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Your Savings Can Be Used 2 Save Insolvent Banks ? (Read 2259 times)
Bam
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Re: Your Savings Can Be Used 2 Save Insolvent Banks ?
Reply #45 - Feb 21st, 2018 at 10:58am
 
Bobby. wrote on Feb 20th, 2018 at 7:03pm:
Bam wrote on Feb 20th, 2018 at 5:30pm:
Sir lastnail wrote on Feb 20th, 2018 at 4:09pm:
Bobby. wrote on Feb 20th, 2018 at 4:01pm:
Hi Nail,
a financial expert was on the radio yesterday
he said stocks will fall & so will housing by as much as 40% and it could bring the banks down with them.

Is our super money safe?


The expert said that it was the Federal Reserve that stepped in to stop the crash 2 weeks ago -
without that it would be here already.


we won't see a penny of it. Most of it will stolen by legalized theft Sad

If that were to happen, banking executives would be physically dragged out into the street to be shot. There's no way that the people would roll over meekly and allow it to occur without someone getting very, VERY angry.

It wouldn't get their money back.

Look at what happened in Cyprus.

https://en.wikipedia.org/wiki/2012%E2%80%9313_Cypriot_financial_crisis

It wouldn't get the money back, but if that were to happen the loss of control would be so great that the government would be close to collapse. If the government lost control, money would become meaningless. Cashless transactions would be the first to go, followed very shortly after by cash.

The Australian dollar has no intrinsic value because it's a fiat currency. The Australian dollar only has value because the government says it does. If the government breaks down, the currency collapses. Once that happens, it doesn't matter that it's been stolen.

Fortunately, such a financial apocalypse is unlikely to happen. Unfortunately, the chances of its happening are not zero.
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tickleandrose
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Re: Your Savings Can Be Used 2 Save Insolvent Banks ?
Reply #46 - Feb 21st, 2018 at 11:31am
 
This legislation sounded very bad. 

For example, if you have 500,000 dollars in home loan, and 500,000 dollars in an offset account.   One would figure that the home loan is basically paid off right.  No... with this legislation.  In time of crisis, the savings on the offset account would disappear.  BUT, you are still liable for 500 000 in loan tied to your home.  If you cant make the loan amount, then your house will be sold to pay for the loan. 

Nasty nasty.

And there is more to come.  Soon, we will move to a cashless society - which is government's current favourite phrase of the month to stamp out so called 'black economy".  But in reality, its just more 'bail out' money for the banks.
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Bobby.
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Re: Your Savings Can Be Used 2 Save Insolvent Banks ?
Reply #47 - Feb 21st, 2018 at 12:14pm
 
Bam wrote on Feb 21st, 2018 at 10:45am:
Valkie wrote on Feb 21st, 2018 at 4:32am:
BRING ON THE REVOLUTION

ILL BUILD THE GUILLOTINES.

It's quicker and cheaper to hang them. All that's needed is some wood (or even a tree) and some good strong rope.





Even old rope would do.
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Bobby.
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Re: Your Savings Can Be Used 2 Save Insolvent Banks ?
Reply #48 - Feb 21st, 2018 at 12:14pm
 
tickleandrose wrote on Feb 21st, 2018 at 11:31am:
This legislation sounded very bad. 

For example, if you have 500,000 dollars in home loan, and 500,000 dollars in an offset account.   One would figure that the home loan is basically paid off right.  No... with this legislation.  In time of crisis, the savings on the offset account would disappear.  BUT, you are still liable for 500 000 in loan tied to your home.  If you cant make the loan amount, then your house will be sold to pay for the loan. 

Nasty nasty.

And there is more to come.  Soon, we will move to a cashless society - which is government's current favourite phrase of the month to stamp out so called 'black economy".  But in reality, its just more 'bail out' money for the banks. 



Then don't leave much in your offset account.
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Bias_2012
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Re: Your Savings Can Be Used 2 Save Insolvent Banks ?
Reply #49 - Feb 21st, 2018 at 12:36pm
 
Well assuming the money holds it's value, we're safe - for now

The Government can change things in the blink of an eye during a crisis. It appears that the Govt guarantee to $250,000 will still apply if the banks meltdown. But it doesn't say that in the legislation, it says: "which is currently set at $250,000 per account"

During a meltdown, what's stopping the Govt from lowering the cap of $250k to something lower?

The One Nation proposed amendment could only have protected deposits above the guaranteed $250k and to make future Governments fully disclose publicly any changes without deceit and months ahead of those changes ... not in the sneaky way the Govt usually handle these money matters


Read this in the legislation about the $250k guarantee ...

Financial Claims Scheme (page 18)
1.47
The FCS provides an important backstop within Australia’s
resolution regime.
It protects retail depositors and policyholders by
providing prompt access to their funds which, in turn, contributes to
financial stability, by limiting the propensity for a destabilising ‘run’ on
deposits in the case of ADIs (Authorised Deposit-taking Institutions), and more generally by promoting confidence in the financial system.

1.48

The FCS for ADIs provides depositors with a guarantee of their deposits up to a pre
- determined cap, which is currently set at $250,000 per
account-holder, per ADI.


In the case of general insurers, the FCS
provides compensation for most claims up to $5,000 against a failed
general insurer, with claims above $5,000 also covered for eligible
policyholders and certain third parties.


http://parlinfo.aph.gov.au/parlInfo/download/legislation/ems/r5989_ems_d5c61274-...



A list of Accounts that come under the Govt $250k guarantee

Government guarantee on deposits

The types of accounts covered by the guarantee are: savings accounts; call accounts; term deposits; current accounts; cheque accounts; debit card accounts; transaction accounts; personal basic accounts; cash management accounts; farm management deposits; pensioner deeming accounts; mortgage offset accounts, either 100 per cent or partial offset that are separate deposit accounts; trustee accounts; and retirement savings accounts.


https://www.moneysmart.gov.au/managing-your-money/banking


So if you have more than $250k deposited, be prepared ... and watch for any future tricks that decrease the $250k guarantee cap
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tickleandrose
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Re: Your Savings Can Be Used 2 Save Insolvent Banks ?
Reply #50 - Feb 21st, 2018 at 2:37pm
 
Bobby. wrote on Feb 21st, 2018 at 12:14pm:
tickleandrose wrote on Feb 21st, 2018 at 11:31am:
This legislation sounded very bad. 

For example, if you have 500,000 dollars in home loan, and 500,000 dollars in an offset account.   One would figure that the home loan is basically paid off right.  No... with this legislation.  In time of crisis, the savings on the offset account would disappear.  BUT, you are still liable for 500 000 in loan tied to your home.  If you cant make the loan amount, then your house will be sold to pay for the loan. 

Nasty nasty.

And there is more to come.  Soon, we will move to a cashless society - which is government's current favourite phrase of the month to stamp out so called 'black economy".  But in reality, its just more 'bail out' money for the banks. 



Then don't leave much in your offset account.


Most saving's account nowadays double up as an offset account  Sad
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Bobby.
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Re: Your Savings Can Be Used 2 Save Insolvent Banks ?
Reply #51 - Feb 21st, 2018 at 2:50pm
 
tickleandrose wrote on Feb 21st, 2018 at 2:37pm:
Bobby. wrote on Feb 21st, 2018 at 12:14pm:
tickleandrose wrote on Feb 21st, 2018 at 11:31am:
This legislation sounded very bad. 

For example, if you have 500,000 dollars in home loan, and 500,000 dollars in an offset account.   One would figure that the home loan is basically paid off right.  No... with this legislation.  In time of crisis, the savings on the offset account would disappear.  BUT, you are still liable for 500 000 in loan tied to your home.  If you cant make the loan amount, then your house will be sold to pay for the loan. 

Nasty nasty.

And there is more to come.  Soon, we will move to a cashless society - which is government's current favourite phrase of the month to stamp out so called 'black economy".  But in reality, its just more 'bail out' money for the banks. 



Then don't leave much in your offset account.


Most saving's account nowadays double up as an offset account  Sad



Mine does so I move the money out as quick as I get it into my mortgage only leaving enough
for my estimated bills.
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Bias_2012
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Re: Your Savings Can Be Used 2 Save Insolvent Banks ?
Reply #52 - Feb 21st, 2018 at 3:21pm
 
tickleandrose wrote on Feb 21st, 2018 at 11:31am:
And there is more to come.  Soon, we will move to a cashless society - which is government's current favourite phrase of the month to stamp out so called 'black economy".  But in reality, its just more 'bail out' money for the banks.



I think brand new banknotes are trackable - nano chips? See the new notes here

https://banknotes.rba.gov.au/banknote-features/#-new-fifty

Read this ... July 17

http://www.news.com.au/finance/economy/australian-economy/cash-crackdown-boss-fl...
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lee
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Re: Your Savings Can Be Used 2 Save Insolvent Banks ?
Reply #53 - Feb 22nd, 2018 at 7:07pm
 
Sir lastnail wrote on Feb 20th, 2018 at 4:15pm:
lee wrote on Feb 20th, 2018 at 11:13am:
Sir lastnail wrote on Feb 20th, 2018 at 9:07am:
They have 1% cash reserves


Got a reference for that?


It was quoted in a financial article a few years ago. Try and refute it. These banks are running on vapours and are relying on a growth in immigration and hence bank fodder to keep their ponzi scheme running !! Little wonder the pollies won't talk about limiting immigration because it is all part of their fake economy Sad


So no reference.

Perhaps you meant this -

"Banking regulation in Australia requires banks to hold a minimum of 11% cash against loans they write, so as crypto-investors move their savings out of the banking system, those banks loose their ability to legally write new loans, or worse, fall into non-compliance with their reserve obligations."

"APRA, the body responsible for setting the cash reserve limits, increased the reserve limit shortly after the GFC, as Australians fearful for their funds placed heavy pressure on cash withdrawals, forcing the Australian Federal Reserve to print billions in additional cash to prevent widespread customer panic. APRA added 1% to the cash reserve minimum to help ensure the banks survive the next rush."

https://www.reddit.com/r/Bitcoin/comments/7n5etp/australian_bank_cashreserve_req...
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« Last Edit: Feb 22nd, 2018 at 7:12pm by lee »  
 
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