Embry warns Derivatives likely have been tripped, Obama holds urgent high level

[Large Sarge]

John Embry warns of Derivatives meltdown being imminent, interest rates triggered the derivatives time bomb?\


http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/20_We_Are_Now_On_The_Verge_Of_A_Historic_Meltdown_ %26_Collapse.html

[Horn]

At some point I imagine they will have to pull a stop gap measure.

Maybe what is being coordinated is just how to hold other monetary instruments such as precious metals in the interim "death gap down".

Slice 40% from the value of a dollar, or such, to share/spread the load of the interest.

[madfranks]

At some point I imagine they will have to pull a stop gap measure.

Maybe what is being coordinated is just how to hold other monetary instruments such as precious metals in the interim "death gap down".

Slice 40% from the value of a dollar, or such, to share/spread the load of the interest.

The only way they can definitively slice 40% or whatever off the dollar would be to re-peg it to gold, and declare the new value of the dollar as $xx per ounce. As long as the dollar floats as it does now, they can't simply devalue it by declaration.

[Large Sarge]

strong speculation Comex goes into cash settlement only this week....

Gold will erupt in price

Gold and interest rates have a long term relationship

plus, there are likely lots (trillions?) of dollars in derivatives wagered on the price of gold

[Horn]

they can't simply devalue it by declaration.

You've apparently never seen government magic at work.

I'll bet you think 2 airliners can't bring 3 skyscrapers down either. Let alone 1


http://www.youtube.com/watch?v=LO2eh6f5Go0

[madfranks]

You've apparently never seen government magic at work.

I'll bet you think 2 airliners can't bring 3 skyscrapers down either. Let alone 1

Then tell me by what mechanism the government will devalue the dollar by 40%. How will they do it? Do you think they simply announce, "the dollar is now worth 40% less than it was yesterday"? Look how every other country that devalues its currency does it; they all devalue it against something else, usually the dollar, to which their currency is pegged. For example, last time Venezuela devalued the Bolivar, they decreed its exchange rate from 4.3 per dollar to 6.3. That is a roughly 30% devaluation. How would they do this with the dollar?

[Cebu_4_2]

Then tell me by what mechanism the government will devalue the dollar by 40%. How will they do it? Do you think they simply announce, "the dollar is now worth 40% less than it was yesterday"? Look how every other country that devalues its currency does it; they all devalue it against something else, usually the dollar, to which their currency is pegged. For example, last time Venezuela devalued the Bolivar, they decreed its exchange rate from 4.3 per dollar to 6.3. That is a roughly 30% devaluation. How would they do this with the dollar?

Raise interest rates would be a start. Then again that would further kill the economy which they want.

[gunDriller]

strong speculation Comex goes into cash settlement only this week....

Gold will erupt in price

Gold and interest rates have a long term relationship

plus, there are likely lots (trillions?) of dollars in derivatives wagered on the price of gold


they might get in a round, but i don't think they're meeting to discuss their golf game !

i.e., i agree, they're meeting to discuss something serious.

on the list i would put - and these aren't mutually exclusive, it could be 1 or 2 or more -

* expectations re upcoming G20 meeting. spying or outright disclosure by another country could have revealed motion regarding World Reserve Currency, motion away from the US dollar.

* a good percentage of derivatives are US dollar exchange rate related. G20 meeting, or other, movements by other countries could kick off another domino type cascading derivatives failures.

* possible revelation by China and/or Russia about institution of a gold-backed currency.


of course anything that involves discussion of the US "enormous gold reserves" is in danger if IT AIN'T THERE.


so, yes, i think they're making sure everybody's "on the team" and singing from the same sheet of music.


one other thing i suggest - if you use Chase. i went in there and asked for a particular manager because he's better informed and a good person to talk to about financial stuff.

i was told he was "away at a meeting".

before the failure of Washington Mutual and their giving of the WaMu corpse to JPM-Chase, the manager at WaMu was also "away at a meeting".

it's probably just a corporate pep-talk or something - but it did make me wonder.

[Horn]

How would they do this with the dollar?

Grease, or oil.

She must have some in her knuckles. :)


http://www.youtube.com/watch?v=Nx7vOb7GNBg&list=PL-AVYftLd1wK0EMQb5rwqHXJhC6Phur2s

[Hypertiger]

In 1944 the US Dollar was made the global trade medium of exchange and all the rest of the currencies of the world were fixed to it.

Making every currency in the world a derivative of the US Dollar.

they do not want to kill the economy.

but the system is based on taking more power than you give.

GOD is the supply of power that lies demand to sustain their existence.

When lies you think are Truth demand infinite power to sustain their existence masquerading as Truth...They must defeat Truth or GOD to obtain the power of GOD to transform a lie into Truth.

and the lie is annihilated by Truth.

since there is no greater power than infinite power.

all they...or more accurately...all of you have done since 1944...is postpone the inevitable collapse of the Bretton woods lie you all believe is Truth.

you all slave day in and day out to supply power to the lie you all worship as Truth.

The top have known all along the lie was going to die.

They have been doomsday prepping for decades.

They have billions of you all supplying their demand for power.

Interest or yield rates have been dropping for 32 years now.

Dropping for 32 years into a liquidity trap...that no Economist on Earth has been able to see.

Because you all do not see the fist of GOD until it smashes into your stupid faces.

You have to see to believe.

I do not think, believe, or have faith.

I either know or do not know.

a 40% cut in the dollar would make US exports cheap and imports expensive...basically collapsing all the rest of the economic zones that export to the USA.

They would all have to devalue their currencies to compete.

The Japanese have printed 1000 trillion Yen the past 20 years buying US Dollars to keep the Yen weak in relation to the US Dollar so they can dump massive amounts of Japanese exports into the USA to obtain US Dollars to sustain their economy.

Or Japan would have imploded to oblivion decades ago.

Every time the Chinese Yuan begins to strengthen too much the bank of China enters the market and buys up massive amounts of US Dollars.

Or the cost of their exports to the rest of the world rises and the flow of inflation from the rest of the world to China slows and begins deflating their economy.

[gunDriller]

can't they just give the corpse of the failed bank to a caretaker.

e.g. if it's HSBC, let Bank of England baby-sit them.

declare all the contracts they are unable to fulfill null and void.


which is similar to invoking the "Force Majeure" clause.


of course, a "Force Majeure" is more plausible if there is a calamity involving the bank in question. "terrorist attack has knocked down HSBC headquarters, derivatives contracts are declared null and void."


then they just print money to fill any shortfalls. if they need to steal gold, Spain has some. England has 5200 tons left, at least they had 1300 tons to sell to China etc. between April and the end of June.


sure it sounds Wacky but - compared to the Wackiness which has preceded it, in 2008 & 2009 ...

[Sparky]

Then tell me by what mechanism the government will devalue the dollar by 40%. How will they do it? Do you think they simply announce, "the dollar is now worth 40% less than it was yesterday"? Look how every other country that devalues its currency does it; they all devalue it against something else, usually the dollar, to which their currency is pegged. For example, last time Venezuela devalued the Bolivar, they decreed its exchange rate from 4.3 per dollar to 6.3. That is a roughly 30% devaluation. How would they do this with the dollar?
Simply increase the money supply by 70%, and do it in such a way as to give it velocity. For instance, they could cut everyone's tax rate in half and replace the lost revenue with new money from bonds purchased by the Fed. Continue this until the lost tax revenue is 70% of the current money base, which would mathematically equate to a 40% devaluation of each dollar.

The reason they are not getting a rapid devaluation with current bond purchases is because the money is going to banks who are putting it into reserves in the form of non-circulating assets. If you get that money out to the people, it will have velocity.

[Hypertiger]

The USA is a net exporter...Any gold or silver that would enter circulation would circulate out and not come back...

The Trade deficit is just the amount after all trade is done and added up.

The USA exports out and imports in Trillions of Dollars a day every day.

The 500 Billion dollar trade deficit is the cumulative amount...Roughly the USA exports out 15,000 Dollars a second more of US consumer debt inflation than they import back in to roost.

In 1978 special UN economic zones were opened up in China to receive imports of US consumer debt inflation...and from then till now China has been inflated into what it is today.

http://hypertiger.blogspot.ca/2008/05/break-free-or-march-to-oblivion.html

[messianicdruid]

Simply increase the money supply by 70%, and do it in such a way as to give it velocity.

Double the minimum wage to achieve velocity among consumers. Henry Ford would be proud.

[Horn]

I do not think, believe, or have faith.

I either know or do not know.

It never hurts, to say you think sometimes.

We're all speculators, but thank goodness we're not all Spectrism's

What's with the clown nose, Gaillo?