Santa Cruz County Votes to Cease Doing Business with Five TBTF Mega Banks

For those who still hold on to the notion it is only conspiracy theorists who believe our banking system is completely corrupt, look no further than Santa Cruz County to spell it out for you.  This is close to home for many of you, so perhaps you might want to take note.

It is interesting that UTIMCO, the endowment fund for the University of Texas system, repatriated their physical gold from HSBC's vaults in New York.  Texas is traditionally a very conservative state, wary of the federal government's over-reach, and generally mistrustful of .gov.  This is duly noted--and understandable.  As the saying goes, "Don't Mess With Texas!"

But contrast that with Santa Cruz County, which is traditionally very liberal.  Yet, both sides of the aisle now mistrust the global banking system.

Wake up, people.  The sun is setting on fiat currency regimes.  Prepare for it, because it is coming.  Well, what does that mean--prepare for a currency reset?  It means your social security checks, pensions, even bank deposits, as well as your money market funds will be eviscerated.  In fact, any debt instruments, even short-term bills, carry inherent risks, including currency devaluation, counterparty, inflation, higher interest rates, default, and liquidity.

In other words, why take on all those risks for the privilege of earning 0% returns?

See Cyprus, Greece, bank depositor bail-ins, and capital controls coming to a country near you.

http://libertyblitzkrieg.com/2015/07/14/santa-cruz-county-votes-to-cease-doing-business-with-five-tbtf-mega-banks/

Elizabeth Warren Torches Janet Yellen on TBTF

http://libertyblitzkrieg.com/2014/07/16/video-of-the-day-elizabeth-warren-torches-janet-yellen-on-tbtf/

Regulating Large Financial Institutions

http://federalreserve.gov/newsevents/speech/stein20130417a.htm 

"Thank you. I'm delighted to be here, and want to thank the International Monetary Fund and the organizers of the conference for including me in a discussion of these important topics. I will focus my remarks today on the ongoing regulatory challenges associated with large, systemically important financial institutions, or SIFIs.¹  In part, this focus amounts to asking a question that seems to be on everyone's mind these days: Where do we stand with respect to fixing the problem of "too big to fail" (TBTF)? Are we making satisfactory progress, or it is time to think about further measures?

I should note at the outset that solving the TBTF problem has two distinct aspects. First, and most obviously, one goal is to get to the point where all market participants understand with certainty that if a large SIFI were to fail, the losses would fall on its shareholders and creditors, and taxpayers would have no exposure. However, this is only a necessary condition for success, but not a sufficient one. A second aim is that the failure of a SIFI must not impose significant spillovers on the rest of the financial system, in the form of contagion effects, fire sales, widespread credit crunches, and the like. Clearly, these two goals are closely related. If policy does a better job of mitigating spillovers, it becomes more credible to claim that a SIFI will be allowed to fail without government bailout." - Jeremy Stein, Federal Reserve Governor