Tag Archives: Grexit

SoT Ep 43 – John Titus: The Fed And The Greece-ification Of America

The more I learn, the more I realize that the Fed is nothing but a criminal enterprise, that the guys at the top know it.  Everyone within breathing distance of top slots at the NY Fed is a criminal. Remember, the NY Fed shares space with the Exchange Stabilization Fund/Working Group on Financial Markets even though the latter is formally part of the Treasury.   –  John Titus, one conclusion from reading the 2009 FOMC transcripts

The only difference between Greece and the United States is that the United States can unilaterally print its own money – money that enables unlimited Government funding and allows the big banks to remain solvent.  The actual process of money printing and debt creation is implemented by the Federal Reserve and the Too Big To Fail Banks that operate as agents of the Fed.

John Titus is in the process of producing a video about the criminality of the Federal Reserve and its member banks.  His researched is derived from reading several of the transcripts from the 2009 FOMC meetings during the early stages of the QE programs. While the “minutes” of the Fed meeting – released three weeks after an FOMC meeting – summarize the FOMC’s policy stance, the transcripts are the most detailed record of FOMC meeting proceedings.  The release of the transcripts is delayed for five years.

 What comes out loud and clear from the transcripts is that not everybody is on board with policy decisions.  For example the purchase of mortgage-backed assets.  There’s lot of uneasiness among Fed members but ultimately they all go along with the plan. I’ve read a lot of transcripts – probably thousands – and what comes out of the Fed transcripts is that the plan has been decided on beforehand. The FOMC meetings are only there to hand down that plan, to discuss the plan, to discuss how to implement the plan and to prop up the idea that FOMC meetings are some sort of democratic process.  –  John Titus

I asserted in 2003 that the elitists running this country would hold the system up with printed money until they have swept every last crumb of middle class wealth off the table and into their own pockets.  “Middle class” for this purpose is defined as anyone who does not have enough cash laying around and the appropriate connections to buy their own Congressman.  The cut-off level of wealth for this is probably about $100 million in non-real estate wealth.

I always thought that the means to accomplish this was money printing and devaluation of the currency.  But true extraction mechanism is debt.   Banks and bankers create debt and make it readily available to their victims. It’s no different that dealing heroin. Get your target addicted and then keep selling it to the victim until it dies.

The bankers gained economic and political control in 1913 when the Fed was founded. Ever since then, there’s been a gradual transfer of wealth from the 99.9% to the .1%. There’s also been a slow, methodical dismantling  of the Constitution and Rule of Law.   In fact the Fed, the big banks and the big corporations have successfully pulled off a de facto coup d’etat of the U.S. Government.

I don’t consider the U.S. Government to be a sovereign Government because if you look at the sovereign function that a Government performs – money printing for instance – we’ve outsourced that to private banks (the Fed is a private bank). There are hardly any sovereign functions left in the U.S. that are performed by the Government.  – John Titus

Once the middle class ran of out real income to continue buying “things” – like houses, cars and consumption gadgets – the banks began to make debt readily available.  Ever since Nixon closed the gold window, thereby completely removing real money from our economic system, the level of debt has increased at an increasing rate every decade.   Over the last decade the total amount of debt in our system – public and private – has gone parabolic.

Even worse, the system of Rule of Law has been usurped by “Rule of Man.”  The elitists running the system are outright criminals who are immune from prosecution.  Think about it:  Eric Holder as Attorney General -the chief prosecutor in the country – stated that “some banks are too big to prosecute;”  the CEOs of the five big banks collectively admitted to committing felonies, yet none were prosecuted;  the leading candidate to be the next President – for now – has openly committed felonies and treason.   These people and corporations are above the law.

While John Titus is still in the process of researching the 2009 Fed transcripts for his video, he’s already concluded that the Fed is a criminal organization that is orchestrating the takeover of this country and is enabling the process of complete wealth extraction from the middle to class:

The basic point of the video is that the Fed will give as much money as the TBTF banks need in order to stay solvent and pay bonuses.  The Fed will also do whatever it takes to remove worthless assets, infected by criminal fraud, from big bank balance sheets.  The Fed is also monetizing U.S. debt, which it knew as soon as QE started.  

The Fed does these things knowing full well that these acts come at the direct expense of the economy. The logical outcome is what’s happening in Greece, where the powers that be insist that debt–which they know to be wholly fraudulent and which cannot be repaid–be paid back, with blood money if necessary.  The mere existence of TBTF banks is inconsistent with any number of things, including the Rule of Law and national and individual sovereignty.

The chief enabler of the Greece-ification of the U.S. is, without question, the Federal Reserves and the psychopaths running it…Our choice is stark: We can hang them for treason, or they will kill us. That process formally began with the 2008 bailouts.  – John Titus

Tsipras Sold Out – Who Cares? The Global Economy Is Still Collapsing

The Greece situation was “fixed” once the the United States IMF began to flex its muscles openly.  Former Assistant Treasurer, Paul Craig Roberts – who can speak from a position of authority on these matters – explained to the world why this was the case a week ago:  Greece And The EU Situation.

So Tsipras, like every modern political leader in every western country, took a big bag of cash from the U.S., and capitulated to the EU’s demands.

Who cares?  Anyone with two brain cells to rub together could have figured this one out.  If Greece fell, it would have triggered the nuclear daisy chain of credit default swaps, of which Deutsche Band, Citigroup and JP Morgan are the largest bag-holders.

Furthermore, how does this change the fact that the global economy – including and especially the U.S. – is collapsing?  Seriously.   Greece is getting stuffed with more debt that it will never be able to repay in exchange for some key national assets that the EU will own once Greece defaults again.  At best this just puts out the fuse which will inevitably light the global debt and derivatives time bomb for a while longer.

In fact, the last several weeks of Greek drama have done nothing more than provide a great cover for ongoing and obvious economic deterioration occurring.  The numbers are especially prevalent in the U.S.:

Untitled1

The graph above shows the year over year change in retail sales.  Despite $3.6 trillion in monetary stimulus, the Fed has been unable to stimulate a boom in retail spending.  This reflects that fact that the real median household income of lower now than it was in 2007.

The percentage of Americans who are counted as part of the labor force is at its lowest level since 1977, when the majority of households were still one-income families.  So much for Obama’s self-congratulatory job boom.  Obama wouldn’t know a real job if Henry Kissinger shoved it up is ass.

As for auto sales, it’s taken a record level of debt issuance and, more troubling, a record level of subprime auto loans, in order to stimulate a mini-bubble in auto sales.  This has only succeeded in getting auto sales to bounce back to their 2004 levels.  But where will the next round of debt-stuffing come from, as the average loan term now extends well beyond 7 years?

The housing market is next.  I know first-hand that home listings in Denver are starting to spike up in good ‘ole 2007 parabolic fashion, especially in the over $750k segment.   I receive “price change” alerts in my email several times a day for homes listed in central Denver in every price segment.  In the “McMansion” suburban neighborhoods, many areas have several listings per block now.  It’s quite stunning.

I know from reports from readers in other large MSA’s that they are seeing a similar occurrence in their area.  In fact, the Dr. Housing Bubble blog is now reporting the home inventory is up 70% from 2013 in three major inland counties:  Dr. Housing Bubble Blog

Point of note:  Colorado and SoCal led the last housing bubble implosion.  We may see a continued bounce in home sales for June, which will be reported soon.  But most of the data that go into the June sales reports – both existing and new homes – are lagged and ultimately reflect contracts that were signed in April in May, when mortgage rates were 100 basis points lower.

Despite the fact the Fed has directed $1.8 trillion of its $3.6 trillion QE directly into the housing market via direct mortgage purchases, home sales volume for both new and existing homes is less than 50% of the housing bubble peak.  The only result accomplished by the Fed has been to ignite rampant home price inflation, which has pushed a lot of suckers into chasing homes that they will have been able to have buy a year from now at a substantial discount.  These newly minted homeowners and stuck flippers will find themselves significantly underwater in their mortgage.

As you can see, the Greek drama has served the purpose of providing a redirection from the ongoing economic collapse.  In fact, lost in this absurdity of the past week’s Kabuki theatre are other points of trouble quickly rearing their ugly heads…What ever happened with Puerto Rico’s impending debt collapse?…

Greece Mattered To Hedge Fund Algos – Retail Sales Starting To Plunge

Dr. Paul Craig Craig Roberts called it three days ago after if become obvious – via the IMF report on Greek debt – that the U.S. had started to flex its muscles in this situation:

Victoria Nuland has already paid a visit to the Greek prime minister and explained to him that he is neither to leave the EU or cozy up to the Russians or there will be consequences, polite language for overthrow or assassination. Indeed, the Greek prime minister probably knows this without need of a visit.  – Paul Craig Roberts, LINK

The financial implications of a Greek default are obvious once you consider the off-balance-sheet OTC derivatives side of the equation.  There’s no question that the biggest exposures to this have been incurred by Deutsche Bank (see the sudden firing of the CEO) and the big U.S. banks who dominate the OTC derivatives game.

But Dr. Roberts explains why Greece is important to the U.S. effort to keep NATO together. While the IMF functions as the cover-story for the financial terrorism the U.S. inflicts on the world (please read “Confessions Of An Economic Hit Man,” by John Perkins), NATO plays an even more important role for the U.S. in that it functions as a “front” for the mechanism by which the U.S. attempts to impose its military terrorism and political hegemony on the entire globe.

Meanwhile, the economic condition of the United States continues to deteriorate beneath the surface of the most reckless and wanton money printing and market intervention in the history of the world.

The latest data from Bank of America shows retail sales ex-autos are tanking, despite the absence of a polar vortex (source: Zerohedge – click to enlarge):

RetailSales

As you can see, there’s actually been a well-defined downtrend in retail sales ex-autos since early 2013.  And the latest data from BofA, based on credit card data, shows a curious drop in June. Note that credit card data is based on actual sales transactions, as opposed to the Census Bureau data – brown line – which is based on unreliable data estimates and mystical seasonal adjustments.

Please also note that most gasoline sales are done with credit cards.  With the price of gasoline higher in May and June, I have no doubt that the retail sales ex-auto and gasoline would likely be negative.

Several other manufacturing metrics continue to show that the real economy continues to tank.  In fact, Marketwatch of all propaganda sources has reported that the manufacturing sector is in a “technical recession” – LINK.  Moreover, the latest data in June showed real average hourly earnings had declined in May from April.  How is at all possible that the job market is “strong” if the price of labor falls?

Perhaps this is why Chicago Fed stooge, Charles Evans, was out yesterday whining for a delay in rate hikes until mid-2016 – LINK.  While Dr. Roberts predicted the resolution of the Greek “crisis” based on the “background” presence of the omnipotent United States Government, I have successfully forecast no rate hikes this year based on the omnipresence of rapidly deteriorating economic data.

The housing market is next…

SoT Market Update: “We’re Fighting Evil”

It’s depressing to know our entire world is this corrupt – Rory Hall, Shadow of Truth

The brown stuff is starting to hit the fan blades.  The trading was suspended on the NYSE this morning right about the time the entire stock market was about to go off a cliff.

UntitledOn Monday one of the primary HFT Electronic Communication Networks “broke” in the middle of a big sell-off in stocks in response to the “NO” vote in Greece. Interestingly, when the stock market did a “U-turn” yesterday resulting in about a 40 point swing in the S&P 500 and a 400 point swing in the Dow, none of the major HFT ECN’s seemed to have any issues.

But, the fact that they had to unplug the entire NYSE today tells us how desperate they are to keep the market propped up in the face of rampant sell programs hitting the market.

Two things are inevitable:  1) at some point money managers running large pension portfolios, hedge funds and mutual funds have to regard their fiduciary duty to their investors and get rid of their historically overvalued stock positions – this will cause a major sell-off in the market because the ONLY buyer is the Federal Reserve;  2)  at some point the elitists will prevent widespread selling by declaring market “holidays” and lowering redemption “gates” on mutual funds – in other words implement capital controls. Both of those two events are fait accompli.

The cause of this week’s market turmoil – at least on the surface – is the Greece situation. Paul Craig Roberts published an article yesterday in which is noted that the IMF’s statement about Greece released a couple days ago signals to us that the U.S. is flexing its muscles on this situation, which means a resolution to this crisis will occur which keeps Greece in the EU.  Apparently the “front-office” neo-con-in-chief, Victoria Nuland, was recently visiting Tsirpas to exert undo influence on his decision-making process.

But there’s more going on behind the curtain that hides the real Wall Street and DC than just Greece. When the report hit the tape that Tsirpas caved in and begged for mercy from the Troika, the stock market bounced briefly and then sold off even more. The fact that they couldn’t prop up the stock market with most of it closed on a week in which the majority of market players are still at the beach in the Hamptons reflects bigger problems occurring behind the scenes than Greece.

Finally, as most of you are aware, the U.S. mint declared “force majeure” on its legal requirement to produce enough silver eagles to meet demand and suspended sales at least until the beginning of August.  In simple terms:  the U.S. mint is out of silver and the Comex is out of silver that it can hypothecate to the mint.

We are starting to see the collateral damage and unintended consequences of unfettered Government/Central Bank intervention in the markets and in world affairs.  Domestically, the U.S. has been terminally infected with rampant criminality and corruption. Internationally, the neocon-fueled U.S. Government has become a despised tyrant working furiously to exert it rapidly waning authority on global affairs.

I know Rory prays everyday that I’m wrong, but my instinct tells me that Victoria Nuland and her neoconservative band of scumbags who control U.S. foreign policy will eventually resort to flinging nukes at that which they can not control…

The Fuse Has Been Lit

FuseLit

Yesterday the US Mint runs out of silver eagles. Of course, the US Mint/Govt was the last one to announce the news. Everyone in the alternative media/blogosphere heard about it through silver eagle dealers who heard about it from their US mint approved participant supplies (A-mark, etc).

Then today the news hits that all trading on the NYSE is “suspended” due to a “technical glitch.” Just overlook the fact that the trading halt occurred just as the the entire stock market was about do an “elevator shaft” plunge. Funny that – the market never seems to “break” or incur a “technical glitch” when the stock market is spiking higher in inexorable parabolic fashion on some bogus economic report.

If you want to see what an elevator shaft plunge looks like when a “breakage” or “glitch” is not imposed on a market, look no further than what happened to silver yesterday:

silver

This is what selective capital controls look like. A colleague asked me just now if the NYSE had resumed trading yet (2:15 p.m. EST).  I replied: “Does it really matter? It’s irrelevant. The fuse has been lit. This is the start of capital controls. It’s no different from what China is doing. Just wait till they start lowering the gate on mutual funds…then banks….”

I warned last summer that it was time to get your money out of all fixed income mutual funds. I’m sure no one listened. Now it’s time to get your money out of ALL mutual funds. In fact, anyone with half a brain would get their money entirely out of the retirement fund system.

They are in the process of looting retirement funds, only they are using a method that did not occur to me until I applied the same methodology being used on Greece: impose an amount of leverage on the entity in a manner which enables the elitists to “gut” the entity from the inside out.

Most large pension funds – Public and Private – are severely to catastrophically underfunded. This means that the net worth of the fund is below 50%. What’s amusing is that many big pension funds are still throwing money hand over fist at Private Equity firms. These PE firms are paying retarded valuation multiples to invest in businesses, especially tech start-ups. When the stock market crashes despite attempts to “break” the market, PE investments will be wiped out and pension fund net worths will be wiped out. That’s how they are gutting the retirement system.

The Fuse has been lit – it’s only a matter of time before there’s a huge financial mushroom nuclear cloud – to be followed by nuclear mushroom clouds…

mushroomcloud

The U.S. Financial Markets Are The Biggest Joke In History

As would be expected after the Greek public voted down down the terms of the Troika bailout offer, the S&P 500 futures gapped down 30 points yesterday evening when global electronic trading of the markets commenced after the Greek “NO” vote. Gold popped up $8. The rest of the evening and overnight session was spent pushing the S&P 500 back up:

SPXfutures

And gold back down:

ComexGold

The Shanghai Stock Exchange is down nearly 30% since mid-June. A veritable crash resulting from a crumbling Chinese economy which could no longer support Chinese stock market bubble valuations. The Chinese economy is tanking because exports to it China’s two biggest import countries are tanking. For evidence of this look no further than the Shanghai Containerize Freight Index – LINK – which is down 32% since late 2014.

If exports are not leaving Shanghai, it’s because of weak demand from Europe and the U.S. I have written several articles demonstrating that the U.S. economy is continuously growing weaker.

European stock markets are all down 1.5-2% today in response to the Greek vote.  Only time will tell how this Greek Tragedy will play out.  But if the Troika compromises with Greece, it will likely be forced into even larger compromises with Italy, France, Spain and Portugal.

The point here is that the global economy is falling apart  – quickly.  And the only markets in which that fact is not being reflected is in select U.S. stock indices and in the Comex paper gold and silver market.   As I started to write this, the Plunge Protection Team has pushed the S&P 500 into a gain from Thursday’s close.  It has since faded back into negative territory.

Many sub-indices and stock market sectors are reluctantly reflecting the underlying fundamental economic realities.  The financial guarantee stocks, which were one of the primary omens of the 2008 market collapse, are down 20% – 40% in the last eight trading days.  These stocks reflect the extreme financial risk embedded in the system. The Dow Jones Transports are down 11% since late November.  This huge divergence from the S&P 500 reflects the deteriorating condition of the U.S. consumer.

The only indices not reflecting reality are the Dow and the S&P 500.  These also happen to be the only stock indices that are reported to the public by mainstream media.   The only conclusion that can be drawn is that the blatant and interminable market intervention in these stock indices is a definitive reflection of the Government’s overt attempt to impose total control over our system and our lives.

Not only are the markets a complete joke, but they have become symbolic of the U.S. Government’s creep into a system of totalitarian control.   Once the TPP Agreement has been signed and ratified, our country will be changed forever.  THAT’S what the action in the stock market today is telling us.

Don’t Panic, The Fed Is Control Of The Markets

There’s no such thing as markets anymore – only interventions.  –  Chris Powell, co-founder and Treasurer of GATA

If today’s market action does not convince the last skeptics that the U.S. financial markets are completely rigged, nothing will.

The action in the U.S. markets today after the Greece/EU situation hit a wall today demonstrates the degree of control the Fed and the U.S. Central Planners have over the markets now.    The S&P 500 futures opened down 30 points when global electronic trading opened Sunday evening.   Gold and silver spiked up.  Both markets began to reflect some degree of the risk to the global financial system posed by Greece’s potential financial collapse.

Of course, as has been the case since the 1987 stock market crash, the Fed/Treasury – collectively the plunge protection team (PPT) – went to work containing the damage to the paper markets.  This entailed methodically working the S&P 500 higher during the course of the night and methodically pushing gold/silver back down – click to enlarge:

SPX1Gold

The manipulation of the markets reflected by these overnight trading charts of the SPX and Gold futures epitomizes the extreme degree of market intervention by the PPT. Ever since 1987, and since Reagan signed the Executive Order which authorized the PPT to prop up the stock markets, there’s been market intervention “creep” in this country. Robert Rubin’s role as Secretary of Treasury was to transition the Working Group on Financial Markets (PPT) from its stock market propping function into a full-fledged, all-encompassing market intervention mechanism.

A colleague of mine this morning remarked that after today the market intervention going on should become blatant to everyone.  I scoffed at this notion.  Most people in this country are either not aware of what’s going on in DC and Wall Street or don’t care.  I was watching CNN this morning and the Greek Tragedy was not even reported.  If you only get your news from CNN you have no idea that the EU could fall apart.  Therefore, you have no reason to believe that the stock market should be falling off a cliff and gold should be going parabolic toward the sky.

The markets have become unimaginably imbalanced in the degree to which the paper derivative securities misrepresent the underlying financial, economic and political reality. Yes, stocks and bonds are nothing more than simple derivatives in that they are pieces of paper which are supposed to “derive” their value from underlying entities that issue them. But the underlying entities are nothing more than cesspools of accounting fraud, criminality and Ponzi schemes designed to suck wealth out the system.

The financial markets – and specifically the U.S. financial markets – have become collectively the biggest Ponzi scheme in the history of the universe.  This condition has been made even worse by the fact that the people running these markets and our Government have become completely immune from prosecution or even indictment. They are criminals who are above the law.

Examples of this are becoming limitless, but consider that an open felon who, as Secretary of State, sold U.S. foreign policy to the highest bidders for her own personal gain is now the front-runner candidate to be the next President.  The only way that our system can become more distorted, debauched and depraved than that will be when the Government begins to herd malcontents and critics into “internment” camps.  Don’t think for moment that is not in the playbook…

…when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you–when you see corruption being rewarded and honesty becoming a self-sacrifice–you may know that your society is doomed.   –  Ayn Rand, “Atlas Shrugged”

 

SoT #40 – Paul Craig Roberts: Greece / TPP – Omens The West Is Collapsing

Everything in this country is becoming Third World – nothing functions anymore.   –  Dr. Paul Craig Roberts, Shadow of Truth, in reference to the completely rigged financial markets and failed democracy in the United States

Based on the reaction tonight by the stock market futures to the EU/Greek situation – the S&P 500 futures are down 25 pts/1.2% – I would hazard the opinion that the zombies on CNBC were slighly off-base when they asserted last week that a Greek default was already “priced into the market.”

This idiocy displayed on CNBC is emblematic of the extreme degree to which propaganda has infected our media.  But it also highlights the degree to which the American public has willingly turned a blind eye to the Orwellian fog that has completely enveloped our system.

A perfect example of a dysfunctional financial market is the Comex silver market.  The open interest in silver futures is currently nearly 1 billion ounces of silver.  Against this, the Comex vaults are reporting 57 million ounces of actual physical silver that is available to deliver into the silver futures open interest.   Never in the history of the known universe has any commodities futures market experienced a dislocation this extreme between the paper contracts which represent the underlying commodity and amount of physical commodity available to deliver into those contracts.

This is a failed market because the Comex silver market no longer operates as a price discovery mechanism.  Furthermore, the parties (CME directors, the SEC and the CFTC) responsible for Governing the Comex and for enforcing the securities laws already in place that are designed to prevent markets from becoming corrupted like this have conspired to prevent the Comex from functioning as a bona fide price discovery mechanism.  Instead, the Comex has deteriorated into a cesspool of corruption and wealth confiscation.

The TPP Agreement – in our view – is the greatest failure in the history of this country of elected representatives protecting the Constitution and representing the interests of the people who put them in office.

What the TPP does is give transnational corporations immunity to the sovereign laws of any country in which they operate. Any time the corporation can argue that the sovereign law of a country is a retraint on trade. – Paul Craig Roberts, Shadow of Truth

I would argue that the TPP Agreement is the ultimate act of treason by the President and by Congress.  The TPP Agreement has displaced all Rule of Law with Rule of Transnational Corporations.  Incredibly, 99.5% of the people in this country are either unaware of what the TPP Agreement represents or are just outright unaware of it altogether.

Perhaps the default by Greece and the subsequent GREXIT will incite a political and economic upheaval not just in Europe but in North America as well.  If Greece leaves the EU, it will likely trigger the eventual unraveling of the entire EU.

The agenda of the creditors of Greece is to establish the principle that they can over-lend to a country and then force that country to privatize the public sector in order to raise money in order to pay the creditors and they can force that  country to cut back on social services to the citizens… in order to pay back the banks. So it’s an assertion that the creditors are above the sovereignty of the country.

The other agenda that’s operating is that the EU and the ECB are using the Greek crisis to establish the precedent that the budget and fiscal policy of EU members becomes the property of the EU – that this is something that is no longer done at the member-State level, it’s set in Brussels.   –  Paul Craig Roberts, Shadow of Truth

If we are lucky, a GREXIT will “blow up” the attempt by the western elitists to implement a plan of centralized Governmental control of everything – the so-called New World Order movement.  On the other hand, the risk is very real that the neocons who have seized control of the U.S. Government, especially the Pentagon, will resort to launching nuclear weapons in a desperate attempt to hold on to the United States’ global hegemony that is quickly slipping away.

If Greece Blows Up And Financial Armegeddon Hits, Gold Will Go “Bid Without”

Although the Fat Lady isn’t on stage singing yet, it looks like my view that the Troika/Greece situation would resolve with a “NO-GREXIT” was wrong.  I’m actually relieved because perhaps this will be the catalyst that will trigger a forced re-setting of all markets globally which have been rendered catastrophically disconnected from any remote semblance of their representative underlying fundamentals.

At least at this moment in time, the Eurozone has rejected any bailout extension beyond June 30th, regardless of the outcome of the Referendum on the matter declared by Tsipras.   Perhaps this is the Troika’s most extreme effort to get Greece to “blink” in what has been, up to this point, a childish game of chicken.

However, that not being the case, it will be interesting to see how the markets will react on Monday, assuming the Central Planning Network of western Central Banks exercise ultimate control by cutting the “electricity in the casino” by making  sure all the markets “break” ahead of Monday’s open.

Per a report posted by Zerohedge, one Cyprus-based FX brokerage firm, Mayzus, has declared at FX instruments to be “Close Only” mode until Monday morning:  LINK.  It will be interesting to see, assuming no changes to the latest status of the GREXIT drama, if most, if not all markets, decide to declare a trading holiday on Monday.

Please understand that if the credit, derivatives and equity markets had not been inflated with printed liquidity to such an extreme degree, there would never be a need to “break” the markets to stop trading or declare an outright “holiday” as Mayzus has.

Why? Because the relative price level of the markets would have already incorporated a significant amount of the expected risk attached the probability of a GREXIT. Unfortunately the Central Banks have, up to now, successfully prevented healthy volatility and have completely insulated the markets from all measures of risk.

Thus, the only way to prevent financial Armageddon is to declare all markets on holiday. However, the most interest market to watch will be the re-pricing of the market for physical precious metals.  Even if they suspend the trading of fraudulent paper futures trading, an over-the-counter – or even “black” market – for physical bullion will develop.  This is because, unlike futures contracts, buyers and sellers can effectuate an exchange of physical for fiat paper.  Of course, I believe that this market would open up “bid without,” meaning buyers will stick bids out looking for offers.

There’s nothing more terrifying in the markets than trading a market that goes “bid without” when you are short.  Theoretically markets have a bottom – zero – but the upside is infinite.  Speaking from the experience of being a market maker in a relatively illiquid market – junk bonds – it is more than just an “uncomfortable” feeling when you are short and the market goes “bid without.”  It seems like an eternity until the first offer might appear and the pit in your stomach goes bottomless when an offer finally appears at a level much higher than the level for which you were praying.  The short position will cause heart attacks and Bill Murphy’s prediction that they will eventually carry gold shorts out of the Comex on stretchers will come to fruition.

The only advice I would give to someone who decides to throw an offering out in physical gold is this:  make sure you offer your gold at a price at which you are willing to own fiat paper currency instead of hard currency devoid of counterparty risk. Regard the value all fiat currencies like you might regard the value of new drachma relative to the value of physical gold bullion.

If You Don’t Like The Outcome Of The Game, Just Change The Rules

Perhaps this could be the “Force Majeure” event the Comex bullion banks are looking for in order to get out of their massive naked paper short position in silver by declaring that all contracts are to be settled “cash only.”  At that point, may as well just shutter the Comex because no one will want fiat cash.

Speaking of changing the rules, BlackRock is seeking Government clearance to “change the rules” governing their mutual funds in order to set up an internal program in which mutual funds that get hit with big redemptions can borrow cash from internal funds that have a lot of cash:   BlackRock Seeks To Change The Rules Of The Game

Not only does this tell us that the elitists running BlackRock expect a big run on mutual funds at some point soon, but it’s a signal to everyone to get their cash not only out of the rigged markets, but out of the financial system entirely.  

More on this later, but anyone reading this who owns BlackRock mutual funds of any variety is a complete idiot if they don’t call up their brokerage or financial advisor and demand immediate redemption.  That is, of course, if the markets open Monday….

 

TPP, The Comex, Greece/EU, The Bond Market: The Final Solution Redux

The naked short interest in Comex silver is potentially building to the mother of all short squeezes and I think the fact that they are piling on more and more naked interest on the Comex tells us that they’re losing control of this.  – Investment Research Dynamics on The SGT Report

The TPP Agreement is going to be the final nail in the coffin of the middle class in the United States (and for the middle classes in all the signatory countries).  The TPP outright usurps the sovereignty of the signatory countries and hands rule of law over to the large transnational corporations.   This means that under this Agreement, the Constitution and all Federal/State laws can be nullified by “legal” decisions imposed under the TPP Agreement.

The Final Solution 2.0:  The Murder of the Middle Class

I was on the SGT Report this week to discuss the ways in which the wealthy and political elitists are implementing an end-game which involves completely destroying the United States and sweeping every last crumb of middle class wealth off the table and into their own pockets.  I actually predicted this would happen back in 2003, when people who saw this coming were considered to be extreme conspiracy theorists.

In fact, a very good friend of mine in NYC told me back then that I was “seeing black helicopters.”  He called me up one day in 2008 and said:  “I can’t believe how right you’ve been this whole time.”

If you think I’m exaggerating, consider this: Right now the leading Democratic front-runner for the Presidency is a woman who used the office of the Secretary of State to sell her influence to the highest bidders abroad for her own personal gain. Not only that, she openly committed felonies including abuse of power and destruction evidence.  The crimes against the people of the United States committed by Nixon look like petty theft from a lemonade stand compared to the crimes the elitist are committing openly now with no consequences.

Not only should be be under detainment and indictment for several crimes, she committed to treason. Instead, she’s gleefully running for President, secretly laughing at all the idiots who slavishly support here.

Try to enjoy what you can, as much as you can, while you still can. Sooner or later these criminals are going to pull the rug out from under you and there’s nothing you can do about it at this point.