I’m feeling more comfortable now giving a more exact time frame for when this all goes down. It’ll happen in the next 6 months.
I still may be wrong because I don’t have a direct line to God, but I’m opening myself up to people calling me a stupid alarmist if I am. I’m confident enough now to risk that.
Greece is going to default sometime in May. Varoufakis is now meeting with a sovereign default lawyer. and the Fed is going to raise rates at some point in June. Those two things together are enough to screw with the bond markets which are showing negative yields for the stronger States like Switzerland and Germany. Negative yields mean that people are paying governments for the privilege of lending money to them. German 4-year bonds are yielding -.2%. That means people are giving Germany $100 for the privilege of getting back $99.80 in four years.
People think I’m insane. That’s insane. It’s about to reverse.
Price inflation will follow a bond slaughter, indebted countries will be applying all their tax revenues to debt service, meaning all your taxes go to banks. And of course, precious metals will explode very suddenly.
Let’s give it a 180 day countdown. It’s tax day isn’t it? April 15?
Zerohedge reporting today through Reuters that a UK bank called Standard Chartered is reporting a $4.4B loss on bad oil industry loans. You may remember Standard Chartered as the one that paid that $600 something million fine for doing business with Iran. Will this cause another systemic financial collapse? Probably not.
Systemic financial collapses usually start with one big whale going down, but for systemic monetary reasons. In 2008 it was Lehman Brothers, when the money supply was contracting after expanding fast in the 8 years prior. In 1931 it was the CreditAnstalt bank in Austria, which collapsed after the Fed could no longer inflate the money supply fast enough. Standard Chartered may be a big whale, but it’s losses do not have to do with a systemic monetary phenomenon.
The housing collapse was also a result of monetary phenomenon. The oil collapse is, however, the result of a price war between OPEC and the US, possible aided and abetted by the Obama Administration in order to punish Putin for whatever it is he supposedly did in Ukraine. Depending on how many bad oil debt is out there, which depends on how many loans were made by banks to shale companies on the assumption that oil would not collapse to $45, there could be a chain reaction of failures going down the links of oil industry loans, but in order to have a complete economic collapse, the entire money supply needs to contract.
That is not happening right now.
So we’ll see how far these bank failures go, but don’t expect it to be the trigger that lights the final meltdown just yet.
Today we’re going to pick apart some Newspeak. Here’s the relevant paragraph, from an article in Reuters about the leaders of the most powerful financial institutions all coming together and conspiring about how to rob the entire human race of all its savings and transfer them all to governments, all in one shot.
Government leaders are expected to agree in November that the world’s top banks must issue special bonds to increase the amount of capital which can be tapped in a crisis instead of calling on taxpayers to come to the rescue, industry and G20 officials said.
The bonds, known as “gone concern loss absorption capacity” or GLAC, are seen by regulators as essential to stopping the world’s 29 biggest lenders from being “too big to fail”.
Here’s the translation into English:
There’s this problem with banks that have gotten so big, thanks to government coddling and favors, that to let them fail would endanger the government itself. Therefore, up until now, every time they almost fail, which happens repeatedly because they are all fractional reserve banks that lend out demand deposits, the government bails them out by raising taxes and printing, and giving the money to the banks in what is called, colloquially, a bail out. In 2008 it was $700 billion in taxes (remember the TARP act?) and $16 trillion in printing, 22x the taxes spent on the banks.
The problem is, relying on taxpayers to back banks is politically unpopular, so instead of having to rely on the government to transfer tax money to banks through direct taxes and inflation, governments are enabling the banks to steal from depositors directly without using the government as its thieving middleman.
GLAC bonds will be backed by none other than demand deposits, in other words the money you deposit in your checking account. You can’t just invent capital out of nothing if you are not a central bank and do not have the ability to steal through inflation. So in the event of serious financial stress, these GLAC bonds will be on the balance sheets of banks listed as assets to pay off creditors.
Got that? Thanks to G20 governments, the biggest banks now have the ability to pay off their creditors with the money you deposit in your checking and savings accounts by calling that money a “GLAC Bond” and declaring it an asset.
Now taxpayers do not have to be robbed by government in order to pay off bankster debts. Now they can be robbed directly by the banks themselves through GLAC bonds. Remember Cyprus in 2013? When the Cypriot government took a percentage of everyone’s deposits to pay off its debt?