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

[Bill Ryan]

-------

Do read -- or at least, get the gist! In my post #2 below I'll explain why this financial drama is important to watch very carefully, and how it may affect us all.

The Japanese Financial System Is Beginning To Spin Wildly Out Of Control
By Michael, on May 27th, 2013

http://theeconomiccollapseblog.com/archives/the-japanese-financial-system-is-beginning-to-spin-wildly-out-of-control

The financial system of the third largest economy on the planet is starting to come apart at the seams, and the ripple effects are going to be felt all over the globe. Nobody knew exactly when the Japanese financial system was going to begin to implode, but pretty much everyone knew that a day of reckoning for Japan was coming eventually. After all, the Japanese economy has been in a slump for over a decade, Japan has a debt to GDP ratio of well over 200 percent and they are spending about 50 percent of all tax revenue on debt service. In a desperate attempt to revitalize the economy and reduce the debt burden, the Bank of Japan decided a few months ago to start pumping massive amounts of money into the economy. At first, it seemed to be working. Economic activity perked up and the Japanese stock market went on a tremendous run. Unfortunately, there is also a very significant downside to pumping your economy full of money. Investors start demanding higher returns on their money and interest rates go up. But the Japanese government cannot afford higher interest rates. Without super low interest rates, Japanese government finances would totally collapse. In addition, higher interest rates in the private sector would make it much more difficult for the Japanese economy to expand. In essence, pretty much the last thing that Japan needs right now is significantly higher interest rates, but that is exactly what the policies of the Bank of Japan are going to produce.

There is a lot of fear in Japan right now. On Thursday, the Nikkei plunged 7.3 percent. That was the largest single day decline in more than two years. Then on Monday the index fell by another 3.2 percent.

And according to Business Insider (http://www.businessinsider.com/nikkei-futures-2013-5), things are not looking good for Tuesday at this point...





In post-close futures trading, the Nikkei has dropped by another couple hundred points (http://www.cmegroup.com/trading/equity-index/international-index/nikkei-225-dollar_quotes_globex.html), and has dropped below 14,000.


Are we witnessing the beginning of a colossal financial meltdown by the third largest economy on the planet? The Bank of Japan is starting to lose control, and if Japan goes down hard the crisis could spread to Europe and North America very rapidly. The following is from a recent article by Graham Summers (http://gainspainscapital.com/2013/05/23/could-japan-trigger-a-global-financial-meltdown/)...





As Japan has indicated, when bonds start to plunge, it’s not good for stocks. Today the Japanese Bond market fell and the Nikkei plunged 7%. The entire market down 7%… despite the Bank of Japan funneling $19 billion into it to hold things together.
This is what it looks like when a Central Bank begins to lose control. And what’s happening in Japan today will be coming to the US in the not so distant future.

If you think the Fed is not terrified of this, think again. The Fed has pumped over $1 trillion into foreign banks, hoping to stop the mess from getting to the US. As Japan is showing us, the Fed will fail.

Investors, take note… the financial system is sending us major warnings…

If you are not already preparing for a potential market collapse, now is the time to be doing so.


And all of this money printing is absolutely crushing the Japanese yen. Since the start of 2013, the yen has declined 16 percent (http://money.cnn.com/2013/05/27/investing/japan-stocks/) against the U.S. dollar, even though the U.S. dollar is also being rapidly debased. Just check out this chart of the yen vs. the U.S. dollar. It is absolutely stunning...

http://theeconomiccollapseblog.com/wp-content/uploads/2013/05/Japanese-Yen-425x255.png

[/URL]
The term "currency war" is something that you are going to hear a lot more over the next few years, and what you can see in the chart above is only the beginning.
What the Bank of Japan is doing right now is absolutely unprecedented. It has announced that it plans to inject the equivalent of approximately [URL="http://money.cnn.com/2013/05/27/investing/japan-stocks/"]$1.4 trillion (http://theeconomiccollapseblog.com/archives/the-japanese-financial-system-is-beginning-to-spin-wildly-out-of-control/japanese-yen) into the Japanese economy in less than two years.

As Kyle Bass (http://www.businessinsider.com/kyle-bass-you-have-to-be-sh-ing-me-2013-5) recently discussed, that dwarfs the quantitative easing (http://theeconomiccollapseblog.com/archives/tag/quantitative-easing) that the Federal Reserve has been doing...





"What they're doing represents 70% of what the Fed is doing here with an economy 1/3 the size of ours"


The big problem for Japan will come when government bond yields really start to rise. The yield on 10 year government bonds has been creeping up over the past few months, and if they hit the 1.0% mark that will set off some major red flags.

Because Japan has a debt to GDP ratio of more than 200 percent, the only way that it can avoid a total meltdown of government finances is to have super low interest rates. The video posted below (http://www.youtube.com/watch?feature=player_embedded&v=kpF7mkV4-EA) does a great job of elaborating on this point...


http://www.youtube.com/watch?v=kpF7mkV4-EA
It really is very simple. If interest rates rise substantially, Japan will be done.

Investor Kyle Bass (http://www.businessinsider.com/kyle-bass-you-have-to-be-sh-ing-me-2013-5) is one of those that have been warning about this for a long time...





There's a fatalism, he says, in everyone he talks to in Japan. Their thinking is changing, and the way they talk to him about debt is changing. They already spend 50% of tax revenue on debt service.

"If rates go up, it's game over."


The financial problems in Cyprus and Greece are just tiny blips compared to what a major financial crisis in Japan would potentially be like. The Japanese economy is larger than the economies of Germany and Italy combined. If the house of cards in Japan comes tumbling down, trillions of dollars of investments all over the globe are going to be affected.

And what is happening right now in Japan should serve as a sober warning to the United States. Like Japan, the money printing that the Federal Reserve (http://theeconomiccollapseblog.com/archives/category/federal-reserve) has been doing has caused economic activity to perk up a bit and it has sent the stock market on an unprecedented run.

Unfortunately, no bubble that the Federal Reserve has ever created has been able to last forever. At some point, we will pay a very great price for all of the debt that the U.S. government has been accumulating and all of the reckless money printing that the Fed has been engaged in.

So enjoy the calm before the storm while you still can.

It won't last for long.

[Bill Ryan]

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Here's why I started this thread. Since January, the insider 'guerilla' economist, known only as 'V', has been interviewed by Doug Hagmann (http://www.homelandsecurityus.com/) several times now -- and has stated from the outset that he knows for a fact (insider information) that Japan will be the trigger for the destruction of the global economy.

Listen to this. It's just 5 minutes long, from Hagmann's interview on 23 March. The plan is explained, and it could not be more clear.

http://projectavalon.net/'V'_-_The_Plan_-_Doug_Hagmann_23_March_2013.mp3 (http://projectavalon.net/%27V%27_-_The_Plan_-_Doug_Hagmann_23_March_2013.mp3)

[TargeT]

Lots more on this topic in this thread:
http://projectavalon.net/forum4/showthread.php?57349-World-financial-affairs-coming-to-a-head-...-potentially-within-weeks

Several financial situations are reaching an apex; I had often thought that world financial collapse was a desired event but when it didn't happen I figured perhaps I was incorrect, now it appears I was just impatient.

This will most likely be a slow motion train wreck for those that watch it, for those that don't it will come all of a sudden and they will be caught with their pants down (in many ways).

[white wizard]

Mutual Assured Economic Destruction is a real threat that was

established to prevent widespread war from breaking out, but never

thought Japan was a big player in that. If it is part of the chain and they

do fail the the rest of the chain falls apart too, that cannot be denied.

My only question is why do they wanna do it know? Either way though

this system based on debt needs to go, but I do worry how it may

impact peoples lives. Maybe this will be the wake up call we need to

build a new system, but only time will tell.

[Bill Ryan]

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There have been a number of financial analysts, as many reading this thread will know -- including mainstream ones -- who have stated clearly and on record in recent months that the situation is 100% irrecoverable and irreversible.

Lindsey Williams has claimed recently that he has been told there will be no melt-down for at least three months -- and that a date for the controlled demolition has not yet been decided. But it's possible that the house of cards may fall anyway.

In his most recent Doug Hagmann interview, this last Friday (24 May), 'V' advised Americans to leave the country if they can easily do so and already have a foothold (bank accounts, residency, etc) elsewhere. As many will know already, this is fundamentally why I am in Ecuador.

As early as January, when asked by Hagmann, 'V' explained that the crisis in America would be at best like the 1998 collapse of the Russian Ruble (http://en.wikipedia.org/wiki/1998_Russian_financial_crisis) (austerity and soup lines, but in general orderly and with medical and supply chains intact) -- and at worst, all out civil war following a total collapse of the infrastructure. There is absolutely no doubt that this is what the DHS is preparing for.

[Flash]

-------

Here's why I started this thread. Since January, the insider 'guerilla' economist, known only as 'V', has been interviewed by Doug Hagmann (http://www.homelandsecurityus.com/) several times now -- and has stated from the outset that he knows for a fact (insider information) that Japan will be the trigger for the destruction of the global economy.

Listen to this. It's just 5 minutes long, from Hagmann's interview on 23 March. The plan is explained, and it could not be more clear.

http://projectavalon.net/'V'_-_The_Plan_-_Doug_Hagmann_23_March_2013.mp3 (http://projectavalon.net/%27V%27_-_The_Plan_-_Doug_Hagmann_23_March_2013.mp3)

Many many thanks, absolutely full of sense. We should take our RRSPs/401 and live on it right now if it is going to disappear anyhow, which it will.

[Bill Ryan]

-------

Here's why I started this thread. Since January, the insider 'guerilla' economist, known only as 'V', has been interviewed by Doug Hagmann (http://www.homelandsecurityus.com/) several times now -- and has stated from the outset that he knows for a fact (insider information) that Japan will be the trigger for the destruction of the global economy.

Listen to this. It's just 5 minutes long, from Hagmann's interview on 23 March. The plan is explained, and it could not be more clear.

http://projectavalon.net/'V'_-_The_Plan_-_Doug_Hagmann_23_March_2013.mp3 (http://projectavalon.net/%27V%27_-_The_Plan_-_Doug_Hagmann_23_March_2013.mp3)

Many many thanks, absolutely full of sense. We should take our RRSPs/401 and live on it right now if it is going to disappear anyhow, which it will.

In his January interview (I think it was), 'V' was asked what the insiders are doing who already knew this was going to happen. He said they were investing in:


Metals
Resources and assets (like equipment and tools)
Farmable land.

[donk]

...in other words: real stuff

401(k) and 403(b) are lines of IRS tax code. I agree with flash that you should take advantage of knowing that fact before they take advantage of the fact that almost all people (including most of my colleagues in the industry) still believe it's some sort of "guaranteed retirement fund".

[Flash]

The four children of my parents (me included) just inherited a land not too far from the city. The 3 others wanted to sell while I wanted to keep (it is a farmland). We are finally keeping it because whatever happen, it will only take in value anyhow, being not too far from the city. Which also means however, not too far from bums either. Now we need the resources on it.

Gosh, I would love not to have to start farming at my age.

Edit: I may add that some of the clairvoyant I know here do not understand how come the economy has not collapse yet, it was to happen earlier. We have been given a chance to make up or prepare.

By the way, American have been buying land like crazy for a few years here in Canada and Quebec. Land, condos, everything they may put their hand on.

[Lazlo]

The irony is that the alt community has been focusing on earth changes, ascension, alien invasion, vaccinations, GMO's, yada yada yada...

The mainstream is all bent out of shape over gun control, gay marriage, and abortion rights...

And the real danger is greed and a bunch of arcane financial instruments that almost no one understands.

[schneider]

So what is going to happen to the real estate market? I am in a position now where I want to sell and move, at least out of the city, if not to another country. Real estate is a hard asset unlike cash, but won't interest rates start to climb in this financial mess causing real estate to go down?

[Lazlo]

So what is going to happen to the real estate market? I am in a position now where I want to sell and move, at least out of the city, if not to another country. Real estate is a hard asset unlike cash, but won't interest rates start to climb in this financial mess causing real estate to go down?

It can be expected that credit will dry up and it will be very hard for anyone to take out loans = very little buying and selling unless you have cash.

As of today, Case-Schiller is reporting gains in the housing market, but prices are still hovering around 2003 levels.

My $0.02 and not financial advice ;)

[RMorgan]

It really is very simple. If interest rates rise substantially, Japan will be done.

Hey Bill,

Well, the way I see it, the Japanese Central Bank is responsible for regulating interest rates, so I don´t believe they will allow them to rise.


Because Japan has a debt to GDP ratio of more than 200 percent, the only way that it can avoid a total meltdown of government finances is to have super low interest rates.

That´s exactly what the Japanese Government will do, in exchange for even more inflation.

However, at this point, it´s better to have more inflation while stimulating the economy with lower interest rates than try to control inflation while stagnating the economy with high interest rates.

If Japan artificially lowers its interest rates right now, it will give them nine to twelve months to fix this crisis. If they use this time wisely, they will be able to control the economic bubble caused by the lower interest rates, preventing the inflation from getting completely out of control.

So, in my opinion, Japan has at least another nine months to solve this problem.

Raf.

[Bill Ryan]

In his January interview (I think it was), 'V' was asked what the insiders are doing who already knew this was going to happen. He said they were investing in:



Metals
Resources and assets (like equipment and tools)
Farmable land.




...in other words: real stuff

Yep, real stuff. George Green has been saying this for several years. Buy


land (not in a city!)
appliances, equipment, hands-on resources, and tools
long-term storage food
spare parts
barter items.

Kerry and I were contacted in 2008 by a very interesting financial insider, never interviewed. He told us explicitly that within a handful of years all cash, bank accounts, and paper financial investments of any kind would go to near zero and be pretty much worthless.

The message here is to have stuff on hand which is NOT and can never be worthless, and which can help you through what Matt Stein (author of When Technology Fails) calls "The Long Emergency".

[christian]

It's all gonna come down, that's the only thing that's for sure. Many people will be surprised when it happens, and as with potential false flags, I appreciate this heads-up in regard to Japan.

But I wouldn't be surprised if the situation now in Japan would not be the crucial breach in the dam. It could happen anywhere at any time. It's so hard to predict when things are going to unravel in the financial system in what way exactly, because they always come up with new "schemes undreamed of," to quote Gerald Celente. The can has been kicked down the road since so long already...

However, if it comes down in Japan first, I think this could be very positive in a way. I mean, when I think back to how the Japanese reacted after Fukushima, how decently they were dealing with the situation and how little panic and chaos ensued, they could maybe lead by example when it comes to how to deal with a financial melt-down.

And then I think the next step is gonna be something along the lines of what had been written in an article that was published in The New American a week ago, called World Bank Insider Blows Whistle on Corruption, Federal Reserve (http://thenewamerican.com/economy/economics/item/15473-world-bank-insider-blows-whistle-on-corruption-federal-reserve).




“We’re going to have a cleaned-up financial system, that’s where it is going, but in the meantime, people who didn’t know how the system was gamed are going to find out,” she said. “We’re going to have a different kind of international financial system.... It’ll be a new kind of world where people know what’s going on — no more backroom deals; that’s not going to keep happening. We’re going to have a different kind of media if people don’t want to be dominated and controlled, which I don’t think they do.”

While Hudes sounded upbeat, she recognizes that the world is facing serious danger right now — there are even plans in place to impose martial law in the United States, she said. The next steps will be critical for humanity. As such, Hudes argues, it is crucial that the people of the world find out about the lawlessness, corruption, and thievery that are going on at the highest levels — and put a stop to it once and for all. The consequences of inaction would be disastrous.

[Chris Gilbert]

I'm curious how much of the money being printed in Japan is loaned out directly to banks as opposed to social services or infrastructure maintenance?

I know there would still be definite limits to the amount that can be created, but some of the arguments I've seen for printing interest-free currency and funneling it directly into needed areas (like repairing the damaged Fukushima reactors) have made me wonder.

[Fred Steeves]

Yep, real stuff. George Green has been saying this for several years. Buy


land (not in a city!)
CHECK


appliances, equipment, hands-on resources, and tools

CHECK


long-term storage food

CHECK


spare parts
CHECK


barter items.
AAAAAAAND CHECK...


Kerry and I were contacted in 2008 by a very interesting financial insider, never interviewed. He told us explicitly that within a handful of years all cash, bank accounts, and paper financial investments of any kind would go to near zero and be pretty much worthless

Not much cash reserve left now after buying a house on 9 acres of land (with water) out in the country, but oddly enough it's actually a sigh of relief. We made it...

The house and property flippers are back at it again btw, just like nothing ever happened and everything's o.k. now. http://nexusnow.info/forum/images/smilies/doh.gif It's like seeing kids playing in traffic, and all you can do is watch.

[donk]

The message here is to have stuff on hand which is NOT and can never be worthless, and which can help you through what Matt Stein (author of When Technology Fails) calls "The Long Emergency".

James Howard Kunstler also calls it the "long emergency" in his really good book called "The Long Emergency"....written in 2005, it still holds up (I think, been awhile). I used to love his blog, I like the way he writes...he got a little cranky for me a couple of years ago though... delving so deeply into this subject will do that to you..

[GlassSteagallfan]

Jim Rogers: U.S. Poised For Major Crash

May 27, 2013 • 8:34AM

Jim Rogers, an international fund manager who once was a partner of George Soros, told Money Morning that the U.S. is poised for another massive financial crash, and that the world financial system is now built on the biggest Ponzi Scheme in history. In an interview with Fox Business, cited by Money Morning, Rogers warned, "I don't trust the data from any government, including the U.S. We know that governments lie to us. Everybody's printing money, but it cannot go on. This is all artificial... We're living in a fool's paradise," concealed by the quantitative easing. "The Bank of Japan says it's going to print unlimited amounts of money... Then Mr. Bernanke said I'll match that... I'll print that money too. The Europeans are catching on. You've got money printing going on everywhere and that has never been good for anybody. It cannot go on." Rogers told Fox that he expects that the bottom will blow out of the situation right after the German elections in September.

http://larouchepac.com/node/26733

*******************************

As for the real estate market here in the US - a new bubble is being created. Real estate in cities etc. should sell well in the upcoming months, with zero down payment loans and other incentives being introduced into the system. This will spur economic activity for a time, but as we all know - bubbles pop eventually.

For those who are looking for land etc, but don't have much money, you should look into county tax sales.

[GlassSteagallfan]

-------

Here's why I started this thread. Since January, the insider 'guerilla' economist, known only as 'V', has been interviewed by Doug Hagmann (http://www.homelandsecurityus.com/) several times now -- and has stated from the outset that he knows for a fact (insider information) that Japan will be the trigger for the destruction of the global economy.

Listen to this. It's just 5 minutes long, from Hagmann's interview on 23 March. The plan is explained, and it could not be more clear.

http://projectavalon.net/'V'_-_The_Plan_-_Doug_Hagmann_23_March_2013.mp3 (http://projectavalon.net/%27V%27_-_The_Plan_-_Doug_Hagmann_23_March_2013.mp3)

All of the "V" audio archives:

Latest -
May 24, 2013: http://www.blogtalkradio.com/cfp-radio/2013/05/25/the-hagmann-hagmann-report.mp3

The remainder are posted in the following article "The culling of the economic unwashed is about to begin (http://www.homelandsecurityus.com/archives/8447#more-8447)"

[Earth Angel]

I have a lot of water stored, and 3 tins of beans......yep ......not quite where Fred Steeves is but Im getting there.;)
Its one of those things I keep planning on doing, and one day I will wake up as he says and find that the world has turned upside and my beans are not going to be enough......must get on that. I think a lot of us suffer from that syndrome , you know where it has never happened before so in some way we just can't believe it will ever happen.....even though I read the signs everywhere......must snap out of this denial.

[Ron Mauer Sr]

Yep, real stuff. George Green has been saying this for several years. Buy


land (not in a city!)CHECK


appliances, equipment, hands-on resources, and toolsCHECK


long-term storage foodCHECK


spare partsCHECK


barter items.AAAAAAAND CHECK...


Kerry and I were contacted in 2008 by a very interesting financial insider, never interviewed. He told us explicitly that within a handful of years all cash, bank accounts, and paper financial investments of any kind would go to near zero and be pretty much worthless

Not much cash reserve left now after buying a house on 9 acres of land (with water) out in the country, but oddly enough it's actually a sigh of relief. We made it...

The house and property flippers are back at it again btw, just like nothing ever happened and everything's o.k. now. http://nexusnow.info/forum/images/smilies/doh.gif It's like seeing kids playing in traffic, and all you can do is watch.

Good move Fred.

Don't forget the water filters, similar to Katadyn, Berkey and others. 3 days without clean water and you are in big trouble. For those with drilled wells, make one of these water tubes sometimes called bailer buckets (http://ronmauer.net/blog/?page_id=178). The water tube I made cost about $20. I prefer a swing check valve instead of a spring loaded foot valve.

Don't forget soap. Cannot afford to get sick.

A good stockpile of various seasonings can help avoid food fatigue.

And if you have food, a simple waterless sawdust toilet (http://ronmauer.net/blog/?page_id=216) is a worthy small home project.

[Fred Steeves]

I have a lot of water stored, and 3 tins of beans......yep ......not quite where Fred Steeves is but Im getting there.;)
Its one of those things I keep planning on doing, and one day I will wake up as he says and find that the world has turned upside and my beans are not going to be enough......must get on that. I think a lot of us suffer from that syndrome , you know where it has never happened before so in some way we just can't believe it will ever happen.....even though I read the signs everywhere......must snap out of this denial.

People like rmauersr here are the ones that are truly prepared, we just have the very basics checked off. We are (so far) clueless about gardening, fixing farm type equipment, hunting and dressing game (respectfully), canning, types of plants and trees, etc..

Funny thing is though Earth Angel, it's not all about being prepared, it's also about being closer and more in tune with nature as we are truly meant to be. I hiked the 4 corners of our wooded 9 acre property line Saturday with our youngest dog, explored around, planned, and studied the pond and such. When you can feel the elementals speaking to you when not even in a meditative state, you know you are where you're supposed to be.

That's what seems to be truly important above all in this time, being where we're supposed to be, and doing what we're supposed to be doing. The rest will take care of itself.

[Ron Mauer Sr]

I have a lot of water stored, and 3 tins of beans......yep ......not quite where Fred Steeves is but Im getting there.;)
Its one of those things I keep planning on doing, and one day I will wake up as he says and find that the world has turned upside and my beans are not going to be enough......must get on that. I think a lot of us suffer from that syndrome , you know where it has never happened before so in some way we just can't believe it will ever happen.....even though I read the signs everywhere......must snap out of this denial.

People like rmauersr here are the ones that are truly prepared, we just have the very basics checked off. We are (so far) clueless about gardening, fixing farm type equipment, hunting and dressing game (respectfully), canning, types of plants and trees, etc..

Funny thing is though Earth Angel, it's not all about being prepared, it's also about being closer and more in tune with nature as we are truly meant to be. I hiked the 4 corners of our wooded 9 acre property line Saturday with our youngest dog, explored around, planned, and studied the pond and such. When you can feel the elementals speaking to you when not even in a meditative state, you know you are where you're supposed to be.

That's what seems to be truly important above all in this time, being where we're supposed to be, and doing what we're supposed to be doing. The rest will take care of itself.

We all will go through some significant changes before things start another upswing. We need to adapt and stop spending energy to fix a dying horse.

Be flexible like a willow in the wind.

Learn how to live as a poor Mexican lives. They have skills most of us do not have. Look at how Cuba survived peak oil by watching the video The Power Of Community (http://www.communitysolution.org/poc.html), or watch on Youtube (http://www.youtube.com/watch?v=UUWces5TkCA). I expect life to be that way for a while.

I need to improve my Salsa dancing. :dance:

[Cognitive Dissident]

The preparedness posts are very interesting, but back to the OP - I have recommended this website before, but www.zerohedge.com has been all over the impending Japanese crisis for some time now.

In brief, it is a real and critical situation. The important point is that the Japanese government is NOT in control of the situation. They may control interest rates, in theory, but if the market turns against Japanese government bonds, then yields go to the moon, which means that they will have to pay sky high interest rates, in effect. That is an over-simplification but anyway.

Kyle Bass saw this coming a while ago, and stands to make huge profits when it all goes up. Unfortunately, a lot of the financial analysis you will read stands to gain or lose from certain outcomes. Still, I think that the analysis of Kyle Bass is basically correct.

It is also true that the Japanese collapse will have effects around the world. Quite what will happen is not clear. Bear in mind, the gold and silver prices are heavily manipulated. And you cannot just buy land overnight. So all the money, which wants to buy some real assets, will have great difficulty doing so, over any quick period of time. The artificial financial system has many ways of protecting itself, one of which is, make is very difficult to leave.

Having said that, I do have the feeling that the system is getting more and more out of control. What is happening in Japan is an example of that. It is OBVIOUS that the ultra aggressive monetary policies of the Japanese governments are entirely unsustainable. So why are they doing it? What do they know that we don't know, over a 6 to 12 month time-frame? That is the big question.

[Arpheus]

Lol i been flat out poor my whole life,whatever is coming down the pipe,i am pretty sure i can handle it,whats the point in feeding fear doom and gloom?I am certain that most everyday folk out there are riding the same boat as i am,i am glad there are some fortunate folk out there who can save and stock good for them!Well i cant never been able to and that isnt changing anytime soon,so i say let them come,not losing sleep over it thats for sure,hell the human race needs this to happen,how else will real change come other then this?I am just going to enjoy the show!!

[mosquito]

I have a lot of water stored, and 3 tins of beans.....

I hope you haven't forgotten the tin opener !!

[naste.de.lumina]

Yep, real stuff. George Green has been saying this for several years. Buy


land (not in a city!)
CHECK



appliances, equipment, hands-on resources, and tools

CHECK


long-term storage food

CHECK


spare parts
CHECK


barter items.
AAAAAAAND CHECK...


Kerry and I were contacted in 2008 by a very interesting financial insider, never interviewed. He told us explicitly that within a handful of years all cash, bank accounts, and paper financial investments of any kind would go to near zero and be pretty much worthless

Not much cash reserve left now after buying a house on 9 acres of land (with water) out in the country, but oddly enough it's actually a sigh of relief. We made it...

The house and property flippers are back at it again btw, just like nothing ever happened and everything's o.k. now. http://nexusnow.info/forum/images/smilies/doh.gif It's like seeing kids playing in traffic, and all you can do is watch.

Hey Fred.
How do I get there :plane: :noidea:? I can sleep in the barn, make ayahuasca tea, feijoada (http://www.maisbahia.com.br/vs-arquivos/HtmlEditor/image/feijoada(1).jpeg) and caipirinha (https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcT5p9-RYz2uIDc3KGkxvm7k28OmVjzPJmg8hJksEmu4Wy-rAoJH) :angel:. What do you think? hehehe :focus:

[Praxis]

Picture a person that has you buy the throat and is holding you against a wall. They tell you that they have a knife in their free hand with a dead serious look. You glance at their empty free hand and you call their bluff. Their eyes do not change and they continue to stare straight at you. They start to slowly move their free hand towards you. The intensity in their eyes tells you that they mean business. The intensity of the glare and the consistent slow motion of the hand start to unnerve you. You now start to believe that in the hand that you once thought was empty there might actually have something in it. The slow motion onslaught continues until you are in a panicked state. . .

Economics, is as Fulford puts it, a Rockefellar con job. Or more generally a cabal con job.
Yes. Japan financial markets can collapse and start the dominoes. What this represents to me is a choice that humanity has to make. Nothing changes when the derivatives markets crashes you know
You read that correctly. Nothing Changes. In reality, nothing will change when a non existant make belief thing we call a market crashes. The only thing that will change is our beliefs about how we must now interact with each other after our previous belief system has failed. All economics is a belief system. A cult of capitalism.

We can go to hell in a hand basket when this cult tries to make its long overdue exit with their menacing imaginary weapons, or we can change our beliefs and move forward with much less pain in the transition.

If we let the non existent fake market crashing into nothing destroy our civilizations, then we deserve it and the fallout that fallows.

[naste.de.lumina]

Picture a person that has you buy the throat and is holding you against a wall. They tell you that they have a knife in their free hand with a dead serious look. You glance at their empty free hand and you call their bluff. Their eyes do not change and they continue to stare straight at you. They start to slowly move their free hand towards you. The intensity in their eyes tells you that they mean business. The intensity of the glare and the consistent slow motion of the hand start to unnerve you. You now start to believe that in the hand that you once thought was empty there might actually have something in it. The slow motion onslaught continues until you are in a panicked state. . .

Economics, is as Fulford puts it, a Rockefellar con job. Or more generally a cabal con job.
Yes. Japan financial markets can collapse and start the dominoes. What this represents to me is a choice that humanity has to make. Nothing changes when the derivatives markets crashes you know
You read that correctly. Nothing Changes. In reality, nothing will change when a non existant make belief thing we call a market crashes. The only thing that will change is our beliefs about how we must now interact with each other after our previous belief system has failed. All economics is a belief system. A cult of capitalism.

We can go to hell in a hand basket when this cult tries to make its long overdue exit with their menacing imaginary weapons, or we can change our beliefs and move forward with much less pain in the transition.

If we let the non existent fake market crashing into nothing destroy our civilizations, then we deserve it and the fallout that fallows.

The big problem at this point is that most people do not know that the system is only a belief and therefore can and should be changed.
They believe that the financial system (paper money) was born along with Gaya. Then they will despair because they do not understand the world without it. And despair is not the best idea in a time like this.

[sigma6]

Interesting thread Bill, I am glad that someone is finally putting Japan on the map. I too think it is a critical player in the world economic picture. Whatever is going on is too big to call, the scale of the thing, the variables, the complexity. I still remember from reading Shogun. In one part Blackburn is told the Japanese are 6 faced and 3 hearted, that always struck me.

No one mentioned that most of Japan's debt is owned by the Japanese themselves, this makes their situation unique among other nations, who have debt owing mostly to foreign entities. It is possible the last record may be playing, in the game of musical chairs. It's possible the Japanese have finally freed themselves enough from US Hegemony (Rockefeller criminal syndicate influence) and are for the first time in decades, carrying out some kind of reactionary economic strategy, or maybe just doing it out of last minute desperation, with or without US blessing. If Benjamin's intel is true they just survived and managed a devastating financial, psychological and physical attack that took over 20,000 lives that devestated their energy infrastructure and already stressed balance sheet (thank you Mr Rockefeller scum bag). I don't think they are very happy if the evidence is in. Everyone has caught on to what the US is doing... i.e. buying tangibles with intangibles (thus the musical chairs scenario) Why should the US be the only ones allowed to do this?

Whatever they are doing, they are doing it intentionally, I don't believe what they are saying publicly (almost goes without saying) Expanding money supply has an advantage for the government, since they are the first to spend it into the market. It might be the only way for a free market government to get an upper hand on privately controlled interests (such as privately controlled Rockefeller corporations for example) But whatever the strategy is, or why is unknown to me at this time, I haven't been keeping up. I'm going to catch up on Benjamin's posts, update the Conspiracy blog, follow up all the links here and see what pans out...

I am not feeling the end of the world just yet... not that I'm optimistic. It just feels like something bigger than that. It does feel like there is a sense of immediacy but to what? this could be an attempt to flush certain elements out of their economy... but gotta stop, this is just too ripe for speculation, until I see more... keep the infos coming... thanks for heads up, but I have been waiting and reading on this for the last 10 years + And I can't deny I would love to be living in a South American clime right now (lol) ... something is up

update: it goes without saying it has a lot to do with the currency. The Yen holds a special place in the Foreign Exchange. It creates the Cross Pairs that enable traders to make comparisons and better see what is going on in other currencies, Watch the FX market closely. Nothing tells more than price action in real time. This could all be a global play orchestrated by more than one party (nation)

[jiminii]

Good move Fred.

Don't forget the water filters, similar to Katadyn, Berkey and others. 3 days without clean water and you are in big trouble. For those with drilled wells, make one of these water tubes sometimes called bailer buckets (http://ronmauer.net/blog/?page_id=178). The water tube I made cost about $20. I prefer a swing check valve instead of a spring loaded foot valve.

Don't forget soap. Cannot afford to get sick.

A good stockpile of various seasonings can help avoid food fatigue.

And if you have food, a simple waterless sawdust toilet (http://ronmauer.net/blog/?page_id=216) is a worthy small home project.

didn't you forget the karaoke system
jim

[EYES WIDE OPEN]

Please read this:

Google-Berg economic false flag?
http://www.globalresearch.ca/the-bilderberg-google-and-the-g8-new-global-tax-regime-already-in-the-works/5336719

I think it is important and could be linked with what is talked about in this thread.

I am wondering if this is going to be an economic false flag by google to impose a world tax and second if this links to the collapse of the worlds economy that will be started by Japan?
I am wondering if they are getting everything in place for a world tax so when the collapse does happen, this will be the "rescue" for us all.

Here is the article (original link above)


This year’s annual Bilderberg conference is rapidly approaching – where the world’s political and business elite meet in private to discuss their agenda which will determine future policies that govern global affairs.

Some aspects of this year’s Bilderberg agenda are gradually coming into view, and have the potential for directly affecting not only big multinationals like Google, but every business on the planet.

The secret gathering has been gradually forced into public view in recent years, and the run-up to Bilderberg 2013 has been one of great anticipation and not without its share of news. First came the false start from the alternative media regarding the meeting’s actual location, with many claiming it would be held again at the Westfield Marriot in Chantilly, Virginia.

Two months after, the announcement arrived that the meeting would take place 30 minutes north of London, at the Grove Hotel in Hertfordshire, England, and small media circus is expected the year following the announcement that a ‘Bilderberg Fringe’ festival is being organized adjacent to the venue – an event certain to attract hundreds, if not thousands of revelers, press and alternative media personalities. Add to this the news that long time Bilderberg sleuth and American Free Press correspondent, Jim Tucker had passed away on April 24th. Few people would even know the Bilderberg meetings ever took place if not for 30 years of digging and reporting by veteran journalist Tucker.


PHOTO: The Grove Hotel in Hertfordshire, North London – hosts to Google and Bilderberg summits.

Beyond all the fanfare, however, the central question still remains: what items will be on the agenda at this year’s ultra-secret transatlantic steering committee? The answer to this question may be hidden in plain site.

Google is currently engaged in a battle over unpaid taxes in the UK, and which has led political commentators to now call for a new system of global taxation. Not surprisingly, this has become the chief topic of discussion at a series of global summits taking place during May and June.

Here’s how this major issue rose out of the Google debate, and how it will be folded into Bilderberg’s 2013 agenda, and later to the G8 Summit shortly thereafter…

Google’s Big Tent: ‘A Digital-Davos’

This past week witnessed another major global conference held at the very same Grove Hotel in Hertfordshire. The parallels to Bilderberg are striking – they share the same guests, the same venue, observe similar codes on conduct, and no doubt have similar items on their agenda. Google’s ‘Zeitgeist’ Global Summit, or “Big Tent” event, is effectively the internet’s version of a ‘Digital Davos’, where ‘the best and the brightest’ are invited to hear the latest ‘big ideas’, with debates and keynote speeches from the likes of Bill Clinton (Bilderberg member), UK Chancellor George Osborne, UK Labour Party leader Ed Miliband and other celebrities including Stephen Hawking.

It’s worth pointing out here that both Osborne and Miliband have played the role of Google’s adversary in public during their corporation tax row, yet they are the corporation’s VIP guests in private.

Beyond the high profile talks and entertainment, there were of course, some serious discussion about ‘big ideas’ taking place under the big tent. This year’s event also required participants to observe ‘Chatham House Rules’, meaning key conversations should be held in the strictest of confidence and not be leaked to the outside world. As with Bilderberg, Google’s Big Tent discusses serious global changes that affect present and future generations – all behind closed doors.

Other persons of note at this year’s Google retreat were former US attorney general and Bush legal brain, Alberto Gonzales, alongside former Secretary of State Hillary ‘innovation’ adviser, Alec Ross, key Putin advisor Arkady Dvorkovich, and Swedish foreign affairs minister, Carl Bildt (Bilderberg attendee 2006-2012). The profile of Google and Bilderberg guests has seen an incredible overlap in recent years, which is a testament to the corporation’s own stated ambition to achieve a global dominion, not only over its marketplace, but over cultural and political life as well. The reality in 2013 is that Google is poised to manage nearly every aspect of our lives – our communications, our work, our social life and even our history.

Bilderberg’s Digital Tycoons

As Google’s global summit runs smoothly into Bilderberg this year, so have the two meeting agendas. Recent years have seen an increase in the influx of digital tycoons present at Bilderberg. Alongside software moguls like Craig Mundie, Head of Research and Strategy Officer at Microsoft (Bilderberg attendee 2006-2012), and Google CEO Eric Schmidt (Bilderberg attendee 2007-2011), the social media kingpins have also moved in to occupy key positions in Bilderberg’s top steering committees.

A key player in amongst them is Peter Thiel (left), head of Clarium Capital, the digital investment house that provided the financial clout which allowed for online ventures like Paypal, Facebook, LinkedIn and Friendster to dominate their digital marketplaces. Thiel was promoted to Bilderberg committee head in 20ll and has emerged as a key player not only in the online industries, but also as an influencer in US political spheres, gaining attention recently as a prominent backer of Kentucky’s Republican junior Senator Rand Paul.

New global ‘Google Tax’ already in the works

The convergence of the Google Summit, its tax battle, and Bilderberg 2013 may seem innocent enough on its surface, but the timing is no mere coincidence. UK leadership have whipped up a frenzy in the media over Google’s alleged tax sins, leaving the public clamouring for a solution. The words “never let a good crisis go to waste” certainly chime in well here.

Two weeks ago, a major UK clash erupted between No. 10 Downing Street and Google over the issue of corporate tax evasion. Google’s Matt Brittin was grilled by the UK’s Commons Public Accounts Committee (PAC) and its chair Margaret Hodge, who accused Google “doing evil” by using an elaborate array of offshore entities in a “smoke and mirrors” financial maze designed to avoid paying any significant tax into UK coffers. Both PM David Cameron and Chancellor George Osborne also came out loudly in public accusing Google of being ‘immoral’. Google is said to have only chipped in 6 million GBP in 2011 out of its 3 billion GBP turnover in that same year. Google’s Peter Baron claims its in full compliance with UK law, issuing the public statement last week that, “None of the allegations put to us change the fact that Google pays the corporate tax due on its UK activities and complies fully with UK law.”

Will Google throw in the towel and submit to a British tax resolution?

The fact of matter is Google is powerful and with a net worth that trumps some countries. These days much of the world’s commerce runs through Google in some way, and their brand recognition and money buys influence in Britain, and everywhere else it seems. So it’s doubtful that any British politico could strong-arm Google. Behind the scenes both Google and Britain’s political elite share a place at central planning’s top round table – as members of the Bilderberg Group and that’s where the really ‘big ideas’ are not just discussed, but actually transmitted into policy.

As the public feud between Google and Downing Street takes centre stage, backstage both UK Chancellor George Osborne and Google CEO Eric Schmidt – both committed fellow Bilderberg members, are said to have met in private at the Google event, and are poised to do so again at Bilderberg 2013. Both have attended the annual meeting almost continuously since 2006.


George Osborne: Attacks Google in public, but VIP guest and fellow Bilderberger to Google CEO Schmidt in private.

So this apparent Punch ‘n Judy match between Google and Downing Street appears just three weeks before this year’s Bilderberg summit, and four weeks before the G8, and suddenly the UK government and media outlets have become infested with a the new talking point: “we need for a new ‘global profit tax’.

While addressing the Google tax loophole, the UK’s Independent newspaper led by its liberal-leaning economics editor Ben Chu, goes on to essentially lay-out what is likely to be at the top of the agenda at Bilderberg 2013:

“The cascade of revelations in recent months showing multinational companies doing a huge amount of business here and yet paying virtually no corporation tax has provoked widespread public demands for something to be done.

National governments could and should try to put a stop to this egregious “profit shifting” on their own. But a unilateral approach is plainly second best.

The natural solution is to secure an agreement by all the world’s governments to tax the profits of multinational firms collectively and to divide up the revenues fairly between them. This division could be based on the amount of business done by the multinational in their various territories as revealed by their turnover and number of employees.”

Global tax means global government

So is Google supplying the Trojan horse needed to implement a global taxation system that many have been warning about for so many years? Maybe.

Will Bilderberg’s global elite use this perfect crisis moment as a pretext to build the framework for global taxation? Most likely.

If the idea passes through Bilderberg in June, will it then be rubber stamped later at the G8? Highly likely.

Although happy to float such a revolutionary idea in the media in advance of back-to-back Google and Bilderberg summits at the Grove Hotel, and later at the G8, one thing which global taxation advocates fail to mention here is that if you institute a global taxation system then you would then need a global government to administrate it. Yes, you heard that right: global taxation = global government.

It would be naive to think that any tax could be levied without a government standing behind it. That is, after all, part of the definition of a tax. Campaigners will deny it exists, but the reality is that global governing bodies have already been put into place long ago.

UK Column Editor Mike Robinson explains, “I think that the embryonic global institutions are already in place, and we’re going to see them being given more and more real ‘jobs’ to do as time goes on, and collecting corporation tax is clearly going to be one of those”.

History can certainly prove one thing: that the world’s wealthiest individuals corporations have consistently exploited all international tax loopholes for years now. Whatever commentators like Ben Chu and others are proposing will obviously be much easier to enforce on small to medium size businesses, as well as individual traders – all of whom have significantly less political leverage (and no invitations to Bilderberg) than the Googles and Facebooks of the world.

Post-Bilderberg: G8 Summit

Following the ratification of Bilderberg’s 2013 agenda in Watford on June 6–9th, the next step is normally to disseminate this same agenda on to the G8 heads of state. Conveniently, this year’s G8 summit will held June 17-18 at the Lough Erne golf resort in Fermanagh, Northern Ireland. David Cameron and George Osborne’s new plan for Google is already expected to be very high on the agenda at the G8 meeting, where world leaders including Barack Obama and Vladimir Putin will be in attendance. Henceforth, ahead of the G8, the UK government is expected to play their key role in promoting the new global tax system, by publically advocating, “new strong international standards to make sure that global companies pay the tax they owe.”

Coincidentally, this year’s G8 in Northern Ireland will be the biggest police operation in country’s history (and that’s saying a lot), with an estimated 8,000 officers from the surrounding counties, and from as far as England and Wales, all drafted in to secure the area for what many now believe has essentially become a global government operations meeting in all but name.

Other recent attempts at a global tax

The financial component of this global tax and government equation is actually already in place, and that is the World Bank. The first administrative working model for a global taxation structure was originally unveiled in 2009 at the United Nations Climate Summit in Copenhagen. Delegates at that event floated their plan for a global carbon tax that would be collected and then deposited into a slush fund which was to be administered by the World Bank. There plan also entailed the poorer, developing nations footing most of the bill for this operation, while the wealthier nations would receive a free pass. The secret plan was thwarted at the last minute thanks to the infamous Danish Text Leak, which were serialized in the Guardian newspaper at the time.

Although popular in socialist circles, few have dared reveal the true picture of a global tax regime for fear of triggering a public backlash. Another such tax proposals have been pushed into the public sphere through the Occupy Movement in 2011, with called for a global tax on financial transactions, or a global “Robin Hood Tax”. As was the case in Copenhagen two years earlier, proponents called for a tax structure without borders, yet few dared mention who would be in charge of administering and distributing the revenues. Such plans pose the very real danger of further centralizing power into the international banking community who would be asked to handle and perhaps hypothecate on these enormous slush funds.

Which brings us back to this latest global ‘google tax’ proposal, which ultimately begs the question: when will their global government structure be unveiled?

Serving the global collective

Plans for erecting an entirely new global tax system should worry anyone who values the concept of national sovereignty because any solution that entails the collection of tax by way of elite international “collective” of nations, and where “revenues are to divided up fairly between them” is suggesting a form of global collectivism, or communism. This is also the fundamental problem with EU plans to levy new taxes on member nations – for any citizen it’s simply another master to serve.

Shocking as that may be, these issues are exactly what is being discussed behind closed doors at each of these global summits taking place in May and June of 2013.

What’s worse, is that this entire construct could be ushered in without any vote being cast by an citizen in the individual countries – which is about as undemocratic as it gets. This remains one of the fundamental flaws at the heart of the ultra-liberal utopian ideal which is global government.

May I also point people to the main Bilderberg thread for more info: http://projectavalon.net/forum4/showthread.php?58108-Bilderberg-2013-in-London--June-6-9th&p=679792&highlight=bilderberg#post679792

[mgray]

Sorry, I have to call the OP fear porn, bordering on Ben Fulford-like hysteria sans the Black dragons.
While I agree Japan has moved front and center in the Central Bank Easing race, with the yen falling 40% in value over the last 6 months, it's not the death knell of the markets.
I admit I despise the markets today with the Central Bank manipulated levels. US stocks are 50% too high and bonds and PMs are way too low for the "growth" the economy is seeing.
I'm a professional at this, I write and edit market and economic stories for a living and while its easy to set out a crash scenario as Bill cites in the clip, its far too simplistic to happen that way.
When the Federal Reserve has 30-35% of the US Treasury issuance on its books, with the plan to run them off to maturity, there is little room for the crash.
The same could be said for European and Asian debt markets.
As I stated here over a year ago this global depression does not end well, but I do not believe it ends like Cyprus. That card was played and it did not work. I said 2013 would be a Jubilee Year in the biblical sense. A 50% haircut on all debt globally. Pushing the reset button in order for the system to reboot.
Not sure it works, but it is one of the options being considered, to reduce debt load and to free up capital to spur growth.

[parcival]

Well, I say, "Bring it on"!

Though, I think all this financial panic-talk ranks up there with Bill's CA earthquake prediction 14 months (or so) ago. Dow dropping 5000 points -- can't happen, won't happen.

Are you watching the markets nowadays? The Fed pumping in $4 billion/day -- this isn't going to stop. The markets are going to continue to explode higher & higher. Sure it's a scam, but this scam can go on for many, many years yet. All the economic/financial matters (as well as media, entertainment, wars, education, etc.) are staged. We won't collapse until the elites are ready for it...seems like about 5 more years (Rev 13:18 = 2013 to 2018?).

just my $.02

[ThePythonicCow]

I'm a professional at this, I write and edit market and economic stories for a living and while its easy to set out a crash scenario as Bill cites in the clip, its far too simplistic to happen that way.
When the Federal Reserve has 30-35% of the US Treasury issuance on its books, with the plan to run them off to maturity, there is little room for the crash.
The same could be said for European and Asian debt markets.
As I stated here over a year ago this global depression does not end well, but I do not believe it ends like Cyprus. That card was played and it did not work. I said 2013 would be a Jubilee Year in the biblical sense. A 50% haircut on all debt globally. Pushing the reset button in order for the system to reboot.
My guess (I'm not a professional) is that there is a crash, but not quite yet.

I'm figuring that the derivative market has been setup, like the explosives in a controlled demolition, to take down select portions of the current global monetary/financial system.

I don't see our current predicament as just a cycle in the waxing and waning of global debt, but rather as an engineered transition from the current world monetary system based on a hundred plus quasi-independent national central banks and the US Petro-Dollar as the dominant world's reserve and trade settlement currency, to a more obviously centrally controlled system using some new reserve basis that appears to be based on "baskets" of commodities and gold.

Like most controlled demolitions, there is a long, boring period of preparation, removing the light construction materials and other easily detached stuff and setting in place the wiring and explosives, which is followed by a short and noisy period as the explosives detonate, and is then followed by a second long boring period of cleanup and rebuilding.

At some point, I do expect that some combination of debt and derivative failure will cause the financial/monetary collapse of major banks, Japan, Europe and then the US.

My guess is that they aren't ready to set off the financial explosives ... not quite yet. What we're seeing here is the wiring of Japan as part of the fireworks, when they happen.

But I'm no professional, and I'm covering all my bets. I not only could be wrong, I probably am wrong, based on my past record.

[Prodigal Son]

There are some excellent dandelion recipes (http://frugalliving.about.com/od/eatforfree/tp/Dandelion_Recipes.htm) out there... delicious! And my lawn is full of them :)

[mgray]

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.
Yes Prodigal there is a bumper crop of dandelions on Long Island this year. But thankfully no cicadas.

[Zelig]

You worded this very eloquently and put it into a more easily comprehensible context. Thank you.



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

I'm figuring that the derivative market has been setup, like the explosives in a controlled demolition, to take down select portions of the current global monetary/financial system.

I don't see our current predicament as just a cycle in the waxing and waning of global debt, but rather as an engineered transition from the current world monetary system based on a hundred plus quasi-independent national central banks and the US Petro-Dollar as the dominant world's reserve and trade settlement currency, to a more obviously centrally controlled system using some new reserve basis that appears to be based on "baskets" of commodities and gold.

Like most controlled demolitions, there is a long, boring period of preparation, removing the light construction materials and other easily detached stuff and setting in place the wiring and explosives, which is followed by a short and noisy period as the explosives detonate, and is then followed by a second long boring period of cleanup.

At some point, I do expect that some combination of debt and derivative failure will cause the financial/monetary collapse of major banks, Japan, Europe and then the US.

My guess is that they aren't ready to set off the financial explosives ... not quite yet. What we're seeing here is the wiring of Japan as part of the fireworks, when they happen.

But I'm no professional, and I'm covering all my bets. I not only could be wrong, I probably am wrong, based on my past record.

[ThePythonicCow]

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.
Assuming you can net out the losses assumes that there is not significant counter party risk, and that all major players are honestly "playing the game" by the "rules".

If a few of the big players intended to use the derivative market to initiate a controlled demolition of the current monetary/financial system, they could. Ask Lehman Brothers or Bear Stearns what happens when JP Morgan and/or Goldman Sachs decides your time is up.

I presume that a few such big players so intend.

[Prodigal Son]

But thankfully no cicadas.
Yep...its so nice and peaceful without them. Besides, I think I would have to starve before I could eat one of those :)

I do feel sorry for the Cicada Killers (http://en.wikipedia.org/wiki/Sphecius_speciosus) though... I just love those guys with their war paint

[ThePythonicCow]

I have not read it yet, but I suspect that Antifragile: Things That Gain from Disorder (http://amzn.com/1400067820) by Nassim Nicholas Taleb also speaks to the issue of how the global derivatives markets effects the robustness/fragility of the world's financial/monetary system. I'll wager that Taleb (a former derivatives trader) concludes that these derivatives increase the risk of a major failure.

[donk]

But I'm no professional, and I'm covering all my bets. I not only could be wrong, I probably am wrong, based on my past record.

I know how you feel. You can make reasonable conclusions based on available evidence, and instead of what can logically happen--a loop is introduced, a rule is changed, scandals, "rogue traders", it's almost comical. I've learned to just sit back and take it all in....it's interesting to say the least.

Remember fat fingers? The Dow dropping 150 on fake tweets (last month)? Gotta laugh to keep from crying...you can't make this **** up (no one would believe you). Anyone that still believes there's some kind of science or even logic and reason to markets consider this:

Stock market "circuit breaker" (http://www.bloomberg.com/news/2013-04-02/nyse-plans-to-end-lrp-curbs-before-new-circuit-breakers-enacted.html)

I gave up studying and researching deeply when my company was one of the first ones that ever trading was stopped for under these "rules", which happened several more times before we got eaten by a bigger bank. Read that article and say "free market" with a straight face. And don't feel bad not being able to figure out what part of this fantasy "they" will be bringing to our reality next.

God bless us, everyone....

[mgray]

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.
Assuming you can net out the losses assumes that there is not significant counter party risk, and that all major players are honestly "playing the game" by the "rules".

If a few of the big players intended to use the derivative market to initiate a controlled demolition of the current monetary/financial system, they could. Ask Lehman Brothers or Bear Stearns what happens when JP Morgan and/or Goldman Sachs decides your time is up.

I presume that a few such big players so intend.
The failure of Bear and Lehman had nothing to do with derivative exposure and everything to do with liquidity being denied. A very big difference.
Liquidity is mother's milk on Wall Street and that's why the Fed is injecting $4B a day into the market. There is no one else able to provide the needed grease to oil the wheels.
I do not want to defend this action, but when people lump ten different market drivers into one pile and say TPTB are setting up the market for collapse, its just not how the markets operate, but does makes for great fear porn.

[giovonni]

don't know if its been posted yet ... but will share it here ...

Feds raid Liberty Reserve and indict founders on money laundering charges… is Bitcoin next ?

If there’s one thing monopolists hate, it’s competition. That’s probably why the U.S. government shut down Liberty Reserve yesterday, charging seven men with laundering $6 billion for over one million clients. Calling Liberty Reserve a “bank of choice for criminals,” the feds won’t be satisfied until they destroy every currency that competes with the U.S. dollar...

read more - http://www.infowars.com/feds-raid-liberty-reserve-and-indict-founders-on-money-laundering-charges-is-bitcoin-next/

[bruno dante]

The interest rate is still below 1%, isn't it?;)

Like everyone else here, I'm very concerned. Not panicking yet, though.

[donk]

Bruno...I wish 1% of the people understood the implications of that. Or if 1% of the finance industry were incapable of the denial required to be OK with it.

[bruno dante]

Ha! Me too Donk! This is the way I see it...

The long term interest rates are still less than 1%. To me, anyway, the combination of slightly rising interest rates and rising stock prices are cause for optimism, not worries about Japan's solvency.

I know there was a small sell off of Japanese stocks last week, but stocks are still up from last year.

I won't pretend to know the details of abenomics, but at least the Japanese are doing *something*...which is more than I can say for the western economic defeatism that is so prevalent at the moment.

[donk]

Defeatism if you mean people are starting lose faith in the faith-based system we've come to depend on for....everything. Life?

Japan seems to be more reality-based at the moment, but I don't have much faith this whole thing (on a global scale) is completely engineered and intertwined.

All I know is that reading zero-hedge for a week will give you infinitely more actual information than I received in my 4.5 years of "study" in University...

[ThePythonicCow]

The failure of Bear and Lehman had nothing to do with derivative exposure and everything to do with liquidity being denied. A very big difference.
I did not intend to imply that derivatives were the cause of the demise of Bear and Lehman.

I meant that when some sufficiently larger entity decides it is time for you to go, you go, and the failure of a counter party to honor a derivative could be one of the "financial weapons of mass destruction" that takes you down ("you" being some big financial institution with critical exposure to derivatives.)

Derivatives are part of the liquidity structure of the current major players - if forex or bond rates shift substantially, they are counting on derivatives as "insurance" to keep their overall financial position viable.

If forex or bond rates shift, and the wrong derivatives fall through at the wrong time ... oopsie!

[KiwiElf]

Interesting stuff... Fulford has also stated this. Many years ago, someone once said, if either Japan or Germany's economy crashed, then the whole global financial system will go with it.

[Kimberley]

The interest rate is still below 1%, isn't it?;)

Like everyone else here, I'm very concerned. Not panicking yet, though.

My Savings and checking account interest is .02 % and I have a money market account at the same interest rate... nothing is the rate... I remember when I was a kid with my first savings account in the early 70's to have about 6% interest rate...I made a few dollars every month.

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...!!!

[gripreaper]

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. :p

[PurpleLama]

kim, start collecting tools and heirloom seeds.

[gripreaper]

How the global Fed Keynesian fiat debt system works is highlighted here in this post:

http://projectavalon.net/forum4/showthread.php?59471-Why-the-whole-banking-system-is-a-scam&p=679745#post679745

So, in order for this system to sustain itself, it requires new debt to enter commerce exponentially, and the velocity of it's movement to maintain a certain quickening trajectory, to avoid implosion. Ask anyone who experienced Weimar at the beginning of the last century, or anyone who lived through the 30's in the USA.

There is rapid expansion of the money supply as debt, or there is contraction. Right now, we have contraction. The bonds issued, and the new fed debt IS NOT entering commerce, but is going into the Wall Street crooks hands to take down to the derivatives casino and piss it away and create more leverage, and to backstop this toxic crap so that the market does not move more than 2%. (think MF Global). When the spigot is turned off (and it is and will) the five top mega super rich globalist banks will call in their loans and reset the global system, taking everyone and everything that is in paper with it in it's wake.

The only alternative, is to tell these elite to stick it where the sun don't shine and default on the debt, create your own currency, and go back to work. 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.

Why is North Korea, Venezuela, Iran and a few other countries under such attack from the globalist military industrial complex? Why was Libya taken out? Because they wont bow to the globalist banksters and play their game their way. That's the way out.

There is no debt, no one owes anything to these globalist elite banksters, and it's time we tell them to go to hell, and just ship them off planet and take back our sovereignty. Those who want to remain slaves can go with them.


http://www.youtube.com/watch?v=SHhrZgojY1Q

The change it HAD to come, we knew it all along. Meet the NEW boss, same as the old boss.... I hope we don't get fooled again!

[edit to add] Good on ya Fred, walkin the walk, not just talkin the talk. I always knew I liked you and can't wait to sit around the campfire one day and tip a cold one with you and talk about how we want the new future to look.

[T Smith]

I'm a professional at this, I write and edit market and economic stories for a living and while its easy to set out a crash scenario as Bill cites in the clip, its far too simplistic to happen that way.
When the Federal Reserve has 30-35% of the US Treasury issuance on its books, with the plan to run them off to maturity, there is little room for the crash.
The same could be said for European and Asian debt markets.
As I stated here over a year ago this global depression does not end well, but I do not believe it ends like Cyprus. That card was played and it did not work. I said 2013 would be a Jubilee Year in the biblical sense. A 50% haircut on all debt globally. Pushing the reset button in order for the system to reboot.
My guess (I'm not a professional) is that there is a crash, but not quite yet.

I'm figuring that the derivative market has been setup, like the explosives in a controlled demolition, to take down select portions of the current global monetary/financial system.

I don't see our current predicament as just a cycle in the waxing and waning of global debt, but rather as an engineered transition from the current world monetary system based on a hundred plus quasi-independent national central banks and the US Petro-Dollar as the dominant world's reserve and trade settlement currency, to a more obviously centrally controlled system using some new reserve basis that appears to be based on "baskets" of commodities and gold.

Like most controlled demolitions, there is a long, boring period of preparation, removing the light construction materials and other easily detached stuff and setting in place the wiring and explosives, which is followed by a short and noisy period as the explosives detonate, and is then followed by a second long boring period of cleanup and rebuilding.

At some point, I do expect that some combination of debt and derivative failure will cause the financial/monetary collapse of major banks, Japan, Europe and then the US.

My guess is that they aren't ready to set off the financial explosives ... not quite yet. What we're seeing here is the wiring of Japan as part of the fireworks, when they happen.

But I'm no professional, and I'm covering all my bets. I not only could be wrong, I probably am wrong, based on my past record.

Your assessment is "professional" enough for me. I for one concur and think the odds are much better that you're right given the broader scope of all the facts and all the data points.

BTW, as a side rant: what does being a "professional" have to do with anything anyway? More often than not, this only means somebody has been duped to pay somebody else for some derivative of snake oil. If you're wrong, on the other hand, for laying out an insightful and much more accurate assessment of the broader picture, you're merely erring for free. I'll go with the ladder, thank you.

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... Here is a slight sample:

July 2005

INTERVIEWER: "Ben, there's been a lot of talk about a housing bubble, particularly, you know [inaudible] from all sorts of places. Can you give us your view as to whether or not there is a housing bubble out there?"

BERNANKE: "Well, unquestionably, housing prices are up quite a bit; I think it's important to note that fundamentals are also very strong. We've got a growing economy, jobs, incomes. We've got very low mortgage rates. We've got demographics supporting housing growth. We've got restricted supply in some places. So it's certainly understandable that prices would go up some. I don't know whether prices are exactly where they should be, but I think it's fair to say that much of what's happened is supported by the strength of the economy."

July 2005

INTERVIEWER: "Tell me, what is the worst-case scenario? Sir, we have so many economists coming on our air and saying, "Oh, this is a bubble, and it's going to burst, and this is going to be a real issue for the economy." Some say it could even cause a recession at some point. What is the worst-case scenario, if in fact we were to see prices come down substantially across the country?"

BERNANKE: "Well, I guess I don't buy your premise. [a recession is] a pretty unlikely possibility. We've never had a decline in house prices on a nationwide basis. So what I think is more likely is that house prices will slow, maybe stabilize: might slow consumption spending a bit. I don't think it's going to drive the economy too far from its full employment path, though."

November 2005

BERNANKE: "With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly."

Feb 2006

BERNANKE: "Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise."

October 2006

BERNANKE: "..the typical U.S. worker will be considerably more productive several decades from now. Thus, one might argue that letting future generations bear the burden of population aging is appropriate, as they will likely be richer than we are even taking that burden into account."

February 2007

BERNANKE: "We expect moderate growth going forward...[and] there's a reasonable possibility that we'll see some strengthening in the economy sometime during the middle of the new year. Our assessment is that there's not much indication at this point that subprime mortgage issues have spread into the broader mortgage market, which still seems to be healthy. And the lending side of that still seems to be healthy."

"Despite the ongoing adjustments in the housing sector, overall economic prospects for households remain good. Household finances appear generally solid, and delinquency rates on most types of consumer loans and residential mortgages remain low."

March 2007

BERNANKE: "...the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency."

May 17, 2007

BERNANKE: "...we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system. The vast majority of mortgages, including even subprime mortgages, continue to perform well. Past gains in house prices have left most homeowners with significant amounts of home equity, and growth in jobs and incomes should help keep the financial obligations of most households manageable."

July 2007

BERNANKE: "Overall, the U.S. economy seems likely to expand at a moderate pace over the second half of 2007, with growth then strengthening a bit in 2008 to a rate close to the economy's underlying trend."

Jan. 10, 2008

BERNANKE: "The Federal Reserve is not currently forecasting a recession."

Jan. 18, 2008

(Two months before Fannie Mae and Freddie Mac collapsed and were nationalized) BERNANKE: "They will make it through the storm."

June 3, 2009

(When asked directly during a congressional hearing if the Federal Reserve would monetize U.S. government debt) BERNANKE: "The Federal Reserve will not monetize the debt."

June 9, 2008

BERNANKE: "The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so."

July 20, 2008

(Six weeks prior to the FHFA in concert with the Department of the Treasury putting GSEs into conservatorship, citing concerns about their financial conditions, their ability to raise capital, to continue funding themselves, and thus entering into an agreement to provide the GSEs with cash sufficient to eliminate what deficits they might incur in exchange for ownership of the GSEs senior preferred stock): BERNANKE: "The GSEs are adequately capitalized. They are in no danger of failing."

Aug. 2, 2010

BERNANKE: "The financial crisis appears to be mostly behind us, and the economy seems to have stabilized and is expanding again."

And finally:

Dec. 5, 2010

BERNANKE: "I wish I'd been omniscient and seen the crisis coming."

[Flash]

I was listening (while talking with my daughter, not one ear listening) at the money program on TV (this happens once i a blue moon), and they were mentioning the risky situation in Japan, the interventions of the Japanese government and the domino effect if Japan fails. So, it is on TV, it must be true. (lol)

This means that all the ones in the know have already taken their precautions. And there is nothing left for us.

[T Smith]

Remember fat fingers? The Dow dropping 150 on fake tweets (last month)? Gotta laugh to keep from crying...you can't make this **** up (no one would believe you). Anyone that still believes there's some kind of science or even logic and reason to markets consider this:

Stock market "circuit breaker" (http://www.bloomberg.com/news/2013-04-02/nyse-plans-to-end-lrp-curbs-before-new-circuit-breakers-enacted.html)

I gave up studying and researching deeply when my company was one of the first ones that ever trading was stopped for under these "rules", which happened several more times before we got eaten by a bigger bank. Read that article and say "free market" with a straight face. And don't feel bad not being able to figure out what part of this fantasy "they" will be bringing to our reality next.

God bless us, everyone....

This sort of thing is just one of the data points that shouldn't be discounted. Naked shorts, market manipulation, fraud, banking cartels, outright broad conspiracy, etc., all function like "dark matter" in the world of the mainstream analysis of these things. A hidden influence somehow accounts for at least half of the matter in the known universe and influences all the laws of physics as we know them, and yet conventional physics fails to acknowledge it.

[donk]

Dark matter is a great analogy! Naked shorting is more like a black hole...I went to find an old article I liked but ce across this:

http://www.deepcapture.com/the-global-bust-out-series-chapter-2-the-money-weapon-and-the-jihad-bigger-than-bin-laden/

[mgray]

BTW, as a side rant: what does being a "professional" have to do with anything anyway? More often than not, this only means somebody has been duped to pay somebody else for some derivative of snake oil. If you're wrong, on the other hand, for laying out an insightful and much more accurate assessment of the broader picture, you're merely erring for free. I'll go with the ladder, thank you.


As a business editor for a major New York newspaper I have been beating up Bernanke since he decided not to rescue Lehman. That move alone has caused much of the pain we are still feeling today.
5 years after the fact they are still unwinding Lehman, that's how integrated the firm was in the markets.
Anyway my definition of professional is I have a bigger megaphone and can get these people on the phone to question policies and direction.
I have questioned each "green shoots" statements and QE move.
And most importantly I get paid to write and edit these stories, so I guess that's why I used the slightly inappropriate term of professional. I humbly apologize for that if it came off badly.

[Prodigal Son]

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]

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]

. 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]

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. :p

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]

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/interview-668-james-corbett-on-the-power-hour/

[ponda]

From zeorhedge.com

http://www.zerohedge.com/news/2013-05-29/what-happens-after-70-stock-market-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.


http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/05/20130529_NKY.jpg

[Dennis Leahy]

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]

..... 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 :p

[ThePythonicCow]

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) (http://www.zerohedge.com/news/2013-05-30/are-bond-yields-set-soar-not-so-fast):

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




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.

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/06/20130519_kessler1_0.jpg

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]

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..
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/investing/nikkei-japan/index.html

[gripreaper]

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/investing/nikkei-japan/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]

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!

[conk]

Japanese stocks plunged over 6 percent to bear market territory and Asian shares slid to nine-month lows on Thursday, as investors rushed for the exits as the prospect of reduced stimulus from central banks roiled markets.

The dollar crumbled and the yen soared as the slide in Japanese shares forced a clean-out of long-dollar positions, while uncertainty on whether the Federal Reserve would scale back its massive stimulus also undermined the U.S. currency.

The gloomy mood looks set to put European stock markets on the skids, with financial spreadbetters predicting London's FTSE 100, Paris's CAC-40 and Frankfurt's DAX will open down as much as 1.2 percent. A 0.6 percent drop in U.S. stock futures also pointed to weak Wall Street start.


Read more: http://www.foxbusiness.com/markets/2013/06/13/japan-stocks-plunge-into-bear-market-territory/#ixzz2W6wRvseg

[sygh]

I have not read it yet, but I suspect that Antifragile: Things That Gain from Disorder (http://amzn.com/1400067820) by Nassim Nicholas Taleb also speaks to the issue of how the global derivatives markets effects the robustness/fragility of the world's financial/monetary system. I'll wager that Taleb (a former derivatives trader) concludes that these derivatives increase the risk of a major failure.

Add the trading market in goods as they are marked "just in time" to the mix and it becomes a game of musical chairs. Knowing this is one thing, being in a position to do something about it is another. I'm happy Keshe put energy generation information out to the public.

[sygh]

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.

One of the reasons Iceland could afford to do that is because about 50% - 60% of the energy they use comes from geothermal.

[Flash]

Sygh, this means free energy could save us hey?

Irrelevant what the banks do if we have free energy, thermal or other. Interesting. There lays real freedom.

[sygh]

Sygh, this means free energy could save us hey?

Irrelevant what the banks do if we have free energy, thermal or other. Interesting. There lays real freedom.

Iceland's thermal energy doesn't supply all their needs but they are an island with a population of 320,000 - geothermal didn't hurt. Iceland gets 82% of its primary energy from renewable resources (62% geothermal, 20% hydropower). The capital city of Reykjavík used to be one of the dirtiest cities in the world, due to burning peat, coal and later, being almost totally dependent on oil. They started pulling their ****e together in the 70's. Since then, they've been busy exporting geothermal, where feasible. You definitely take your chances living near a volcano but the thermal is rife.

in 2008, Iceland's third-largest bank, Glitnir was busy helping to finance the world's biggest geothermal district heating project in the city of Xianyang, China. Not all things are equal but we can actually say yeah, geothermal was the freedom card that allowed Iceland to thumb it's nose.

Keshe's plasma generator is the tip of the iceberg. Its not free energy it's cheap. I've harped on it but honestly, I have reason to believe it is what we've been hoping for. There are other discoveries in health, food, water, transportation.

[sigma6]

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.

One of the reasons Iceland could afford to do that is because about 50% - 60% of the energy they use comes from geothermal.

Now that's a whole different wild card, glad someone has thrown that into the deck. Yeah, whatever happened to our discussion on Keshe? And if you consider our 'little forum' as a reflection of the larger macrocosm, you might say "because there are 'forces' causing us not to..." in the simplest explanation.

- or could it be distractions, on top of a host of other very possible factors, I know haven't kept up on his site (thanks for the reminder). This is a perfect example of what I call "MEDIA VACUUM" The MSM simply sucks all the air from around things they can not dispute or don't dare negate with too much propaganda. It seems to be endlessly tied up in a myriad of red tape. Nothing seems to be moving forward. And it has no real media presence. I wish he would push it farther.

But if the Bankster families came in and "suicided" him, or his offices suddenly went up in smoke, we all know the whole world in its egocentric self drama could barely give two craps. (or would it?) Thank God he has at least left a huge paper trail of research and information around the world. But sending it to every government on the planet and no one has made a peep. Not to confirm his delivery or to refute him as a hoaxer ????????????????

So once again we go full circle. Good point Syghe on Iceland's energy efficiency, as a possible cause of the overall general political boldness and savvy. It shows perfectly well, that telling banks you don't need them as your Nanny (trustee) doesn't mean the world comes to an end.

The two biggest misperceptions the entire world makes is that Government and banks are sources of wealth. People always talk about government programs and banks financing blah blah. In its final analysis, they NEITHER create wealth nor produce anything. They are both parasitical

or symbiotic at best

It is the People's Labour that builds cars, boats, houses, roads, farms foods, etc. Banks manage OPM. Whiich goes back to the people. If I told you to go cut down a tree and split firewood and then told Johnny to plants seeds in a garden. And I promised both of you "money" in your bank account (CREDIT) I didn't produce the firewood, OR the food. I simply handed out pieces of paper. You trusted me to manage the process for EVERYONE's BENEFIT.

The People are the real CREDITORS. The banks and the governments via their management of OPM and OPL (other people's labour) Have made us sign contracts to either pass POA (power of attorney) over to them. There are hidden trust relationships. With Banks you are depositing or deposing, the funds, the opposite of a trust relationship (in that particular part of the relationship). They can do whatever they want with those funds once you pass them over the counter. And you are also exchanging your hard earned MONEY of EXCHANGE for DIGITAL CREDIT. Also known as MONEY of ACCOUNT. Bring in an ounce of gold, with no qualifications to ANY BANK , and you will receive "equal value" (in an accounting sense) to be deposited into your account as CREDIT. Voila the Gold is GONE! VANISHED! like MAGIC!

The Banks still hold a trust position, but the relationship is far more sophisticated. The point is money is specifically "deposited" not held in trust. They still have trust obligations on other things, like maintaining what they promise etc. They have your signature held in trust. Along with their license to monetize it. THAT IS WHERE THEIR MONEY COMES FROM. That is their hidden secret. The Icelanders rightfully called out their malevolent Trustees and found them in breach.

Thanks for bringing both these issues to the table...

1) WHAT THE ICELANDERS DID. I would love to see someone analyze that from a purely trust interpretation. Thus why is was critical they had to charge them with breach and misconduct (and rightfully so)

2) Free energy, could that be the end game of all this? World enslavement (and control) IN EXCHANGE for "free energy"? I do believe in their twisted logic, just like all twisted people, Governments have to believe they are operating (after pay checks, perks, graft, double dipping, over taxing, etc) that they are operating for the "Benefit of the Public" (note the word "benefit" which automatically makes reference to some form of TRUST RELATIONSHIP right there...

3) The ONLY WAY WE ARE EVER GOING to take control, is to understand TRUST LAW. I think countries that have more homogeneous populations, everything else being equal, operate more efficiently when it comes to the "benefit of the people" I think the Japanese are trying to flush out as much Rockefeller cancer from their economy as possible.

Another thing no one has mentioned is the principle of the 70 year economic cycles that Harry S Dent Jr. and anyone who wants to measure would be able to detect. No one has ever given a solid explanation of why that even exists, except Winston Shrout. That it is a period of Bankruptcy that an economy goes through and according to him the US has gone through 3 70 year periods of bankruptcy, and is literally free and clear (according to this biblically originated number and principle) and I think it is possible that Japan may have gone into it (1945) and is now coming out of it (2015)

It does explain why every country that lost the WAR comes out an economic powerhouse (it's a forced manipulation of credit, under the terms of full surrender), the US has literally been using other countries, first Germany, and then Japan in '45 as economic test labs. (and the cat is out of the bag)

Hope this doesn't go too far off, but I think ALL these things play HEAVILY into the Japanese equation. Remember when peeps of electromagnetic and water fuel vehicles were coming out of Japan, Australia and New Zealand (all hit with flooding, tsunamis)

The picture is bigger then we can comprehend. I imagine they are fighting block by block in the Streets of Japan, or should I say bank by bank as we speak... And thanks also to mgrey, I would like to hear more detailed analysis of your interpretation on the Bond Market and other MSM interpretations of the Markets.

How to factor the emerging economics resulting from the global currency war, against Japans possible departure from Bankruptcy in 2015, their righteous resentment of 3/11, and forced dependence on oil, which I find particularly sadistic of the Rockefellers. The experiment is over, Japan has been pushed to it's limit. They have no raw material resources whatsoever, and yet they are the world's third largest economy. They have the world's highest rate of suicide. They have and are paying the price every day if any culture is.

Along with the world waking up to the geopolitics of US hegemony (while being the biggest debtor nation on the planet) Against the backdrop of FREE ENERGY technology bursting out of the woodwork in thousands of laboratories and basements across the planet.

And as usual we come up short in the most important dept - Our spiritual and philosophical maturity to properly take control of the existing Trust relationships controlling these things in the first place. It is the Rockefellers and the Rothschilds that know and understand how to OWN NOTHING and CONTROL EVERYTHING.

TRUST Interpretation answers all those questions for it is a philosophy, a system of law, and a principle of CONTROLLING INTERESTS.

One last final interpretation. I do think that it makes more sense to create wealth against a lifetime actuarial value of an individual's lifetime of labour, which is what was hit upon in '29 and '33. Although gold has "intrinsic" value. It is now clearly understood (or was always clearly understood) the ultimate source of wealth is HUMAN LABOUR, CREATIVITY) Therefore the Birth Certificate monetized via an actuarial value of one's lifetime of labour (via the Bond Markets) could have worked if the people doing the accounting didn't abuse it. So it is not the system, it is the Banksters abusing it (gross breach of trust and malfeasance) One country should not rule another because is has more gold.

Time to open the books to the public, they should never have been made secret. If this was done back in '29, this would have been sorted by now...

[gripreaper]

Nikkei down 250 points as we speak

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/08/20130820_AS1.jpg

[Flash]

While Canadian banks are increasing their prime rate as of today.

[ThePythonicCow]

Nikkei down 250 points as we speak
An hour or two later, it had bounced back up 200 points again from a low of about 13,250, to 13,450 :).

Overall, for the day, the Nikkei closed up 0.21% at 13,424.33