Jim Sinclair: Entire US Banking System Missed a Bail-in Collapse by a Hair Tuesday!

collapseJim Sinclair states this morning that the entire US and Western banking system just missed a complete collapse and full bail-in by a hair’s length at the end of the Memorial Day Weekend.

Full details on the US banking system’s narrow miss of a complete systemic collapse and a full banking holiday Tuesday are below:


2013 Silver Eagles As Low As $3.29 Over Spot at SDBullion!


From Jim Sinclair:

The entire Western World banking system just missed the need for a bail-in by a hairs length.

The next crisis in finance in North America will be a product of the FASB, the Guardians of Auditing, allowing banks to value OTC derivative paper at whatever the bank wishes. This is a camouflaged black hole loss unstated that Western Banking system deposits could fall into to disappear partially or wholly, made up of your deposits. Washington made moves to override the CFTC, mandating proper valuations which the FASB has run away from. Had the banks been required by the CFTC to value these derivatives at anything resembling a real market (there isn’t any markets for the legacy OTC derivatives of 1991 to 2008), we would have had another banking crisis in the USA on Tuesday after Memorial Day. The USA just missed another banking crisis by a hair’s length. Next time it will be closer.

If the banks had to realize the real loss in this paper, now valued way above real worth, facing that loss would vaporize the bank’s entire capital, impacting the next line of financial defense which is the funds of the depositors, seriously reducing to totally wiping out your deposits. This distance between the bail in of Cyprus and of the entire Western financial world stands on the question of honestly valuing OTC derivatives or not lying about the value of the legacy paper banks are carrying. This is the real PONZI of not just the century but all written history in finance. The real number of notional value of OTC derivatives outstanding is not $700 trillion but rather over a quadrillion as it stood and was reported by the BIS printed hear before the BIS reduced the number to $700 trillion by adopting a new computer program for valuation named “Value to Maturity,” a total cartoon.

We, the entire Western Financial World, are a bankruptcy just waiting to happen.

Had the CFTC implemented this regulation before it’s alteration, which is in fact a cancelation, you would have been bailed-in. Without this cancellation of this standing regulation, the USA would have had to have Bail-In Tuesday.

This is why I will be speaking in London next week, not because I need to see the place for the 100th time.

5 Biggest Banks Gain another Victory in Control of $700 Trillion Derivatives Market
Tuesday, May 21, 2013

Federal regulators have softened a new regulation intended to make the derivatives market—which helped cause the financial crisis—more competitive among banks. A derivative is a contract whose value is based on other underlying assets, such as stocks, bonds, commodities, currencies, interest rates and market indexes.

Currently, just five banks control 90% of all derivatives contracts: JPMorgan Chase, Citigroup, Bank of America, Morgan Stanley and Goldman Sachs. The Commodity Futures Trading Commission (CFTC) had planned to require firms wanting a price for a derivatives contract to contact at least five banks.

But after lobbying from financial institutions, the CFTC lowered the requirement to two banks. CFTC officials claim the standard will increase to three banks in about 15 months.

The $700 trillion derivatives market allows companies to essentially gamble on deals made on Wall Street. Such activity nearly destroyed insurance giant American International Group before the federal government rescued it.
-Noel Brinkerhoff

More…

 

Comments

  1. I actually soiled myself after reading that I got so scared.
     
    Meanwhile, the precious metals are clearly under control of the ass holes behind the curtain with no signs of abating.

  2. Mmkay…thinking this is a stretch…..

    • you think? just like his last report which seemed to indicate that europe was ACTUALLY serious about shutting down the turbo rehypothecation of assets in the shadow banking system.
      If it isn’t hyperbole, I wish someone would give it a nudge to help it along (like Jim Sinclair himself could do by asking people to go ALL in on silver, not gold.

    • the same could be said for Friday, no? or last tuesday?

    • astoria joe, don’t minimize the gravity of this situation… LOL!

  3. Earth to Jim.  Just because we missed another Arquillian battle cruiser of Corrilian Death Ray,  give us another Standard Galactic Week and I’m sure there’ll be another FIAT OTC derivative FUBAR     Sinclair, you have one SGW to deliver your gold or the earth will be destroyed
    Oh, boo boo boo boo  Give me a freakin’ break

  4. Back after being away for 1½ weeks.  It was nice ‘tuning out’ of the e-world and doing family-stuff.
    Remember – there’s a whole world out there beyond all the depressing stuff, don’t completely lose sight of that.  But yes – I did think about SD during my travels.
     
    Returned to find PM’s are still continuing their slow downward trickle.  Surprise, surprise!   Not in a buying mood these days.  Looks as though prices will bounce along the low $20′s range for the summer and then follow the same pattern of picking up again as the warmer weather departs.  But what the heck does Mammoth know?
     
    Meanwhile, my stack is still exactly what it was ten days ago, so no worries.

  5. Its a crisis Jim but not as we know it….


  6. If this is true, no one seems to care, which makes this most likely not true.
    I love JS, but he is reaching at this point, reaching for things that are not really there.
     

  7. Jimmy Joe,
    The Home has Bingo today, better get back or let the nurse drive you back,
     

  8. The video was supposed to be in response to @agxiik comments. 
    Darn that edit key, perhaps we collectively did something wrong and the Doc`wont let us have it back until we figure out what it was.

    • Feel your pain about the missing edit function.  Maybe I missed it, but has Doc ever explained why it went a way.  If you know please share. 

    • @Arctree , @UglyDog  – have explained a couple times already- the site attack we sustained in March (approximately 1 hour after we globally broke the news that the Fed and BOE have written bail-in laws into legislation) wiped the edit post functionality, as well as numerous other components of the site.  Many of the components have been restored, others will as funds allow.   Due to a string of credit card fraud at SDBullion as well as the IT costs associated with the attack, we don’t currently have the funds to restore the edit functionality. 
      BullRun and I are still working day jobs, and dedicating/volunteering about 80 hours a week to SD to help educate the public on what’s coming.
      AGXIIK and MikJ generously offered to help support that IT cost, so we are working on an estimate now. 
      Thanks for your patience and understanding!

    • Ah!  Sorry to hear that Doc`.  
      Of course we appreciate the venue and the behind the scenes stuff.  Perhaps a donate button?  
      I may have been in my shed when that happened…
      http://www.qrz.com/db/M6GTX

    • Thanks Doc.  I missed your prior post(s) because you (SD) are so awesomely popular there are so many post now I can’t read them all. 

    • @Arctree    That is quite the bunker you have.  Wow.

    • @Arctree Old Bean, I must say this does not pass muster w/OSHA lol

    • This  wasn’t  just for sh*ts and gigs.  I will do anything for Sporadic E (Es)

    • :D
       
      I seek “E” myself…
      sporadic EMF, ordering it into constant  ;)

  9. Who is still listening to this dude after the $1600 bottom call. Frank and beans, franks and beans…Has anyone seen my weiner?

  10. I keep more cash in my wallet than I do in my bank account and I have no involvement with any of the big 5 banks.  So there. 

  11. Ok Arctree, you got me there.  Your  vid post was much better than MIB I.
     I laughed so hard on that video  I accidentally rehypothecated that  new keyboard  I owed to Da Yooper 123 times through the HKMEX derivatives and just collapsed the entire GDP of Hong Kong.   Ooops.  The end is nigh.  Sorry, my bad.

  12. Okay, let me digest this most recent decree from Lord Jim.  There was a “close call”.  What has changed, methinks?  The brazen banksters have not seen the light.  They are still the cocksuckers they were on Friday last before the weekend.  Nobody is heralding the commodities market as being unencumbered by the pricks at JPM.  So, Jimbo, WTF is different?  Nuttin.  Try again, later my good man. In the meantime, we’ll just keep stacking.  By the way, don’t pay any attention to Woolly.  He just got back and hasn’t had his daily cup of BS.
     

  13. IT’S THE BUYING STAMPEDE PEOPLE! No wonder we stackers are getting hammered! IT’S STUNNING!
     
    http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/28_This_Is_Stunning%2C_I_Havent_Seen_Anything_Like_This_In_50_Years.html

    • @Ranger
       
       
      Mention of Alaska in that KWN article reminded me of ANOTHER curiosity I stumbled onto when I was researching ‘corporate governance’. The ‘State of Alaska’ is ALSO an Incorporated Business assigned CUSIP and Federal Employer Identification Numbers.

    • @ranger
      This is interesting.  Thanks for the link.
      In my slightly paranoid sort of way could it be within the realms of possibility that QE is responsible for this since (apparently) it hasn’t been that detectable until now or am I being naive?  Or has Ben been pissing in the punch bowl all-along?
       
       
       

  14. Ranger I read this KWN piece.  Something is going to happen, like Willie says, some sort of trip wire event was will cause a stampede out of this market.  All the POMO, QE, B Of J and Plunge Protection team won’t be able to stop it. 
    The Russian mess in 1998, Long Term Capital mess, the 1987 collapse (I sold everything one month before), the tech wreck and then the uber crunch with Lehman, is just a small step away from this toppy over priced market.  The fundamentals are just not there to support months of up days and nearly no down days.  Even the harsh events that precipitate a down day of 75 on the DOW is caused by the Japan stock market dropping 7,9 or 11%
    He falls off track with the Bakken stuff, and then the oil below that  blah blah blah   He needs to stick to his knitting on that
    Even a cursory review of the EROI of that deep down muck says it’s not going to be economic.  Besides which, the environmental problems are not going to do away.

  15. this is ridiculous…im telling you i almost gave up on this site completely but something made me come here today and this is what I get.

  16. Are you disappointed NoName? We are really just trying to maintain a sense of humor thru this very disappointing time. All that can be said has been said regarding the future of pm’s and our economy in general. I want billionaire Sinclair to go buy 100 million in physical silver and take one for the team. He has probably cost his audience that much in losses if they have listened to his recent predictions. One thing I have never heard anyone comment about regarding pm’s and the end times described in scripture. Revelation describes a time before the return of Jesus Christ where people will throw their gold and silver in the street. I have always thought that refers to a period where the world’s system has converted to some form of a pm based economy- but at the very end even that true monetary system fails. Could that be describing the monetary system we are all hoping for sometime in our near future?

    • How can you personally be part of bible prophecy when everyone throws their gold and silver in the street if you don’t acquire any now?   God commanded everyone to multiply their gold and silver.  That’s in Deuteronomy.  That’s probably one of the most important chapters of the Bible.  

    • The current monetary system is designed to benefit the very few closest to the “money printing presses”.  This “money” is used to extract labor and hard work from the rest of society.  The world should seek a monetary system based on fairness and justice for the great majority of society, something that is truly lacking at this point in man’s history.  But nothing lasts forever, not even the fiat monetary system that has enriched the few who have schemed from the beginning to live off of the hard work of the rest of society.

  17. Would Mr. Sinclair have any info on when such a bail-in would be likely to probably happen again? Any idea on when the parabolic rise will happen to help all these financial judoka’s feel less down? 

  18. Top 5 TBTF banks own 90%… sheesh stick it to them and let them fail. Get it over with already…

  19. Why Invest in Gold?
    God’s money is inflation proof!!!

    Gold is good. In Gen. 2:12 God declares that gold is good because He created it. Paper money, referred to as “your wealth” will be consumed. Also, our so-called paper money is really made from a mixture of paper and cloth, which is referred to as “rag.” Interesting that our righteousness is always referred to as “filthy rags” in scripture.

    Gold is tested by fire. I Cor. 3:12  tells us that the foundation and quality of our lives will be tested by fire. Notice gold and silver are simply purified by fire, but wood, hay, and stubble are consumed and loss is suffered. Need we say more?

    Gold is a sign of power and blessing. Throughout history the ruling class has always sought to own gold and silver because they represent purity and longevity. Gold and silver are precious because they are scarce; they cannot be counterfeited by man. God commanded that the tabernacle in the OT and the New Jerusalem in the NT were to be built of gold, not paper. (Ex. 25 & Rev. 21)

    Gold & Silver belong to God alone. Hag. 2:8 tells us that “the silver is mine and the gold is mine saith the Lord.” This cannot be said of man’s counterfeit credit instruments which are contrary to God’s commandment that we use a just weight and measure in our transactions.

               In conclusion, silver and gold are good, pure, and long-lasting forms of value originating with and belonging to God. We are simply stewards of His property here on Earth.
     

  20. AMEN
    Why Invest in Gold?
    God’s money is inflation proof!!!

    Gold is good. In Gen. 2:12 God declares that gold is good because He created it. Paper money, referred to as “your wealth” will be consumed. Also, our so-called paper money is really made from a mixture of paper and cloth, which is referred to as “rag.” Interesting that our righteousness is always referred to as “filthy rags” in scripture.

    Gold is tested by fire. I Cor. 3:12  tells us that the foundation and quality of our lives will be tested by fire. Notice gold and silver are simply purified by fire, but wood, hay, and stubble are consumed and loss is suffered. Need we say more?

    Gold is a sign of power and blessing. Throughout history the ruling class has always sought to own gold and silver because they represent purity and longevity. Gold and silver are precious because they are scarce; they cannot be counterfeited by man. God commanded that the tabernacle in the OT and the New Jerusalem in the NT were to be built of gold, not paper. (Ex. 25 & Rev. 21)

    Gold & Silver belong to God alone. Hag. 2:8 tells us that “the silver is mine and the gold is mine saith the Lord.” This cannot be said of man’s counterfeit credit instruments which are contrary to God’s commandment that we use a just weight and measure in our transactions.

     
               In conclusion, silver and gold are good, pure, and long-lasting forms of value originating with and belonging to God. We are simply stewards of His property here on Earth.
     

  21. Definitely tired of hearing we dodged this or that bullet. It’s like hearing Ashtar from the Galactic Federation nudged comet BOHICA out of the way so you’re safe for another week. Next week we’ll be saved by a thousand gold belted ninjas from the Sinclair Gnostic Illuminati who saved us in spite of ourselves…whatever it is we can rest assured the email alert will come and let us know.

  22. Excerpt: “If the banks had to realize the real loss in this paper, now valued way above real worth, facing that loss would vaporize the bank’s entire capital”
     
    And, this principal doesn’t hold in the case of Plantation Scrip banknotes? THEIR disparity from original value stands at (probably) 98%! So, Plantation Scrip ought to be ‘valued’ against gold … INSTEAD OF ITS OWN SELF??? If banknotes were ‘marked to market’ through demonstrable depreciation, THEY would have an equitable value of 6.5 grams copper!
     
    The COLD HARD FACT is that banknotes are worthless slips of paper! Banks CREATED them, so they are LAWFULLY the ‘Intellectual Property’ of those banks. In the COMPLETE ABSENCE OF REAL MONEY, they LOAN them out as ‘Transaction Facilitation Instruments’, giving those banks a LAWFUL RIGHT to charge interest on the use of THEIR PROPERTY, which governments nominally ‘guarantee’, giving THEM a LAWFUL RIGHT to levy taxes for ‘service provided’.
     
    Now Mr. Sinclair is no different than nearly EVERY commentator in this arena. NOBODY ‘sees the forest for the trees’. Even if counted in the quadrillions, there is NO PROFIT in trading precious metals for banknotes! ANY such ‘profit’ is a complete delusion.
     

  23. Some interesting quotes i’ve read lately-
    1. Every once in a while, the market does something so stupid it takes your breath away.
    2. In investing, what is comfortable is rarely profitable! (based on that alone we should do well lol)
    3. The stock market is filled with experts who know the price of everything , but the value of nothing!
    4. Know what you own, and why you own it!
    5. The four most dangerous words in investing are, ” This time it’s different”
    6. Wide diversification of investments is only required for people who do not understand what they are doing.
    7. “Anyone who is not investing now is missing a tremendous opportunity” carlos slim(nett worth 69 billion)
    8. Rule no1, never lose money! Rule number 2, Never forget rule number 1.  Warren Buffett
    ***Some wise words there!***
    I heard this the other day, What are the 2 most lonely words on the planet?   “What Party” lol
    Hang in there boys our patience will be rewarded, peace…..

  24. Affirmative on the Royals Ed.  I dont remember if  it is was Montbatten or Prince Philip who once said   ‘I regard most of the world’s population as a virus and we would be better if we were rid of them’  Nice folks.

    • It was Philip
      In the foreword to his 1986 book If I Were an Animal, Prince Philip wrote, “In the event that I am reincarnated, I would like to return as a deadly virus, in order to contribute something to solve overpopulation.”

  25. Wow did I butch that phrase up Charlie.  That’s the one I was trying to remember,  What a nice guy this Prince Phil.  Prince of this, Duke of that, can’t seem to make up his mind.  Sperm bank to the Royals  Big whoop there.  Wonder what he does in his spare time.   Git some sloppy seconds from DSM maid brigade?

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