Category Archives: Financial

$1.5 Quadrillion Time Bomb

derivativesStephen Lendman – When investing becomes gambling, bad endings follow. The next credit crunch could make 2008-09 look mild by comparison. Bank of International Settlements(BIS) data show around $700 trillion in global derivatives.

Along with credit default swaps and other exotic instruments, the total notional derivatives value is about $1.5 quadrillion – about 20% more than in 2008, beyond what anyone can conceive, let alone control if unexpected turmoil strikes.

The late Bob Chapman predicted it. So does Paul Craig Roberts. It could “destroy Western civilization,” he believes. Financial deregulation turned Wall Street into a casino with no rules except unrestrained making money. Catastrophic failure awaits. It’s just a matter of time.

Ellen Brown calls the “derivatives casino…a last-ditch attempt to prop up a private pyramid scheme” – slowly crumbling under its own weight.

For years, Warren Buffett called derivatives “financial time bombs” – for economies and ordinary people.

Unless collateralized or guaranteed, their worth depends on the creditworthiness of counter-parties. Earnings on derivatives are “wildly overstated,” Buffett explains – because they’re “based on estimates whose inaccuracy may not be exposed for many years.”

When corporate bosses ask financial executives how profits look in any quarter, they, in turn, ask how much do you want, then manipulate things to oblige when told.

Since 2008, too-big-to-fail banks consolidated to much greater size than ever. They’re financial and political powerhouses controlling world economies to their own advantage. Continue reading

The US Dollar Does Not Exist

Michael Noonan – Truth does not exist in the world of politics.

It is reasons such as these, below, that drives the importance of owning and holding physical silver and gold.  The fundamental reasons everyone already knows exists but do not apply are important, but the power of the elites to rule over all [at least Western] governments, write the laws, deceive everyone, and now with the evidence of how much influence the bankers can exert over the manipulation of PM prices, is why you need to protect yourself from the evil nature of their control.

Tfederal reservehe elites want to destroy your belief in the value of owning golf and silver, and they have reenforcing price down despite the overwhelming demand for both.  That should embolden your resolve even more.  For how much longer this can go on, no one knows.  What you can know with a great amount of certainty is that Newton’s 3rd Law of Physics will kick in: for every action, there is an equal and opposite reaction.

This assures you that the distorted action to the downside will reward the faithful with an equally distorted reaction in the opposite direction.  It is a matter of time.

All the perplexities, confusions, and distresses in America arise not from the Constitution or confederation, not from want of honor or virtue, as much from
the downright ignorance of the nature of coin, credit, and circulation.”
John Adams, 2nd President of the United States

Section 16 of the Federal Reserve Act of 1913 at 38 Stat., 265, will not be found doing a simple search.  What the federal corporate government does, over time, is make changes, often changing words ass “surplus,” which actually hides what the government does not want you to see or know.   A search will send you to Title 12 section 411, and even that has been “cleansed” of a damning admission, a similar but different story for another time.

What one must learn is that the government uses terms for words that most take as used in everyday life.  When a word is used as a term, its definition is clearly explained, and the term definition will not be what is understood as every day usage.  A bit off topic, but it illustrates how important words and spelling are used by the federal government. Continue reading

Financial Survival: The Liquidity Crisis [Audio]

tsiprasThe Corbett Report – As James returns from his summer holiday, he re-joins Alfred Adask for their weekly conversation on Financial Survival. This week they discuss the “resolution” of the Greek crisis, the growing panic over the liquidity crisis in the bond market, and whether or not the Iranian “deal” is actually a treaty.

Show Notes

SF Source The Corbett Report  July 2015

Greek PM Tsipras Allegedly Asked Russia for $10 Bln to Print Drachmas

Philip Chrysopoulos – Greek Prime Minister Alexis Tsipras has asked Russian President Vladimir Putin for 10 billion dollars in order to print drachmas, according to newspaper “To Vima.”

The newspaper report cited Tsipras saying in his last major interview to Greek national broadcaster ERT that “in order for a country to print its own national currency, it needs reserves in a strong currency.”

Moscow’s response was a vague mention of a 5-billion-dollar advance on the new South Stream natural gas pipeline construction that will pass through Greece. Tsipras also sent similar loan requests to China and Iran, but to no avail, the report said. Continue reading

As The West Collapses, Mankind Is In Mortal Danger [Video]

LaRouche SGT Report – Harley Schlanger from LaRouche PAC and Helga Zepp-Larouche, Founder and President of The Schiller Institute, join us for an insider’s look at the Bankster domination and enslavement of Greece and Europe. Zepp-Larouche warns that a collapse of the western banking system would cause “a plunge into chaos.”

“If Greece would default either in a chaotic way or by Grexit, then all of theses derivatives would go into a negative deleveraging… this is uncharted waters. This could lead to a blowout of the entire transatlantic system.”

Ms. LaRouche explains that the only remedy for the out-of-control fascism of the international bankers who have enslaved Greece and much of the Euro-zone, and who have their sights set on the United States, is the immediate re-implementation of Glass-Steagall. Glass-Steagall is the road back to tying down Wall Street and the international banking elite to the rule of law. Continue reading

Take More Cash Out Of Markets And Banks-Nomi Prins

prinsGreg Hunter – Best-selling author Nomi Prins says the only thing propping up the system is money printing. The tip of the iceberg was the Greek debt crisis. Prins says, “Before it happened, there was a lot of concern at the central bank level. That wasn’t really discussed very much in the press . . . but I believe behind the scenes there were a lot of fearful conversations about the financial system, not just the relationship of the euro and Greece politically, which was a part of it, but you don’t want any chips to fall off your table. Anything could open the door for a run on liquidity (cash), which is also why I talk about what individuals should do more and more now is try to preserve their own liquidity and to take more cash out of the markets or out of banks to just have on the side before this period of volatility, before we have the actual crash. This is a tenuous situation. I am afraid of things that look like a bail-in up to the level of a bail-in.”

Prins, who was a top Wall Street Banker, says the too-big-to-fail banks are much bigger and will be much harder to save in the next crash. The stats Prins comes up with to illustrate this are stunning. Prins says, “43% more deposits are held by the big six banks in the United States since before the crisis (in 2008). 84% more assets are held by the big six banks and 400% more cash. . . . The point is the big six banks control more deposits, more assets, more trading, more cash than they did before. That’s a fact.”

Prins says, now more than ever before, central bankers are fearful. What are they afraid of? Prins contends, “Their fear is the liquidity that they put into the system through epic unprecedented methods . . . all the money they dumped into the markets to make them appear healthy and the banks controlling much of them, the fear is if they pull that plug, if that liquidity somehow falters . . . that things start to tank and implode very quickly. The only think keeping these markets up, the only thing keeping these banks up is either the artificial funding or the purchasing of bonds. Basically, the central bank interventions is the only thing keeping this going.” Continue reading

Greece Isn’t The Problem, It’s A Symptom Of The Problem

everythingSimon Black – By plane, Asia and Europe are 12 hours apart. But on the ground the gap feels like decades.

It’s always a shock to leave a place like Vietnam (where I was last week) and fly to Europe.

Vietnam is one of the fastest growing countries in the fastest growing region of the world. It’s exciting.

Whereas here in Europe, sometimes it feels as if nothing’s changed in the last five centuries.

It’s a night and day difference.

All eyes may be on Greece right now, but in reality, the economic malaise is widespread across the continent.

Italy is gasping to exit from its longest recession in history, while unemployment figures across Southern Europe remain at appalling levels.

In France, the unemployment rate is near record highs.

Finland, once a darling of the Eurozone, is posting its worst unemployment figures in 13-years.

Even in Austria growth is flat and sluggish.

It’s clear that Greece is not the problem. It’s a symptom of the problem.

The real problem is that every one of these nations has violated the universal law of prosperity: produce more than you consume.

This is the way it works in nature, and for individuals.

If you spend your entire life going in to debt, making idiotic financial decisions, and rarely holding down a stable job, you’re not going to prosper.

Yet governments feel entitled to continuously run huge deficits, rack up historic debts, and make absurd promises that they cannot possibly keep.

This is a complete and total violation of the universal law of prosperity. And as their financial reckoning days approach, history shows there are generally two options.

The first outcome is that a country is forced to become more competitive– to rapidly change course and start producing more than it consumes.

It’s like a bankrupt company bringing in a turnaround expert: Apple summoning Steve Jobs in its darkest hour.

But here’s the thing: if a nation wants to produce, it needs producers. That means talented employees, professionals, investors, and entrepreneurs.

Continue reading

We Need A Crash To Sort The Wheat From The Chaff

stabilityCharles Hugh Smith – When a speculator bought a new particle-board-and-paint McMansion in the middle of nowhere in 2007 with nothing down and a $500,000 mortgage, the lender and the buyer both considered the house as $500,000 of collateral. The lender counted the house as a $500,000 asset, and the speculator considered it his lottery ticket in the housing bubble sweepstakes: when (not if) the house leaped to $600,000, the speculator could sell, pay the commission and closing costs and skim the balance as low-risk profit.

But was the house really worth $500,000? That’s the trouble with assets bubbles inflated by central-bank/central-state intervention: when inefficient companies and inflated assets are never allowed to fall/fail, it’s impossible to tell the difference between real collateral and phantom collateral.

The implosion of the housing bubble led to an initial spike of price discovery. The speculator jingle-mailed the ownership of the poorly constructed McMansion to the lender, who ended up selling the home to another speculator who reckoned a 50% discount made the house cheap for $250,000. Continue reading