AGXIIK On The Ted Spread, $6.5 T Vaporized By the Pentagon, & Knuckles McGurk

agxiikEvery person on the planet is collateral for these mischief makers as they play their trillion dollar version of Three Card Monte. 
There no solution of any substance except the hardest type imaginable.
I know what I do. I know what 100 other like minded people do.  We avoid being collateral damage;  avoid being droned to the system; avoid being slaves to debt incurred by others who expect us to pay it; demanding we pick up the tab when the house goes broke, the bank goes bust and Knuckles McGurk comes looking for payback…

By AGXIIK:

This article is not intended to be a scholarly exposition.  It’s intended to see if there are some dots that can be connected when we’re dealing daily with trillions of dollars that seem to be acting like lost sheep, or maybe a pack of wolves.
 
One is the TED SPREAD;  one is trillions lost by the Bentagon, one is the annual amount of precious metal  paper traded in a year and one is the $13.4 trillion of bonds and deposits that bear a Negative Interest Rate.
 
1.  We start off with the TED SPREAD. 
 
It’s the difference between the 3 month LIBOR and 3 month T Bill rates. The wider the spread the greater is the fear of lending between banks.   LIBOR and T BILLS are both admittedly fabricated by the medacious monetary mongrels at the Fed and ECB and their fellow traveler banks.  Neither is real.  They’re just figments of the fevered imaginations of FIAT pimps.  
Trillions in these debt instruments are traded on a daily and weekly basis with no regard to the real rates since real rates, like the values of real money,  
are unreal by all accounts.
 
The TED SPREAD was 17.61 BPS on December 31, 2013.  By the end of 2014 it moved to 21.26 BPS and then to 37.67 BPS by December 2015.  Currently its 53.83 and rising quickly, with a Mr. Toad’s Wild Ride over the last 7 months, seeing whipsaws from 27.92 to a level double that amount. 
 
A rising TED SPREAD reflects uncertainty and risk. When the spread rises it says there is greater fear and mistrust in inter bank lending.  The spread at the peak of the  2008 financial crisis was 300 BPS.  We are a way from that but have seen a tripling of the spread since the beginning of 2014.
 
2. We follow up with the amount of $6,5 trillion. 
 
As slack jawed as this number leaves the reader, the Pentagon cannot find roughly this amount.  It is said to have disappeared in 2016.  Their Byzantine accounting takes small rounding and expensing errors, magnify them by 2 orders of magnitude and calls it systemic errors that cannot be traced to their source. I guess this is what happens when you’re bombing and droning the crap out of 10-15 countries in the Middle East, Africa and Central Europe.  This has a way of making the gentle spirit of accounting fade into the fog of warfare.
 
The last time we heard of trillions missing, Rummy was ruminating over some $3 trillion.  One day later the Pentagon’s accounting department was hit by a kinetic device some say was a jet and some say was a cruise missile.   Rummy the Dummy just about spilled the beans.  Nothing like 500 lbs of Semtex  traveling at 600 MPH to correct a slip of the tongue and an accounting error.  Most of us just use an eraser.
 
3.  Let’s visit the level of annual paper trading in  the precious metals pits.
 
Pining 4 the Fjords wrote an article on TFMR in the other day in which he said the HUI was the best indicator of real metal’s real spot prices, not the spot dictated by the COMEX, LBMA and SGE  He might be right.  I ran some raw numbers to get a sense of the total annual volume of gold and silver and their combined dollar values on the spot market. 
 
Crunching these enormous numbers leads me to believe he is correct, if for no other reason than the enormity of the volume has to cause price imbalances somewhere along the line.  The paper traders remind me of people who skinned tiny slivers of silver and gold from coins, eventually depleting the coins of content until no one trusted the value or weight.
 
Here’s the volume and values of precious metals this year, extrapolating the  2016 volume with the present price
 
Silver. 800 million ounces at $20 an ounce is $16 billion. 
Gold   80 million ounces at $1,300 an ounce is $104 billion
 
You have a $120 billion nominal value in precious metals
 
The PM paper trading on these bourses is 300 times the physical.  If my math is correct, $120 billion pushes $36 trillion traded on the paper gold and silver markets. Is there any room for funny business in $36 trillion?  Maybe a little.  Just like a little  room for the DOD missing $6.5 trillion
 
4.  $13.4 trillion in Tango Uniform negative interest rates.   Traditional rates versus NIRP and the tax payer.   Aye, there’s the rub. 
 
The Masters of the Universe have not yet figured out something that most of us know intuitively. Losses eventually have to be paid.  Traditional rates allow a reasonable return on relatively safe investments.  NIRP commands a loss but allows those who trade paper to obtain their funds WITHOUT ANY COST TO THE TRADER. 
 
Whether the trader is a central bank, Too Big to Fail Bank, a treasury department, exchange stabilization fund, they can trade in an unlimited fashion with no cost to the trader.   When and where there’s no cost, whether a moral or financial cost, any mischief is possible when there is no cost to the trader; only profits that can be skimmed, like thin slices of the gold coin.  You need not ever be right.  You can be wrong 100% of the time and it costs you NOTHING.
 
This is where we are today.  These masters of the universe are rolling the dice thousands; millions of times a day and they care no one whit whether they roll a 7 or snake eyes.  It’s all about the roll. 
 
$1 billion a roll?  Sure, why not. Someone else picks up the tab; like the 100% trading success rate enjoyed by Hillary Clinton trading cattle futures.  Some one bought the other side of the trade and she made $100,000.
 
$1 trillion a roll? No problem.  If it’s snake eyes, let the tax payer pick up the loss.
We are at that level now?  Ha Ha.  We are way beyond that.   We’re seeing $1,000,000,000,000 bet on the roll of the dice 24 hours a day.
But life’s anything but a crap shoot.  There are real consequences.  We suffer them every time we or god  or Goldman Sachs thrown the bones.  We even see $1 quadrillion side bets placed that some day, some how, will have to be paid
Who pays these losses
Tax payers, that’s who
We pay the losses.
Every person on the planet is collateral for these mischief makers as they play their trillion dollar version of Three Card Monte
 
Solution?  
 
There no solution of any substance except the hardest type imaginable.
I know what I do. I know what 100 other like minded people do.  We avoid being collateral damage;  avoid being droned to the system; avoid being slaves to debt incurred by others who expect us to pay it;   demanding we pick up the tab when the house goes broke, the bank goes bust and Knuckles McGurk comes looking for payback.

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