In his latest update to CIGA’s, the legendary Jim Sinclair states that we haven’t seen anything yet, and that the financial collapse in progress due to over $1 QUADRILLION in notional OTC derivatives is going to be an event of Mayan calendar proportions.

Sinclair’s full MUST READ alert below:


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To the amazement of the young turks and talking heads of Wall Street, economic law has not been repealed. When misuse of finance to the extreme (OTC derivative fraud) and exotic tactics are used to pretend solvency of financial entity balance sheets, the result will be not in terms of phony figures MSM doses daily to the sheeple, but rather in direct relationship to the degree of the true number in the insolvent categories of finance. The true number of OTC derivatives is above one quadrillion dollars as measured by the BIS before they cut the number in half by changing their computer program to value to maturity (which assumes all pay off, yet few will).  

The conclusion based on economic law is that we have not seen anything yet. The balance sheets must balance and to accomplish that assets must equal liabilities. That is the foundational fact of what I have just told you. In time they will but the process is going to be Mayan calendar event of sorts.

This is why QE must continue to infinity which inherently also means debt must continue to infinity, or else.

“In short, if the government confiscated the entire adjusted gross income of these American taxpayers, plus all of the corporate taxable income in the year before the recession, it wouldn’t be nearly enough to fund the over $8 trillion per year in the growth of U.S. liabilities. Some public officials and pundits claim we can dig our way out through tax increases on upper-income earners, or even all taxpayers. In reality, that would amount to bailing out the Pacific Ocean with a teaspoon. Only by addressing these unsustainable spending commitments can the nation’s debt and deficit problems be solved.”

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  1. Inreasing mandated spending and entitlements by $11 trilliion a year, nearly 80% our GDP, does add credence to the notions that all of us, with our birth certificates and social security numbers, are wage and tax slaves to a corporation called America Inc.  When the bill comes due in 30 years and totals $230 trillion, someone will he held accountable.  I’ll be about 90.  Obama will be about 81 and safely tucked away in his NWO paradise.  Most of the present US population will be retirement age or approaching it at a rapid rate.  Who’s going to be slaving away in the salt mines to pay for all of this.  Got kids?  Get phyzz.  they’ll need it.

    • No way I’m going to be a slave to pay off the debts that are created by the previous generations. If one day, the government forces everyone to work for free to pay off the debts, I’ll be running away somewhere…

    • Indeed they are.  When I was teaching chemistry and physics, I needed to make numbers of such immense size clear to my students.  Since everyone knows about time, as measured in seconds, minutes, hours, etc.  I would tell them that a part per billion was about 1 second in 31.5 years and that a part per trillion was about 1 second in 31,500 years.  That would usually open their eyes wide.  We never got to what a quadrillion was but if we had, that would have been a second in 31.5 million years.  I am reasonably confident that none of our politicians has even received such an explanation.  Instead, their eyes glaze over after the million mark and everything looks the same thereafter.
      The true number of OTC derivatives is above one quadrillion dollars as measured by the BIS before they cut the number in half by changing their computer program to value to maturity (which assumes all pay off, yet few will).”

      We are supposed to be surprised by yet another made-up Gov number, because…?

      My guess is that many of these CDS type derivatives are linked and that when some of the sellers of these financial insurance policies go bankrupt, there won’t be anyone there to pay off the rest of the CDS buyers.  A small snowball will become a large one and then an avalanche.  In view of the size of the assets backing this derivative drek vs. the size of the derivatives themselves, only a very tiny fraction of these will be paid off.  95% or more of them will not pay off and will totally destroy the economies of every country involved in the creation of this financial sewage.  At some point in this collapse, the world economy will crash as well and there will be very few survivors. Only the small emerging markets that have yet to learn to play with this kind of leveraged fire will not be burnt to a crisp by them.  

    • It sucks that the Americans have reached the quadrillions very fast. In the 1950s, we were talking about the millions and in the 1970s, we were talking about the billions. Inflation at its best along with hyperinflation!

  2. Larry Fink of Blackrock was just interviewed on Bloomberg and set out the ‘logic’ of Euro-Zone countries having ‘no choice’ but to ‘mess with their currencies’ in the absence of any more futile attampts at ‘QE’ types of injections or austerity measures. In other words … currency devaluations.

  3. Who knows? Maybe the Mayan calendar actually meant that there will be a huge event in the future which will change the world a lot. The collapse of the US dollar along with the USA’s economy is mathematically guaranteed and it is inevitable!

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