Today we’re going to pick apart some Newspeak. Here’s the relevant paragraph, from an article in Reuters about the leaders of the most powerful financial institutions all coming together and conspiring about how to rob the entire human race of all its savings and transfer them all to governments, all in one shot.
Government leaders are expected to agree in November that the world’s top banks must issue special bonds to increase the amount of capital which can be tapped in a crisis instead of calling on taxpayers to come to the rescue, industry and G20 officials said.
The bonds, known as “gone concern loss absorption capacity” or GLAC, are seen by regulators as essential to stopping the world’s 29 biggest lenders from being “too big to fail”.
Here’s the translation into English:
There’s this problem with banks that have gotten so big, thanks to government coddling and favors, that to let them fail would endanger the government itself. Therefore, up until now, every time they almost fail, which happens repeatedly because they are all fractional reserve banks that lend out demand deposits, the government bails them out by raising taxes and printing, and giving the money to the banks in what is called, colloquially, a bail out. In 2008 it was $700 billion in taxes (remember the TARP act?) and $16 trillion in printing, 22x the taxes spent on the banks.
The problem is, relying on taxpayers to back banks is politically unpopular, so instead of having to rely on the government to transfer tax money to banks through direct taxes and inflation, governments are enabling the banks to steal from depositors directly without using the government as its thieving middleman.
GLAC bonds will be backed by none other than demand deposits, in other words the money you deposit in your checking account. You can’t just invent capital out of nothing if you are not a central bank and do not have the ability to steal through inflation. So in the event of serious financial stress, these GLAC bonds will be on the balance sheets of banks listed as assets to pay off creditors.
Got that? Thanks to G20 governments, the biggest banks now have the ability to pay off their creditors with the money you deposit in your checking and savings accounts by calling that money a “GLAC Bond” and declaring it an asset.
Now taxpayers do not have to be robbed by government in order to pay off bankster debts. Now they can be robbed directly by the banks themselves through GLAC bonds. Remember Cyprus in 2013? When the Cypriot government took a percentage of everyone’s deposits to pay off its debt?
It just went global.