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Let us then take a look at

Let us then take a look at what has been taking place; the best place to begin is with none other than the Federal Reserve System. As of November 6, 2013, the Balance Sheet of the FED rests at 3,894,129 MILLION DOLLARS. Now, that figure is very interesting is that during the Panic of 2008, it appears that the FED did some very odd and illegal activities that don’t show up on the FED balance sheet. There was, according the a 2011 article in Forbe’s Magazine there was a minor audit of the FED’s emergency lending programs during the Panic, we heard little about it however, but that all-important audit verified that the FED has issued over $16 Trillion Dollars and allocated that money to various foreign banks and corporations. Now, remember the FED balance sheet is only $3.8 Trillion, where did that $16 Trillion come from and how is it accounted for in the FED books or on government Treasury accounts? The answer is that it isn’t! This fact is a biggie in terms of what is taking place and what is about to take place within this economic and monetary system.

Now, there is another interesting fact that no one has seemed to question and that was what took place in September, 2001, because on September 10, 2001 Donald Rumsfeld stated the following: “According to some estimates, we cannot track $2.3 Trillion dollars in transactions.” Naturally, the common question was what happened to the money, but the more important question was where did that amount of money come from in the first place? In 2001, the Pentagon Budget was $305.4 Billion dollars. Nor does the $2.3 Trillion Dollars show up anywhere afterwards on any of the outlays of the Pentagon Budget, nor on the FED’s balance sheets, nor on any government account. So, where did it come from, that is the most important question to be asked?

These are hidden factors that cannot be accounted for in terms of the effect they might have. We have several “knowns” within this economic paradigm, such as the massive $17 Trillion Dollar Debt and the approximate $222 Trillion Dollars in unfunded future obligations, but there are the “unknowns”, those like the examples I stated above that are floating behind the scenes of this economy, without any tracking or accountable knowledge of how that massive amount of funds is acting within the global economy.

Now, it is estimated that the global worth is about $80 Trillion, that is an amazingly small amount of money when we consider that the derivative positions are estimated at $1.6 Quadrillion, or $1600 Trillion Dollars. Back in 2004, Nassim Taleb wrote a book entitled Fooled by Randomness. In it he stated, even then, that: "Banks and trading firms are especially vulnerable to hazardous black swan events and are exposed to losses beyond those predicted by their defective models." That proved accurate in 2008, but that does not mean that anything has been solved, in fact, nothing has been solved, for today things are in a far worse condition then they were in the years leading up to 2008. While it is normally concluded that Black Swan events may or may not occur at any time, the problem is that the likelihood within our current economy, especially with the actions being taken behind the scenes with the FED, that the possibility of such an event taking place, on a massive scale, is even far greater than it was prior it was in 2008. I see the possibility of a number of small events taking place, events that weaken the already weakened links within this system and as a result, set the stage for a truly massive event that will break the back of the monetary system.

Recently, we have seen the real possibility of a failure to deliver on certain Comex contracts, like gold and silver. It would not take much for such an event to occur, especially if there is even a minor economic shock that would cause enough fear to grip the holders of those contracts to wish to take actual physical delivery. The failure to deliver would instantly become a systemic collapse in confidence, not merely in the Comex, but in other markets leading to a massive sell-off and it would essentially shut down the markets, but things like that can easily lead to a systemic collapse of everything, like the credit markets, if the credit markets crash then we will see the collapse of the Global Supply Chain, once that happens it’s all over.

As far as evidence goes, look at the FED balance sheet, look at the Open Market Operations when Treasuries are auctioned off, see who is buying them and at what level those Treasuries are being sold or bought by the FED. Look at what China, Russia and even India are doing in the gold market. Look at the Stock Market and it's astounding new highs....that should give you a few dots to start on, connect them and you will find that there are numerous things on the scenes and behind the scenes occurring, many of which are not only questionable, but seem to point to some very pressing threats to the current economic, monetary and even the banking systems.

Let us then take a look at what has been taking place; the best place to begin is with none other than the Federal Reserve System. As of November 6, 2013, the Balance Sheet of the FED rests at 3,894,129 MILLION DOLLARS. Now, that figure is very interesting is that during the Panic of 2008, it appears that the FED did some very odd and illegal activities that don’t show up on the FED balance sheet. There was, according the a 2011 article in Forbe’s Magazine there was a minor audit of the FED’s emergency lending programs during the Panic, we heard little about it however, but that all-important audit verified that the FED has issued over $16 Trillion Dollars and allocated that money to various foreign banks and corporations. Now, remember the FED balance sheet is only $3.8 Trillion, where did that $16 Trillion come from and how is it accounted for in the FED books or on government Treasury accounts? The answer is that it isn’t! This fact is a biggie in terms of what is taking place and what is about to take place within this economic and monetary system.

Now, there is another interesting fact that no one has seemed to question and that was what took place in September, 2001, because on September 10, 2001 Donald Rumsfeld stated the following: “According to some estimates, we cannot track $2.3 Trillion dollars in transactions.” Naturally, the common question was what happened to the money, but the more important question was where did that amount of money come from in the first place? In 2001, the Pentagon Budget was $305.4 Billion dollars. Nor does the $2.3 Trillion Dollars show up anywhere afterwards on any of the outlays of the Pentagon Budget, nor on the FED’s balance sheets, nor on any government account. So, where did it come from, that is the most important question to be asked?

These are hidden factors that cannot be accounted for in terms of the effect they might have. We have several “knowns” within this economic paradigm, such as the massive $17 Trillion Dollar Debt and the approximate $222 Trillion Dollars in unfunded future obligations, but there are the “unknowns”, those like the examples I stated above that are floating behind the scenes of this economy, without any tracking or accountable knowledge of how that massive amount of funds is acting within the global economy.

Now, it is estimated that the global worth is about $80 Trillion, that is an amazingly small amount of money when we consider that the derivative positions are estimated at $1.6 Quadrillion, or $1600 Trillion Dollars. Back in 2004, Nassim Taleb wrote a book entitled Fooled by Randomness. In it he stated, even then, that: "Banks and trading firms are especially vulnerable to hazardous black swan events and are exposed to losses beyond those predicted by their defective models." That proved accurate in 2008, but that does not mean that anything has been solved, in fact, nothing has been solved, for today things are in a far worse condition then they were in the years leading up to 2008. While it is normally concluded that Black Swan events may or may not occur at any time, the problem is that the likelihood within our current economy, especially with the actions being taken behind the scenes with the FED, that the possibility of such an event taking place, on a massive scale, is even far greater than it was prior it was in 2008. I see the possibility of a number of small events taking place, events that weaken the already weakened links within this system and as a result, set the stage for a truly massive event that will break the back of the monetary system.

Recently, we have seen the real possibility of a failure to deliver on certain Comex contracts, like gold and silver. It would not take much for such an event to occur, especially if there is even a minor economic shock that would cause enough fear to grip the holders of those contracts to wish to take actual physical delivery. The failure to deliver would instantly become a systemic collapse in confidence, not merely in the Comex, but in other markets leading to a massive sell-off and it would essentially shut down the markets, but things like that can easily lead to a systemic collapse of everything, like the credit markets, if the credit markets crash then we will see the collapse of the Global Supply Chain, once that happens it’s all over.

Now, let’s look at the various “too big to fail” banks, they are much bigger now then they were prior to 2008. The largest banks are now 37 percent larger than they were in 2008. During the process, since that time, over 1400 banks have gone out of business. Thus, JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Goldman Sachs and Morgan Stanley are now the linch-pin of American economic health and that should call into question just what is the health of those banks. These banks control a whopping 67% of all banking assets in this country. Bank of America alone accounted for a third of all business loans in this country last year. Now, when we consider that our economy is based on credit/debt and these 6 banks are essentially in control of the majority of the mechanisms involved with the credit/debt economy, then there is a very real danger that if one gets into trouble, the entire banking system in this country will be at risk.

The big banks knew that they were “too big to fail”, but if it occurs again, and I firmly believe there are indicators that point to that being a very real possibility, the collapse of one of those banks would be enough to crush the economy, but even a bailout would be enough to place such a damper on the economy, not only for economic reasons, but for political reasons. Of course, politicians have said that the have fixed the problems that lead to the Panic of 2008, but the truth is that nothing has been done to repair or set into place a credible risk management plan within the banking sector. If we look at the assets of a few of these banks we see that the increase has been massive, prior to 2008 Wells Fargo was at $609 Billion, today it is at $1.4 Trillion, Bank of America was at $1.7 Trillion, today it is at $2.1 Trillion. JP Morgan, which is now about the size if the entire British economy, went from $1.8 Trillion up to $2.4 Trillion. Even if the government wanted to bail them out, at this point it would not only be virtually impossible, but it would reek such havoc in the economy that even the thought of doing it would be dangerous. In other words, we will be damned if we do and damned if we don’t, either way we would be screwed.

I could go on and on about the subject, but my old fingers have grown weary tonight.

http://militantjeffersonian.com

"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun