The Japanese Financial System Is Beginning To Spin Wildly Out Of Control (and why this is important)

[Prodigal Son]

Posted by Kimberley (here)

Not now and not sure what to do with the savings I have....I have a good amount of physical silver and gold coins buried in my yard... and some real estate investments... although still have dollars in the bank that I do not want to have in the bank...

Do any of you have suggestions of what to do with the substantial virtual dollars I have in the bank?...collecting only .02% interest?

Much love and thank you for your suggestions...!!!

Now would be the time to buy more metals. If you already have gold and silver you can diversify into platinum.... or, if you have real estate investments you could pay down debt if any debt exists on them. No one really knows what will happen to debt after a systemic collapse but the less you owe The Beast the better. Hopefully NESARA is real and the debt will disappear but I wouldn't bet on it.

[Prodigal Son]

Posted by T Smith (here)
Ben Bernanke is a "professional" among professionals.. he is the top professional. Save for assuming the role of professional lier and con artist (which is possible, to his credit), he discredits the legitimacy of being a professional altogether...

Actually, he shows himself to be quite the smug con artist at times....

http://en.wikiquote.org/wiki/Ben_Bernanke

Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve System. I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again.

"Remarks by Governor Ben S. Bernanke at the Conference to Honor Milton Friedman, University of Chicago, Chicago, Illinois," federalreserve.gov (2002-11-08)

[wobbegong]

Great thread,
I found this quote in one of the linked articles, I think it's so true:

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought."
by Rudiger Dornbusch - economist

...thankyou Rudi and RIP.

[TargeT]

Posted by gripreaper (here)
. Heck, California is equivalent to Japan's economy in scale, and could just start their own state currency just like North Dakota has, and be just fine. How come North Dakota has no debt, the lowest unemployment in the country, and a robust economy? Because they operate "partially" outside the clutches of the global currency.

WELL.... N Dakota has a state owned bank yes (so they directly reap the rewards of Fiat / Fractional Reserve Lending, unlike most banks that are private and funnel the profits to a CEO etc..) but what has N Dakota really going is it's Oil, Like Alaska it is leveraging it's natural resources to the benefit of the state and it's people; Alaska had a 5 BILLION dollar surplus a year or two ago & when I lived there I got a nice chunk of that as an "energy refund" (basically the state taxing the oil corporations and giving a portion of the surplus to it's people).

Solid business models like this (and this is a very basic one) are what keep states/countries afloat; and with a state owned bank on top of it they are set up very well indeed.

HOWEVER

they are not truely out side the system, except that their bank isn't privately owned (which I guess is enough "out side" the system to get a country bombed to the stoneage, so maybe you're right)

[kanishk]

what will happen to debt. ?

I hope that buying silver now and then when silver prices will go high it will be good to pay back the debt instead of wasting the money paying the debt now. But I don't know what will happen to the base interest rates after the collapse. What will be their percentage increase and volatility then.

[we-R-one]

Posted by gripreaper (here)

Posted by Kimberley (here)
Do any of you have suggestions of what to do with the substantial virtual dollars I have in the bank?...collecting only .02% interest?

Yes, I have a suggestion. Send it to me.

ok that was effing funny, lol. I had to log in just to say thanks for making me laugh. C'mon you guys, doesn't anyone have a sense of humor anymore?

[mgray]

I own the metals, Gold and silver for ten years, but in these markets the paper products (ETFs) are keeping a hard cap on price.

[we-R-one]

Posted by Prodigal Son (here)

Posted by Kimberley (here)

Not now and not sure what to do with the savings I have....I have a good amount of physical silver and gold coins buried in my yard... and some real estate investments... although still have dollars in the bank that I do not want to have in the bank...

Do any of you have suggestions of what to do with the substantial virtual dollars I have in the bank?...collecting only .02% interest?

Much love and thank you for your suggestions...!!!

Now would be the time to buy more metals. If you already have gold and silver you can diversify into platinum.... or, if you have real estate investments you could pay down debt if any debt exists on them.

Better make sure you have clear title before paying down your real estate debt, otherwise you're pumping money into a black hole. Most property titles are clouded which means many are paying the wrong lien holder.....just another disaster of mass proportions in the making, that hasn't bubbled to the surface yet.

[Sunny-side-up]

Me and the wife are very lucky, we have no debt's we haven't had any fun with money either
But all this buying metals and gold, silver, platinum etc.etc,
just seems to me like playing their PTB game. I bet the out come will be a wasted venture for us with they the PTB laughing even more cause they got that extra bit out of Doh!


But like I said, me and the wife are very lucky at this moment have no debts, good luck with yours and I really mean that.

I give a lot of meditative energies towards a cured future where NO need for money systems and debts!

Love and Hug's all

[TargeT]

James Corbett joins Joyce Riley on The Power Hour to discuss the economic insanity that continues to sweep through the markets and how the bubble will eventually pop. We discuss Japan’s place in this unfolding economic catastrophe and take listener calls on a range of subjects from economics to geopolitics to the situation at Fukushima.

http://www.corbettreport.com/intervi...he-power-hour/

[ponda]

From zeorhedge.com

http://www.zerohedge.com/news/2013-0...rally-6-months


What happened in Japan last week (a 14% decline after a 85% rally since last fall) is an example of markets getting ahead of the facts on the ground.

[Dennis Leahy]

Posted by mgray (here)
While some estimate the the derivative market is a $67 trillion debt bomb, it is in reality nothing more than a hedge market with zero-sum losses. If you net out all the exposure, it would amount to very little profit, because the parties are for the most part on both sides of the trade with very little nominal exposure to losses. Yes the market exposure number seems huge, but net/net not a big thing.
Yen carry trade has been huge against dollar and euro, but the parties are also in the dollar euro trade so profits on one side losses on other. That's net/net.
...

Hi mgray,

About a year and a half ago, I saw figures ranging beyond $700 Trillion for the total derivatives debt, and since then have seen figures as high as $1.4 Quadrillion. The astronomical figure of "only" $67 Trillion (though it is, of course, a shocking number) seems so tame in comparison. Was there some resolution of debt, or, in your estimation, was the figure of $700T untrue?

Also, how can it be that in 2008, the average investor lost 37% of their invested savings value, triggered on housing and derivatives, and yet now (with a much higher debt bomb/bubble/zeppelin over us), there is "very little nominal exposure" at this time? Does everyone have very little nominal exposure, or just the bankers and traders?

I'm out of my realm, so please speak slowly and in monosyllabic words if possible. hahahahha

Even if, in reality, the derivatives debt is strictly between high-rolling banks and traders, don't we know they will cry for our blood (and money, and massive austerity measures, and force the taxpayers to pay for their debt) because they hold the "too big to fail" card? Rather than saying, 'this is how it has traditionally been done...', wouldn't we be wise to see the strong probability that they could do something "unprecedented" to either save their own asses and inadvertently crush the ordinary guy, or even to deliberately crush the ordinary guy?

Dennis

[mosquito]

Posted by Dennis Leahy (here)
..... figures as high as $1.4 Quadrillion. The astronomical figure of "only" $67 Trillion .....

Picking self up off floor !!!!!

It's hilarious isn't it Dennis, they bandy these numbers round almost without thinking. $1.4 QUADRILLION - that's nearly a quarter of a million dollars for every person on the f*cking planet !!!!

I give up with all this nonsense - I'm going to start my own currency - LEAVES. They actually DO grow on trees, and notwithstanding the likes of Monsanto, can't be controlled by hoards of silly little men in suits with no personality (the men, not the suits). It also has the added advantage of automatically making those who live in nature RICH, and those who live in big cities POOR

[ThePythonicCow]

Posted by Paul (here)
My guess (I'm not a professional) is that there is a crash, but not quite yet.

Apparently ZeroHedge is reading the Avalon forum as a guest .

From Are Bond Yields Set To Soar? Not So Fast (ZeroHedge):

~~~~~~~~~~~~~~~~~

We continue to think that no matter how forceful this back-up has been, or where it ultimately peaks, we will see new low yields in the Treasury market before this cycle is over.



We cannot know if this yield backup has run its course but from our perspective, it isn’t a question of “if”, but “when” yields resume their downward trend. As always, we look forward to the time when economics deem a shift from being fundamentally long to fundamentally short interest rates, but we do not see this yet.

~~~~~~~~~~~~~~~~~

There is more at the above link.

Granted, the ZeroHedge article pertains to US bonds, whereas this thread pertains to Japanese bonds, and my earlier comment pertained to derivatives.

But the underlying presumption here is that all three of these will blow up, when the time comes, along with much else.

[mgray]

Posted by Dennis Leahy (here)

Posted by mgray (here)
While some estimate the the derivative market is a $67 trillion debt bomb, it is in reality nothing more than a hedge market with zero-sum losses. If you net out all the exposure, it would amount to very little profit, because the parties are for the most part on both sides of the trade with very little nominal exposure to losses. Yes the market exposure number seems huge, but net/net not a big thing.
Yen carry trade has been huge against dollar and euro, but the parties are also in the dollar euro trade so profits on one side losses on other. That's net/net.
...

Hi mgray,

About a year and a half ago, I saw figures ranging beyond $700 Trillion for the total derivatives debt, and since then have seen figures as high as $1.4 Quadrillion. The astronomical figure of "only" $67 Trillion (though it is, of course, a shocking number) seems so tame in comparison. Was there some resolution of debt, or, in your estimation, was the figure of $700T untrue?

Also, how can it be that in 2008, the average investor lost 37% of their invested savings value, triggered on housing and derivatives, and yet now (with a much higher debt bomb/bubble/zeppelin over us), there is "very little nominal exposure" at this time? Does everyone have very little nominal exposure, or just the bankers and traders?

I'm out of my realm, so please speak slowly and in monosyllabic words if possible. hahahahha

Even if, in reality, the derivatives debt is strictly between high-rolling banks and traders, don't we know they will cry for our blood (and money, and massive austerity measures, and force the taxpayers to pay for their debt) because they hold the "too big to fail" card? Rather than saying, 'this is how it has traditionally been done...', wouldn't we be wise to see the strong probability that they could do something "unprecedented" to either save their own asses and inadvertently crush the ordinary guy, or even to deliberately crush the ordinary guy?

Dennis

Much of the $700 Trillion you cite is including overnight derivative "wagers," which run off nightly. The $67 Trillion I cite is a longer term money at risk. In 2008 The US gov't and the Fed decided to "take out" one of the largest firms in the bond and derivative market when Lehman was left out of the "merger party" weekends at Ben. So that took out one of the largest counterparties in the game.
So the game no longer became a zero-sum equation.
The liquidators of Lehman are to this day still trying to unwind all these paper trades.
The dirty word in Aug and Sept of 2008 was liquidity. No banks were extending credit to other banks or firms for that matter. GE and Caterpillar also received aid from Uncle Sam at this time to fund their day-to-day operations.
Two examples of bailing out system:
1) PIIGS and Cyprus: Austerity measures put in place and in Cyprus case savings plundered. No growth, much pain in economy, with money fleeing out of the country.
2) Iceland: Repudiate the debt, saying you already took your pound of flesh UK bankers and see economic growth return quickly.

There is a reason we do not hear much about Iceland's recovery, it's a big FU to the banking system.

With these staggering numbers, this is why I believe in the end there needs to be a global repudiation of some percentage of the debt. A jubilee year as in the biblical sense to make amends to this travesty.

[Valle]

Im sad to see that a official Russian channel are laughing at a misfortune family losing money..

Source: https://youtube.com/watch?v=8XfV_0B-JW4

[thunder24]

http://e.nikkei.com/e/fr/marketlive.aspx thanks tesseract for posting this in the 24hrs thread... looks like japan is getting smacked?

peace feed the world

[Kimberley]

Nikkei tumbles 6% on central bank fears
By Charles Riley @CRrileyCNN June 12, 2013: 11:07 PM ET

Japanese stocks plummeted on Thursday, shedding as much as 6.7% in a move that pushed the index into bear territory.

http://money.cnn.com/2013/06/12/inve...pan/index.html

[gripreaper]

Posted by Kimberley (here)
Nikkei tumbles 6% on central bank fears
By Charles Riley @CRrileyCNN June 12, 2013: 11:07 PM ET

Japanese stocks plummeted on Thursday, shedding as much as 6.7% in a move that pushed the index into bear territory.

http://money.cnn.com/2013/06/12/inve...pan/index.html

Uh, down 20% in the last three weeks. Japan has been burnt toast for twenty years, the chickens are just now coming home to roost after all the money they made selling plastic crap to us is finally all squandered and pillaged.

We are on the very same path, but hey, you seen what Kim Kardashian is wearing today?

[we-R-one]

Posted by gripreaper (here)
We are on the very same path, but hey, you seen what Kim Kardashian is wearing today?

No, but dang I heard that Kanye might have cheated on her while she was pregnant??? OMG!