In the United States, the last time we saw lines outside a select number of failing banks was during the 2008 derivatives crisis.
The financial damage was eventually limited, but it made everyone aware that something wasn't right within the system.
That was six years ago. Since then, many have stated that central banks and their governments didn’t solve the financial problems of 2008 but instead simply kicked the can down the road, making the derivatives issues far worse when they come home to roost.
Now, recent activity within the big banks seems to suggest trouble is brewing once again.
When you consider the known facts about the recent banking scandals (Libor, interest rate, and currency rigging) and leaked information from very credible sources regarding the derivatives problems of the major banks, bail-in arrangements, and recent changes in banking policies, it doesn’t take much imagination to see this will not
have a happy conclusion.
The momentum of evidence this past year seems to indicate that problems for the big banks are coming to a head.
Recent revelations from John Cruz, former vice president and relationship manager at HSBC, certainly are adding plenty of fuel to the fire.
Mr. Cruz has made two guest appearances on The Common Sense Show in which he alleged that he uncovered that HSBC was laundering money for the Mexican drug cartels through phony shell corporations. He brought this to the attention of his supervisors at HSBC and was told to "leave it alone."
When he did not leave it alone, he was fired. Cruz went to prosecutors in the New York City area. They acknowledged they knew what was going at HSBC, but they refused to investigate and prosecute and DHS. The FBI told Cruz the same thing.
Highly credible World Bank whistleblower Karen Hudes has also spoken quite plainly about the massive fraud and collusion within the banking system.
Hudes reveals deep-rooted, systemic corruption at the core of the Bretton Woods institutions, as well as deep-rooted, systemic problems with the U.S.'s legal system, law-enforcement agencies, and government crime.
Moreover, her case reveals the illegitimate control and influence a relatively small cartel holds over the Bretton Woods institutions, the U.S. government, and the U.S. judiciary and law-enforcement agencies.
AlliedBarton, the international security contractor and contractor for security personnel at the World Bank who was responsible for Hudes' illegal arrest, is owned by members of the same cartel that controls the Bank for International Settlements, 40% of the asset value of 43,000 transnational corporations and financial institutions, and 60% of their annual earnings.
Hudes worked in the World Bank's legal department for 20 years and reported state capture by the very megabank and conglomerate that owns AlliedBarton.
Although Hudes' case is an international scandal that could result in the eruption of a currency war, permanent backwardation, and a grinding halt to global trade, her case has been held outside of the mainstream media.
Hudes states the mainstream media is being controlled by the same megabank and conglomerate that is responsible for the corruption at the World Bank, IMF, and in the U.S. government.
Dr. Karen Hudes was fired in retaliation for reporting corruption at the World Bank to the Senate Committee on Foreign Relations.
The UK Serious Fraud Office also called the Securities and Exchange Commission to inquire into the World Bank’s accounting irregularities. Hudes reported to UK Parliament that the SEC stonewalled the Serious Fraud Office.
You can access videos of Karen Hudes' interviews by doing a web search for "Karen Hudes World Bank scandal."
The Libor and currency scandals, along with the Cruz and Hudes revelations, expose the world banking system as a massive criminal enterprise. In my view, the people at the head of this fraudulent banking system are the enemies of all mankind.
Banking Policies are Changing
HSBC bank is now limiting withdrawals in both the United States and Britain.
The bank recently admitted it has not informed customers of the change in policy, which allows it to deny customer withdrawals of cash from their own accounts. This policy was implemented in November of 2013.
Dave Hodges of The Common Sense Show expressed his views regarding this development:
This development at HSBC should raise red flags for everyone, not just HSBC customers, because in the same time frame, JP Morgan Chase announced an identical policy. As a result, many financial analysts are predicting a bank run in the near future and this is the primary strategy of the banks as they are obviously bracing for an economic collapse.
This illegal withholding of bank customer funds is justified by Eric Leenders, the present head of retail at the British Bankers Association. Leenders states that the banks are just being sensible to ask questions as to what the money is for and then make a subsequent decision on whether to release the funds to the account holder.
Leenders stated that "I can understand it's frustrating for customers. But if you are making the occasional large cash withdrawal, the bank wants to make sure it's the right way to make the payment." I would agree with Mr. Leenders in that the theft of customer money by a supposed trusted bank is indeed frustrating.
Clearly, this momentum of evidence is all coming together very quickly and spells big trouble ahead. If
the banks were on sound financial footing, account holders would not see any such restrictions. However, if you knew if a bank crash was coming, wouldn’t you make sure your bank was as liquid as possible?
To the banks, being liquid and cautious in these perilous times means that the banks intend on making it
very difficult for their customers to gain access to their money.
These are the chest pains before the heart attack. Take your money out of the bank while you still can.
From my standpoint, the writing is clearly on the wall for all to see. The elitist bankers and their puppet politicians are working in tandem to protect themselves at the expense of the public.
I have been saying for quite some time that the reason the banks are not loaning much money out is because they need the money themselves. Financial requirements for first-time homebuyers are ridiculous compared to just six years ago.
I have several friends who have been complaining that their 30-something children (with decent jobs and credit) can’t get any financing to buy their first homes. This is the sad reality for our young people in the new America.
The American economy is in free fall. The economic recovery is a government fantasy supported by smoke-and-mirror data and politicians that tell nothing but lies.
Are major bank runs in our near future? Are we marching closer and closer to when banks and governments have no choice but to exercise what they have already put into place for such an event?
Unfortunately, I would have to conclude the answer is YES.
All you can do is understand and prepare as best you can for what is unavoidably coming.
Until next time,
Greg McCoach for Wealth Daily