyprus model may not be an isolated case, and is perhaps a future template in dealing with troubled European banks.

The new template is now likely to turn into a full-scale EU law, letting taxpayers off the hook in case a bail-out is needed, but imposing major losses on bigger savers on a permanent basis.

"You need to be able to do the bail-in as well with deposits," said Gunnar Hokmark, member of European Parliament, who is leading negotiations with EU countries to finalize a law for winding up problem banks, Reuters reported.

"Deposits below 100,000 euros are protected ... deposits above 100,000 euros are not protected and shall be treated as part of the capital that can be bailed in," Hokmark told Reuters, adding that he was confident a majority of his peers in the parliament backed the idea.

The European Commission has written the draft of the law, which now awaits approval from eurozone member states and the parliament on whether and when it can be implemented. It's been reported, the law is planned to take effect in the beginning of 2015.

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It’s Good Friday and a government holiday in Ottawa.

No point trying to reach Canadian Finance Minister Jim Flaherty today. So rather than wait until Monday, Canada Free Press (CFP) is posing this cliff-hanger question:

“Is that a Cyprus-style “Bail In” proposed in the newly-minted 2013 budget?”

That’s what economic gunslingers on both sides of the border and dozens of letters to the editor are charging.

What began as a rumble is growing into an ear-splitting cacophony—and the Canadian government should post a truthful, detailed and in-plain-English explanation on its website.

If Canada is going the same direction as Cyprus and the European Union, we need to know as soon as possible.

The concept of a Canada taking money from unknowing bank depositors is not just within the realm of hysteria and hype.

Not when Page 144 of the 2013 Canadian budget states: “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.

Translated, Without the use of taxpayer funds means via depositor funds???’ asks one CFP letter to the editor writer.

A fair question In a world where western governments are now stealing and coveting the money of small bank depositors.

Back to the budget and the meat of the provision on Page 145: “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 marked participants…”

Readers can view in full detail the bail-in provision in Canada’s 2013 budget on pages 144, 145.

Mr. Flaherty, all need to know how the Canadian bank ‘bail-in’ regime differs from what is happening in Cyprus and being contemplated in the Euro region which some see as a blueprint for the United States of America.

And as untold numbers of people with money in Canadian banks are now asking: “Are my bank deposits really safe?”

The Canadian Government owes the answer to Canadians and depositors from any number of other countries.

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