I was listening to your podcast with the Silver Doctors today and I found it very helpful the way you explained the derivatives problems. I have been reading Zerohedge for several years and even searched youtube on the subject but you cleared up a lot of the confusion for me. – reader response from “Lawrence”
Eric Dubin of The News Doctors and “Doc” of Silver Doctors invited me on to their weekly “Metals & Markets” show this past week. Rather than reinvent a wheel that has already been manufactured, here’s Eric Dubin’s perfectly good wheel that accompanies the podcast:
Dave Kranzler published a grand slam article last week (click here). Doc and I were happy he could join us to discuss what I consider to be smoking gun proof that there is a low grade fire burning in the derivatives market, and it could flare-up into a crisis at any time. You owe it to yourself to read the article, and for more context listen to our discussion.
I forgot to mention in the podcast one additional point: ECB’s launch of QE would make a rather convenient compliment to any massive swap line that might have been launched between the Fed and the ECB back in that suspect mid December, 2014 period when all this Reverse Repurchase Agreements (RRAs) action was going on to stuff collateral into teetering European banks. Bloomberg News filed Freedom of Information Act requests on the Fed and ultimately had to sue to find out what the Fed did during the financial crisis. The Fed flipped Bloomberg the bird, but Bloomberg News won their court case.
That effort, combined with information that came from the very limited audit conducted as a result of Congress getting off their arse and passing Ron Paul’s last “Audit The Fed” bill submission revealed nearly 17 trillion dollars in swap lines and backstops that the Fed initiated. For example, the Fed “printed” dollars, the ECB “printed” an equal value of euros, and the two institutions swapped the digital fiat currency in a clandestine operation to not only hide the effort to float European-based banks, but to dampen the impact of relative debasement of one currency versus the other — debase both by the same amount at the current exchange rate and the impacts to the exchange rate is dampened.
You can read the rest of this here: Silver Doctors’ Weekly Metals & Markets. Here’s the show: