panicGET OUT OF YOUR BOND FUNDS NOW!
The day of reckoning is coming.
 I had a “eureka” moment last night when I read the comments by the chief economist of the Bank of England who, presumably unwittingly, warned that the aggregation of derivatives in the derivatives clearing system (primarily a subsidiary of The Depository Trust and Clearing Corporation – aka DTCC) could be “a problem from hell.”
The nexus of the problem is that fact that interest rate derivatives contracts make up the majority of the OTC derivatives.  
JP Morgan and Citibank alone have $97 trillion in notional amount of OTC interest rate derivatives exposure.
To put that in perspective, the total size of the U.S. stock market is around $22 trillion.  And $97 trillion doesn’t include the leverage that is embedded in these contracts.
Pimco, Black Rock and Fidelity have by far the largest concentration of exposure to this.   That’s why the Vice Chairman of Black Rock is going around promoting the idea of a mechanism to bail-out DTCC when the derivatives bombs start to fly. 
I was told this morning by someone in a position to know that the regulators are absolutely terrified of this problem and of a total bond market collapse.



By PM Fund Manager Dave Kranzler, Investment Research Dynamics

The most absurd part about Thursday’s payroll report is  the fact that supposedly highly educated people get on financial spin networks and discuss and debate the report with serious expressions on their faces as  though the report has any degree of validity.  It’s emblematic of the fraud and fiction that has infected our system to the core.  The economic reports are bogus, the physical gold in Ft Knox has been replaced with hypothecation agreements and Comex fiat paper futures contracts and the politicians and business leaders are all corrupt – every single one of them.

Please see Zerohedge etc for a dissection of today’s fiction published by the Government, in conjunction with the Fed and Wall Street.   Just for point of note, the number of people who have left the labor force hit another all-time record high and half a million full-time jobs were lost, replaced by 800,000 part-time jobs.   There’s your 6.1% unemployment rate:  deadbeats collecting unemployment insurance and Social Security Disability, students taking out debt and enrolling to DeVry on-line University and full-timers converted into part-timers.

GET OUT OF YOUR BOND FUNDS NOW

The day of reckoning is coming.  I had a “eureka” moment last night when I read the comments by the chief economist of the Bank of England who, presumably unwittingly, warned that the aggregation of derivatives in the derivatives clearing system (primarily a subsidiary of The Depository Trust and Clearing Corporation – aka DTCC) could be “a problem from hell.”

The nexus of the problem is that fact that interest rate derivatives contracts make up the majority of the OTC derivatives.  JP Morgan and Citibank alone have $97 trillion in notional amount of OTC interest rate derivatives exposure.   To put that in perspective, the total size of the U.S. stock market is around $22 trillion.  And $97 trillion doesn’t include the leverage that is embedded in these contracts.

My co-producer and I are going to do a video on this topic.  I think viewers will be stunned. Pimco, Black Rock and Fidelity have by far the largest concentration of exposure to this.   That’s why the Vice Chairman of Black Rock is going around promoting the idea of a mechanism to bail-out DTCC when the derivatives bombs start to fly.  Trust me, I was told this morning by someone in a position to know that the regulators are absolutely terrified of this problem and of a total bond market collapse.

As for the precious metals action today, it was almost as funny as the Government jobs report.  With the entire analytic world (except me and few colleagues) expecting a massive take-down today, here’s what happened (click on chart to enlarge):

ComexSilverNotes

They are having trouble taking down the precious metals sector.  I can’t recall the metals ever behaving this way when the market is technically and psychologically set up for a big move lower.  Hell, Goldman still has an $1000 target for gold.   Keith Weiner of Monetary Metals still thinks fair value for silver is like $15.

The truth is, the precious metals market as “sniffed out” the complete Ponzi-nature of our entire system.  The scramble  globally to buy and possess physical gold and silver  is starting to take over the ability of the Fed/big banks to manipulate the prices with fiat futures contracts that can readily printed up.  GATA  (www.gata.org) predicted this would eventually happen over 14 years ago.


The bottom line is that you need to dump your bond funds before they put capital controls on them and load up on gold, silver and junior mining stocks on every sell-off.  Since I published my research on Pilot Gold on May 20th, it’s gone up 22%;  Almaden is up 9.2% (5/15);  EMXX is down 3 cents but requires patience; and the Big Upside Idea is up 5.6% since 6/25.    All four ideas still have a multiples of upside potential and you can read my analysis here:   Junior Mining Stock Research Reports.

Whether you want to buy into the precious metals sector is your decision but if you wait much longer to decide whether or not to get your money out of bond funds, you soon won’t have any control over that decision because getting out won’t be an option.


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  1. they are ready to initiate rings of fire around the exits,so if you want to get out,you have to get a little burned first.they just haven’t decided to what degree you’ll get burned, upon leaving. wonder how many more appearances bill cross will do on all the outlets going forward.just the look on his face, of shear shock will be priceless.not like a bondholder of private corporations,where they become vigilantes and holdouts at time of bk. so what happens to these investors of gov.bonds?are they told tough nooks,or do they get 1 cent on the dollar,or,?.so,who thinks bill gross and bob dole jump out a window before this is all over? oh,while jaime lights a marlboro while watching.

  2. “They” ALWAYS pull some kind of “rabbit” out of a hat, one way or another “they” will fix this and any crashes that happen. If it crashes jump in, buy stocks and watch Your profits soar to the moon. Nothing makes sense anymore, it is truly a Bizzaro world we now live in. Bunch of Geniuses running the show, gonna hitch My wagon to these fat cats and live off their scraps!! Let the next generation or ten worry about it. eh?

    • @UglyDog
       
      I think your ‘brief’ synopsis hits the nail squarely on the head.  When the Saudis are sure they won’t get bombed back into the the Stone Age by what will be left of the US Dollar’s backing, they will announce that the exclusive franchise of the US Dollar as payment for OPEC oil is over.  At that point, the earthquake tremors will be felt worldwide… and, as Jim Willie, and others have suggested, the chicken-dollars all dressed up and regaled in their bond suits will arrive at our doorstep in numbers to dwarf the little kiddies from the southlands…
       
      I think the process is accelerating at a dizzying clip… even faster than the globalist pond scum expected…
       
      Buckle UP!!!!

  3.  read that today, these guys are tuned in. and this shit is getting to close to zero hour according to miles franklin.if the time is now and we have just a little time left then i must say, guard your stack,gird your loins, and haven helps us.

  4. Ugly Dog   I read holter yesterday and you said it best. Short and sweet.  Thanks.
    When SA knows they can make the announcement without the US capital controls, taking SA out of the SWIFT (a joke since Iran bypassed that stunt nearly 2 years ago) or a kill shot, they will do that.
     Holter says we might have 2-3 days before our world goes to HIAHB.
     2 weeks at most and the USD is toast
     On bonds, PR is toes up and will default. The largest Portguese bank defaulted on its bonds yesterday—failed to make payments.  These are those small bits of sand added to the pile that will tip
    But SA will be the final leg I think  and Holter is usually pretty circumspect in his assumptions.  I trust him since he is not selling something.  Neither is Kransler when he speaks  These people know their stuff
    We don’t need to know the day.  We do need to know the precipitating event
    What I am also seeing is America’s Executive Office in free fall.  This is disasterous since KLUMMAC is showing what he is made of.  His free fall drags us down because every leader in the world is viewing this and thinking
    1.  What happens to us if the US dollar fails?
    2.  How do we get out of the door while the getting is good. First ones out get the best deal
    3.  How can I use the ensuing chaos to feather my nest
    4.  What potential blowback will I suffer from my actions
    5.  Who can I ally with to save me from the falling giant
    6.  Large GDPs will absorb the power vacuum, taking a leadership roll while throwing us under the bus

    A longer synopsis but in the last two days I have had some real fear about the two legged bioweapons coming across our borders and being flown to major cities across the US.
    The diseases they bring are Dark Ages material and the diseases are already showing up in the health staffers and the cities where the illegals are parked.
    These kiddies are nothing less that an stalking horse false flag critical event of cosmic importance that destroys  our national border security, (of which there is little today)and destroys the sovereinty of the nation as KLUMMAC goes FULL RETARD into martial law, beings in the UN who has already said these “refugees’ must be aided by the UN. If the UN gets a toe hold in the US like they have in other countries, that will mean an internal war with the private US militias (that’s you and me) fighting against a usurping military organization that will attempt to bring the US under the control of the UN. IMO the 9-ll hijackers flew their planes into the wrong buildings.
     A potential jihadi army could be  brought into our midst with nuclear components ready to be set up in one or more cities. The AlCIAda attacks on the Pakistani Airport (2 of them) were to try to gain control of the couple of dozen nukes stored there. No word if they were successful.
    An unsustainable burden is placed on states and cities that are already bankrupt to one degree or the other.
    Our medical service system is further undermined as 300,000 of these people press the EMS to a breaking point.
    All in all a bad day in the neighborhood.
     

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