But as you know, I have a great deal of respect and admiration for Janet Tavakoli and her knowledge in this area. If she is seeing a new demand for Credit Default Swaps on the US payable in gold I would credit it since this is her area of expertise and industry connections, but would ask for some particulars, which I have done. This would match up with some other data I have seen from other sources, and desire to continue to put the puzzle pieces together without traveling false trails.
It does make sense, of course, to price a US default in something other than dollars. The question that comes to mind though, is not the suggested method of payment, but the nature and quality of the counter-party who could stand reliably behind such a claim without it being a fraudulent contract by its very nature.
If the US should default, what major financial institutions will be in a position to have written and then uphold the terms of these CDS, payable in anything at all? Surely only a sovereign bank like the US Fed, the Treasury, or the IMF, or some other central bank could be so capable. But what possible motivation could a non-profit-seeking official institution have in writing CDS on a US sovereign default? Perhaps more likely a private bank or GSE, with the buyers thinking it has some sovereign guarantees that would be upheld in extremis.
Truly, remember AIG? It was insolvent when payment was demanded, and acted improperly in paying collateral to Goldman ahead of its inevitable insolvency, and then receiving the support of the Treasury to pay obligations in full, above all others. It ought to have been placed in a receivership and its assets allocated with the previously disposed collateral clawed back. This kind of private arrangement between parties involving the sovereign wealth of nations may be indicative of things to come. The recent example of Iceland comes to mind.
More Here..
Don't like the numbers? Just stop reporting them,... again.
ReplyDeleteThe article on lost manufacturing jobs was recently posted at this blog. Here is Obama's response:
Obama Solution to Stop Outsourcing – Stop Counting Jobs Outsourced
Since 2000, the U.S. has lost 5.5 million manufacturing jobs, with 2.1 million of those jobs being lost in the last two years alone. Since 2001, over 42,400 factories have closed in the U.S., and another 90,000 are considered at severe risk of closing. The last time so few were employed in manufacturing was in 1941, before World War II spending pulled that sector out of its Great Depression slump.
Numbers like these make me want to cry.
So President Obama has come up with a big and bold solution to deal with problem. He’s going to shut down the federal office that counts how many jobs are being shipped overseas.
How can this be an accident?
There isn't enough Gold on the Planet, much less America, to Pay all the CDS in Gold.
ReplyDeleteThe US would "default" trying to pay all the investors off...
The article above links to the Huffington post story...
http://bit.ly/aNjH71
This story is big...
Tyrone, you see as many fellow Americans see that our 'leadership' has nothing to do with us.
ReplyDeleteWe, the people, the simple man, the ordinary working guy, we, collectively, are not in the consideration of the people that smile in our face while they draw up contracts about how much they get paid as they replace us, or eliminate us, or cremate us.
I don't think the entire world can function as a collective all helping each other under a system that seeks only to maximize profits for a few. Our leadership, their leadership, the other guys leadership, it doesn't matter.
They are all wrong.
Not until all the people of the world begin listening to and taking direction from the Native American Indians will the world function in any way that is just or fair.
It is the exclusion of these tribes of people from the tribal collective , their isolation and 'forgotenness' that leaves the entire thing unbalanced, lacking the strong footing of earth.
White man is a master of fire, and I do believe the prophecies said that the last time we blew ourselves up it was with water, and this time will be with fire.
After that will come air and then ether.
But I take solace in knowing that after a great deal of pain, trauma, horror and bloodshed in the coming years, we will be replaced by a new man that will walk in righteousness, and avoid the sins of sinful man, and they shall hold rule of the earth
for many thousands of years to come.
In those days, we will not be remembered.
Noodles123-We're on the edge of something never seen...A collapse worldwide not due to war, pestilence but the collapse of money...Totally weird.
ReplyDeleteLike some Matrix movie where up is down and numbers mean more than real items...I fear it quite a bit since none of us will escape losing something...But f*ck it...If it's time to clean house and pay for all our selfish egotistical ways then Bring It On!
Our last 2-3 generations are self-centered lil bastards and we're actually getting worse so might as well shake the tree...Lets see if people will wake up and appreciate life, love, God, family and country.
Not saying it'll be nice nor easy...There will be crime and suffering but sometimes people only learn through pain...Que se je?
Watch The Living Dead parts 1-3 videos on Google. Our owners had doctors remove the skull tops of mental patients and experiment with various stimuli for mind control, WHILE the patients were conscious.
ReplyDeleteOur owners are brutal beyond belief and ruthless to the core. What a horrible enemy to have.
The Third Reich (Nazis) had nothing on the Fourth Reich (US) in terms of depravity. Crimes are being committed and plotted now that would have made Hitler blush.
ReplyDelete9:38 Not really but nice hyperbole!
ReplyDeleteYes. Really.
ReplyDeleteTell me how having white phosphorus poured over your home where it then burns your skin and organs away and leaves your clothes and skeletal structure intact is any less brutal than anything seen in WWII.
Or putting 3000 surrendering Afghans in convoy trucks with no holes for air in 110f heat then shooting at the trucks so when they reach their destination women and children would be baking in their own feces, literally dying from fear, 90% of them dead. Just farmers and innocents.
Wake up. This is the type of brutality that shall be inflicted on our populace in your lifetime. Humanity is not any more enlightened now vs then, the opposite is true. You just don't know about it because your TV says otherwise. You would have been more fortunate to be at the mercy of Genghis Khan. Dead would have been swift.
Mar 8, 11:12pm
ReplyDeleteAlthough your claims are sensational they are not based on factual events.
Do not be deceived.
What would happen if the money system did collapse in the entire world. Would we all just go back to living self-sufficiently as those in the depression?
ReplyDeleteI have stockpiled food, gold, guns, ammo... NOW what? A lot of talk, but nothing is happening. I want the collapse NOW. So I can start shooting, rampaging, raiding. I didn't do all this just to sit in my cabin in the woods. I can't wait to see the looks on hippies faces as they stare down my gun barrel, just before it goes BOOM!!
ReplyDelete7:48
ReplyDeleteInbred as hell and he's not going to take it anymore.
You go Otis!
ZOMBIE ECONOMY! - THE WALKING DEAD NATIONS!!
ReplyDeleteTHE FUNK OF 40,000 YEARS....NO MORTAL CAN RESIST, THE EVIL OF THE BANKERS! - MUAHAHAHAHA!
When 7:48 is buried, his headstone gonna read
ReplyDelete'HE DESERVED IT'