John Rubino – Debt Jubilee for the Bankers – Austerity for Us
The Daily Coin
March 5, 2015
How do you know when you are about to be run down by a train? Well, typically you see it coming. What about when Credit Default Swaps are about to blow up and see the financial world flying off a cliff; how does one see that coming? Well, you can only see that after you have fallen and as you are tumbling toward planet earth and picking up speed as you fall!! Sounds awesome!
This is exactly the point that our financial system has reached. The Hypo bank in Austria was recently declared to be a zombie bank. The government of Austria had previously bailed out, read tax payers money, Hypo bank, but the bank management thought they could beat the bookie and then pay off their debt if they could get one roll of the dice to fall in their favor. The dice had other plans and the gamble has not worked in Hypo’s favor. The problem with Hypo is they have all these government bonds on their books. The bonds are tied to the CDS (Credit Default Swaps) and now we, the world that is, are waiting to see if we are heading over the cliff or if the bankster mafia members are going to be able to work their magic and make the CDS’s go away. The only way the banksters were able to make the previous CDS crisis go away was to sacrifice Lehman Brothers and steal trillions of dollars from the American tax payer. We will never be able to pay this debt. Ever. Debt jubilee, anyone?
It seems we are sitting on the precipice of another global crisis. Will these gambling debts trigger defaults? We learned that some of the usual suspects are involved. According to The Telegraphs Ambrose Evans-Pritchard:
Sources in Vienna suggested that even senior bondholders are likely to face a 50pc writedown, becoming the first victims of the eurozone’s tough new “bail-in” rules for creditors. These rules are already in force in Germany and Austria, and will be mandatory everywhere next year.
“We are at a very delicate phase when Europe’s banking system switches from a bail-out regime into a much tougher bail-in regime, and Austria has just thrown this into sharp relief,” said sovereign bond strategist Nicholas Spiro. The biggest bondholders are Deutsche Bank’s DWS Investment, Pimco, Kepler-Fonds and BlackRock. The World Bank also owns €150m of Hypo debt.
In the above quote it appears the figures for most of the bond holders are missing. So, as of right now it is somewhat unclear of the exposure to these financial weapons of mass destruction. They will be coming home and it will be a mess. We can only hope the criminals in charge have something of a plan in place to contain this nightmare. Oh, that’s right they do. Bail-ins. The people that have exposure to the bank itself, depositors, creditors of the bank and people that hold Hypo Bank bonds, are currently at risk. We can only hope there are enough funds to pay the bookie, close the bank and contain the explosion.
The Rest…HERE
