By Dr. Charles McVety ——Bio and Archives--May 3, 2013
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The Government proposes to implement a bail-in regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital. (Budget 2013 -page 145)
If I may be indulged in a personal recollection, what I saw at the Washington Summit made an enormous impression on me. Nations whose interests have often been at odds, nations with different traditions of governance, rivals even former enemies, found themselves addressing common problems with a common will. In this globalized economy, they recognized that a flood engulfing one would soon swamp them all. So even though twenty some leaders, all represented sovereign states, they agreed to common, and synchronized actions to chart the same course toward calmer waters; Ideological differences were set aside, old enmities were not raised… I would say this if you had arrived from another planet; you could never have guessed which nations had spent decades mired in hostility. Now you might call it the fellowship of the lifeboat, but ladies and gentlemen in that brief parting of the veil, I saw world leadership at its best – a glimpse of a hopeful future. One where we act together for the good of all, the world we have been trying to build since 1945; the world we want for our children and grandchildren. It shows it can be done if we act together. And we call this, I call this, enlightened sovereignty.The Prime Minister’s epiphany during the “brief parting of the veil” caused him to drop all “ideological differences” and work toward the greater good of all, sounding more like Marx and Engels than John Locke. The result is that Canada’s government is marred with massive deficit spending, debt and permanent big government. It is so hard to believe that a man can completely change in one day, however, the Prime Minister’s words are clear and the facts are the facts. How long are we willing to suspend reality and hold on to the blissful hope that Stephen Harper will revert back to conservatism? Are we still dreaming that soon the budget will be balanced, the debt will decrease, and we will hear the words “the days of big government are over”? A conservative leader should never even think of implementing a “bail-in regime”. Such a concept is fraudulent. Canadians must demand that the Prime Minister remove this clause from the budget. Talking points from the PMO have attempted to soothe our troubled hearts with nice words of assurance, but remember that actions speak louder than words. The PMO and the Finance Minister’s Office are saying “The Canadian proposal means that a failing financial institution has to tap into its own special reserves or assets (which it has been forced to put aside) to keep its operations going.” These words directly contradict the budget that refers to “rapid conversion of certain bank liabilities into regulatory capital”. Assets are not liabilities. Customer deposits are liabilities and they should never be turned over to the bank in a bail-in regime. The only solution is for this clause to be expunged from the budget; if not, Canada’s banks may one day take action. There will be no warning, no appeal, and no solace… your money will simply disappear. Sign the petition at Conservativevalues.ca Watch a TV Special -Canadian Times, Sunday Night, at 11:00pm Vision TV
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Dr. Charles McVety is president of Canada Christian College in Toronto, Executive Producer, of film Besieged, Democracy Under Attack besieged.tv, and Word.ca
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