Bazz, you misunderstand what the Financial Stability Board does. It did not seize any money from Cyprus – that was done by the Cypriot government in agreement with the Europeans and IMF. See http://en.wikipedia.org/wiki/2012–13_Cypriot_financial_crisis for more details. Personally I think that was a very bad decision and Cyprus should've sought help from Turkey instead (monetary union with Northern Cyprus being a logical step towards reunification).

To see what the Financial Stability Board ACTUALLY does, read its charter:
http://www.financialstabilityboard.org/wp-content/uploads/r_120809.pdf?page_moved=1

To see GENUINE concerns about the way it operates (rather than nutty conspiracy theories) see: http://fsbwatch.org/

What protections there are for depositors if a bank collapses remains a matter for national governments. The Financial Stability Board's role is to reduce the chances of a collapse appearing in the first place. And I'm pretty sure there's no country in the world that would enable banks to pay their shareholders without honouring their obligations to their depositors.

Aiden, I have read the document that sets up the FSB and its procedures.
You are right in that it was the Cyprus government that performed the function because
the FSB was not approved or authorised or whatever till February when the G20 & IMF
met in St Petersburg.
When the G20 saw how well it went the leaders approved its rules and Brisbane should
have signed and and sealed it. Haven't heard a peep have you ?

I know that the FSB's day to day function is to be a watchkeeper over the banks and try
to keep their finances in order. They have made the rules on their ratios of loans to
deposits etc etc.

Anyway, if it is so benign I wonder what the Cypriots and Portuguese have to say about it ?

Bazz, if you've read the document, why do you keep making baseless claims that contradict it?

Banco Espírito Santo depositors did not lose any of their money, so I don't know why you think that supports your claims – surely it refutes them?

And seriously, how can you say Barnaby Joyce was right? His argument relies on the assumption that Australia has limited credit like Greece. But it's a false assumption. Australia has unlimited credit in Australian dollars because it owns the Reserve Bank. Our chance of being financially unable to pay our bondholders is zero. Not one percent. Not one in a million. Nor one in a billion or even one in a trillion. ZERO.

Once again, Arjay, you show yourself up by cut'n'pasting stuff that you don't actually understand. One of your conspiracy-buddies has said it, so you repeat it as if it somehow has meaning and relevance...

>>The markets are not free but controlled by these criminals using derivatives.<<

Every part of that statement is nonsense.

The proof - if it were needed - that the market is free is in the very existence of derivatives. Since you don't actually know what a derivative is, this will of course go right over your head, but if you did know, you would realize that a free and open market is the only possible environment in which a derivative can be traded.

The markets are not controlled. If they were, they would behave substantially differently to the way they actually do. They exist on the presence of both willing buyers and willing sellers. Once someone imposes control over a market's actions, this equilibrium is lost.

Finally, it is not criminal to use derivatives. They are a perfectly legal, and extremely valuable, source of market stability. Unfortunately there are those ignoramuses who insist on adding together the puts and the calls to arrive at a number they describe as "exposure", and run around saying the system is unsustainable. (Hi Barnaby, is that you...?)

You do know the difference between a put and a call, don't you?

Ah, well, there's your problem, right there.

But as always, please feel free to provide examples where I'm wrong on any of the above.

Aiden, the document was quite clear that the FSB could transfer the funds of the
depositors. It was quite unambiguous. I might even still have it here. I will look.

As far as Banco Espirito Santo was concerned, from memory they were not completely
siezed, but I think they got shares in the bank in lieu.

Ah yes Aiden, you said;
Australia has unlimited credit in Australian dollars because it owns the Reserve Bank.

Thats right the RBA can generate pixel money until Barnaby's cows come home.