Jim Willie: JP Morgan 'Tower of Babel' Financial Derivatives Collapse!

Click on image to play the 25 May 2012 interview of Jim Willie by Turd Ferguson!

• Turd Ferguson:
  It’s been two weeks since we last visited with Jim Willie. In the time since, the JPM derivative fiasco has come into sharper focus and, of course, the global financial condition has continued to deteriorate. In this podcast, Jim has a forum to discuss these issues at length. Though it’s about 55 minutes long, at least 50 minutes are of Jim talking in a stream of consciousness that will keep your attention. Please make time over this 3-day weekend to listen to the podcast in its entirety. You won’t be disappointed.
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• Jim Willie’s website: http://www.goldenjackass.com/ . Topics include:
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  - Zero percentage interest rate (ZIRP) is being enforced via interest rate swaps derivatives – JP Morgan.
  - JP Morgan stopped that stock buy back and dividend payout. In earlier FedRes stress test states that they must stop stock buy back and dividend payout when losses reach US$31.5B.
  - Jim Willie is of the opinion that losses are alot higher than US$31.5B.
  - Manipulation of 10 yr and 30 yr bonds to depress yields.
  - US$238T of interest rate swaps (financial derivatives) held by major US banks.
  - Something is happening behind the scenes. Why is JP Morgan so forthright with their derivative losses this time round?
  - Some mega crisis (Greece, PIIGS … Eurozone collapse) as diversionary tactic for the interest rate swaps derivatives collapse!
  - Bond market meltdown.
  - Derivatives collapse chain reaction has been triggered.
  - ‘New sheriff in town’? They are going after gold cartel, Deutsch bank, JP Morgan …
  - JP Morgan and Deutsch bank ‘holding up Twin Tower of Babel’.
  - Criminal enterprise at work.
  - All the western sovereign bonds are coming down!
  – and many more issues!
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• USTBond Tower of Babel Teeters!
  by Jim Willie CB, GoldenJackass.com
  CONCLUSION
  A great urgent need has come for a rally to 1.5% in the TNX (10-year USTreasury yield) in order to save the IRSwaps from implosion. The Tower of Babel is teetering. A bond rally would thus render the tower wider at the base. The final losses will be in the hundreds of $billions in the next several months, eventually possibly to top the $1 trillion mark by next year. My source from Europe wrote, “An event driven chain reaction has been triggered deep inside the system, with Interest Rate Swaps at the center. This has already gone viral. They will have to trigger some mega-crises, most likely in Europe & Greece, as a diversionary tactic. They need to have something to blame things on. Once Greece implodes, so will the big French banks and likely some Italian banks. It is all so obvious and predictable.”
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  Look also for losses to London banks, enough to topple one or more. Hats off to Rob Kirby for correctly concluding the Interest Rate Swaps were at the center of the mega mushrooming JPM losses. It is coming to light slowly. …. The USTBond Tower of Babel is very narrow and tall, like a tower that grows higher and higher each year, subject to the heavy winds. The recent bond market volatility has acted like slamming a hedge hammer into the Babel Tower base when strong winds from Europe hit the sides. The vagaries and complexity and wreckage of the sovereign bond market have begun to topple the tower. The tower will fall, and fall in a heavily populated urban area. It is going to be the most dangerous and exciting event in modern financial history, that climaxes with the death of the USDollar and announcement of the USGovt debt default. The main tough questions are timing of events. But as usual, the sequence will be from an event schedule. It has begun, and cannot stop.
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  When the USTBond tower topples, it will lead to the great release upward in the Gold price. A grand Gold bull market is near. As the safety and security of the USTreasury Bond market is unmasked (an asset bubble), enduring a devastating wreck, the global funds will flock into Gold. The timing will be simultaneous with the rejection of the USDollar in trade settlement, and the end of the famed Petro-Dollar. The Gold cartel cannot stop the price rise, because they will have no physical gold. They are being raided of their gold bullion by the East, to the tune of 5000 (five thousand) metric tons since the end of February. That figure was confirmed by my source, who also claims that the major banks are short well over 20,000 metric tons after illegally grabbing the Allocated gold accounts held in their custody. Law suits are occurring in Switzerland to this effect.

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