HSBC Bank may Collapse

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Concerns about an imminent bank crash were further fueled today by news that HSBC are restricting the amount of cash that customers can withdraw from their own bank accounts.  Customers were told that without proof of the intended use of their own money, HSBC would refuse to release it.  This, and other worrying signs point to a possible financial crash in the near future.

HSBC Collapse

HSBC is scrambling to manage a seemingly terminal liquidity crisis (a lack of hard cash) that could see the bank become the next Northern Rock – and trigger a bank crash.  The analyst’s advice is for shareholders to sell HSBC investments, and for customers to move their accounts elsewhere before the crash.

This from the Telegraph:

Forensic Asia on Tuesday began its coverage of Britain’s largest banking group with a ‘sell’ recommendation, warning the lender had between $63.6bn (£38.7bn) and $92.3bn of “questionable assets” on its balance sheet, ranging from loan loss reserves and accrued interest to deferred tax assets, defined benefit pension schemes and opaque Level 3 assets.

Citing a report by the BBC’s MoneyBox Program, HSBC customers are withdrawingn cash from their accounts, simply because HSBC would not release the funds. Customers were told to make a bank transfer instead, unless they supplied documentation showing the planned use of their money. Stephen Cotton tried a withdrawal and told the program:

“When we presented them with the withdrawal slip, they declined to give us the money because we could not provide them with a satisfactory explanation for what the money was for. They wanted a letter from the person involved.”

Mr Cotton says the staff refused to tell him how much he could have: “So I wrote out a few slips. I said, ‘Can I have £5,000?’ They said no. I said, ‘Can I have £4,000?’ They said no. And then I wrote one out for £3,000 and they said, ‘OK, we’ll give you that.’ “

He asked if he could return later that day to withdraw another £3,000, but he was told he could not do the same thing twice in one day.

As this was not a change to the Terms and Conditions of your bank account we had no need to pre-notify customers of the change”

He wrote to complain to HSBC about the new rules and also that he had not been informed of any change.

The bank said it did not have to tell him. “As this was not a change to the Terms and Conditions of your bank account, we had no need to pre-notify customers of the change,” HSBC wrote.

Mr Cotton is not alone, while other customers are seeking to withdraw cash amounts over £3,000 are they facing the same obstacles.  While HSBC argues that their customer’s well being comes first, the story simply doesn’t add up.  Customer identification is required for large withdrawals, not a customer’s intentions – a person’s cash is theirs to withdraw and place wherever they wish to so.  Instead, HSBC has been found to have a capitalized upon a black hole (gap between actual cash and obligations) of $80bn.  The message is simple, get your money out now.

The Gold Rush

The major banks and financial super powers appear to be preparing for an impending crisis, while pretending that the economic situation is improving.

There is a gold rush underway, with Banks and institutions frantically buying up as much gold reserves as they can, stoking fears that confidence in currency is at an all-time low.  Recently, banks like HSBC and JP Morgan, and countries such as the US, Germany and China have joined the gold rush, making vast purchases of stocks.

Investment analysts at Seeking Alpha have been monitoring the strange activity on the COMEX, stating:

“keeping track of COMEX inventories is something that is recommended for all serious investors who own physical gold and the gold ETFs (SPDR Gold Shares (GLD), PHYS, and CEF) because any abnormal inventory declines may signify extraordinary events behind the scenes.”

Another Bank Crash? Why?

The US dollar is a fiat currency  (so are the pound sterling, the euro and most other major currencies).  This means that it’s monopoly money.  There are no gold reserves that its values are imbedded into,  it’s simply made up.  So how does money get made? A private, for profit central bank prints it and lends it to the government (or other banks) at an interest rate.  So the Central Bank prints $100, and gives it to the government on the basis that it returns $101.  You may have already spotted the first flaw in this process.  The additional $1 can only come from the Central Bank.  There is never enough money. The second issue is that all money is debt.

This used to be the way pretty much all of the money in circulation came to be.  That is, until Investment and Retail Banks got tired of this monopoly on debt based currency, and kicked off the commercial money supply.  You might assume that when you take out a loan or other form of credit, a bank gives you that money from its reserves, and you then pay back that loan to the Bank at a given interest rate – the Bank making its profit on the interest rate.  You would be wrong. The Bank simply creates that loan on a computer screen.  Let’s say you are granted a loan for $100,000.  The moment that loan is approved and $100k is entered on the computer – that promise from you to the bank creates $100k for the bank, in that instant.  This ledger entry alone creates the $100k, from nothing. Today, over 97% of all money that exists, is made this way.

This is what drove the dodgy lending practises that created the last crisis.  But since then, the failure to regulate the markets means that while bailouts hit public services and the real economy – banks were free to continue the same behaviour, bringing the next crash.

The world’s second richest man, Warren Buffet warned us in 2003 that the derivatives market was ‘devised by madmen’ and a ‘weapon of mass destruction’ and we have only seen the first blast in this debt apocalypse.

The news that should have us all worried is: the derivatives market contains $700trn of these debts yet to implode.

Global GDP stands at $69.4trn a year.  This means that (primarily) Wall Street and the City of London have run up phantom paper debts of more than ten times of the annual earnings of the entire planet.

Not only can the Bankers not pay it back, the combined earning power of the earth could not pay it back in less than ten years if every last cent of our productive power went solely to pay off this debt.

This is why answering the issues with our currencies, our banking practices and economic system are not theoretical or academic – they are a matter of our very survival.

Source:

http://iacknowledge.net/

HSBC imposes restrictions on large cash withdrawals

Credit revenues collapse at HSBC’s investment bank

 

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  • dave

    Since 2007 where most major banks were in serious risk of default, banks have recapitalizated, this is evident in their records and soaring record profits also reflected in sky high stock prices. Almost any institution today will demand proof of use for large withdraws, large means anything more that 3000 pounds in cash. This has to do with the new world order of security, which I posture as a smoke screen for the new world order of government invasion of private citizens banks accounts for tax evasion and money laundering. Banks across the board are remodeling their asset allowcation and risk assessment due to the fact that the government has warned it will not bail out proprietary trading losses. Only depositors accounts. This means your money is insured and in the state of a banking failure. Average citizens depositor money is safe. It also insures that banks must take a more conservative approach to banking and stop acting like hedge funds or risk insolvency. I just moved a large sum of money through traceable electronic transfer via HSBC no questions asked.

    In regards to the central banks fiat money conspiracy here is a well documented article that can put the jekyll island conspiracy to rest.

    THE TRUTH ABOUT THE FEDERAL RESERVE, IT’S INTENDED PURPOSE AND WHAT IT’S BECOME. NOT A FANTASY CONSPIRACY FROM JEKYLL ISLAND. 

    Federal Reserve began as a simple private sector clearing house/insurance fund, which is why the banks were the owners. Yes, the Fed was given the power to create money that was to be ELASTIC. They would create money during a bank panic to satisfy demand and then shrink it when depositors return to the banks. This was actually a good idea insofar as it could create cash when people were in a panic and that prevented the banks from closing and having to dump assets at pennies on the dollar such as mortgages, This was a fantastic idea to stabilize the economy in a panic. If people knew they would always get their cash, then there was no reason to panic.

    The flaw in banking that makes it unstable and prone to panics is simple. For you see, the banking system was based upon borrowing from the public on demand paying short-term rates and lending long-term such as in mortgages and business loans. The entire model ASSUMED the yield-curve of long-term rates higher than short-term was standard. But in a panic, the yield-curve flips and becomes inverted were short-term rates rise above long-term.

    The design of the Fed was correct, brilliant, and not some wild conspiracy. What happens is people, not knowing the history, always judge things buy the current terms. In 1913, the Fed “stimulated” by purchasing corporate paper NOT GOVERNMENT. The entire thing was a private sector solution that worked. Now enters government. World War I starts and they need to issue debt so they INSTRUCTED the Fed to buy government bonds not corporate paper. Fine if this was temporary for the war. But the way government screws things up consistently, they never put anything back. They killed the real stimulus quality of the Fed that was its ability to restrain unemployment by supporting companies in time of need.

    Add to this the idea that INFLATION = the rise in theQUANTITY of money, and suddenly the Fed is now seen as the inflation fighter and its job is now to sterilize the reckless spending of Congress. It was like Congress can go get anyone pregnant without any responsibility for the consequences.

    The Fed always was set up with 12 branches BECAUSEit was discovered that there were regional capital flow problems. Therefore, proper to Franklin Roosevelt, each branch of the Fed was independent and it could lower the local interest rates when too much cash existed in its domain or raise it when there was a shortage. Corps come in and cash flows to the wheat belt. During planting, no cash is coming in, it all leaves. It was the NY Fed that tried to manipulate rates to influence international capital flows lowered US rates in hopes to deflecting the capital outflows from Europe. Pictured here were the four central bankers of NY, London, Paris, and Germany in their secret meeting to first try to manipulate international capital flows that backfired.

    World War II enters and Roosevelt (1) usurps all power to Washington and imposes a single national interest rate abandoning the Fed design and purpose, and (2) instructs the Fed it was now required to support the government bond market at PAR using that ELASTICauthority to monetize debt to sterilized the cost of the war. The Fed was thus mandated to support the government bond market until 1951.

    With the last 2007 Crisis, we created this idea of TOO BIG TO FAIL to support AIG and insurance company to prevent it from defaulting on Goldman Sachs. That scheme is now embedded within the system and nobody really understands that was ro save Goldman – not the economy. So the Fed, which was a private bank fund, is now guardian of the entire economy and can deem anything TOO BIG TO FAIL and take it over. It has now claimed that hedge funds in excess of $100 billion are the lucky candidates. They can deem anything nowTOO BIG TO FAIL and have dictatorial powers over the private sector.

    Now we are so far from its original purpose and design it is no longer a central bank. This was by no means a conspiracy hatched at Jekyll Island. This is a patch-work of government mismanagement as always. This is not some grand conspiracy that transcends generations. These people are not that smart and there is no collective consciousness in government. That is reserved for human kind – not government.
    (Armstrong economics

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