Rick Rule: I’m Too Old To Wish For Chaos, But It’s Coming!
- Rick Rule – I’m Too Old To Wish For Chaos, But It’s Coming!
by www.kingworldnews.com
Today King World News interviewed one of the wealthiest and most street-smart pros in the business, Rick Rule. Rule is founder of Global Resource Investments, which is now part of the $10 billion strong Sprott Asset Management. KWN reached out to Rick to get his take on what is happening in key markets. Here is what Rule had to say: “I guess two things stand out to me. The first is it’s amazing how much complacency the various central governments can buy with the liquidity they are pumping into the market. You have the situation in Spain, which is looking like Greece on steroids, and nobody seems to care because of the liquidity coming into the markets.”
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“I’m too old to wish for chaos, but it’s coming…. “
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… for more click here!
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Details Of The $291 Trillion In Derivatives To Which American Taxpayers Are Exposed !
- It is the financial derivatives market that will detonate and cause the global economic, financial and monetary collapse! These are largely fraudulent financial bets made in the unregulated derivatives casino. No one knows exactly how large the problem is. It ranges from US$700T – US$1,500T. Entire nations/regions will go down when it collapses! It is largely an unregulated OTC market, totally opaque!
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Details Of The $291 Trillion In Derivatives To Which American Taxpayers Are Exposed!
by Avery Goodman, http://seekingalpha.com/
The entire US GDP is less than $15 trillion each year. The gross notional amount of derivatives issued in the USA is more than $291 trillion. Does that sound like a lot? Apologists for derivatives dealers don’t like it when we talk about derivatives in terms of the notional totals. Large numbers, like these, discussed publicly, frighten too many people. According to the apologists, gross “notional” is misleading, because it does not include “hedges,” offsets and the limits on interest rate risk.
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In fact, the total amount of derivatives cannot be accurately presented in any other form but gross notional obligations. The risk to society cannot be judged in any other way. That’s why the FDIC, US Comptroller of the Currency and the Bank for International Settlement (BIS) all use gross notional.
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Final net obligations can only be determined when and if derivatives are triggered. The net can be significantly lower, but neither we, nor the banks themselves actually know exactly what that is. It depends upon the balance sheets of every counter-party, and the extent to which interest rates will change in the future. Not even the banks have full information about either topic..
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There is another number called the “net current credit exposure” (NCCE) that some erroneously claim represents the risk imposed by derivatives. According to the Office of the Comptroller of the Currency (OCC), the NCCE for American bank derivatives amounts to about $370 billion. That’s a huge amount of money, but it’s not $291 trillion.
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Unfortunately, NCCE provides no information about ultimate exposure to loss. It merely measures the net cost of unwinding the contracts, before the occurrence of any trigger event. NCCE is the current market value of the contracts, and nothing more.
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There are also a number of “value at risk” calculations that the banks provide. These are not standardized, and are based upon vastly different models and assumptions, from bank to bank. Unfortunately, a very high level of inconsistency and lack of any standards for measurement causes such models to be highly unreliable. For example, during the 2008 credit crisis, similar proprietary models used to determine subprime credit risk failed, in the infinitely smaller subprime mortgage market.
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In reality, it is impossible to know the true risk of $291 trillion in New York issued derivatives (ignoring the additional $417 trillion issued out of London). A sudden very large increase in interest rates, alone, could trigger trillions of dollars in payments. One could argue that the Federal Reserve could force interest rates down at any time, but that is not entirely true.
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…. for more click here!
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Nigel Farage: There Are Going To Be Serious Banking Collapses!
- Nigel Farage: There Are Going to Be Serious Banking Collapses!
by www.kingworldnews.com
With escalating fears regarding the stability of the eurozone, today King World News interviewed former LBMA commodities broker and trader and current MEP Nigel Farage to get his take on the situation. Farage had some very interesting comments regarding the Italians moving large quantities of gold to Switzerland, but when KWN asked about the chaos in Europe, Farage stated, “Well, so far, from all of the European officials and from the new IMF branch office in Washington, we’ve had unanimity that there was no prospect, at any stage, of the euro being under threat.”
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“Suddenly, a big shot from the IMF says, ‘There is a problem here, and there may be a breakup of the eurozone. It could come sooner than you think.’ I see that as a bit of a crack in the dam. They’ve always used the argument that the euro was inevitable and it was here to stay, and an individual from the IMF has just completely blown that out of the water.
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(The breakup could be disorderly) because there have been no contingency plans. This is what makes me so angry. I’ve been saying to Barroso and that little Van Rumpuy character, ‘Come on, let’s have a Plan B.’ Let’s actually get ourselves ready in case it goes the other way.’ The point the IMF official made is that there have been no contingency plans whatsoever….
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…. for more click here!
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More U.S. Cities Set To Enter Default Danger Zone!
- You cannot solve a debt problem with more debts! Yet, this is what Illuminist banksters want us to believe. They say the Eurozone and US need more bailouts (ie. debts). While they pretend to be concerned with the growing amount of debts, they are using their politician puppets to build more debts.
- - The Illuminist plan is to build the problem into a ginormous debt mountain and then collapse it! They want to destroy the current order, world system, create chaos, social unrest, wars, famine, violence …. to lay the groundwork for the coming of their fake messiah, the Bringer of false peace, the Anti-Christ … the white horseman of Revelation 6.
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More U.S. cities set to enter default danger zone!
By Michael Connor, http://uk.reuters.com/
(Reuters) – America’s swelling ranks of fallen municipal borrowers have been blamed in the past year on ‘what-were-they-thinking’ causes, be it a Taj Mahal sewer system in Alabama or an overpriced trash incinerator in Pennsylvania’s capital city of Harrisburg.
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But the next series of major cities and counties in danger of defaulting on their debt can hardly point to one single decision for their malaise. Whether it be Detroit, Miami or Providence, Rhode Island, their problems have a lot more to do with financial policies that put them on course to live well beyond their means.
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Municipal defaults have shot up since 2007 and are on pace for another high year in 2012, according to Richard Lehmann, publisher of the Distressed Securities Newsletter.
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Many failures will be due to local politicians’ willingness to give unionized local government workers lucrative pensions and health care benefits when times were good. For others, the housing bust was enough to destroy their real estate tax base. They almost all share the failure to prepare for a rainy day.
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Now, belt tightening by state and federal governments is adding to the pain – as contributions to governments at city and county levels get squeezed. Many of the places in the worst condition are in the Northeast, Midwest, California and Florida.
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The new tide of defaults may worry some investors in the $3.7 trillion municipal bond market who have so far shrugged off the fiscal crises of local governments and yield cuts in local government services.
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“This is a lagging process,” said Richard Ciccarone, managing director at McDonnell Investment Management. “Capitulation may not come for years. In the crash of 1929, the defaults did not come until 1934 or 1935. The marginals hang on as they can.”
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Take a look at Miami. The city just added a futuristic baseball stadium to its skyline and is gaining prominence as a global business center even as Miami’s exposure to declining housing values, low reserves and high pension obligations worry some bond buyers.
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… for more click here!
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Not IF But When For Spanish Bailout, Experts Believe!
Guess who is winning?
- Not if but when for Spanish bailout, experts believe!
by http://www.smh.com.au/
Economic experts watching Spain don’t know how much money will be needed or precisely when, but some are near certain that Madrid will eventually seek a multi-billion euro bailout for its banks, and perhaps even for the state itself. Prime Minister Mariano Rajoy has repeatedly said Spain doesn’t need or want an international bailout, and the European Union, which along with the IMF has already rescued Greece, Ireland and Portugal, also dismisses such talk.
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But economists believe that Spanish banks will have to turn to the euro zone’s rescue fund, the European Financial Stability Facility (EFSF), for help in covering losses caused by a property market crash which has yet to end.
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Likewise, investors are fretting about how Rajoy’s centre-right government can enforce deep austerity while reviving a recession-bound economy at the same time. “They’re going to need EFSF money to recapitalise the banking sector,” said Carsten Brzeski, a senior economist at ING in Brussels. “I think we’ll only see a real end to the Spanish misery if the real estate market stabilises.”
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Madrid is likely to hold out for some time. “The underlying picture in Spain is dramatic, but is it dramatic in the way that it needs a bailout package tomorrow? No,” Brzeski said. “But if you look ahead, let’s say the next six months, I would not be surprised if they (the banks) have to get some kind of European support.”
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Market concerns about the eurozone’s fourth largest economy have deepened in the past week. Yields on the government’s 10-year bonds, which reflect the risk investors attach to owning Spanish debt, have risen above 6 per cent, a level that has proved a trigger point for other troubled eurozone countries. Yields eased overnight after a successful auction of bills, but investors remain wary.
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… for more click here!
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Deutsche Bank: Worst of Global Crisis Yet To Come as Rescue Cash Runs Out !
- The global financial tsunami will likely hit in 2H2012. Are you prepared? Got physical gold yet? Illuminist banksters will create a massive amount of money out of thin air to bail out their banks! It is QE to infinity! Fiat currencies are toast!
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Deutsche Bank: Worst of Global Crisis Yet to Come as Rescue Cash Runs Out!
by http://www.moneynews.com/
The worst may be yet to come in the global financial crisis as the central bank spending that kept defaults low runs out, according to Deutsche Bank AG.
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Credit-default swap prices imply that four or more European nations may suffer so-called credit events such as having to restructure their debt, strategists led by Jim Reid and Nick Burns said in a note. The Markit iTraxx SovX Western Europe Index of contracts on 15 governments including Spain and Italy jumped 26 percent in the past month as the region’s crisis flared up.
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“If these implied defaults come vaguely close to being realized then the next five years of corporate and financial defaults could easily be worse than the last five relatively calm years,” the analysts in London said.
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“Much may eventually depend on how much money-printing can be tolerated as we are very close to being maxed out fiscally.” Default rates stayed in line with historical norms between 2007 and 2011 because of the “unprecedented intervention” of European and U.S. policy makers, the analysts wrote in the report.
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Now, credit markets are giving up the gains that followed the European Central Bank’s 1 trillion-euro ($1.3 trillion) longer-term refinancing operations and the U.S.’s Operation Twist that buoyed government bonds.
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Although defaults have been low, recoveries are falling because the public spending that kept non-payments down has failed to spur economic growth, according to the analysts.
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Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to its debt agreements.
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“The LTROs gave us some respite but they don’t appear to have taken the problem away,” Burns said in a phone interview. “At the moment there are no more LTROs on the table.”
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Von Greyerz: Bank Failures, Disorder, Massive Panic & Gold !
Illuminists are lining up the dominoes for a collapse of the Eurozone!
- Von Greyerz – Bank Failures, Disorder, Massive Panic & Gold !
by www.kingworldnews.com
Today Egon von Greyerz told King World News that dominos are falling daily and we should expect to see more chaos in the banking system, including failures. Egon von Greyerz is founder and managing partner at Matterhorn Asset Management out of Switzerland. Von Greyerz also said we are edging closer to panic and he expects this will accelerate the flow of funds into gold. Here is what Greyerz had to say about the situation: “Eric, I don’t know if you read the book by John Galbraith, ‘The Great Crash 1929?’ He wrote about how every day there was a bad piece of news, and in the end, everybody gets immune to it. I think that’s exactly what we are seeing now.”
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“There is so much bad news every single day that people are not reacting to it. What will happen is all of this pent-up risk is going to erupt one day. I’m seeing the dominos falling here, daily.
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We talked about Spain last time. Spain has now borrowed $415 billion from the ECB, and that’s about 63% of the total ECB lending. Bad debts in the Spanish banks are going up at record levels. Bad debts over the last 3 months are now 8% of total debt. That’s massive. It also means defaults are not far away, and the banks haven’t reserved for these….The banking world is on the way to bankruptcy here. “
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…. for more click here!
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Goldman Sachs Rules The World; Bank of England Next !
- Illuminist Masonic banksters are taking over the world ! The Rise of the Mystery Babylon Whore and the 10 Horn Beast of Revelation 17!
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Goldman Sachs Rules The World; Bank of England Next
by Paul Joseph Watson, www.Infowars.com
Financial terrorists have exploited chaos they created to seize complete control
Speculation that Canadian Central Bank head Mark Carney has been tapped to become the next Governor of the Bank of England brings with it the possibility of virtually complete domination of Europe by Goldman Sachs – the very same financial terrorists who helped cause the economic collapse in the first place.
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“Mark Carney, the governor of Canada’s central bank, has been informally approached as a potential candidate to replace Sir Mervyn King as head of the Bank of England in June next year,” reports the Financial Times.
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“One of the world’s most respected central bankers, Mr Carney, 47, now heads the Financial Stability Board, which oversees global financial regulation. He was approached recently by a member of the BoE’s court, the largely non-executive body that oversees its activities, according to three people involved in the process.”
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Carney is also a 13-year Goldman Sachs veteran and was involved in the 1998 Russian financial crisis which was exacerbated by Goldman advising Russia while simultaneously betting against the country’s ability to pay its debt.
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Although the appointment would see the highly unusual precedent of a foreigner heading up the 318-year-old central bank, according to one observer, “As a Canadian national he is a subject of the Queen…That is important.”
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Carney’s possible ascension to become the next BoE head, although denied by the Bank of Canada, would be the cherry on the cake for Goldman Sachs’ financial overthrow of Europe in their bid to exploit the financial crisis to centralize power into an EU superstate.
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Last year, former EU Commissioner Mario Monti was picked to replace Silvio Berlusconi, the democratically elected Prime Minister of Italy. Monti is an international advisor for Goldman Sachs, the European Chairman of David Rockefeller’s Trilateral Commission and also a leading member of the Bilderberg Group.
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“This is the band of criminals who brought us this financial disaster. It is like asking arsonists to put out the fire,” commented Alessandro Sallusti, editor of Il Giornale.
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Similarly, when Greek Prime Minister George Papandreou dared to suggest the people of Greece be allowed to have their say in a referendum, within days he was dispatched and replaced with Lucas Papademos, former vice-President of the ECB, visiting Harvard Professor and ex-senior economist at the Boston Federal Reserve.
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Papademos ran Greece’s central bank while it oversaw derivatives deals with Goldman Sachs that enabled Greece to hide the true size of its massive debt, leading to Europe’s debt crisis.
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Papademos and Monti were installed as unelected leaders for the precise reason that they “aren’t directly accountable to the public,” noted Time Magazine’s Stephen Faris, once again illustrating the fundamentally dictatorial and undemocratic foundation of the entire European Union.
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Shortly afterwards,Mario Draghi – former Vice Chairman of Goldman Sachs International – was installed as President of the European Central Bank. The U.S. Treasury Secretary at the beginning of the 2008 financial collapse was Hank Paulson, former CEO of Goldman Sachs. When Paulson was replaced with Tim Geither, Goldman Sachs lobbyist Mark Patterson was hired as his chief advisor. Current Goldman Sachs CEO Lloyd Blankfein has visited the White House 10 times. Goldman Sachs spent the most money helping Barack Obama get elected in 2008.
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As the graphic above illustrates, the economies of France, Ireland, Germany and Belgium are also all now controlled by individuals with a direct relationship with Goldman Sachs.
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Dominion over virtually all of Europe’s major economies, as well as the United States, by one international banking giant, notorious for its role in corruption and insider trading, is now almost complete.
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Goldman Sachs rules the world.
LeMonde(France) headline: The European Freemasonry of Goldman Sachs! (15Nov2011)
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Societal and economics observer and commentator with an endtimes, future history perspective. Follow me at Twitter: socioecohistory
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