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Financial Armageddon Approaches: U.S. Banks Have 247 Trillion Dollars Of Exposure To Derivatives

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Nuclear War - Public DomainDid you know that there are 5 “too big to fail” banks in the United States that each have exposure to derivatives contracts that is in excess of 30 trillion dollars?  Overall, the biggest U.S. banks collectively have more than 247 trillion dollars of exposure to derivatives contracts.  That is an amount of money that is more than 13 times the size of the U.S. national debt, and it is a ticking time bomb that could set off financial Armageddon at any moment.  Globally, the notional value of all outstanding derivatives contracts is a staggering 552.9 trillion dollars according to the Bank for International Settlements.  The bankers assure us that these financial instruments are far less risky than they sound, and that they have spread the risk around enough so that there is no way they could bring the entire system down.  But that is the thing about risk – you can try to spread it around as many ways as you can, but you can never eliminate it.  And when this derivatives bubble finally implodes, there won’t be enough money on the entire planet to fix it.

A lot of readers may be tempted to quit reading right now, because “derivatives” is a term that sounds quite complicated.  And yes, the details of these arrangements can be immensely complicated, but the concept is quite simple.  Here is a good definition of “derivatives” that comes from Investopedia

A derivative is a security with a price that is dependent upon or derived from one or more underlying assets. The derivative itself is a contract between two or more parties based upon the asset or assets. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes.

I like to refer to the derivatives marketplace as a form of “legalized gambling”.  Those that are engaged in derivatives trading are simply betting that something either will or will not happen in the future.  Derivatives played a critical role in the financial crisis of 2008, and I am fully convinced that they will take on a starring role in this new financial crisis.

And I am certainly not the only one that is concerned about the potentially destructive nature of these financial instruments.  In a letter that he once wrote to shareholders of Berkshire Hathaway, Warren Buffett referred to derivatives as “financial weapons of mass destruction”…

The derivatives genie is now well out of the bottle, and these instruments will almost certainly multiply in variety and number until some event makes their toxicity clear. Central banks and governments have so far found no effective way to control, or even monitor, the risks posed by these contracts. In my view, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.

Since the last financial crisis, the big banks in this country have become even more reckless.  And that is a huge problem, because our economy is even more dependent on them than we were the last time around.  At this point, the four largest banks in the U.S. are approximately 40 percent larger than they were back in 2008.  The five largest banks account for approximately 42 percent of all loans in this country, and the six largest banks account for approximately 67 percent of all assets in our financial system.

So the problem of “too big to fail” is now bigger than ever.

If those banks go under, we are all in for a world of hurt.

Yesterday, I wrote about how the Federal Reserve has implemented new rules that would limit the ability of the Fed to loan money to these big banks during the next crisis.  So if the survival of these big banks is threatened by a derivatives crisis, the money to bail them out would probably have to come from somewhere else.

In such a scenario, could we see European-style “bail-ins” in this country?

Ellen Brown, one of the most fierce critics of our current financial system and the author of Web of Debt, seems to think so…

Dodd-Frank states in its preamble that it will “protect the American taxpayer by ending bailouts.” But it does this under Title II by imposing the losses of insolvent financial companies on their common and preferred stockholders, debtholders, and other unsecured creditors. That includes depositors, the largest class of unsecured creditor of any bank.

Title II is aimed at “ensuring that payout to claimants is at least as much as the claimants would have received under bankruptcy liquidation.” But here’s the catch: under both the Dodd Frank Act and the 2005 Bankruptcy Act, derivative claims have super-priority over all other claimssecured and unsecured, insured and uninsured.

The over-the-counter (OTC) derivative market (the largest market for derivatives) is made up of banks and other highly sophisticated players such as hedge funds. OTC derivatives are the bets of these financial players against each other. Derivative claims are considered “secured” because collateral is posted by the parties.

For some inexplicable reason, the hard-earned money you deposit in the bank is not considered “security” or “collateral.” It is just a loan to the bank, and you must stand in line along with the other creditors in hopes of getting it back.

As I mentioned yesterday, the FDIC guarantees the safety of deposits in member banks up to a certain amount.  But as Brown has pointed out, the FDIC only has somewhere around 70 billion dollars sitting around to cover bank failures.

If hundreds of billions or even trillions of dollars are ultimately needed to bail out the banking system, where is that money going to come from?

It would be difficult to overstate the threat that derivatives pose to our “too big to fail” banks.  The following numbers come directly from the OCC’s most recent quarterly report (see Table 2), and they reveal a recklessness that is on a level that is difficult to put into words…

Citigroup

Total Assets: $1,808,356,000,000 (more than 1.8 trillion dollars)

Total Exposure To Derivatives: $53,042,993,000,000 (more than 53 trillion dollars)

JPMorgan Chase

Total Assets: $2,417,121,000,000 (about 2.4 trillion dollars)

Total Exposure To Derivatives: $51,352,846,000,000 (more than 51 trillion dollars)

Goldman Sachs

Total Assets: $880,607,000,000 (less than a trillion dollars)

Total Exposure To Derivatives: $51,148,095,000,000 (more than 51 trillion dollars)

Bank Of America

Total Assets: $2,154,342,000,000 (a little bit more than 2.1 trillion dollars)

Total Exposure To Derivatives: $45,243,755,000,000 (more than 45 trillion dollars)

Morgan Stanley

Total Assets: $834,113,000,000 (less than a trillion dollars)

Total Exposure To Derivatives: $31,054,323,000,000 (more than 31 trillion dollars)

Wells Fargo

Total Assets: $1,751,265,000,000 (more than 1.7 trillion dollars)

Total Exposure To Derivatives: $6,074,262,000,000 (more than 6 trillion dollars)

As the “real economy” crumbles, major hedge funds continue to drop like flies, and we head into a new recession, there seems to very little alarm among the general population about what is happening.

The mainstream media is assuring us that everything is under control, and they are running front page headlines such as this one during the holiday season: “Kylie Jenner shows off her red-hot, new tattoo“.

But underneath the surface, trouble is brewing.

A new financial crisis has already begun, and it is going to intensify as we head into 2016.

And as this new crisis unfolds, one word that you are going to want to listen for is “derivatives”, because they are going to play a major role in the “financial Armageddon” that is rapidly approaching.

  • chekmate2

    How are credit unions affected by this debacle? The FSLIC is supposed to protect us just like the FDIC. Do these monies co-mingle? In other words, is the FSLIC affected by the FDIC? I’ve always assumed that my money was safer in a credit union vs a bank. Was this ever true and is it true now? Personally, I’m buying 1oz silver rounds as I can afford them. Granted, if there is nothing to buy, they’re worthless. But if fiat money is worthless, then at least low denomination silver should be worth something and easier to use for small purchases than gold. Comments?

    • K

      Your silver approach is a good idea. If you have already stocked up, on essentials. I doubt any accounts will be unaffected. The whole D.C. crowd are just thieves. They can change the rules at the drop of a hat.

      • http://www.mindbodygreen.com Kim

        Are u near the floods K? I just reading about it on the other blog. Man, that is some crazy stuff. Stay safe sweetie and have a happy new year– Although I don’t have much hope for 2016 being any different than 2015. Expect more of the same and hopefully the collapse will hold off yet another year. (((Hugs)))

    • Richie Phillips

      Yeah, good question. I trust a C.U. much more than a bank. I prefer silver eagles even through there’s a premium when you purchase-simply because if you have to barter its genuine American money. Rounds of course are cheaper, so time will tell.

      • SunnyFlaSnotress

        I put my money w/a large investment company’s bank where plenty of fat cats are parked. I think they are stronger than localized banks and credit unions.

        • TheLulzWarrior

          Put them into the banks that gets access to the money for dem QE programs.

        • laura m.

          Merrill Lynch or Edward Jones? I’m with Jones, have lots of Muni’s tax free. I’m retired.

        • http://sofdmc.deviantart.com SOF

          Bottomline: anything related to paper assets is highly risky at this point in time.

      • TheLulzWarrior

        About money, have you noticed a sharp increase in prices yet?

    • Philosopher

      There is going to be a point in time where that silver, which is $14 an ounce right now, is going to be priceless compared to FRNs (federal reserve notes). Greece has gone back to barter and they have set up some pretty good systems. Ammo and booze and coffee never go out of style.

      • Dave

        don’t forget the scotch……

        • Richard Broberg

          Don’t forget cigarettes.

          • Lennie Pike

            What about the wild wild women?

            An old song – “Cigareets, whiskey, and wild wild women” – well worth a listen.

    • Guest

      FSLIC is a defunct organization. It had nothing to do with credit unions. It’s purpose was to administer deposit insurance for savings and loan institutions in the U.S., but it was abolished with the passage of FIRREA in 1989.

      The National Credit Union Administration (NCUA) is the federal agency that insures the deposits in federal credit unions through its administration of the Share Insurance Fund. NCUA is a separate entity from the FDIC.

      • chekmate2

        Thanks!

        • Lennie Pike

          Nothing is defunct until they say and demonstrate that it is, or when The People realize it is due to hyperinflation.

          • Guest

            FSLIC was abolished many years ago.

          • Lennie Pike

            Like I said.

    • Alex

      FDIC doesn’t have enough money to protect everybody and is practically buncrupt so do not hope that they will stand up to their obligations.

      • James

        They have some cash on hand and they have a credit line with the DOT but they can always ask Congress for a bailout or hope for the worst

    • James

      If fiat money is worthless, then your silver won’t be doing anything as well.

      Banks and credit union accounts are all supported by the full faith and trust of the US government.

      Credit unions are effected the same. You would be a fool to think they are not playing with stock options and commodity futures

      • Lennie Pike

        Then I will give you many Zimbabwe 1,000,000,000,000 notes for all the silver you have right now, or if you’d rather, we can wait until there are $ notes with that many zeros.

      • Mondobeyondo

        I believe you would be wrong. Silver (as well as gold, platinum, etc) has intrinsic value. It takes effort to mine, refine and process a silver coin. Fiat paper money is backed by nothing except faith. When people lose faith in the currency, it becomes worthless. The U.S. dollar USED to be backed by gold until 1933, and silver until 1971.

        • James

          PM’s have no intrinsic value because you cannot eat it, live in it, drink it, etc.

          • Creepy Pedro

            Pms are for bartering, anything you can barter with….guns, ammo, pms, skills etc..will be valued when the reset comes.

          • James

            That should be interesting.
            I’ll invest my money in PM’s from ETF’s. Papers are much easier to deal with because I believe there will be no reset but you can believe what you want to and plan for what you think is going to come

          • Rorschach

            “because I believe there will be no reset ”

            So what are you doing here? Your fellow lemmings are waiting for you to rush the cliff and jump off.

          • CASTIEL

            you remember germany in the last days of ww2? you needed almost a truck full of money just to buy bread….Gold diamonds silver….they ar rare and they will be always of great value…if a country collapses their currency will be worthless…only material goods will have value

          • Lennie Pike

            O.K.

          • Rorschach

            Yet James you can always redeem a precious metal for currency. So they have no value you say? Quit trolling and find another job.

          • James

            James you can always redeem a precious metal for currency. Only if people believe they have value. Try again

          • Rorschach

            Says the pre-high school student who couldn’t even spell derivatives and then went in and edited his posts afterwards.

          • James

            I just love your ad hominem.

          • Rorschach

            Says the troll. Nice try there.

          • James

            Still an ad hominem

          • Rorschach

            Still trolling. They must be paying you per post and you would still wind up poor.

          • SunnyFlaSnotress

            If he didn’t have his ad hominem, he wouldn’t know what to do w/himself.

          • Rorschach

            If you didn’t have your pre-scripted responses I don’t know what you would do with yourself. Oh and what about those ridiculous song lyrics.

          • SunnyFlaSnotress

            Nothing pre-scripted here. I’m all original. I do like a good tune now & then though. Music calms the savage beast as they say, and so it is good for you.

          • Rorschach

            Yet it seems you have horrible taste in music just like in picking your comments and words. I guess they go hand in hand together for you.

          • SunnyFlaSnotress

            Hush, little baby, don’t say a word,
            Mama’s going to buy you a mockingbird.
            And if that mockingbird don’t sing,
            Mama’s going to buy you a diamond ring.
            And if that diamond ring turns brass,
            Mama’s going to buy you a looking glass.
            And if that looking glass gets broke,
            Mama’s going to buy you a billy goat.
            And if that billy goat won’t pull,
            Mama’s going to buy you a cart and bull.
            And if that cart and bull turn over,
            Mama’s going to buy you a dog named Rover.
            And if that dog named Rover won’t bark,
            Mama’s going to buy you a horse and cart.

          • Rorschach

            You just proved what I said. No need to embarrass yourself further.

          • http://RonPaulPromise.com Louis Nardozi

            erm, music calms the savage BREAST, not beast. Look it up.

          • Rorschach

            “Only if people believe they have value. ”

            History has shown that it has value. Fiat currency not so much. Try again troll James.

        • alan

          I would gladly accept gold or silver as payment. Funny pictures on paper not so much.

          • Rorschach

            Alan those same pictures will be used as toilet paper. It’s too bad James and his fellow trolls forget history and Zimbabwe and Weimar Germany.

            “Paper money eventually returns to its intrinsic value – zero.” (Voltaire, 1694-1778)

        • http://sofdmc.deviantart.com SOF

          And then the US dollar was backed by Saudi oil, which by the way is running out, hence the House of Saud’s disastrous military adventure in Yemen, and US, Turkey, Bahrain and Qatar involvement in the Syria crisis to cut off Iran/Russia profits from their oil not sold in US dollars. Always about the control of energy to control human civilization.

    • Mike Smithy

      No financial institution is safe, the FDIC, FSLIC, NCUA were all created as an illusion of safety to appease the masses. If you want to protect your wealth, buy physical gold and silver that you retain possession of. Do not buy gold/silver ETF it is bank by nothing and subject to manipulation.

      • http://sofdmc.deviantart.com SOF

        ETFs are just another form of paper asset. Once one can identify the real enemy as paper asset at this point in time, one can avoid grief.

    • Mondobeyondo

      Chances are pretty good that the FDIC, FSLIC and every other financial institution would be blown away. There isn’t enough backup money in the FDIC to insure all those depositors who have $250,000 (or whatever the amount is). The value of precious metals will soar when fiat currency becomes less valuable than Charmin or Angel Soft.

      • Rorschach

        Michael also mentioned that in the article as well Mondobeyondo.

        “But as Brown has pointed out, the FDIC only has somewhere around 70 billion dollars sitting around to cover bank failures.”

        So with the value of American bank exposure to derivatives the FDIC and other institutions will simply collapse. We are talking about trillions upon trillions and not the TARP billions.

      • alan

        They will print all thats needed. Nothing is off the table to stay in power.

        • Lennie Pike

          I know dats right!

        • Ken

          It’s not so much that they will print all that is needed, but the trust that is lost the more $$ they print. Already T bills are loosing their luster in China and Russia. Who really wants to hold a currency that is printed to infinity? If you do I have some high denomination Zimbabwean currency I’ll trade you for gold or silver.

      • http://sofdmc.deviantart.com SOF

        Exactly. Paper asset investments are foolhardy at this point in time unless you are doing it on the very short term.

        • http://www.mindbodygreen.com Kim

          Isn’t that all there is now? Short term everything. And you’re right about paper assets.

    • Gabriel leblanc

      Just Try to pay some something at the gas station whit your silver or gold, best way is paper momey under your mattess.

      • Lumberjack

        When this thing comes crashing down, you won’t have to worry about buying gas – there won’t be any!

        • Lennie Pike

          If there is no gasoline (a big If) I will be making ethanol, and convert my vehicles to run on it.

          Every single problem has a solution.

          You are way too dependent on “them”.

          You can free a dog from the chain he had to be on for a few hours, and he will remain there not realizing he is free to roam.

          • Evil_shadow

            ethanol…consuming more energy to produce gasoline.What kind of plant are we talking about? corn? and what about energy needed to produce ethanol? in the end it will be far less ethanol than you imagine. on top of that put rioting people,criminal spree and blabermouth(could be family member, neighbor or random pass by) who will bring unwanted “guests” to your house.

      • BB

        Hah, any Mexican / Indian at the cash register will be HAPPY to give you gasoline for silver. Tried it multiple times.

      • geeee

        easy to get debit card & credit card in your gold savings account, this is available now

    • TheLulzWarrior

      How long can collapse be delayed?

      They have obviously decided to skip the whole shemita thing.

      • Creepy Pedro

        The collapse has been going on since the end of qe 3 albiet slowly

        • Rorschach

          The collapse has been happening since 2007 and 2008. It’s just been a slower gradual collapse propped up by trillions of TARP money and ECB bailout funds.

        • TheLulzWarrior

          True, it has already started.

          I´m more thinking about the time when it begins accelerates, like in 2008.

          • Creepy Pedro

            March-April of 2016 the massive layoffs start

          • Guest

            How do you know?

          • Steeve Girard

            Retail collapse is still in progress… Sears is closing another store in Canada… Victoriaville.

      • http://sofdmc.deviantart.com SOF

        The Shemitah was being hyped up like how the Ebola scare was being done, it was a matter of time that the Cabal would delay it as too many were clued in.

        Delaying it would firstly put it at a later time when people least expect the hammer to drop for psychological effect, and secondly destroy the credibility of the truthers who bought into the Shemitah hype.

        • TheLulzWarrior

          There is another aspect.

          They will simply get much less money once the dollar collapse.
          Remember, even now the taxpayers/producers are too poor to afford the current federal governement.
          The parasites faces starvation once the host runs out of blood.

          If this is the great showdown and they are unsure about what comes after, they might as well delay things as much as they possibly can.

      • Jerry C

        TPTB want their man NObama to become king of the world via the United Nations, so I doubt they will trigger the collapse on his watch. More than likely, they’ll put Trump into office, have him repeal a lot of NObama’s policies and then trigger the collapse. The world will blame those bad old white conservative Christian Republicans while praising how NObama saved us all those 8 years. And the world will love him even more. Of course, he’ll rule from there for 3 1/2 years and the Depression in the 1930s will look like rainbows & unicorns. 2017 seems to be about the right time to do it.

    • greanfinisher .

      How would the credit unions be affected? It could depend on how well the derivative claims were satisfied from the bank’s (banks’) unsecured creditors. Personally, I would keep the balances low in any of the financial institutions including (but not limited to) the credit unions. Either use the surplus to purchase U.S. government securities, silver coins or simply hoard cash.

      • Ivy A Nguyen

        Or if you’re really pessimistic about the future, just spend on fun. I bet a lot of people think they won’t be retiring anyway, or may die before they get the chance. Find a job/start a biz you enjoy & it is no longer work.

        • greanfinisher .

          There are plenty of reasons to be pessimistic about the entire financial system in this country as it’s treading on such very thin ice already that ‘bail-ins’ across the board could even surface tomorrow so why allow yourself to be one of the millions of others caught holding the bag? It doesn’t make sense.

  • Mondobeyondo

    The scenario if derivatives do melt down would go like this:

    Financial Armageddon in 10 – ready?
    1… 2… 3….4….6….10!

    You better hope it doesn’t happen.

    • jakartaman

      Whats to stop it?

      • Mondobeyondo

        At this point, precious little. You’d have better luck stopping a runaway freight train with your bare hands. Gonna need Superman for this crisis.

  • Bill

    We know how to track stocks. I wonder how derivatives are tracked? I’ve never seen a listing, have you?

    • Philosopher

      It is all a huge fraud. I don’t understand it and never have. The equations they used are made up. It is legalized gambling but the house always wins. Odds? What odds are those if you never have a chance of breaking even?

      Oh and Deutsche Bank has a huge inventory of derivatives, as well. The problem is not only in the US.

      • Lennie Pike

        It’s exactly like Chevy Chase in the movie American Vacation Las Vegas playing the How Many Fingers Am I Holding Behind My Back? casino table game – except a lot more unfair, destructive, and evil.

      • James

        By house which side of the option?
        The person that is creating it or the person that own’s the stock the option is hedged to?

        • Lennie Pike

          Still waiting for his answer.

    • James

      Chicago Mercantile and CME.

      Most derivatives are futures and options. You can create options with almost any stock brokers.
      Buy futures on CME, Chicago Mercantile, or ICE exchanges. You have probally never seen one because the only people that play are investment banks

      • Lennie Pike

        The CME is the Chicago Mercantile Exchange you idiot! It may be kind of hard for you to figure out, but the C stands for Chicago, the M stands for Mercantile, and the E for Exchange.

        All of us here are laughing very hardily at you kid, but at the same time you are causing us to become very annoyed. Please go outside now and play with your friends.

        Have you seen the new t.v. commercial with Peter Pan being a little punk – reminds me of you.

        Go to the kiddie table and have some fun with your friends. Maybe someday you can sit down with the big people – that’s a BIG maybe.

        • James

          CME has more than Chicago Mercantile. Sorry if that confused you. Maybe if I said CME group, it would make more sense.

          • Lennie Pike

            You thought CME meant Comex didn’t you Mr. Trading Expert.

          • James

            No, comex is NYME

            CME has more than Chicago Mercantile

  • rat28

    yawn!!. wake me up when the financial market explode

    • Richie Phillips

      ha ha that’ll be too late my friend

      • Tim

        Yawn. Same article was posted 4 years ago. Derivatives! !!!
        Tptb wil fix it all. Michael feels cool writing all those big bank #s down but it means nothing. Same article every freakin year.

        • John Higson

          10-15 times a year! BUT even a stopped clock is correct twice a day, and sooner or later(sooner probably…) he will be! He’s only got 3 days left this year on his alert/prediction though now!

          • Rorschach

            If you don’t like his predictions John why don’t you find another site? Or are you too busy being part of the “recovery” crowd to stop trolling.

          • John Higson

            You obviously don’t read my posts. I’m broadly in agreement with him(with the exception of the religious viewpoint) and I certainly don’t think there has been ANY recovery to speak of for mainstreet! Actually, did you even read my post/comment?

          • Rorschach

            I did and I will quote it again:

            “10-15 times a year! BUT even a stopped clock is correct twice a day, and sooner or later(sooner probably…) he will be! He’s only got 3 days left this year on his alert/prediction though now!”

            So you are calling the author a stopped clock and calling him out for discussing subjects and points and then you say that he has only a few days left for his predictions. So prove that you are not trolling.

          • John Higson

            Also, define ‘trolling’?

          • Lennie Pike

            A liar.

          • Lennie Pike

            Define truth?

          • John Higson

            Ain’t no lies in anything I write. Care to provide an example that you can categorically say with no doubt is a lie? If not, I’d call that libel and defamation!

          • Lennie Pike

            I take it back. You just contradict yourself 100% when called out. Technically it’s probably not lying, I wasn’t sure.

          • John Byde

            Now that sounds more like trolling.

          • John Byde

            Trolling is where you write things the other person doesn’t agree with.

          • John Byde

            Free country, guy.

          • John Higson

            10-15 times a year! BUT even a stopped clock is correct twice a day, and sooner or later(sooner probably…) he will be! He’s only got 3 days left this year on his alert/prediction though now!

          • SunnyFlaSnotress

            Well, we may have economic hardships and market crash, but I don’t think we will ever get the mayhem and collapse that Mike has been predicting.

          • Rorschach

            Your right you don’t think Sunny.

          • Steeve Girard

            That’s because the Feds still got tools to prop the economy for another 2 cycles… roughly 14 years.

          • SunnyFlaSnotress

            Not everyone is a lemming of doom.

          • Rorschach

            No just you and your fellow lemmings and fellow sheeps.

          • John Byde

            That’s it. I get irritated by Michael’s constant doom-mongering but he will be right – oneday.

          • SunnyFlaSnotress

            Well.. to some degree..
            Right is too strong a word.

        • GoldenGirl

          TPTB are the dummies that got us into this. I wouldn’t count on them to fix anything.

        • Lennie Pike

          Is this Little Timmy Geithner?

        • James

          I am pretty sure Micheal does not now what a deraivattive is

          • John Higson

            I’m absolutely certain that I don’t know what a ‘deraivattive’ is!

          • James

            In finance, a derivative is a contract that derives its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate, and is often called the “underlying”.[

            Ex. CDO’s, stock options, commodity futures, forwards, swaps, short positions, reinsurance, etc

          • John Higson

            ‘Whoosh!’

            Witness the spelling of the word and re-evaluate……

          • Lennie Pike

            Then if you read the article, you just called Michael a liar – no I take that back – just mistaken and uninformed.

            What the hell happened with people in this country? There use to be no one who would ever say these things.

          • John Higson

            And which country do you think I’m in? Because I can almost guarantee that it’s not the one you mean!

          • Lennie Pike

            Good one! I can tell you are in Great Britain.

            The country is not important Seafelt!

          • Lennie Pike

            (One Flew Over The Cuckoos Nest)

      • Rorschach

        It would still be too early for those Sheeple even when it is too late.

    • TheLulzWarrior

      Wake me up when the Shemitah starts!

  • df NJ

    When Iran’s oil hits the world market we will see $20/barrel oil by April. We should see gasoline under $1.50 per gallon by September. At some point this has got to help the economy.

    • Richie Phillips

      The problem is the BRICS are going away from trade with the $, and even if the price of oil drops as you say, the global demand for dollars could sink to 50% or less…that means all those outstanding dollars are going to flooding back into the US, and hello inflation.

      • K2

        The brics are not going away from trade with the dollars.

        • jj

          Actually they are. China as set up currency swaps with most of the BRICS nations and trade using each other currencies. This is spreading throughout the planet as China and Russia build their “New Silk Road” project throughout Asia, Eurasia and eastern Europe. Come October 1, 2016 all countries will trade in their dollars and treasuries to the IMF and receive SDRs which will be used to settle international trade. The BRICS will still use their currency swap agreements and only use the SDR when trading with the west. Loans made by the IMF are actually in SDRs and not dollars. The SDRs can be converted into any currency in the SDR basket, (dollar, yen, pound, euro and now the yuan). The BIS, (Bank of International Settlements), will actually manage the today to today conversions of SDRs. This is all on the IMF web site. The SDR will then be backed by the total assets of the IMF which includes their loan portfolio, US treasuries and of course gold as they have more than anybody on the planet.

          • James

            SDR’s are special drawing rights or if you have one you get to cash it out for x amount of USD, CNY, JPY, EUR, and GBP at any time.
            Yes they are deraivities

          • K2

            Brics other than china are still trading with west in dollars nd will continue doing so.

        • Lennie Pike

          Why wouldn’t they? And yes they are, and yes they already have.

          • K2

            No they arent they are still trading in dollars with many countries.

          • Lennie Pike

            Then you should have said “have not gone away”, or even better yet: “not completely away”. My answer to your question was correct. “Going” means a work in progress in the context you used it.

            If you want to be understood, you need to learn to be accurate with the language.

            We’re not mind readers here.

      • Bill

        Can you or your friends answer the question I raised earlier?

    • Steeve Girard

      It’s a patch… they are overflowing inventories, because the Arab world is trying to break wannabe majors of the despicable evil of the Western World. (I heard someone said Allah Hu Akbar in an approval )

  • Stephane Pasquier

    I have friends investing in derivatives with Private Banking. Many of them are actually betting for a market decrease, and will make money if there is a crash. Derivatives are actually an insurance policy against an event, and I don’t see why you are afraid of them……

    • MichaelfromTheEconomicCollapse

      When there is a winner, there is always a loser on the other end of the contract.

      Michael

      • JustBill

        I’m curious to know what the most popular underlying assets from which derivatives are created.

        • Lennie Pike

          Thin air.

          Like the thin air backing a 1000 to one ratio of Gold futures contracts vs the actual physical gold that is supposed to exist to back the contracts.

        • GoldenGirl

          Probably options (stocks).

        • James

          Stocks and commodities which turn into short positions, options, forwards, futures, etc.
          Nothing as bad as Micheal makes them sound

      • James

        Not really with futures contracts and stock options

      • Rorschach

        The loser in this case is “main street” or the “real economy” as it has been the case and precedent for quite some time now. We are in the 2007/2008 stage right now and the loser will be the 99% again.

        • Bill G Wilminton NC

          Also the FDIC covers the bank losses FIRST then the depositors second that was changed about 2 years ago…….why arn’t people more aware of the corruption and collusion of gov and banking.

          • Rorschach

            Bill a good example of the collusion is the insider trading that was done by members of the congress prior to the bailout and the 2008 financial crisis.

          • Bill G Wilminton NC

            Good point they all come in paupers and soon are millionaires…….what a pathetic country we have become. And all of em are traitors and should be brought up on charges of treason.

          • James

            The FDIC insures deposits not the banks that hold them. The FDIC tries to sell the banks and if they can’t the bank is liquidated, cash positions exercised and checks mailed out

          • Bill G Wilminton NC

            The FDIC has 46 billion liquid to cover 4 1/2 trillion do you get it.

          • James

            Not all the banks collapse at the same time

          • Bill G Wilminton NC

            James in the coming collapse there are no more rules…….the people will lose their pitiful liquid assets in the bank as there is only 46 billion to cover 4 1/2 trillion. And with bail ins which will probably be passed soon like Europe even that will be taken.

            Get right with God store your treasures in heaven because those here are going.

            But if you were a financial and Biblical researcher like I you would better understand that this is by design not accident.

    • Bill

      Can you or your friends answer the question I asked earlier?

      • GoldenGirl

        Derivatives are traded OTC (over-the-counter) or on an exchange. Most are traded OTC and are unregulated, whereas those listed on exchanges are. Futures, options, and swaps are all forms of derivatives.

        • James

          yes.

        • Bill G Wilminton NC

          Thanks golden girl………………

          • GoldenGirl

            Just trying to keep it simple. :)

      • Lennie Pike

        I just gave you the correct answer JustBill.

        • Lennie Pike

          But it needed to be edited first – thus the time difference.

    • GoldenGirl

      I think the problem is with the banking system, and not the derivatives per se. With the repeal of Glass-Steagall under the Clintons, there was a shift from relationship banking, where bankers made the loans and held them to maturity, to transactional banking, where the bankers became brokers ~ making and selling loans ~ and trading for profit (a form of derivative). So bankers now no longer care about the borrowers (or depositors), just how much money they can make off of them. They would rather trade with your money, rather than lend money to create jobs. Under Glass-Steagall, commercial banks (where you and I deposit and borrow) and investment banks (where all the derivatives/trading action takes place) were separated. Not anymore. Now the banks trade with our money and want us to pay their losses.

      • retired22

        The banking problem is the reserve banking system.All of the regulations like Glass-Steagall are basically financial duct tape used to keep the Frankenstein financial monster called central banking from collapsing.Collapsing from it’s own inherent faults built into the system from the very beginning 300 years ago in the’City of London’financial district’, England!

      • Alex

        What banking system are we talking about, US? It is only a small part of what is really happening. The real problem is Bank of International Settlements which is the Head Bank of all private Central Banks (including the FED).

        • GoldenGirl

          I think the topic of the comment that I responded to was derivatives and the private banking system. Of course the problem is much larger than that.

      • James

        Trading for profit is not a form of derivatives.
        However opionating a bond fund is a derivatives.
        Know what a derivative is before epousing nonsense.

        • Bill G Wilminton NC

          First learn how to spell , then plse go back to the bar. You have no idea what you are talking about.

      • James

        As for your bs about transactional vs relationship banking.
        Banks have always sold mortgages and credit card loans because banks have no patience

        • Bill G Wilminton NC

          You just continue with your nonsense…..p[se give everyone a break and go back to the bar.

      • James

        Commericial banks don’t make business investment.
        Those are VC firms.

        Try getting vocab correct

        • Bill G Wilminton NC

          Golden Girl said it perfect you just cannot understand nor comprehend

          • GoldenGirl

            Thank you. It is impossible to engage in a debate with a person who is so full his own opinion (arrogance). It is a lose/lose situation. Plus, with his “vocab” comment, it seems like he is working from a textbook.

          • Bill G Wilminton NC

            And maybe a textbook that he has not read haha lol.
            Shalom and the King Comes Soon.

          • GoldenGirl

            hahaha ~ Most likely! Shalom to you, as well.

    • retired22

      I Believe that the big problem is that all of the financial transactions,including derivatives,are heavily leveraged to give the financial hustlers a ‘rags to riches’ effect.Paupers can become wealthy by playing games with paper assets,…a whole financial sector of Gordon Gekko’s.When deflation sets in & losses need to be paid for there are no funds to pay with,..there never was! It was all mostly leveraged assets that never really existed!

    • Alex

      Making more fiat paper does not make sense. The whole thing is about purchasing power and that is what practically does not exist anymore.

      • James

        It increases inflation and devalues a currency.
        Sometimes very big deals

    • James

      They have short positions or options.
      No big deal

    • Bill G Wilminton NC

      These BETS are unfunded and rely on other unfunded BETS to pay during a collapse. It is the single largest PONZI in the world or lol UNIVERSE.

      • Steeve Girard

        (humor) More reason to seize them… a few keystrokes and it’s done. Also they could seize the assets linked to them as criminal involved items.

        • Bill G Wilminton NC

          No humor hear………….

  • georgesilver

    Who is the debt owed to?
    A simple question that nobody ever answers in a simple way.

    • Bill

      The largest debt category in the world seems to the largest mystery.

    • JustBill

      I think it’s banks vs. hedge funds. My credit union has a large exposure to derivatives, so they too are playing in the casino. The annual report made it sound like they were mitigating one risk by taking on additional risk (OTC) and making it sound like an insurance policy..
      When one side of the bet wins the other side loses.
      My public financial institution is entering into bets with privately owned money houses. I guess if the losses incurred by my bank/credit union on derivatives are large enough they can now use my money to pay the the debt to hedge funds.
      Is the banking system so unhealthy that there is a greater risk to my credit union if they don’t hedge with derivatives, or is my credit union now part of the problem?

      • Philosopher

        At this point every bank or credit union in the US is part of the problem. Do not put your trust in any of them.

      • GoldenGirl

        Excellent response and a very good question.

    • Alex

      To the Operators of the System.

    • GoldenGirl

      A derivative is a contract. The one who loses is the one who pays. For example, if I have a futures contract (bet) through a broker and I lose, my account is my collateral. With the banks, their collateral is the money of depositors. Also, what JustBill said.

      • Jerry C

        Exactly. The banks gamble with customer deposits and give them a small interest income when they win, but take all the customer’s money when they lose. Why not cut out the middle man, the bank, and just take your money to the casino and gamble yourself? Don’t ever trust banks is the greatest advice anyone gave.

        • GoldenGirl

          Couldn’t agree with you more, Jerry.

    • James

      if you understood futures and options your answer would be a bunch of people at a bunch of different times

      • Bill G Wilminton NC

        Please go back to the bar………….

    • Bill G Wilminton NC

      Some of the debt is owed to the world and some to USA citizens a large amt to China about 1.3 trillion. This debt to the world is unpayable

  • axinosp PAN

    31 Dec 2015, 9 biggest American oil drill companies will close permanent !
    31 Dec 1989 the fall of Berlin Wall was the Mark of a new era
    26 years after….the fall of NY Wall(Street) !!

    • James

      HAHA
      where are you getting your numbers

      • Bill G Wilminton NC

        From a legitimate source that you could probably never source and if did could not read nor comprehend.

        • James

          31 Dec 2015, 9 biggest American oil drill companies will close permanent !

          Yes, I am so sure that NYSE was talking about delisting CVX, XOM, COP, PSX, RDS.A, RDS.B,

          26 years after….the fall of NY Wall(Street) !!

          Yes, I am so sure that the stocks and profits of JPM, C, ICE, BAC, GS, MS, HBAN, WFC, PNC, COF, and CME

    • Steeve Girard

      That will not happen, it’s a bluff intended to the Saudis, they want Saudis to cut production.

  • Philosopher

    This single line should scare the hell out of every reader: “But here’s the catch: under both the Dodd Frank Act and the 2005 Bankruptcy Act, derivative claims have super-priority over all other claims, secured and unsecured, insured and uninsured.”

    What that means is an ordinary person is last. I have no doubt that when things go belly up the government will confiscate 401K plans and IRAs, for your own benefit, of course.

    • Alex

      Ordinary person is always last – period. It is absolutely true that derivative claims have super priority over all other claims and it is also absolutely true that there is no money on Earth to pay this bill. It as also true that derivatives problem was allowed to happen on purpose because this situation allows Operators of the System to achieve their next goal.

      • James

        Big deal

      • Bill G Wilminton NC

        Well said and the real goal is NWO which is well under way………

    • James

      Yes, in a bankruptcy, companies will fufill unfilled dervatives and then their employees, general debtors, and shareholders. Cry me a river.

      It has nothing to do with retirement account only then if you invested in a company that went bankrupt, then you would have to suck the loss up

      • Bill G Wilminton NC

        Absolutely wrong…..

    • Steeve Girard

      But of course are preceding liabilities, will say they are bankrupt themselves… which in the end… will mean the little guy will have to pay… again!

  • Mike Garland

    Bring it all on!

  • nevergiveup

    I found this blog at the beginning of the year. Followed it almost every week. Although it is informative and I think Michael is a good person at heart, the articles just steal my joy and even affect my family life. I have no doubt that a financial meltdown and far worse is coming, but I think what people are going to need more than ever in 2016 and beyond is hope – regardless of how terrible the reality is. So, if you are reading this Michael – please start injecting some hope into your articles.

    • Guest

      There is a tab at the top of this site called “The Most Important Thing.” On that page you’ll find the only hope there is in this world.

      • nevergiveup

        Thank you :). I have accepted Jesus Christ as my Lord and Saviour :) and I know He is the only true hope. I just think it would be good to see more of Jesus, and general hope in the articles.

        • James

          HAHAHAHAHAHAHAHAHA.
          God does not exist. There is no evidence that he does. There are only logical fallicies

          • nevergiveup

            James, there is no need to laugh sarcastically at something that is of the utmost importance to someone. I don’t base what I believe on nonsense. I have experIenced Jesus and know He is real. I also spent 5 years studying theology and have travelled to places such as Israel and Turkey to see certain places the Bible talks about with my own eyes. I respect other people’s beliefs including atheists but I don’t laugh in their faces about what they believe in.

          • GoldenGirl

            I was going to respond to James rather rude remarks to my comments but after seeing his comment to you, I decided to apply the Proverbs 26:4,5 principle, as he certainly qualifies.

          • Bill G Wilminton NC

            Good idea………..Shalom

          • Bill G Wilminton NC

            Well said brother ………dont waste your time responding to people like this and there are a few…..another one posts under gay veteran. Shalom

          • Bill G Wilminton NC

            Put down the joint…..Learn how to spell…….Then come back to the site.

          • Bill G Wilminton NC

            No don’t come back to the site…..what was I thinking

          • Steeve Girard

            That depend upon the definition of a God. If you mean Hollywood, Moses God. Nope…. If you mean Abrahamic God, and you are a guy, look between your legs… If you mean an ancestral person, who has gone beyond legendary, like Odin, then yes Gods existed, but no more.

          • Jerry C

            Quantum Physics says our physical observable known universe makes up only about 5%. So, you’re willing to ignore the 95% spiritual (non-physical) reality? Ignore at your own peril.

          • James

            Quantum Physics says our physical observable known universe makes up only about 5%

            Yes the Hubble and only see 5% of the Universe.
            You can’t analyze

        • Bill G Wilminton NC

          Alleluiah brother

          • nevergiveup

            Amen Bill :)

      • James

        Money!

        • Bill G Wilminton NC

          YESHUA………

          • James

            Jesus you mean?

            Put down the joint…..Learn how to spell…….Then come back to the site.

          • Rorschach

            Says the troll who cannot even spell derivatives. James take a hint.

          • James

            Typos happen. Look at you getting your panties in a wad.

          • Steeve Girard

            By the Gods how many times this you guys post the same post?

          • James

            Lots

          • Bill G Wilminton NC

            His real name is Yeshua. There was no J till about 600 years ago.

            Yeshua is His Hebrew name as Yeshua was Jewish.

          • James

            Thanks

          • Bill G Wilminton NC

            You are welcome.

          • James

            OKK

      • Bill G Wilminton NC

        YESHUA………..

    • CASTIEL

      The only hope in this world is if all people in this world evolute to a person of honour principiles and ideals….and i dont think that is going to happen….so these mistakes will be repeated always.

      • James

        Money!

        • Bill G Wilminton NC

          YESHUA…………….

          • James

            Do you mean Jesus?

            Put down the joint…..Learn how to spell…….Then come back to the site.

          • Rorschach

            Again the troll (James) thinks he can tell others off while he makes the same mistakes. Hey James how did you spell derivatives again?

          • James

            derivatives

          • Steeve Girard

            Dude a bit of respect, the guy is probably a Reformed Judaist. Not a traditional Jew.

          • James

            I am not a Jew of any form

          • Bill G Wilminton NC

            Yeshua is His name………..

          • James

            What is your point.

          • Bill G Wilminton NC

            Yeshua is the point !

          • James

            Yes

      • Rorschach

        The problem is the focus on greed and money and not on a collective/community aspect. When SHTF it will be everybody for themselves and no focus on the community or on the collective. This is what happens when a sense of community and collective is replaced with greed/individualism.

    • jox

      On the contrary, my only hope is to see the crude reality that Michael expose. That can help see the things coming, and take some measures.

      That gives me joy: to be informed, to have some control, and not to be a blind sheep.

      • James

        Even if the economy collapsed, it would be great because I could buy stocks and houses on the cheap and blue collar mooches would be out of work along with seeing the anti-intellectual white surburban area collapse

        • Bill G Wilminton NC

          Please let me know what drugs you use because it must be some good Sh*t.

          • James

            No drugs.

            Just look at the S&P 500 performance and house prices after corrections, recessions, and crashes

          • Rorschach

            You would have been too poor and stupid to take advantage anyway James of the 20-30% price correction.

          • James

            Actually I did.
            I bought SPY 8/24/15 and sold SPY 11/2/15

            I also bought XLF 12/18 and sold XLF 12/29/15
            and I bought VINIX when S&P 500 bottomed out and because I felt crazy I put a short position on SDOW on 8/25/15 and covered it today. 30% gain!

          • Rorschach

            Yet nobody cares James or are you just Jazz?

          • James

            JAZZ?
            JAZZ stock.
            Jazz pharm? I wished I bought their stock after they jacked up the price of Xyrem to $150k per year?

          • Rorschach

            Stop pretending.

          • James

            I am not jazz

          • Rorschach

            No you are probably his cubicle mate. Which company do you troll for? Media matters? or is it for the Obama Stockholm syndrome sheeple?

          • Bill G Wilminton NC

            Look since the Federal Reserve Act was passed in 1913 the U.S. dollar has lost 97% of its value.

            Houses are not supposed to be an investment but a place to live, but people have been taught that houses are an investment.

            When we were a country and not this septic tank…. house prices stayed stable or even dropped as the dollar got stronger.

            A person saved his money in a jar or under the mattress and the money appreciated…….today the interest on savings at the bank is next to nothing and does not even cover the inflation rate.

            They are forcing people “especially seniors ” into dangerous investments like the stock market AND when it all COLLAPSES they will have 5000 reasons for the collapse and none of these reasons/excuses will involve them

          • James

            1. Yes, inflation occurs but cost of living has remained flat.
            2. Houses are investments and places to live. I like REITS better but some people like the physical stuff
            3. Yes, house prices rise
            4. What you are describing is deflation. It has never happened.
            5. According to research from Tulane University, a withdrawl of 4% on a easy to reach 1 million invested in a SP 500 index fund and no contributions from 1990 would still never run out and sometimes even be higher. Investing is not hard

          • Bill G Wilminton NC

            Sounds good until the PONZI blows.

            As for houses as investments:
            ……investments do not need painting and new roofs.

          • Jerry C

            I was taught in Finance & Accounting that a home, a la mortgage, was an asset. It took me years to undo that brainwashing. If it takes a person 30 years of their adult working life to pay, it’s a Long-Term Liability. Even then, one still has to pay property taxes & any future laws at the discretion of government, so you never really own it. Don’t even get me started on HOAs.

          • Bill G Wilminton NC

            Hi Jerry,
            Also a new roof, paint it every five years, cut the lawn etc……..you are of the few that get it.

            Years ago taxes were either 0 or very low as the corrupt real estate tax process started. I have a friend in NJ who has a non descript house with 18 K in taxes. Ha ha designed for doom.

      • nevergiveup

        We are not all the same. I have no problem with the crude reality but let’s start seeing a bit more talk about how to deal with things mentally, physically and spiritually interwoven. It’s like going to a doctor and all he says is ‘you have got cancer’. What does that help? by the way I have taken measures and I am better prepared than most.

        • jox

          That’s right, we are not all the same. I prefer if the doctor says to me ‘you have cancer and it will develop this way’. That is helpful to me.

      • Bill G Wilminton NC

        You got it brother………..

    • James

      The stock market goes down because of interest rate nonsense.
      Buy stocks. I earned 4% on XLF because of the interest rate nonsense then wallstreet coming to their senses.
      Or CLVS getting hammered because data then going up 10%.
      Or VRX because some pissy hospital employee did not like the pricing of Isuprel and Nitropress and gaining 50% when you sold on 12/17/15

      • Bill G Wilminton NC

        When ALL hits the fan ALL goes away.

        • James

          I still earned 4% on XLF and the idea of all governments collapsing just seems a little far fetched and a LSD high

          • Bill G Wilminton NC

            It is all about NEW WORLD ORDER and this is on the USA seal under the seal it says NOVUS ORDO SECLORUM (new world order ) and above the seal it says ANNUIT COEPTUS ( work in progress). These are both on the dollar bill, take a look.

            The biggest stumbling block to the centuries old dream of one world government is the USA with its Constitution and inalienable rights given to US by our CREATOR this makes them seethe with anger

            This collapse is not by accident but by DESIGN………

            This is a spiritual battle and Satan is the Prince of this world as the sceptor was handed to him by Adam when he ate from the tree/

          • James

            It is all about NEW WORLD ORDER and this is on the USA seal under the seal it says NOVUS ORDO SECLORUM (new world order ) and above the seal it says ANNUIT COEPTUS ( work in progress). These are both on the dollar bill, take a look.

            Those bills were designed in 1963 or 52 years ago. If the NWO has not completed it’s job in 53 years, when will they?

            The biggest stumbling block to the centuries old dream of one world government is the USA with its Constitution and inalienable rights given to US by our CREATOR this makes them seethe with anger

            This collapse is not by accident but by DESIGN………

            This is a spiritual battle and Satan is the Prince of this world as the sceptor was handed to him by Adam when he ate from the tree/

            Stop confusing the Constitition with the Declaration of Independence. Also there is the establishement clase in the 1st movement.

          • Bill G Wilminton NC

            Sorry but I am getting tired of answering your posts I know the diff between Constitution and Declaration of Independence.

            Also The Seal was designed over 200 years ago.

          • James

            The dollar bill was designed around 53 years ago.
            The NWO must be failing miserably at it’s job if it is unable to accomplish its mission even though it has been 200 years. Smallpox and rinderpest was eradicated quicker than that with a presumably smaller budget

          • Bill G Wilminton NC

            The seal was designed over 200 years ago with NWO on it in LATIN.

            The NWO with its central banking system is in every country in the world except for two and Iran is one. The Federal Reserve is the central bank of the USA and it is no more federal than federal express.

            We are at the precipice right now ! So enjoy as you are OBLIVIOUS lol.

    • Always********

      He won’t. Hope doesn’t sell. Fear does.

  • J B

    Derivatives are not worth a dime unless something happens.
    Every deal will have a winner and a loser.
    It’s like having a closet full of Gold, it’s not worth anything just sitting on shelf, it’s only worth something when it’s sold or exchanged

    • James

      Very true.
      Banks can always back out of options and commodity players can always refuse to sell

      • Bill G Wilminton NC

        The world of commodities is LEVERAGED to the hilt and when the dominoes fall CASH CALLS go out or your position and your investment is liquidated.

        • James

          Yes, commodities are leveraged.

          CASH CALLS go out or your position and your investment is liquidated. Yes, anyone can sell options and banks can just crap out. You make nonsensical points

          • Bill G Wilminton NC

            They can be.

    • Bill G Wilminton NC

      When the SOMETHING happens the derivative world is supposed to back up or BETTER PUT cover exposure. It is a system designed for DOOM.

  • Alex

    Derivatives are a legalized form of gambling because stock market is a casino. Real economy and economy of the Wall Street are two absolutely different things – this is a well known fact.

    • James

      The stock market is not a casino. The real economy is the economy of wall street. When corporate earnings are good, shares jump. When investor sentiment is good, shares rise. When the feds sue them for money laundering, shares go down.
      The real economy is mostly anti-intellectual, idiotic, lazy blue collar white mooches who are still crying that they can’t get a low skill manufacturing job that pays as much as a doctor

      • Bill G Wilminton NC

        The real economy is MAIN STREET

        • Rorschach

          That’s exactly right. Wall Street does nothing but produce fictional amounts of fiat currency. Main street is the “real economy”. James here is simply being paid to post “recovery” nonsense.

          • Lennie Pike

            Dat’s a fac jack.

          • Lennie Pike

            Probably been brown nosing George Soros for money too.

            The one defining characteristic of these punks – no character.

            Like I said – not their fault. Human beings can wind up being just about anything depending on the environment they “grew” in, and the drugs they’ve taken.

            It’s getting very bad!

        • James

          No, it is the S&P 500.
          A contiplation of the financial peformance of 500 companies that serve main street customers.
          Companies such as Alphabet, Amazon, ADT,MeadWestvaco, First Energy, PNC, and Lenar Homes

          • Rorschach

            Yet out of the S&P 500 list there are very few companies that in the green. The majority are in the red. If it wasn’t for Amazon, Apple, and others your comment would be worthless.

          • James

            Yes. If you remove all the performers from the S&P 500, the S&P 500 will go down.
            No duh. Most companies in the S&P 500 had a flat line performance this year but they are almost all profitable.

          • Rorschach

            “No duh.”

            Sounds about right of someone of your age (who hasn’t matured). So tell your employers that it’s back to school for you.

          • James

            No duh.
            I was pointing your senseless comment

          • Rorschach

            “I was pointing your senseless comment”

            There is that pre-high school grammar fail that you are appearing again.

          • James

            Sorry, typed it in a rush.
            I was pointing out your senseless comment

          • Rorschach

            Nice excuse there. It’s so easy to watch a troll such as yourself make a complete and total embarrassment that it’s just humorous.

          • Bill G Wilminton NC

            The real economy is main street…. a countries financial health is measured by its middle class.

          • James

            Data please?

          • Bill G Wilminton NC

            You should know your numbers to be banging posts but in any case since 67 the middle class has shrunk from 53 % to 43 % and the upper income has gone from 7% to 25 %.

      • Lennie Pike

        It was a complete waste of time and effort to post that here.

        Why don’t you go outside to play like kids used to?

        Very soon, like probably right now, you are going to be completely ignored here anyway.

        I think it’s Snot – go outside and play.

    • Bill G Wilminton NC

      well said……………..

  • Nestor

    It’s been suggested to buy buy gold, silver, food and bullets. Any other suggestions on what to do with the “green paper” currency? Buy land?

    • James

      Invest it in stocks because the system is not going to collapse

      • Bill G Wilminton NC

        I do NOT believe that………..the system is already collapsing the stock market is always the last to know.

        • Rorschach

          Bill James is just another “recovery” shill/bot. Just look at how hilarious his comments are.

          • Lennie Pike

            We could be arguing with computerized artificial intelligence then?

            Seems very artificial to me.

          • Rorschach

            Could be a variant of an artificial intelligence bot after all. Their responses and comments share similarity as well.

        • James

          the system is already collapsing

          Like what? Employment? Taxation and government adminstration?

          • Rorschach

            ~10% annual inflation, ~23% unemployment coupled with $211 Trillion fiscal gap says it all James. If you can’t understand that afterwards then don’t try you won’t get it anyway.

          • James

            Do you have evidence for these stats?

            Where is the raw data set?

          • Bill G Wilminton NC

            Employment there are 10 million people less in the work place than ten years ago start with that.

            There are 100 million people not working and 46 million on food stamps. If it was not for food stamps it would be painfully evident of the condition of our country because there would be soup lines in every city and town in the USA. EVERY DAY !!!

          • James

            Employment there are 10 million people less in the work place than ten years ago start with that.

            Yes, an increasingly aging workforce with waves of retirement.

            There are 100 million people not working and 46 million on food stamps. If it was not for food stamps it would be painfully evident of the condition of our country because there would be soup lines in every city and town in the USA. EVERY DAY !!! Um. OK. These 100 million people are mostly HS and College students and retired people and the 46 million people on food stamps are mostly retirered people and kids.

    • Lennie Pike

      If you want to buy a little more time, buy a blue water sailboat with a water maker, then load it down with all of those things.

      • Rorschach

        Or perhaps an island to use that sailboat with as well. When SHTF you would want to be as far away from the urban centers as possible.

        • Lennie Pike

          Yeah Buddy!

          There’s still a lot of wilderness out there where one can buy some time, maybe even enough to live out a full happy life.
          Just take someone along with you please.

          • Rorschach

            “Just take someone along with you please.”

            Hopefully someone that wouldn’t be a drain or a burden. Last thing anyone would need would be a Sheeple having a melt-down when SHTF.

            If only humanity had embraced a collective vision and not focused on individualism and greed. I can’t see it ending too well and those urban centers are going to be war zones. If you have ever seen footage and pictures of disasters and Hurricane Katrina and the lawlessness that resulted that is just a glimpse. Look at even the empty store shelves, government scrambling to cope, etc…

          • Lennie Pike

            I must go down to the sea again, to the something or other tides.

            Do it!!!!!!!!!! It is a great life – I can attest to it!!!!!!!!!!!

            And from there, a counter attack is more feasible – just like in the movie with Humphrey Bogart and Katherine Hepburn – The African Queen.

            I’m as serious as a heart attack and as sane as they come believe it or not – dealing with and accepting reality being the definition.

    • Bill G Wilminton NC

      Farm land and live on it and be the farmer.

    • Jerry C

      Yes. Buy land far outside the city limits and no HOAs. Best if there’s running fresh water like a creek or a lake. “You ain’t no man, unless you own some land.”- Where For Art Thou”

  • Dow 30K

    Yeah yeah. We have heard this before. The banks have the situation well under control. Dow keeps going up & will hit 30k within next 2 years.

    • Rorschach

      Jazz strikes again. What happened to you using your old name Jazz? Dow 30K that’s a joke.

      It’s too bad that nobody takes you seriously because your posts are quite childish and hilarious.

      • retired22

        He’s probably some kid looking for some attention & notoriety any way he can get it.Talks nonsense to get the attention of the adults.These blog sites are becoming infested with these children with PC’s

        • Rorschach

          Technology in the hands of Sheeple is never a good thing i agree. That’s why you have troll infestations. You should see some of the comments that kids post when they get their hands on technology.

      • Bill G Wilminton NC

        Well said………..

    • Bill G Wilminton NC

      Banks have everything in control haha lol……..the banks borrow from the fed for next to 0 and if it is a too big to fail bank we guarantee the bank. That is how desperate the situation IS……do you get IT.

    • http://www.mindbodygreen.com Kim

      So what. In a rigged, manipulated system, numbers meaningless. That said, you should pay attention to more meaningful economic signals. The ones that can’t be revised and manipulated.

      • Lennie Pike

        Interest rates will soon be in that category you speak of, and soon thereafter martial law – or at least an attempt at implementing it – if not before.

    • MaxRockatansky33

      It’ll hit even 50k untill FED wants this.

  • retired22

    What I would like to know is whether my money is safe in local regional banks not involved in the wild betting of the TBTF banks. Will the financial damage seep down through the system & into these local regional banks?

    • Alex

      Money which are based on DEBT are never safe anywhere.

      • retired22

        I realize that is true in the long run,..I am speaking of events in the near future!

    • Econ1

      I was thinking the same thing back in 08. Went with small and local. Then I actually did my homework and found that most of the local/regionals were investing what they had into the JPs and BofA etc. Get a hold of the banks annual statement if you can and see where they are putting their funds.
      Annual reports are now almost impossible to come by now. They used to be available in a banks customer area but not for a number of years now. When I was trying to get copies a few years ago I was questioned as to why I wanted one and was required to make a special request that would be fulfilled by mail only.
      Some never showed up and a few actually arrived but had no detail as to their investments.
      10 years ago they were required to disclose.

    • James

      Your money is safe wherever. Just remember how the fed threw money at the TBTF banks to prevent them from failing

      • Bill G Wilminton NC

        Money is not safe wherever……..Europe is now transitioning into BAIL INS with depositors money…….that means that when THEY go BELLY UP you go FACE DOWN. USA is working on the same thing.

        Also be careful as the entire USA banking system is insolvent.

        • http://www.mindbodygreen.com Kim

          It absolutely is insolvent.

          • Bill G Wilminton NC

            Tell that to that fellow James who is making alot of nonsensical posts on this site. Shalom

          • http://www.mindbodygreen.com Kim

            most of the time I ignore this poster. It’s all the same person. He/she is crazy.

          • Bill G Wilminton NC

            ha ha lol must be

          • James

            Oh interesting.
            Can you debunk my claims with data sets or nonsensical rhetoric.

        • James

          Also be careful as the entire USA banking system is insolvent.

          Try reading bank spreadsheets before you epouse nonsense.

          As for Europe’s bail ins, the avoidance is pretty easy. Spread your money over multiple banks

          • Rorschach

            “Try reading bank spreadsheets before you epouse nonsense.”

            Like you are doing?

          • Bill G Wilminton NC

            OH MY …..you just cant receive info please get your antennae fixed.

            The banking rules have changed FOR EXAMPLE loans outstanding were valued at market rate now these same loans can be valued at perceived market rate until sliced into tranches and sold to the world. A sliver of bs here a sliver of bs there its a PONZI OF BULLSH*T spread over the world.

            Or nonperforming loans are carried off the books. The banks used to have audits and one loan not performing and not posted as such would get the bank immediately shut down by the auditors.

      • Rorschach

        Do you really think that the “Fed” will have enough to bail-out all the banks with the total amount of derivative exposure that American banks have? Stop dreaming.

    • jox

      Local regional banks should be safer, but I think they are not. Big banks will always be supported by the system, but when small banks one day have a problem, they simply let them fall. Look at the data: since 2008 thousands of local banks have closed.

  • Hazel

    And what system allows a bank to be more exposed then the assets they have? Their own system? I could never walk into a bank and get a loan for more then my assets were worth, without the loan being for something they can repossess (house/car). How about the people repossess the banks? It is our money they are using after all. smh.

    • James

      Techincally the US people already did that buy buying shares of ally financial, AIG, Citibank, BofA, Goldman, Morgan Stanley, etc

      • Bill G Wilminton NC

        Oh my you are so uninformed please go back to the bar.

  • James

    I think I have seen this every single day of every single year on this site.
    Try something new, please

    • nevergiveup

      For how man years? Not being funny – just curious – I am relatively new (my first year)

      • James

        3 years now.
        It is mostly Micheal cherry picking economic stats to make the economy seem worse then it is and saying that the economy is going to collapse.

        It is fun at the start but gets boring after a while

        • nevergiveup

          Ok. Thanks for the reply.

        • Rorschach

          James interesting how you show up and just spam with your “recovery” nonsense. How much are you being paid for this nonsense?

          If you don’t like what Michael has to post then leave. Nobody wants you here anyway.

          • James

            None, also I have the right to free speech

          • Rorschach

            That doesn’t apply to paid trolls and shills such as yourself.

          • James

            Court case?

          • Rorschach

            Not applicable here James.

          • James

            Court case/Law/Legal document please

          • Rorschach

            Now why would I provide you with anything James you troll?

          • Always********

            I want him here.

          • Rorschach

            And nobody wants you here. How many different nicknames did you try Alwaystomorrow?

          • Rorschach

            Many. My favorite is Rorschach.

            By the way, how many days left until December 31st? :-)

        • Bill G Wilminton NC

          So find an ALL IS WELL KUMBAYA SINGING blog site you could all sing together. Kinda like listening to the band play on the Titanic and singing along.

      • Mike Smithy

        James is sitting in the next cubicle over from you in the Media Matters propaganda sweatshop. Why don’t you just ask him face to face and save your playacting for the theater?

        • nevergiveup

          Thats impossible. I am not American and your comment is very strange. It was an honest question.

        • Bill G Wilminton NC

          Mr Mike Smithy haha lol excellent WELL SAID…………

  • robbie41

    O.K. Folk’s, I sure hope you have kept your MONEY out of your Bank Accounts. Before the end of this Month is Done,(End of January 2016) the Banksters & Wallstreet will have Absolutely Collapsed the Economy in this Country, This will be a cyber attack on the Entire Countrys Banking System because it will be a False Flag Event. (A Bank Holiday is going to be declared & Banks across the Country will be closed for about ONE WEEKS TIME), & Millions of Good People will have their MONEY Lost, Confiscated & Stolen most of their 401k’s, Pensions, Retirement Accounts, Savings Accounts, & Checking Account’s, Save Deposit Boxes. Then if that is not enough, Then they will be coming after YOUR Hard Assets, Meaning your Cars, Trucks, Motorcycles, SUV’s, Boats, all your toys & everything in your home, then your very home itself, & the land your home sits on as well.. I have told you about this happening to you & Everyone else, exactly ONE YEAR AGO. I Wish You the Very Best of LUCK.. Best Regards Robbie :)

    • Econ1

      Hey Robbie boy…. since you are an inside guy how about letting us know exactly when the second coming will take place. I have a lot of repenting I need to get done.

  • merrileerj

    Even tho the Fed changed the rules to not help the big banks not fail, won’t they just change the rules again to bail them out? That’s what happens with everything anymore it seems, rules are made to be broken. And there’s always printing more money. Whatever they say they no longer can do seems to just be a joke isn’t it?

  • airfiero

    Two questions for the author. Please pardon my skepticism, on on the same page as you, but I want to be as prepared for something like this as possible…

    1. What would realistically *cause* the derivatives bubble to burst

    2. What makes you think they won’t recover the economic system by just doing more of the central bank led money printing and economic manipulation that they’ve been doing for decades already? Not enough money in the world? Their computers won’t run out of 1s, 0s and commas.

    • James

      1. Really nothing. Banks just back out of options and futures. A big lawsuit and nothing happens.
      2. The feds would probally just bail them out

      • Rorschach

        2. The feds would probally just bail them out

        So what exactly is the global exposure to derivatives and the actual “real economy” and worldwide GDP then? You are hilarious James.

        • James

          Banks are exposed to derivatives but who cares

          • Rorschach

            Obviously you don’t so why should anyone even care about you or take you seriously?

            “Banks are exposed to derivatives but who cares”

            That just says it all.

          • James

            Yes, banks play with options, futures, forwards, swaps, and ceilings, (YAWN)

          • Rorschach

            Keep yawning all you want. Your just trolling and will be banned and have your comments deleted. You can go yawn somewhere else you microscopic sized parasite.

          • James

            Toxoplasma gondii is a microscopic sized parasite. A human is not. Nice ad hominem though

          • Rorschach

            Took you that long to look it up. Not surprised at all.

          • James

            Everyone knows what an ad hominem is. As for T. gondii, it has been the parasite on my mind due to daraprim

          • Rorschach

            Everyone knows what a troll you are:

            “Someone with a brain and common sense living off stock dividends. Life is nice”.

            You mention the lack of a brain and the parasite you are.

          • Rorschach

            And your point is? How about actually contributing rather than being a mindless shill/troll that you are.

          • James

            Still being productive

          • Rorschach

            More than you could say about yourself. Don’t quit school it seems you need it more than you would believe.

    • Bill G Wilminton NC

      A few large positions ( BETS ) that cannot be covered would start the domino dropping.

      I guess THEY could try but even money is contaminated as an example there are interest rate derivative BETS. It is house of cards.

    • David

      common sense says the lower the price of oil the Greater the stress on the oil derivatives Bubble as $$$$ Trillions have been invested in this sector of trade since 2008 and investors are difinetely looking for the exits before getting wiped out. 1,000’s of Oil Workers are getting their pink slips in Canada & the US and If you purchased Mega oil stocks when Gas was almost $4.00 a Gallon and if Gas drops to $1.00 a Gallon as predicted your in a world of hurt. Credit for the US from foreign nations is Drying up as other nations know we can’t repay them. as for the 2nd Question I believe we have been Manipulating our economic system by: printing money, Q1 thru Q4, 0% interest rates ect, ect to the breaking point. no other forms of manipulation seems to be working. sorry,, Felix no longer has any new tricks in his bag.

  • Karen

    A crash is definitely coming and I foresee a crash that will almost permanently cripple our nation/ the globe. We would all do well to prepare for that. . . Coming soon . . . :[

    • Bill G Wilminton NC

      Coming Soon………..YUP

    • Mondobeyondo

      Stay tuned.
      “A splendid time is guaranteed for all”….

  • John Byde

    This is much more of a realistic threat than your offering on Christmas terror attacks. Truly scary. No-one understands how to run the machine anymore.

  • Rorschach

    He’s talking out of his paid shill “experience”.

  • Lennie Pike

    Thanks Michael for deciding to allow my list! These are times where if risks are not taken, we will have wished afterward that we had taken them.

    On my heroes list yet to come, you will be at the top, right above Gerald Celente, Ron Paul, Jim Willie etc..

  • Lennie Pike

    My apologies to Rick Santelli of CNBC. He chose his profession and he works at it in good faith and puts up all the fight he can get away with – everyone has to work somewhere.

    I know how he feels, I used to work for a company owned and operated by Italian NYC mobsters because they owned the business that provided the service I loved to provide. Wasn’t concrete.

  • Lennie Pike

    Henry Paulson!!!!!!!!!!!!!!!!!!!!

  • Bill G Wilminton NC

    the bar is still open………..

    • James

      By bar, do you mean legal exam or where you get drunk?

    • James

      Legal bar exam or drinking?

      • Bill G Wilminton NC

        A bar exam with bar stools…..

        • James

          Taking the legal exam in a physical bar. Are you on LSD?

          • Bill G Wilminton NC

            No LSD not yet…. but if I keep this discourse going any longer I will need something stronger than LSD. Does LSD stand for Long Strong Drink ?

            Goodnite James….. the best advice I gave to you tonite WAS ” to get right with God “.

            God Is Good ……..All The Time
            Shalom

            PS please forgive any abruptness or other indiscretions as the guards did not feed us tonight and I am a tad shot tempered

  • Bill G Wilminton NC

    Every single Congressman and Senator and all living presidents should be charged with TREASON.

    • James

      Good luck

    • Lennie Pike

      Even Jimmy Carter? You’re probably right.

      • Bill G Wilminton NC

        Yes THEY are all part of the cabal to bring down the USA for NWO.

        Its right on your dollar bill look below the seal NOVUS ORDO SECLORUM means NEW WORLD ORDER.

  • HeyAHuman

    I hope you all enjoyed the festivities, because here comes a gnarly hangover.

  • David

    Glass Steagall act needs to get repealed, Period!

    as long as the too big to fail Banks can use their Depositor’s $$$ as a safety net when their investments go sour we are all in trouble.

    • Philosopher

      Ummm it was repealed and is no longer in effect. You may want to get up to speed switch the current rules, albeit, overwhelming, I admit.

      • David

        Really? news to me. thanks.

  • alan

    Printing press standing by…
    Bail out ready.

    Media propaganda machine standing by….
    Ebola infected North Korean hackers in Red China under
    the command of Putin story ready.

    Its contained.

    • Lennie Pike

      Very, very, gooood.

  • Banker

    At the risk of putting myself out there as an “evil banker” target, I thought it might be useful for me to describe at least one simple form of derivative that is common today. Let’s say that Party A believes that interest rates will be increasing, and wants to borrow $100 million from a Bank at a fixed interest rate for 5 years. The Bank is willing to lend, but only on a variable rate tied to Prime or LIBOR. Party B has a different view on interest rates, and believes that rates will be decreasing in the future and would like to profit from this position. Parties A and B enter into an Interest Rate Swap Agreement (the “contract” or Derivative) whereby Party A will pay Party B the equivalent of x% interest on $100 million each month, fixed, for 5 years. (The actual rate would typically be the initial interest rate payable on the loan, plus a premium.) This payment amount will not change for the entire term of 5 years. Party B, in turn, pays Party A the equivalent of the actual interest charged by the Bank on the variable rate loan throughout its life. This payment amount is subject to increase or decrease over time as the underlying index changes. A few items of note… 1) the flow of cash between Party A and Party B is typically “netted” for efficiency, and 2) Party A is still directly liable to the Bank for all interest due on the loan (they just have an offsetting source of funds for any potential increase in interest resulting from rate increases). The net result to Party A is an effective fixed rate of interest on its loan. Party B, who has speculated that rates will generally remain low, makes a profit if this turns out to be true (pockets the “fixed” premium). If rates go to the moon, however, Party B would be liable to Party A for “moon” interest (which could be a lot). Thus Party B ends up with significant interest rate exposure, having never borrowed a dime.

    • Lennie Pike

      Get him!!!

      Are you a Central Banker higher up, or a Too Big To Jail Banker Higher Up or someone who just fell into trying to make a living for his family in the wrong game?

      Or none of the above?

      • Lennie Pike

        And what about this right that any bank has to create money out of thin air at the time a loan is made called fractional reserve.

        How do I get in on a deal like that.

        I would like to have the power to lend money at interest without having any money to begin with.

        What do I have to do to sign up?

        • Lennie Pike

          Rates are not going to the moon unless Central Bankers decide to commit suicide by giving up power.

          You don’t know who you’re working for/with.

          Sorry, I am one of the resident enforcers doing my job.

      • Banker

        Ha! Well, I think it’s a combination of all the above except the Central Banker bit…

    • SunnyFlaSnotress

      That was great riveting info,.. Thank you :)

  • Barry Goldwater

    Interest rates ?
    Poppycock !
    I’ve been on a year long endeavor to eliminate my position in the Banking system. It’s taking some time because of the resistance I get from them when I try to remove deposits.
    Earlier this year I shut down the bank for an hour as they scrambled to meet my demands. This was a sight I never believed I’d ever see. It was priceless and informative to know my simple request would have so much power to wreak havoc upon them.
    If you think it may be easy just walk into your bank and ask for a large sum of money in cash.
    I repeat as I often have to those who read these comments simply this one message, get out of the Banking system while you still have an open window to do so ! Time is running out and soon you’ll find more than just resistance you will find yourself locked in with no escape.
    Do not be fooled by the banksters. The decision has already been made and they’ve decided your money is theirs and total control is the only way forward.
    Get out while you can .

    • adssd

      If you don’t me asking, but if you are taking out all of your money, do you simply keep it at home or have you invested most of it in precious metals?

      • Barry Goldwater

        It would be unsafe for me to specify here what I’m doing with it but I can list some options.
        There are many places outside banks where cash can be safely kept, converted to silver and gold, invested in tangible assets which are desirable during a crises. What one can do also depends upon the amounts we’re talking about.
        You may have hit on why people continue to deposit funds when they know the banks are now the enemy. They believe there’s no safe alternative but there is if you study and plan your methods.
        Banks can no longer be trusted.

  • Jazz

    Wow no stock market crash in 2015. Maybe next year? Looks like we will melt up to new highs soon.

    • Rorschach

      Well if it isn’t Jazz. You are late for your scheduled shift. Oh and here is another surprise as usual you don’t have anything to add.

      • Jazz

        I always add value. My thoughts are like pure gold. Lol

    • Steeve Girard

      Wrong the was a market crash…commodities!

      • Bill G Wilminton NC

        haha well said……………..

    • MaxRockatansky33

      Maybe when aliens will evaporate Wall st then economic armageddon will happen. Because Debt can be prolonged into infinity.

  • Steeve Girard

    (the following is humor) I know a way to kill this economic crisis once and for all… since derivatives are like illegal gambling… why not declare them illegal and seize them? Since most of them are keystrokes away.. they could seize them before they “guilty” parties have a chance to make them crash. You can even include the assets in the seizure because they will be noted as items involved in criminality.

  • adssd

    No way out as I see it:

    -Bail ins
    -Negative interest rates
    -Aboloshing of cash
    -Confiscation of gold, silver and precious metals.

    What do you do then?

    • Steeve Girard

      Well you learn survival skills and you tell the government and the Feds to take a hike!

  • Lennie Pike

    Where’s my head? Jamie Dimon!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    • GoldenGirl

      lol I was wondering when his name would appear.

  • GoldenGirl

    “Janet (question mark) – (no offense to The Mysterians) Yellen” omigosh. Lennie you are hilarious. Thoroughly enjoyed that whole comment.

    • Lennie Pike

      Thank you Golden Girl. I once knew a Golden Girl, you don’t live in Ponte Vedra FL by any chance?

      • GoldenGirl

        Sorry, no. I am on the other side of the country. :)

  • jadan

    “Ellen Brown, one of the most fierce critics of our current financial system..” Wish it were true. She doesn’t like the bail-in scheme, true enough, but she champions a so-called public bank, the Bank of North Dakota, which is a member of the Minneapolis Federal Reserve, and you will be hard pressed to find a denunciation of the Fed in anything she’s written. She’s only lukewarm in her criticism and lukewarm in her advocacy. She’s no firebrand like you, counselor.

  • Sandbagger

    “And in other news..

    The Ebola virus is contained. There was NO PREDICTED worldwide die-off.

    Now back to our regularly scheduled programming.”

    Carry on, everybody. I wish you all a Happy New Year filled with more uplifting blogs than this.

    Live. Don’t Fear Life.

  • Dalton

    Has anyone tried to withdrawal a large lump sum of cash from a bank ? Because I heard you can’t do it even now?
    Your money has to be safer in your mattress – the thieves running the banks and USG can’t wait to take it from you.

  • Cyber Revengeance

    can derivatives be a cause of concern

  • Philip Hibbs

    i bank with the bank of colorado..

  • DB200

    In the Netherlands two bankers wanted to start a new bank in 2015. This was supposed to be a full reserve bank as opposed to ‘normal ‘ fractional reserve banks. The reason: everyone needs to have a banking account to get groceries and pay other bills, but is exposed to risks in the banking system. Which is unfair if you use your banking account for paying bills. To play it safe any surplus would be parked overnight at the ECB at -0.3% interest. The rules in the Netherlands state that banks have to guarantee each other deposits. So if bank A goes under, banks B thru Z have to guarantee the deposits from bank A (max 100.000 euro per person). This meant that the risk free full reserve bank would still incur the risks of the fractional reserve banks. So a full reserve bank would still have the risks of a fractional reserve bank but with higher operating costs. The authorities did not want to change the rules. The bank did not start. My conclusion: the system is rigged.

  • MaxRockatansky33

    The problem is (actually it’s good) that Debt can be prolonged unfinitely. So it’ll burst only when Global Elite decides to do this.

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