10th January, 2017
Prepare for political upheaval
City of London scribe Ambrose Evans-Pritchard has seen
the writing on the wall, forecasting the end of the liberal market
system if a new financial crash is dealt with in the same
way as the last. Citing the warning of well known fund manager,
GMO's Jeremy Grantham, of an oncoming 50 per cent
"near-term melt-up"—a surge on Wall Street—followed by
an "epic crash", Evans-Pritchard wrote in the 5 January London
Telegraph, that "If he is right, we face a wicked political
denouement [final act]."
"We should expect voters will seek Jacobin solutions if
there is yet another episode of gross economic and financial
mismanagement that leaves the rich unscathed while taxpayers
pick up the pieces", he continued.
Mapping out various scenarios of how today's bubble may
come to grief, Evans-Pritchard concludes with a broader political
conclusion: "How would the West's bruised democracies
respond to the spectacle of another Gatsbyesque [1920s-style
over-indulgence] obscenity on Wall Street and in the
City, followed by a double-dip depression? The clean broom
of Bernie Sanders and Jeremy Corbyn would be the least of
our worries. The great settling of scores that never quite happened
after the crisis in 2008 might this time sweep away the
entire economic order." (Emphasis added.)
Articles include the following:
- Think your bank deposits are guaranteed? Think again!
- Like Australia, India under pressure to pass 'bail-in' law
- Welcome to 2018—'a precarious year'
- 'Blockchain stocks' and bubble madness
- Torygraph reported coup plot 10 days before referendum
- What has five eyes and wears fishnet stockings?
- 'Russiagate' conspiracy unravels
- Will 2018 be Trump's year for infrastructure?
- Bitcoin: The ultimate madness of the speculative bubble
Click here for more...
9th January, 2018
APRA update: Think your bank deposits are guaranteed? Think again!
A former principal researcher at bank regulator APRA has revealed in a submission to a Senate inquiry that, contrary to government reassurances, Australian bank deposits are not guaranteed.
This explosive revelation shreds the government’s repeated assurances that its new bill to give crisis resolution powers to the Australian Prudential Regulation Authority (APRA) will not allow the “bail-in” (confiscation) of bank deposits, because they are guaranteed up to $250,000 by the Financial Claims Scheme (FCS).
In the cover letter to his submission to the Senate Economics Legislation Committee’s inquiry into the Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill 2017, Dr Wilson Sy asks Committee chair Senator Jane Hume: “As a matter of urgency, I need to ask: are you prepared to have your savings in bank deposits confiscated to save insolvent banks? What about the millions of voters you represent? How would they react if you allow this to happen to them?”
Dr Sy charges that the bill “gives the Government and APRA new discretionary powers to confiscate bank deposits”, and that it should be rejected.
(Dr Sy’s submission, “Protect Deposits Not the Fraudulent System”, is the first submission posted on the Senate inquiry’s website, and can be accessed here.)
As a Principal Researcher at APRA in 2004-10, during which time he was briefly acting Head of Research for a time, Dr Sy is one of the most qualified people to comment on APRA and the powers it will be given by this bill. Both the 2008 global financial crisis and introduction of the Financial Claims Scheme occurred while he was at APRA.
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