The Cyprus Template for Bail-ins Comes to Canada, Next Up the US

Thursday, March 24, 2016
By Paul Martin

by Phoenix Capital Research
ZeroHedge.com
03/24/2016

Canada has joined the “bail-in” posse.

Canada will introduce legislation to implement a “bail-in” regime for systemically important banks that would shift some of the responsibility for propping up failing institutions to creditors.

The proposed plan outlined in the federal budget released on Tuesday would allow authorities to convert eligible long-term debt of a failing lender into common shares in order to recapitalize the bank, allowing it to remain operating.

Source: CNBC

The above story suggests that only bondholders would be at risk of a bail-in but we all know that is just some sugar to make what’s coming go down easier.

What’s coming?

Savings deposits being used to bail-in banks. Legislation is in the works in Canada, New Zealand, the UK, Germany, and even the US to do precisely this.

This whole template was laid out in Europe in 2012. Europe is ground zero for Keynesian Central Planning: a massive welfare state overseen by non-elected officials and Central Bankers who willingly break the rule of law whenever it suits them,

The guinea pig for the template was Cyprus.

The Rest…HERE

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