bomb explosionThe “central clearing exchanges,” like the Depository Trust Clearing Corporation, are giant derivatives-infested vipers nests which harbor the next – and possibly imminent – financial system collapse…



Submitted by PM Fund Manager Dave Kranzler, IRD:

Central counter-parties keep records of trades and help suck risk out of the banking system, but this only works if they themselves are well capitalized and have plans in place to deal with a sudden collapse of one or more of its members and get close to failure. Otherwise, they’re just unexploded nuclear bombs nestling deep in the financial system.   – Business Insider 

Who are we kidding.  Since the 2008 de facto banking system collapse, the OTC derivatives problem has mushroomed out of control.   The Obama Government heralded in the Dodd Frank legislation, which allegedly made the financial system safer for everyone.  In reality it is nothing more than a fairlytale written with  the goal of allowing the Too Big To Fail banks to cover up their continued derivatives Ponzi scheme.

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Now the BIS has issued yet another warning about the dangers lurking with derivatives.   The “central clearing exchanges,” like the Depository Trust Clearing Corporation, are giant derivatives-infested vipers nests which harbor the next – and possibly imminent – financial system collapse.

This is one of the reasons behind Carl Icahn’s recent candor regarding the U.S. financial system:  “sooner or later there’s going to be a massive problem.”  

In today’s episode of the Shadow of Truth,   we discuss the reasons why the BIS is sounding the derivatives alarm bell again and why Carl Icahn has become “Dr. Doom” on the stock market:

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  1. Ka boom, out go the lights. The party is over. Derivatives will be the death of the current fiat system.

    Stacking silver and gold will give one a chance. Be prompt, be polite and always be prepared. 

    Stacking the shiny one coin at a time.

  2. TPTB will probably get a heads up before a crisis is reached. Interestingly both the Swiss National Bank and Deutsche Bank have heavily loaded up on PM mining stocks recently – coming from entities that are each in serious trouble this is interesting and telling. If PM’s are to get some kind of revaluation as a last desperate capitulation to avoid the above derivative time bomb then clearly PM mining stocks will be a fantastic leveraged play. Given that central banks and the TBTF banks are in collusion we mere outsiders have to look for clues – I’d say this is a big one!

    • don’t delude yourself, mining shares are clearly someone else’s liability. The best you can hope for is a bunch of paper becomming worthless really fast as fiat currencies collapse. But then again, it’s your good right to try and ride the gravy train with the moneyprinting bastards, jmho.

    • “The best you can hope for is a bunch of paper becomming worthless really fast as fiat currencies collapse.”

      No, the best that one can hope for from the mining shares is to make several multiples on their money, cash out, and buy gold and silver with those HUGE profits.  Will that happen?  Maybe.  Is it likely?  Not unless you bought shares in the right junior mining companies 6-7 months ago.


  3. I’m not deluding myself in the slightest. First point – when a currency declines the domestic stock market increases commensurately. Secondly, mining shares like all shares are not somebody else’s liability but the company debt is – separate issues. The main thrust of my point, which you seem to have missed, is that central banks and TBTF banks are now highly geared desperate entities that are in collusion and looking for a way to make money and save themselves. A reset of the gold price could achieve just that – which is why it’s interesting that both the SNB and Deutsche Bank are now heavily into mining shares.

    • both of them create currency out of thin air and buy, in your case, mining shares, just like plantation slaves.

      Who in his right mind is going to honor these titles, in a monetary reset scenario? You’ll get cashed out in useless fiat at that point, that’s what I would expect. Useless sophistication, I know.

    • Would that be the very same SNB that squealed like stuck pigs over the referendum that would have forced them to hold 20% of their assets in gold but said that they could not because they needed to support the peg of the Swiss Franc to the euro?  And then very shortly thereafter broke the peg anyway?  I suppose that one could admire their efficiency in being bankers, liars, and thieves all at the same time but it really does them no credit.


    • 15 zeros to the left of the decimal point = quadrillion  🙂

      To get an idea of how much money that really is, consider that the world GDP in 2014 was about $75T.  This amount is larger than that by a factor of over 26 times.  Because of this, it is an unpayable amount that will never be paid because it simply cannot be paid.  This is why those running the derivatives scam ALWAYS find ways for derivatives NOT to pay off.  The derivatives on Greek debt SHOULD have paid off at least twice, if not three times.  But it didn’t thanks to some financial slight of hand that would have impressed Harry Houdini.

      Selling derivatives is like selling life insurance that NEVER has to pay off.  Now, is that a business or what?


  4. The sad reality is that most people (myself included) can’t actually comprehend such enormous numbers. So even though I know that a Trillion is many multiples of a Billion which is many multiples of a Million, when I read an article that describes derivative ‘exposure’ in Quadrillions of dollars I honestly can’t even create a mental picture of what that represents. Truth be told, I’m losing track in the millions so for all intents and purposes my mental ‘picture’ of a trillion vs. a quadrillion is only theoretical and (at least for me), inconceivable.

    So on the bright side, once the U.S. National debt reaches a quadrillion dollars, I’ll probably feel more at ease  than I would with a 800 or 900 trillion dollar figure.

  5. One is the loneliest number that you’ll ever be.


    They are just numbers. Stacking the silver and gold coins in the numbers, that I am most interested in. Stacking one coin at a time. It’s a beautiful thing to behold the stack. It is financial freedom. 

    One is the loneliest number that you’ll ever be.

    Whew, time to take ten. Just numbers.

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