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The Financial Tsunami

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With this past weeks state of the union address focusing on substantially raising the minimum wage has put so many business on high alert. In doing so has only increased the anxiety of a nation. Instead of focusing on the root cause of the greatest income disparity gap in our history where millions of Americans remain ever vigilant to any sign that their fortunes will improve we are left with even more division. And, unfortunately, those signs have yet to appear on the horizon. A golden opportunity squandered all for issuing mandates that ultimately will create more adversity for an already troubled economy. For the most part of this past State Of The Union Address continued to elude the real reasons why this nation is so distressed. So many times past Presidential address have only focused on generalities that continue to gloss over the hard cold realities of today.

Half a world away undercurrents of financial shock waves have continued to surface. Meanwhile, our elected officials and even during the Presidents latest address failed to mention let alone offer any solution to the mounting tidal wave of financial calamity that is on a collision course. Fate or a predetermined set of circumstances have set off financial repercussions of the past financial debacle of 2008. And, we thought those governmental bailouts put an end to our financial worries. Ah contraire! It has always been our elected officials failure to implement the necessary reforms that would have prevented the disaster of 2008 and now stave off this impending disaster that has been in the making for years.

Many can remember back during the waning years of the Nixon Administration a nation was blind sided by the oil crisis when the main stream media was so focused on Watergate that the public didn't even know we had a energy crisis until it was too late. With today's recent data breaches occurring almost on a weekly basis has caused our financial institutions to implement safeguards that in fact only protect their investments and not your hard earned money. Of course these safeguards were sanctioned by the government. When facts surrounding this impending wave of financial devastation fail to be released to the public, just like the financial bubble bursting in 2008, where many knew before hand but sat quietly only to reap more financial gain only created more wealth disparity. Now, to have a Presidential address focus on income inequality all the while the rich have and will only get richer again just proves a political process that has governmental officials incapable of implementing reforms that unify and not divide a nation.

We have a government in collusion with corporate America that continues to ignore what is really going on right under their noses. Our financial system has for years been eroding global confidence. Today, that dollar, which has been the worlds first currency, is so close to causing a financial calamity here for millions of Americans. Now, when we are faced with the continued devaluation of the dollar where in 1960 $1,000,000 is only worth $100,000 today we can see just how far the dollar has plunged in value. If the dollar is replaced by the Chinese yen or any other currency the financial fallout with out protective measures in place before hand puts the financial condition of the nation in grave jeopardy. Just because of the unwillingness of our public officials to acknowledge that the financial policies for the past 42 years have undermined the credibility of the US dollar. When a currency is only backed up by the good intentions of a nation to promise to pay its debts is a recipe for financial Armageddon. What we have now in the United States is a national debt that is so high in all probability this nation will never be able to pay it off anytime soon.

The financial wave of calamity has already arrived in Europe and is now spreading like the Bubonic Plague right here in the United States. Take for instance just this past month a Mr. Cotton who has a bank account at the London branch of HSBC and for over 28 years never over drew his account. In all practical purposes he was a very good customer. But, that all changed when he wanted to withdraw 7000 pounds to pay back his mother who had previously loaned him money. The bank refused his request. Now, just for a moment think what is actually happening. Imagine waking up one morning to find your bank locked and access to your money either via an ATM or another bank teller denied. Where Amscot or any other money lending store is shut down. Your ability to pay bills, buy food and even your employers ability to pay you all gone in an instant. If your bank accounts and credit cards were frozen and garnished by the banks themselves or even by the Federal government what would you do? Panic would overtake common sense. It has already happened to millions of people already. Remember the recent financial troubles in Greece. That was just the tip of the financial iceberg that is looming ready to sink the financial markets like the Titanic.

The failure to grasp the seriousness of just how precariously close to a financial and economic catastrophe the United States really is when in the latest Presidential address kept on asserting that the substantial hike in the minimum wage will solve many of our current problems just shows a rationale that is oblivious to the real dangers lying in wait. When Mr. Cotton finally got an answer to why his account was limited in the amount he could actually withdraw he was told that according to new banking laws, all your deposits belong to the bank. All you "own" is a deposit receipt, an IOU. And according to new banking laws the bank now defines depositors as unsecured creditors whose accounts are now owned by the bank and not the depositor. In fact, the banks now have become the de facto property of the new regulatory branch of the government. In the United States with so much data thefts on the rise now every financial institution is following suit to what the HSBC has already done. Banks now have the authority to decide how much money and when one can withdraw from their own account.

Just this past week came a report that My Bank, one of Russia's top 200 lenders by asset, has implemented a complete ban on cash withdrawals until next week and even then the ban may be extended. A complete ban. Just let that sink in for a moment as to the severity of the coming financial crisis. Questions now have to be asked. The bigger question we all should be asking is why is all this happening right now. To answer that we have to go back to last March in Cyprus. The Greek government needed money and with the approval of the World Bank and the International Monetary Fund approved the governments request to confiscate large sums of money from individual bank accounts. As a result was instant panic all through-out Cyprus. Now, what has also occurred is that this action by the Greek government is a template for all future governmental actions. The US FDIC and the Bank of England have already jointly agreed to use this new rule even as far back as December of 2012. Yet, not to many people really knew of this change of monetary policy affecting individual bank accounts.

Ever since March of 2013 the people of Cyprus continue suffering from "capital controls" that limit how much money and when they can withdraw from their own bank. What happened to them has already being implemented at banks right here in the good old USA . But, we can be rest assured says the Fed Chairman that the seizure of individual bank accounts is extremely unlikely. The Fed also states that the new banking rules will help the financial institutions manage more effectively the risks involved in banking transactions. In other words the banks even though use your hard earned money to make more money and profits by investing their assets {cash} now to safeguard their investments have purposely imposed restrictions on individual bank accounts just to protect their profits. One can see that instead of protecting the depositor these new rules now just protect the banker and their bottom line.

We see the reasoning behind the banks new regulations by just looking at these past instances where the banks themselves have managed to mislead the public. First there was JP Morgan loss of $6 billion from trading activities in which CEO Jamie Dimon claims was unaware of. JPMorgan’s [JPM] loss of $6 billion from trading activities of which CEO Jamie Dimon was blissfully unaware. Now we have many of the worlds biggest banks accused of manipulating the interest rate benchmark the ever popular LIBOR. Today many of again our too big to fail banks have agreed to settle a $20 billion lawsuit for foreclosure abuses. Now there are accusations of illegal clandestine bank activities that are also proliferating. Large global banks are known to help Mexican drug dealers launder money and funneling cash to Iran. There is even two of the biggest Swiss banks involved in helping over 20,000 US taxpayers with assets of over $40 Billion hide their identities from the IRS many banks. In 2009, UBS [UBS] helped 20,000 U.S. taxpayers with assets of about $20 billion hide their identities from the IRS. Now, the oldest Swiss bank, Wegelin & Co. has been indicted on criminal charges for helping U.S. taxpayers avoid taxes on at least $1.2 billion for a nearly ten years. Only after the financial crisis of 2008 did people learn that banks routinely misled clients, sold them securities known to be garbage, and even, in some cases, secretly bet against them to profit from their ignorance. We can see by all these abuses why the financial institutions around the world are now shoring up their accounts and imposed the new regulations to secure that they profits remain intact and continue to grow.

As Americans we need to recognize these threats to our very own way of life. But when a Presidential address about the state of the union fails to point out the new banking regulations and the just how precariously close the United States is to a financial catastrophe again points out either he is oblivious to international conditions or is covering up other intentions. A squandered moment indeed when the President could have taken the lead and informed the American public just how severe our economic future really is with current policies in place but didn't.

With this recent address that mainly focused on substantially raising the minimum wage where to many Americans are still are facing foreclosures, with stagnate wages far below the cost of living even with a minimum wage increase still misses the boat in economic recovery and growth. We have to realize that politically this country has evolved into an elitist form of governesses where the few rule the majority. And, a political process that has only eroded public confidence while dividing a nation. For the past 35 years governmental policies, treaties and laws that have been passed steadily moved the United States society and economy on to a path of self implosion. The failure to recognize our failings by our elected officials have led this country to the brink of falling into an financial Abyss that we would be incapable of climbing out of.

Is it too late to avoid the pit of economic ruin? That remains to be seen. But as long as we have political leaders who deny the existence of a financial Armageddon or beguile the public into thinking all is well and good we as a nation are one step closer to that terrible reality.


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