Tag Archives: EU

Martin Armstrong On Proposal To Seize ‘Suspicious’ Gold Entering European Union

Last Wednesday, I wrote about a recent Reuters.com article which reported:

The European Commission proposed tightening controls on cash and precious metals transfers from outside the EU on Wednesday, in a bid to shut down one route for funding of militant attacks on the continent…

Authorities will also be able to seize cash or precious metals carried by suspect individuals entering the EU.

People carrying more than 10,000 euros ($10,400) in cash already have to declare this at customs when entering the EU. The new rules would allow authorities to seize money below that threshold “where there are suspicions of criminal activity,” the EU executive commission said in a note…

(Editor’s note: Bold added for emphasis)

I blogged about this proposal due to the ramifications it could have for those intending to carry legally-obtained and owned currency and precious metals into the Eurpoean Union for their safe deposit box.

Now, regular readers of Offshore Safe Deposit Boxes may remember my December 10 post mentioning economist Martin Armstrong and his belief there is a “War on Gold” being waged by revenue-starved governments. I wrote:

Yesterday, economist Martin Armstrong published a blog post on his company’s website entitled “Gold Headed Lower Under $1,000 into the Abyss.” The subject of the 2014 documentary The Forecaster claimed “India is moving now to confiscate gold after going after the cash” and talked about how this confiscation might be carried out. Armstrong added the following:

This is the problem I have been warning about with gold. It is losing it safe haven status for it is getting to the point you cannot travel with it, keep it in a safe deposit box, or show gold with jewelry

(Editor’s note: Bold added for emphasis)

While that statement about not being able to “keep it in a safe deposit box” was met with “food for thought” from yours truly, Armstrong’s other claim about “it is getting to the point you cannot travel with it” warrants some “chewing” after that European Commission proposal.

As does this from Armstrong in a December 28 post on his company’s site:

The assault on gold is by no means casual. The hunt for money and the global effort to eliminate cash to be able to increase taxation is also targeting gold. All the sales pitches that gold will survive have ignored the fact that government is well aware of gold and people using it to store wealth

Gold is rapidly becoming the target of confiscation in Europe following the Berlin Christmas attack…

(Editor’s note: Bold added for emphasis)

Hmm. Lots to digest here. And not all of it “agreeable”- which I’ll expand upon later.

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on information found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. Christopher E. Hill, the creator/Editor of this blog, is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented on the site.)

Source:

Armstrong, Martin. “Confiscating Gold.” Armstrong Economics Blog. 28 Dec. 2016. (https://www.armstrongeconomics.com/markets-by-sector/precious-metals/gold/confiscating-gold-3/). 3 Jan. 2017.

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Proposal To Seize ‘Suspicious’ Cash, Precious Metals Entering The European Union

Regular readers of Offshore Safe Deposit Boxes know that I’ve blogged before about transporting cash (March 19, 2014) and precious metals (March 20, 2014) outside the U.S. for the purpose of placing/acquiring assets in/for an offshore safe deposit box. I last discussed this subject in March 2015, where I pointed out a piece by Andrew Henderson over on the Nomad Capitalist website regarding currency reporting requirements for Australia, China, the European Union, India, Mexico, Switzerland, Thailand, United Kingdom, and the United States.

Speaking of the European Union, last week I came across an article on Reuters.com which may have repercussions for those looking to carry currency/precious metals into the E.U. for their safe deposit box. Francesco Guarascio reported on December 21:

The European Commission proposed tightening controls on cash and precious metals transfers from outside the EU on Wednesday, in a bid to shut down one route for funding of militant attacks on the continent.

The move follows Monday’s attack on a Christmas market in Berlin, where 12 people were killed as a truck plowed into a crowd. It is part of an EU “action plan against terrorist financing” unveiled after the bombings and shootings in Paris in November 2015.

Under the new proposals, customs officials in European Union states can step up checks on cash and prepaid payment cards sent by post or in freight shipments.

Authorities will also be able to seize cash or precious metals carried by suspect individuals entering the EU.

People carrying more than 10,000 euros ($10,400) in cash already have to declare this at customs when entering the EU. The new rules would allow authorities to seize money below that threshold “where there are suspicions of criminal activity,” the EU executive commission said in a note…

(Editor’s note: Bold added for emphasis)

Since cash/precious metals could be seized merely on “suspicions of criminal activity,” it’s a good bet persons originally intending to carry legally-obtained and owned currency and precious metals into the Eurpoean Union for their safe deposit box might think twice about transporting such assets in this manner.

Guarascio noted:

The proposals must be approved by EU states and the European Parliament to become law…

Stay tuned…

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

Source:

Guarascio, Francesco. “EU to boost border checks on cash, gold to tacke “terrorism financing.” Reuters.com. 21 Dec. 2016. (http://www.reuters.com/article/us-eu-security-financing-idUSKBN14A16N?il=0). 28 Dec. 2016.

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Canada Introducing Bank ‘Bail-In’ Legislation

As concerns grow about the health of the global economy, ‘bail-in’ programs look to proliferate outside Europe. Leah Schnurr reported Tuesday afternoon on the Reuters website:

Canada will introduce legislation to implement a “bail-in” regime for systemically important banks that would shift some of the responsibility for propping up failing institutions to creditors.

The proposed plan outlined in the federal budget released on Tuesday would allow authorities to convert eligible long-term debt of a failing lender into common shares in order to recapitalize the bank, allowing it to remain operating.

The plan is in line with international efforts to address the potential risks to the financial system from institutions that are deemed too big to fail, the budget document said…

(Editor’s note: Bold added for emphasis)

Funny how I just talked last night about “bail-ins” as part of a growing global trend of government/banking system wealth confiscation. Again, from the section entitled “Why Offshore Private Vaults” on this blog’s sister site

• Germany, July 2014, plans approved for creditor (may also mean depositor) bail-in of banks beginning in 2015, a year earlier than required under European-wide plans setting rules for failing financial institutions
• In November 2014, the G-20 Group of Nations endorsed a proposal which offshore experts The Nestmann Group says “profoundly changes the rules for banking globally, and not in a good way. Deposits in banks that are ‘too big to fail’ will be ‘promptly recapitalized’ with their ‘unsecured debt.’ This avoids those nasty taxpayer-funded bailouts that proved so politically unpopular during the 2008-2009 financial crisis. And the largest chunk of unsecured debt is your bank deposits. Insolvent banks will recapitalize themselves by converting your deposits- checking accounts, but also money market accounts and CDs- into stock. Thus, when you deposit money in a bank, you’re taking the same risk as someone buying a stock.”
• European Union, January 2016, new EU bank bail-in procedures implemented on New Year’s Day via the Bank Resolution and Recovery Directive. Central to the BRRD is the single resolution mechanism. The European Council (EU institution that defines the general political direction and priorities of the European Union ) said in a November 30, 2015, press release, “The single resolution mechanism (SRM) is aimed at ensuring the orderly resolution of failing banks without recourse to taxpayers’ money. This will involve both a systematic recourse to the bail-in of shareholders and creditors, in line with the EU’s directive on bank recovery and resolution, and the possible recourse to the SRF…” Note that bit about “creditors.” From my research on the subject, it has been argued that the terms “creditors” and “depositors” are interchangeable. As such, depositors may be on the hook for a future EU bank bail-in as a result of this new setup.

(Editor’s note: Bold added for emphasis)

Could depositors be targeted in a future Canadian bank bail-in as a result of this coming legislation? Is there a scenario where assets stored in bank safe deposit boxes might also be threatened? It’s too early to tell at this point.

Stay tuned…

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on information found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. Christopher E. Hill, the creator/Editor of this blog, is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented on the site.)

Source:

Schnurr, Leah. “Canada to introduce ‘bail-in’ bank recapitalization legislation.” Reuters. 22 Mar. 2016. (http://www.reuters.com/article/us-canada-budget-banks-idUSKCN0WO2Y5). 23 Mar. 2016.

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