2016 will be the year of the big wake up call in Europe.

For European people that have any kind of money at all, the gun has been cocked and it is now being held to their head.  We see the truth of it in this recent link provided by reader Augustine in which Portugal confiscated $2bn of bonds from the bondholders of Banif bank.  What I found important here were two things:

1) The government is done bailing out banks.  Bankers got away with that the first time around but but now, and I mean globally, there is no political will to dump these dead banks onto the backs of the taxpayer.  By the way, politicians have no "will".  All they have are polls.  If they take the pulse of the people and believe they can get away with thus or such without being thrown out of office (or worse), then they do the self serving thing.  But if they determine that being a scum bag will incur a high chance of being dragged into the street and killed then, and only then, do they do the right thing.  A government which is not afraid of its people is a sign of unhealthy political control.  A healthy government has no will of its own, it simply reflects the will of the people and the people are done with bailing out corrupt banksters.

2) This move had to be done in a hurry in order to beat the new bail in laws which arrive in 2016.  These new laws essentially enforce the truth of what I have been saying all along -  that depositors are going to be held accountable for the losses of their banks.  They will be treated as investors and their accounts will in fact be seized in order to repay the bail out loans that occurred earlier.  The article states, "When BES was bailed out, senior bondholders and depositors were protected while junior debtholders and anyone stuck with the equity were, well, screwed. As was the case with Banif, if Portugal had waited until the new year dawned, uninsured depositors would have been at risk in any attempt to shore up Novo’s books ahead of a plan to restart the auction process."

I guarantee you that in 2016 we will see many depositors in Europe's banks get bailed in.  Why?  Because the debts must be paid by someone and those who pay will be those with the ability to pay.  The article talks about risk in uninsured deposits but do you think that Directive 94/19/EC of the European Parliament (i.e. the European equivalent to US FDIC) can cover all the losses?  Really?  That is just not possible because it would mean that enough money had been set aside to make all depositors under the limits whole.  What is far more likely is that such monies have been INVESTED in so called safe investments OR they have been used to buy insurance policies that will pay off the legal amounts if collapse occurs.  Like the FDIC, the European depositors have no real guarantees, they have paper promises of them.  Good luck with that.  Banks pay no interest and so there are few good reason to keep your money in them and many good reasons to find other secure ways to store your cash where there is not some criminal standing between you and your money.

Government promises mean nothing.  The governments of the world have been captured by the Mammon Money system and are thus corrupted by it.  Governments are bankrupt and so where do you think they will get money from in order to pay promises made to you?  Not from me, that's for sure.  Not without a battle.