mick silver
17th September 2012, 09:28 AM
Jim Willie, GoldenJackass.com (http://www.goldenjackass.com/)-The recent rally in the USTBond 10-yield under 1.5% is a big danger signal
-Last week the jump came to the money laundering by a major global bank, next could be exposure of the artificial flight to USTBond safety, enabled by Interest Rate Swaps
-Another jump could be exposure of the big bank insolvency, covered up by accounting fraud
-A wild card jump could be exposure of the big banks diversifying away from the USTBond, dumping it, as they reveal their own collusion in lifting its value via derivative leverage
-A devastating jump will be the exposure of Allocated Gold account raids, which have left the major banks possibly over 40 thousand metric tons short of gold
-The result might not be successful prosecutions and legal entanglements for the banks
so much as a mutual assured destruction of their systems that require faith and trust
-Gold is the true sanctuary, not the USTBond, and the Gold price is going toward $5,000 per oz
-The Gold price is at long-term monthly support, poised for a major move based upon more scandalAs preface, consider that the USTreasury 10-year yield went below 1.4% this week. Some unenlightened celebrate the asset appreciation and point to a successful asset in performance in an otherwise dismal financial market. The Jackass said in the June 6th public article “USTBonds: Black Hole Dynamics” that such a success is a marquee billboard message of economic meltdown and systemic failure. As the rally continues, possibly the onliest rally outside of corn and soybeans in yet another disaster, people should focus on whether the systemic collapse will occur before the 10-yield hits 1.0% in my warning. Focus on four major points:
The unspoken effect of ZIRP (0%) is the powerful ongoing destruction of capital, as the entire cost structure rises
As equipment goes off line further, the USEconomy will weaken further, in a powerful vicious cycle
The official Zero Percent Interest Policy is the calling card of the Gold Bull Market, powered by negative inflation adjusted returns on savings
The USTBonds will fail from their own success, unleashing the Gold Price when the investment community and global creditors realize no further potential appreciation in the most massive asset bubble in modern history, supported by Interest Rate Swap derivative machinery. Money will eventually fly out of bonds and seek true safe haven.
Fear not. The USTBond 10-year yield (TNX) will not and cannot reach below 1.0% as all ponderings of a world with 0% on 10-year yield are divorced from reality. The Black Hole is working hard, gathering force, amplifying the gravitational field. It is happening right on schedule, no surprise here, a very easy correct forecast. The original supposed Flight to Safety in the USTBonds was totally fabricated and phony. As mentioned at least a dozen times by the Jackass, the last half of year 2010 saw the dutiful Wall Street outpost Morgan Stanley devote a fresh $8 trillion in interest rate derivatives, fully documented by the Office of the Comptroller to the Currency. Their reports never make the headlines, since they are so chock full of rancid fetid scum. As the TNX marches down the swirling pathways within the vast USGovt debt sewer-like cisterns, their energy will be derived from the massive recession that has engulfed the USEconomy. Not only is the flight to safety in the USTBond complex a total fabrication falsehood, but the USEconomic recovery is also a fiction written on political propaganda posters. The followon flight to the bubble ridden USTBond is based upon economic wreckage and broad disintegration of the entire periphery and surrounding core to the bond market. The great sucking sound can be heard, much like during the non-earthquake in Virginia in September 2011. Experienced traders are looking at each other, in full recognition that the TNX rally is indeed an endgame signal.THE BRUSH FIRE PHENOMENONThe LIBOR scandal unleashed brush fires. They started in London but extend throughout the entire Western banking treeline. The scandal that started at Barclays and Lloyds has hit Deutsche Bank, as well as Citibank and JPMorgan. Many more pages will be written on the LIBOR brush fire, as the damages are delineated by those on the opposite side of the price rigging table. The USFed, Bank of England, and Euro Central Bank are directly implicated, casting corrupt light on the central bank franchise system. The clownish supposed economic expert Larry Kudlow actually attempted to claim the crime scene had no victims, as all benefit across the system. The naive Wall Street defender (carnival barker) must not be aware of the damages claimed by the mortgage underwriters in the lending industry, by corporations seeking stable bond yields, and by the swap recipients in countless state government agencies. A figure was put forth this week that caught my eye. For every single basis point in the LIBOR price rig, fully $50 billion in effects result. The market is huge, involving a staggering $370 trillion in worldwide debt. Expect hundreds of high profile lawsuits. Expect dozens of class action lawsuits. Expect well over $1 trillion in total declared damages from the legal attempts at remedy. LIBOR will not go away, since it is actually the heart & soul of the entire lending industry, and of the shadowy derivative market. LIBOR funds the vast derivative market, which is becoming frazzled in a slow disintegration. The brush fire will burn down the USTBond Tower and render useless its Interest Rate Swap buttress structural support, both of which are in an implosion mode.This article is not about LIBOR and its inner workings, the damage suffered by mortgage underwriters, the short changing of corporations and state agencies involved in swaps. Instead, this article is about the serious jumps in the brush fire, jumps to new areas of scandal, which will take down the system. In no way is the list of potential new fire zones comprehensive. Perhaps a few more will result, since large burning tree branches have a way of being lifted by the high winds of controversy fanned by deep suspicion. The entire document discovery process will be exploited to the fullest, a vast crowbar. Once the lid is lifted via legal discovery of LIBOR criminal collusion, all is fair game to be viewed and pulled out of the vast sea of scum, filth, and rancid paper floating within the big bank balance sheets. It is all admissible evidence. Then there are the communications often shown to be highly revealing to establish motive and paint the pictures in more detail. No longer are those analysts like the Jackass considered biased, tilted, and off the mark when they cite financial corruption as an ongoing theme year after year. The corruption is coming to the surface, fully visible, in a manner to render perhaps fatal damage to the system. My theme has been systemic failure from the inefficiencies and corruption wrought by the Fascist Business Model. Witness it!My focus is on jumps in the big brush fire that escalate the financial criminal exposures. Entirely new areas of criminal exposure, investigation, and prosecution will emerge. LIBOR was the center, and Barclays was the banker’s bank, which owns sizeable equity shares of numerous global banks. Leave aside the difficult questions as to why and how the LIBOR fraud was revealed, and why and how the crime was not shoved under the rug as usual, and what higher power is controlling and orchestrating the maneuvers. LIBOR and Barclays lie at the heart of the Western banking cartel and power structure, labeled corrupt to the core. The big banker brush fire has begun. It is raging, but it will spread to create several other nasty brush fires. The jumps will occur easily, the process having already begun.MONEY LAUNDERING & NARCOTICS DEPENDENCEJust in the last ten days, the brush fire jumped into the drug money laundering forest. Permit an imagery jump as well, even though mixed imagery is a cardinal sin of composition. But since on the topic of jumping, a shift in the blaze of imagery might be appropriate. The money laundering of narotics funds is a vast industry. The United Nation task force identified the United States as being unduly reliant upon the benefits of drug money infusion into the banking system following the 2008 Lehman bust, sufficient to prevent a collapse. The UN document reports were published in 2009 and again in 2010. What better place to funnel the money than into the primary banking system from the USGovt agencies responsible for the vast clearing house functions. Representative Ron Paul has addressed this problem in direct accusations. Here is the imagery jump. The operations of money laundering are like a collection of wires without insulated coatings laid out on dark basement floors, one from each bank. The participating big banks do not always have full knowledge of the other and their activities. Many countries are involved, as the distribution rings are vast, like with Mexico in the recent incident. So the wires occasionally cross each other and cause troublesome sparks. The High Scandal in Bank Collusion has already caught fire in the money laundering rings. The bank in the spotlight has been encouraged to align its wires properly, according to the Cooperative Installation Alignment codes from the Underwriters Lab south of WashingtonDC. They will comply, or else resignations will be the least concern of the bank executives. Their lights might go out. This is a topic loaded with risk. The message to take away is that all the major US banks are deeply committed to narco money laundering, which tie in with defense contractors who serve as errand boys and delivery hosts.INTEREST RATE SWAP & FALSE USTBOND SAFE HAVEN
-Last week the jump came to the money laundering by a major global bank, next could be exposure of the artificial flight to USTBond safety, enabled by Interest Rate Swaps
-Another jump could be exposure of the big bank insolvency, covered up by accounting fraud
-A wild card jump could be exposure of the big banks diversifying away from the USTBond, dumping it, as they reveal their own collusion in lifting its value via derivative leverage
-A devastating jump will be the exposure of Allocated Gold account raids, which have left the major banks possibly over 40 thousand metric tons short of gold
-The result might not be successful prosecutions and legal entanglements for the banks
so much as a mutual assured destruction of their systems that require faith and trust
-Gold is the true sanctuary, not the USTBond, and the Gold price is going toward $5,000 per oz
-The Gold price is at long-term monthly support, poised for a major move based upon more scandalAs preface, consider that the USTreasury 10-year yield went below 1.4% this week. Some unenlightened celebrate the asset appreciation and point to a successful asset in performance in an otherwise dismal financial market. The Jackass said in the June 6th public article “USTBonds: Black Hole Dynamics” that such a success is a marquee billboard message of economic meltdown and systemic failure. As the rally continues, possibly the onliest rally outside of corn and soybeans in yet another disaster, people should focus on whether the systemic collapse will occur before the 10-yield hits 1.0% in my warning. Focus on four major points:
The unspoken effect of ZIRP (0%) is the powerful ongoing destruction of capital, as the entire cost structure rises
As equipment goes off line further, the USEconomy will weaken further, in a powerful vicious cycle
The official Zero Percent Interest Policy is the calling card of the Gold Bull Market, powered by negative inflation adjusted returns on savings
The USTBonds will fail from their own success, unleashing the Gold Price when the investment community and global creditors realize no further potential appreciation in the most massive asset bubble in modern history, supported by Interest Rate Swap derivative machinery. Money will eventually fly out of bonds and seek true safe haven.
Fear not. The USTBond 10-year yield (TNX) will not and cannot reach below 1.0% as all ponderings of a world with 0% on 10-year yield are divorced from reality. The Black Hole is working hard, gathering force, amplifying the gravitational field. It is happening right on schedule, no surprise here, a very easy correct forecast. The original supposed Flight to Safety in the USTBonds was totally fabricated and phony. As mentioned at least a dozen times by the Jackass, the last half of year 2010 saw the dutiful Wall Street outpost Morgan Stanley devote a fresh $8 trillion in interest rate derivatives, fully documented by the Office of the Comptroller to the Currency. Their reports never make the headlines, since they are so chock full of rancid fetid scum. As the TNX marches down the swirling pathways within the vast USGovt debt sewer-like cisterns, their energy will be derived from the massive recession that has engulfed the USEconomy. Not only is the flight to safety in the USTBond complex a total fabrication falsehood, but the USEconomic recovery is also a fiction written on political propaganda posters. The followon flight to the bubble ridden USTBond is based upon economic wreckage and broad disintegration of the entire periphery and surrounding core to the bond market. The great sucking sound can be heard, much like during the non-earthquake in Virginia in September 2011. Experienced traders are looking at each other, in full recognition that the TNX rally is indeed an endgame signal.THE BRUSH FIRE PHENOMENONThe LIBOR scandal unleashed brush fires. They started in London but extend throughout the entire Western banking treeline. The scandal that started at Barclays and Lloyds has hit Deutsche Bank, as well as Citibank and JPMorgan. Many more pages will be written on the LIBOR brush fire, as the damages are delineated by those on the opposite side of the price rigging table. The USFed, Bank of England, and Euro Central Bank are directly implicated, casting corrupt light on the central bank franchise system. The clownish supposed economic expert Larry Kudlow actually attempted to claim the crime scene had no victims, as all benefit across the system. The naive Wall Street defender (carnival barker) must not be aware of the damages claimed by the mortgage underwriters in the lending industry, by corporations seeking stable bond yields, and by the swap recipients in countless state government agencies. A figure was put forth this week that caught my eye. For every single basis point in the LIBOR price rig, fully $50 billion in effects result. The market is huge, involving a staggering $370 trillion in worldwide debt. Expect hundreds of high profile lawsuits. Expect dozens of class action lawsuits. Expect well over $1 trillion in total declared damages from the legal attempts at remedy. LIBOR will not go away, since it is actually the heart & soul of the entire lending industry, and of the shadowy derivative market. LIBOR funds the vast derivative market, which is becoming frazzled in a slow disintegration. The brush fire will burn down the USTBond Tower and render useless its Interest Rate Swap buttress structural support, both of which are in an implosion mode.This article is not about LIBOR and its inner workings, the damage suffered by mortgage underwriters, the short changing of corporations and state agencies involved in swaps. Instead, this article is about the serious jumps in the brush fire, jumps to new areas of scandal, which will take down the system. In no way is the list of potential new fire zones comprehensive. Perhaps a few more will result, since large burning tree branches have a way of being lifted by the high winds of controversy fanned by deep suspicion. The entire document discovery process will be exploited to the fullest, a vast crowbar. Once the lid is lifted via legal discovery of LIBOR criminal collusion, all is fair game to be viewed and pulled out of the vast sea of scum, filth, and rancid paper floating within the big bank balance sheets. It is all admissible evidence. Then there are the communications often shown to be highly revealing to establish motive and paint the pictures in more detail. No longer are those analysts like the Jackass considered biased, tilted, and off the mark when they cite financial corruption as an ongoing theme year after year. The corruption is coming to the surface, fully visible, in a manner to render perhaps fatal damage to the system. My theme has been systemic failure from the inefficiencies and corruption wrought by the Fascist Business Model. Witness it!My focus is on jumps in the big brush fire that escalate the financial criminal exposures. Entirely new areas of criminal exposure, investigation, and prosecution will emerge. LIBOR was the center, and Barclays was the banker’s bank, which owns sizeable equity shares of numerous global banks. Leave aside the difficult questions as to why and how the LIBOR fraud was revealed, and why and how the crime was not shoved under the rug as usual, and what higher power is controlling and orchestrating the maneuvers. LIBOR and Barclays lie at the heart of the Western banking cartel and power structure, labeled corrupt to the core. The big banker brush fire has begun. It is raging, but it will spread to create several other nasty brush fires. The jumps will occur easily, the process having already begun.MONEY LAUNDERING & NARCOTICS DEPENDENCEJust in the last ten days, the brush fire jumped into the drug money laundering forest. Permit an imagery jump as well, even though mixed imagery is a cardinal sin of composition. But since on the topic of jumping, a shift in the blaze of imagery might be appropriate. The money laundering of narotics funds is a vast industry. The United Nation task force identified the United States as being unduly reliant upon the benefits of drug money infusion into the banking system following the 2008 Lehman bust, sufficient to prevent a collapse. The UN document reports were published in 2009 and again in 2010. What better place to funnel the money than into the primary banking system from the USGovt agencies responsible for the vast clearing house functions. Representative Ron Paul has addressed this problem in direct accusations. Here is the imagery jump. The operations of money laundering are like a collection of wires without insulated coatings laid out on dark basement floors, one from each bank. The participating big banks do not always have full knowledge of the other and their activities. Many countries are involved, as the distribution rings are vast, like with Mexico in the recent incident. So the wires occasionally cross each other and cause troublesome sparks. The High Scandal in Bank Collusion has already caught fire in the money laundering rings. The bank in the spotlight has been encouraged to align its wires properly, according to the Cooperative Installation Alignment codes from the Underwriters Lab south of WashingtonDC. They will comply, or else resignations will be the least concern of the bank executives. Their lights might go out. This is a topic loaded with risk. The message to take away is that all the major US banks are deeply committed to narco money laundering, which tie in with defense contractors who serve as errand boys and delivery hosts.INTEREST RATE SWAP & FALSE USTBOND SAFE HAVEN