Australia’s overheated housing bubble about to burst

from CEC, Coburg

Sensational information has surfaced that an Australian Treasury delegation travelled to Europe in February for discreet meetings with European countries on how they handled their banking crises.

Former Coalition economics advisor John Adams made the revelation in a 31 March discussion with Martin North posted on their Interests Of The People YouTube channel, entitled “Scandal – Australian Officials Caught In Covert Banking Meetings”.

Adams attributed the information to an unnamed source, who spoke with both him and Martin North.

CEO of the Australian Bankers Association and former Queensland Labor Premier Anna Bligh after sending Qld broke now heads the insidious Australian banking cartel. Economists warn of a bail-in law recently passed in the senate without a quorum, which will allow banks to take your deposits to prop them up

This information emerged following news.com.au on 19 March reporting Adams and North for their explosive analysis that Australia’s plunging property market could trigger a banking crisis that could spread overseas, “Australia could be ‘first domino to fall’ in next GFC”, in which they compared Australia’s housing market and banking system to that of Ireland before its crash in 2008. Adams followed this up with a top-rating appearance on Peter Switzer’s Money Talks program on 25 March to debate establishment economist Chris Joye on “Is Australia facing a house price collapse?”, in which he also made the comparison to the banking crises in Europe.

The Citizens Electoral Council can attest that Treasury has consistently denied the likelihood of an Australian banking crisis, despite the growing number of signs. Treasury’s claim that a banking crisis is “unlikely” is one of its excuses for opposing the need for a Glass-Steagall separation of banks.

So why would a Treasury delegation be holding covert meetings in Europe to consult on how to handle precisely such a crisis?

Don’t tell the passengers the Titanic is sinking!

As noted on the latest episode of the CEC Report, the Australian government has a policy of not telling the truth about the economy. Their logic is they don’t want to “spook” the market, or “talk down the economy”. John Adams has reported that government MPs have asked him not to speak out about the economy.

More to the point, according to Adams, one MP admitted they are anticipating a crisis, but hope it would be triggered by an international financial shock, so the government can have plausible deniability and not have to admit that their domestic economic policies, centred on inflating the biggest housing and debt bubble in Australian history, caused the crash.

This amounts to: “If we don’t tell the passengers that the Titanic is sinking, maybe they won’t blame us.” The regulators are even worse. Their attitude is: “If we don’t find out whether the Titanic is sinking, maybe it will stay afloat”! This is evident in Reserve Bank of Australia (RBA) deputy governor Guy Debelle’s statement in December 2018 that when it comes to assessing Australia’s record debt, “there is little to form a strong conclusion about how much is too much”. It is also evident in the recent revelation by analysts at Deutsche Bank that the Australian Prudential Regulation Authority (APRA), the bank watchdog, has understated mortgage debt by as much as 40 per cent! This is not incompetence from APRA, but a result of its see-no-evil, speak-no-evil approach to regulation, even to the point of ignoring systemic threats. APRA in 2007 suppressed an internal report by its research department that warned lowered mortgage lending standards by banks had created a bubble, in which defaults were rising and were on track to cause a banking crisis and recession. In 2010 APRA went one step further and disbanded its research department.

Bail-in

Two possible explanations for the Treasury meetings in Europe are: 1) a genuine desire to learn from their experience so they can spot a crisis coming and take action to avert it—unlikely; 2) an opportunity to assess the “bail-in” system that is in force across all EU member states, the Bank Recovery and Resolution Directive (BRRD), which authorises financial authorities to contain a future financial crisis by seizing savings deposits to prop up failing banks, so they don’t set off a chain-reaction collapse.

The latter is far more likely as, also in February, the latest IMF Financial System Stability Assessment for Australia ordered the government to implement a full, statutory bail-in system, like the EU’s BRRD.

Unlike the government, the IMF was frank about the trouble Australia is facing: “Stretched real estate valuations and high household leverage pose significant macrofinancial risks”, the report stated. “Household debt has risen by some 25 percentage points since the previous FSAP [Financial Sector Assessment Program] to about 190 per cent of disposable income, one of the highest levels in the world. … The major banks run similar business models, raising the vulnerability of the system to a common shock. All are heavily exposed to real estate….”

The government is very secretive about its bail-in agenda due to the intense public opposition that the CEC has mobilised for the past seven years, since the first application of bail-in in Cyprus in March 2013. The IMF alluded to this secrecy in its report, noting that “Australia has adopted a cautious public stance on creditor bail-in.” Other jurisdictions, including the EU, USA, Japan, Canada and New Zealand, passed their bail-in laws easily because they kept their populations in the dark; India is the only other country where there has been a political backlash like in Australia, to the point that last year the Indian parliament was forced to withdraw its bail-in legislation.

That said, Australia already has certain bail-in powers that include a loophole through which bank deposits can be seized. The CEC has legal advice that the broad language of the APRA crisis resolution powers law snuck through Parliament without a recorded vote in February 2018, and the fact discovered by John Adams and Martin North that banks can change the terms and conditions of deposit accounts effectively without notice, can be used to bail in deposits.

Treasury’s covert preparations for a banking crisis, and bail-in agenda, confirms they are expecting a crisis. It is imperative that we win the CEC’s fight for the Banking System Reform (Separation of Banks) Bill 2019 currently in the Senate, to protect Australians and their deposits from a banking crisis by breaking up the banks and stripping APRA of its powers to bail in. The Senate Economics Legislation Committee’s inquiry into the bill is receiving submissions until 12 April—support the fight for bank separation and against bail-in by making your submission today!

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About Managing Editor, cairnsnews

One of the few patriots left who understands the system and how it has been totally subverted under every citizen's nose. If we can help to turn it around we will, otherwise our children will have nothing. Our investigations show there is no 'government' of the people for the people of Australia. The removal of the Crown from Australian Parliaments, followed by the incorporation of Parliaments aided by the Australia Act 1987 has left us with corporate government with policies not laws, that apply only to members of political parties and the public service. There is no law, other than the Common Law. This fact will be borne out in the near future as numerous legal challenges in place now, come to a head soon.

Posted on April 2, 2019, in anna bligh, Australian Bankers Association, Banks, Cashless Society and tagged , , , , . Bookmark the permalink. 8 Comments.

  1. Few would know that very quietly on 14 February 2018, with just 7 senators present, the Financial Sector Legislation Amendment (Crisis Resolution Powers And Other Measures) Bill 2017 was passed into law on a voice vote. You likely saw no press on the matter and yet the ramifications for all Australians are potentially huge.
    .
    This is a very long and complicated piece of legislation but at its very core it brings Australia into line with the ‘Bail In’ agenda of the Bank of International Settlements (BIS) as agreed at the G20 here in Brisbane in 2014. ‘Bail In’ is about government not bailing out distressed institutions as we saw in the GFC using tax payer’s money, rather using the creditors of the bank to bail itself out.
    .
    The legislation allows our banking regulator APRA ‘crisis powers’ to secretly step in and run distressed banks. It allows APRA to then confiscate and write off certain types of bonds and hybrid securities and allows them to confiscate cash savings of SMSF’s. Whereas elsewhere around the world, including our neighbours New Zealand, they specifically include the confiscation of depositors’ funds (savings), the Aussie version just cleverly doesn’t specifically exclude that….
    .
    We’ve written many times of the fact that as a cash depositor in a bank you are simply an unsecured creditor of the bank. The government tries to make us all relaxed about that through their depositor guarantee scheme up to $250,000 per ADI (Authorise Deposit-taking Institution). There are traps within as one ADI includes all subsidiaries (like St George to Westpac or Bank West to CBA etc). There is also a $20b cap per ADI and that may not be enough to cover everyone in that ADI. The bigger the better is hence counterintuitive as there are more mouths to feed with that $20b. Timing is another thing. PPP’s Vern Gowdie wrote just this week about the fact that 90% of deposits are held by just 10% of our financial institutions, or 9 banks in number. They are the ‘too big to fail’s’ and leave 75 other institutions that wouldn’t cause the chaos of the big guys if it took a while to resolve. That is where the Financial Claims Scheme (FCS) comes in to play. From the RBA:
    .
    “‘…The FCS is a form of deposit insurance that provides depositors with certainty that they will quickly recover their deposits (up to the predefined cap) in the event that an Australian ADI fails.
    .

    https://www.ainsliebullion.com.au/mobile/gold-silver-bullion-news/senate-passes-e2-80-98bail-in-e2-80-99-law-e2-80-93-how-safe-is-your-cash-now-/tabid/155/a/1722/default.aspx

    • Thank you Kevmo for a wonderful insight into the financial oligarchy. While ever we have Liberal or Labor governments controlling Treasury we will be doomed. Twiddledee and twiddledum are totally beholden to the bank oligarchs and until there is an uprising the people will remain their slaves. Venezuela would have to be a prime example. Until the sheeple say they have had enough, and they will drain the swamp, nothing will change. When it hits the fan you will be able to take your single shot .22 rifle from your triple locked, police approved safe and put 25 rounds into your pocket to take on the uniforms.Editor

  2. http://www.macrobusiness.com.au/2016/09/turnbull-flunky-banking-mafia/
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    .
    Australia to begin implementing global-elitist economic system by directly confiscating citizens’ savings
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    http://www.naturalnews.com/049696_australia_taxes_savings_account.html
    .
    .

    https://barnabyisright.com/2013/04/01/g20-governments-all-agreed-to-cyprus-style-theft-of-bank-deposits-in-2010/
    .
    Unsurprisingly, the evidence was fairly well buried. Naturally, the government does not want you to know what they are doing.
    .
    Just like the Canadian government did in March, and just as Europe, the USA and the UK have now done, the Australian government too is now beginning to make good on its 2010 G20 commitment to implement the Goldman Sachs-chaired, internationalist Financial Stability Board’s new regime for bailing out the banks using depositors’ money.
    .
    On page 134 of the Australian Government Budget 2013-14 Portfolio Budget Statements, under the section for the Australian Prudential Regulation Authority, we find the first of APRA’s main strategic objectives for 2013-14. It can be effectively summarised as “business as usual”.
    .
    Their second strategic objective for 2013-14, is to:
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    consolidate the prudential framework by enhancing prudential standards where appropriate, in line with the global reform initiatives endorsed by the G20 and overseen by the Financial Stability Board; [see image at top of this post]
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    Those “global reform initiatives endorsed by the G20” include the FSB plan to “bail-in” insolvent banks:
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    FSB: ‘Key Attributes of Effective Resolution Regimes for Financial Institutions’, Annex III (click to enlarge)
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    In the waffle that follows, we find further that:
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    APRA will focus on implementing the new global bank liquidity framework in Australia…
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    page 134, Portfolio Budget Statements, Australian Prudential Regulation Authority, Australian Government Budget 2013-14.
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    This is likely referring in particular to the Basel III International Framework For Liquidity Risk Measurement, Standards, and Monitoring.
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    When published in combination with the previously mentioned strategic objective to “consolidate the prudential framework… in line with the global reform initiatives endorsed by the G20 and overseen by the Financial Stability Board”, the implication is crystal clear.
    .
    “Global bank liquidity framework” is really just technocrat-ese for “global bankster plan to prop up insolvent banks using other people’s money, and so instantly impoverish everyone who still has any savings left”.
    .
    For further proof that what this all means is the Australian government planning to steal your money to “bail-in” so-called “systemically-important financial institutions” (SIFI’s) — under the orders of an unelected international body (of bankers and bureaucrats) you’ve never heard of; a body funded by the Bank for International Settlements (BIS), and chaired consecutively by Goldman Sachs alumni — then please study the detailed primary source evidence in this blog’s original breaking story published on April 1st –
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    G20 Governments All Agreed to Cyprus-Style Theft Of Bank Deposits … In 2010
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    That’s something else to thank our recently-deposed PM Julia Gillard for doing, without our knowledge or permission.
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    https://barnabyisright.com/2013/07/10/australia-plans-cyprus-style-bail-in-of-banks-in-2013-14-budget/

  3. Henry Ford said, “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
    .
    Prof. Werner brilliantly explains how the banking system and financial sector really work.
    .

  4. Modern economics isn’t rocket science. It’s a debt-based ponzi-scheme dependent on constantly-expanding growth needed to pay down the constantly compounding interest accruing from the bankers’ issuance of money as debt.
    .
    In the bankers’ endgame, the demand for credit, i.e. loans, collapses. This is where we are today. Loan growth has now entered negative territory; and, as a consequence, the world is on the precipice of another financial crisis……………………”
    .
    http://www.gold-eagle.com/article/bankers’-endgame-and-rise-gold-and-silver-prices

  5. peole wake up get off the couch turn off your TV and get in the fight before you loose the lot and your sons and daughters not only this generation are sold as slaves but all future generations this again demonstrates why we the people must take action and have the tools if needed if it hits the fan to stand our ground and restore the power of we the people from these demented devil worshiping scum bags soulless creatures wake up take action break out of your trance.

  6. Shouldn’t the entire Senate be sitting to legalise this sort of stuff ?

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