If the Fed were to reverse the portion of its QE in which it injected trillions onto big bank balance sheets as well as fomented a mortgage/housing bubble, the Too Big To Fails – including Goldman Sachs – would collapse. Make no mistake, it would ultimately prove to be a good thing.
However, there’s also a growing groundswell of grassroot Americans who have “woken up.” Perhaps the only good attribute of the last election is that it hastened the rate of enlightenment. Too be sure, the number of Americans who understand the difference between Truth and Propaganda has vastly increased.
A reader of this blog and subscriber to the Mining Stock and Short Seller Journals submitted this narrative of a recent “enlightenment” experience that occurred while on a routine visit to the local barber shop. It’s worth perusing:
I’m almost speechless as a result of the experience I just had. I have just returned from getting a haircut at the local barbershop downtown. I was there along with the barber, a semi-retired gentleman who now drives a school bus part-time, and a local hay farmer. Our conversation was an absolute stunner, and provides very compelling (albeit admittedly anecdotal) evidence that the bankster elite are in BIG trouble.
Why?
Well, first of all, the barber (in his late 30s) was explaining for all of us how the big banks are in MAJOR trouble on account of (and I am quoting verbatim) “the trillions of dollars of complex derivatives they are holding that are going to implode as a result of the rapid rise in US treasury bond yields.”
The bus driver then explained to everyone how he is no longer keeping any more money in his checking account than he needs to cover outstanding checks; that otherwise he holds all of his money in cash at home. Why? Because he is afraid that, at some point in the very near future, “we’ll all wake up on a Monday morning to discover that a bank holiday has been declared, and none of us will be able to access our funds.”
Finally, the hay farmer told us all how, as a result of having an excellent harvest this year, he had opted to pay off, two years early, the loan on his new tractor. He explained how he had received a call from the bank holding the loan, and the loan officer had attempted to convince him to NOT pay off the loan yet, and even offered to refund twelve months of interest payments if he would simply carry the loan to full term. The farmer adamantly refused. His response to the bank officer? “I understand perfectly well why you want to keep this loan on your books for two more years: you are using my loan as collateral to borrow short and lend long to the tune of at least ten times my original loan balance, and if I pay off my loan early, my debt and your collateral will be extinguished at the same time, and you’ll have to come up with more collateral to back up loans you never should have made in the first place.”
I was stunned!
“… borrow short and lend long … if I pay off my loan early, my debt and your collateral will be extinguished … loans you never should have made in the first place.” WOW!
I sat there absolutely amazed at the relatively high level of understanding manifest by these “salt of the earth” types — and I realized the extent to which the global elite have grossly underestimated the common folk of this world. I am, at this moment, as hopeful for the future of America as I have been in many years.
It is VERY apparent to me that your guest commentator did not patronize a “Black” barbershop. The content of the conversation would different and the outcome would have much more hostile. Yes. I am Black.
ALL of the above have missed the the core problem of their agitation…hidden in plain sight….the FED…..imho
With a few million signatures from voters, would it be possible to end the Fed? As I see it, the President is a mere puppet on the stage show managed by the Fed. This ponzi scheming organization needs to shut down pronto. Without addressing this real issue, everything else is like rearranging chairs on the titanic.
Now you know why they’re fightinf “fake news.”
One man’s propaganda is another man’s truth.
Best anecdotal news I’ve read in a long time!
He must be living in a totally different part of the country/world than me then.
In the following neo-liberal/neo-conservative capitals of the world, which are dominating ALL THE GLOBAL PROPAGANDA @ the moment, it’s 180 degrees opposite situation where it’s non-stop crying/counseling sessions, followed by hysterical shouting of “FAKE NEWS”, “RUSSIAN AGENTS”, shut down all of the internet except the portions that we approve of & on & on & on.
City of London
Wall Street, Madison Avenue, New York MSM empire, Long Island, Southern Connecticut
Washington, District of Criminals
Hollywood
Silicon Valley
And make no mistake BTW that neo-liberalism is EXACTLY identical to neo-conservative. For that, refer to 1 of my earlier comments about how all of George Soros & Irving Kristol etc. come from the same school dominated by Leon Trotsky & Cecil Rhodes.
Just ask your guest to take a stroll through streets of Palo Alto & Mountain View to land in an alternate reality “Visions of Zombie” world.
Banksters?
It seems that holders of mining stocks are in big trouble.
What am I missing here?
The “Loan” was paid off early, thus converting the future obligation and payments into instant cash today, which the bank can turn right around and re ponzi.
Or are we to believe simply that those fiat FRNs are worth far less today, than a future due loan obligation or payment of FRNs for same in two years?
Cheers!
actually, no. the loan (an asset on the bank’s books) when extinguished becomes nada. There is no hard “cash” exchanging hands per se. think in terms of debit and credit. The bank simply debits the loan on its books to zero and credits the account of the farmer (which also goes to zero). And voila, nothing is left.
I think the author must have patronized the twilight zone?
Of course I patronize a barber shop run by Southeast Asian refugees, lol. Have no idea what they are talking about; don’t speak their language. Lots of older white dudes come in there; some think they are appealing to Vietnamese women under 40. Maybe that is what they are discussing.
Dave, you may recognize my sign off, as we have communicated more than a few times in the past year. I read your guest post, nee, “barbershop” talk. While like you, I was positively floored and heartened by the post, what truly got my attention was in the comments section, to wit:
It is VERY apparent to me that your guest commentator did not patronize a “Black” barbershop. The content of the conversation would different and the outcome would have much more hostile. Yes. I am Black.
What I’m expressing from this point onward is this Dave. From one American to another, and this is the context also, the person who made that comment is absolutely correct!! Too often (I did not say in totality!) the conversation would be about bullshit or how they love Hillary. You see Dave, I too am Black. I am “heartened” again, within the context, that another black person recognizes and is open enough to recognize a reality.
Dave, I’m one of your biggest fans. I know you are Jewish, as you are proud of your heritage, as you should be. No one on these financial podcasts really wants to breach the subject of “race”. Why? Simple. It can be a minefield. Once a person, regardless of race/ethnic background, gets that label of being a racist, it is damn hard to shake. I wouldn’t broach it either. Not in that arena.
It is difficult, too difficult, as a Black American to discuss within my own family (now I know part of this is “universal”, but in the context again …) Stocks, Bonds, imperative of owning Gold and Silver, prepping with food, water storage, medical supplies, gardening, weapons to protect such assets, I could go on, but I know you know what I’m saying. So what do I do Dave? I hope that my investments in physical precious metals, both close to me and what I have with the Hard Assets Alliance, plus my vast investments in the mining sector, will allow me to help particularly my nieces and nephews and other family members, get on the other side of what I feel will be, for a period of time, close to hell on Earth.
Take it easy man!
Ron Ward
a MSJ and SSJ Subscriber!
I wish I could share your optimism.
We (old people) were in our favorite local watering hole Friday night talking to the other regulars. Just for conversation I mentioned we were going to south America next month. One guy responded that he had dated a dishy El Salvadoran girl in Puerta Vallarta, and another guy mentioned that he’d heard Venezuela was an up-and-coming place.
So, I don’t know Dave…… :/