$80 Trillion At Risk?

[Guest]

Ammo and gold are looking better and better all the time.

Perhaps someone with more knowledge than I have can dissect this and tell me it cannot happen.

PLEASE! NO POLITICS!

http://market-ticker.org/akcs-www?post=198650

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Recently Bank of America transferred a bunch of derivatives into their banking arm. "A bunch" means somewhere around $80 trillion worth.

Now pay very careful attention, because part of the<span style="font-weight: bold"> bankruptcy "reform" law in 2005 placed derivative claims in front of depositors in a business failure - including a bank failure</span>.</div></div>

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">the fact remains that with even <span style="font-weight: bold">a 5% loss the amount of money required would be roughly equal to the entire US Federal Budget, which the FDIC clearly does not have -- nor could it acquire</span>. </div></div>

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">A cascade failure of several large banks would easily result in loss claims that would exceed the entire US GDP; for obvious reasons virtually none of that would actually be paid or recovered and in the case of you, the average person, your reasonable expectation of recovery in such an event is zero.</div></div>

 

[Maggot]

Re: $80 Trillion At Risk?

Tucker, Ill post some stuff in the morning that will explain it all in great detail, and blow whats left of your mind in the process, LOL. Its even uglier than you might imagine. Be sure to check my post on the Federal Reserve Banks.

Maggot

 

[High Binder]

Re: $80 Trillion At Risk?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: tucker301</div><div class="ubbcode-body">Ammo and gold are looking better and better all the time.
</div></div>

I'm starting to think about pulling my cash out of the bank ( I earn .01% anyway). The people in Greece apparently had a major run on their banks today.

 

[Mo_Zam_Beek]

Re: $80 Trillion At Risk?

I read about BofA and had to put it in the simplest of terms in order to understand it - effectively they (and I am sure every other large bank) has usurped the process and once again made the taxpayer responsible <span style="font-style: italic">when</span> they fail. As for FDIC I very clearly remember reading what The Creature From Jekyll Island had to say about FDIC Ins: it is meaningless. There isn't a vault sitting around with the <span style="font-style: italic">value</span> of sums that are insured. All it means is the Gov instructs the Fed to fire up the digital press, create that level of currency, and immediately make the taxpayer responsible for not only the vig, but actually retiring the debt created.

Couple other things I have read recently and I will have to dig for the articles:

- Since 2008 we have pumped $26 trillion into US and foreign banks - even mainstream media has finally clued in ( see link in my sig line)

- In 2008 when we saw some of the biggest firms go down, they were levered as much as 30:1. The Fed is currently levered at 52:1, a shift in the <span style="font-style: italic">value</span> of the underlying assets of a mere 2% wipes the Fed out (the article never quantified what that meant in dollar terms).

- Almost 10 days ago now Credit Suisse predicted the Euro is going down. Yes, no, maybe - you make the call; but if you are seriously watching the drama play out you will note that the news isn't good.

- Correctly or not, I get the impression that the US banks are so intertwined with the European system that should a significant problem occur, it is intractable, and it will flow as a wave both around the globe and here at home.

- Maybe my tinfoil is too tight but I just have to wonder what the odds are on purposely using the FED to prop up the Euro until it must be collapsed into some form of receivership (IMF), and then slapping down the credit rating of USA; thereby giving rise to the argument from the rest of the world that the inflationary pressure is going to be so great on the dollar, that the dollar must be abandoned as the reserve currency standard. Thus making the US taxpayer soley responsible for an insurmountable amount of debt.

- Slowly in isolated sound bites we are beginning to hear more and more little people around the world rightfully argue that the debt is debt created by the banks and is not the responsibility of the people.


Good luck

 

[Walk_softly]

Re: $80 Trillion At Risk?

To add my two cents.

Yes it is quite possible that you could see bank failures if enough people were to make a run on banks. They have fail safes to prevent this such as the ability to shut down and refuse to give you your money.

The FDIC does not insure you the client but the bank. Banks operate under fractional reserve lending rules with a ratio of 10:1 which means for every dollar that you put in they an loan out 10. The FED who loans money to banks operates on a 50:1 ratio! There would be no way for the banks to stay solvent based on these ratios should even a small percentage of users simultaneously withdraw their funds.The FDIC is supposed to step in and create solvency. They may do this by printing money and it may even hold off the financial collapse but it will only create more inflation. Inflation is the silent thief that makes the dollars in your pocket worth less even while you sleep. It punishes you for saving.

As far as derivatives being paid first, that is a possibility. No matter what the banks due however we will get short changed as long as the government is involved in economics.

 

[Maggot]

Re: $80 Trillion At Risk?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Walk_softly</div><div class="ubbcode-body">To add my two cents.

Yes it is quite possible that you could see bank failures if enough people were to make a run on banks. They have fail safes to prevent this such as the ability to shut down and refuse to give you your money.

The FDIC does not insure you the client but the bank. Banks operate under fractional reserve lending rules with a ratio of 10:1 which means for every dollar that you put in they an loan out 10. The FED who loans money to banks operates on a 50:1 ratio! There would be no way for the banks to stay solvent based on these ratios should even a small percentage of users simultaneously withdraw their funds.The FDIC is supposed to step in and create solvency. They may do this by printing money and it may even hold off the financial collapse but it will only create more inflation. Inflation is the silent thief that makes the dollars in your pocket worth less even while you sleep. It punishes you for saving.

As far as derivatives being paid first, that is a possibility. No matter what the banks due however we will get short changed as long as the government is involved in economics. </div></div>

Acrually, recently, Chase was using a fractional reserve of 330:1., and the FDIC has les than 1% coverage. See post on the Fed.

 

[Spazz.]

Re: $80 Trillion At Risk?

Good grief. You just have to wonder how long it will be until society just collapses due to everyone owing everyone else everything they have and more, and how much of that debt will end up being paid and by whom. Scary crap, I'm going to order my seeds now.

 

[Maggot]

Re: $80 Trillion At Risk?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Spazz</div><div class="ubbcode-body">Good grief. You just have to wonder how long it will be until society just collapses due to everyone owing everyone else everything they have and more, and how much of that debt will end up being paid and by whom. Scary crap, I'm going to order my seeds now. </div></div>

It will happen as soon as certain power brokers have their lackeys in place to seize controll of the US gov/military and use its power for thier own ends. Less thn 20 years, I would suspect, but I cant comment beyond that.

 

[Immorteq]

Re: $80 Trillion At Risk?

Derivatives will be the next bubble to burst and the inmates are running the asylum. Central Banks fail. This one will, hopefully soon.

 

[Walk_softly]

Re: $80 Trillion At Risk?

Northwest Territorial Mint.. They are good for silver and gold. If you are just getting into bullion I would recommend getting silver coins first. I couldn't imagine trying to buy a beer with a gold coin after the collapse. How would they make change for a 1700 dollar coin. But a 1oz silver at about 30 dollars could be drunk in one sitting.

@maggot 330:1

Scary stuff.

 

[steve123]

Re: $80 Trillion At Risk?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: High Binder</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: tucker301</div><div class="ubbcode-body">Ammo and gold are looking better and better all the time.
</div></div>

I'm starting to think about pulling my cash out of the bank ( I earn .01% anyway). The people in Greece apparently had a major run on their banks today.

</div></div>

I pulled mine out 6 months ago and invested in tangibles.

 

[pdogsbeware]

Re: $80 Trillion At Risk?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Walk_softly</div><div class="ubbcode-body">Northwest Territorial Mint.. They are good for silver and gold. If you are just getting into bullion I would recommend getting silver coins first. I couldn't imagine trying to buy a beer with a gold coin after the collapse. How would they make change for a 1700 dollar coin. But a 1oz silver at about 30 dollars could be drunk in one sitting.

@maggot 330:1

Scary stuff.</div></div>
This is NOT a derogatory statement towards you, I mean it. I follow your logic! But It is hilarious how you talk about the downfall of society and the best way to buy beer after in the same sentence! haha

 

[Don't try to run]

Re: $80 Trillion At Risk?

I have converted all my savings into Chinese Yuan, gasoline, antibiotics, razor wire, and bulk morphine, so I'm safe.

 

[ArmaHeavy]

Re: $80 Trillion At Risk?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Donttrytorun</div><div class="ubbcode-body">I have converted all my savings into Chinese Yuan</div></div>

You might want to change that. I came across some news purporting a serious drop in their economy, and a possible depression for them.

Now if the U.S. refuses to pay for dinner at that Chinese restaurant, then the ChiComs just might lose on an economical scale, and go out of business, or try to invade a country and plunder all their resources.

 

[Don't try to run]

Re: $80 Trillion At Risk?

My Yuan are safe, because I have the "real" Yuan, not the ones you are thinking of. Those sneaky ChiComs got a whole nother secret currency that is only going to go up in value. It is backed up by young Chinese female sex slaves, and they will always have value. Shipping costs are low too.

 

[Walk_softly]

Re: $80 Trillion At Risk?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: pdogsbeware</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Walk_softly</div><div class="ubbcode-body">Northwest Territorial Mint.. They are good for silver and gold. If you are just getting into bullion I would recommend getting silver coins first. I couldn't imagine trying to buy a beer with a gold coin after the collapse. How would they make change for a 1700 dollar coin. But a 1oz silver at about 30 dollars could be drunk in one sitting.

@maggot 330:1

Scary stuff.</div></div>
This is NOT a derogatory statement towards you, I mean it. I follow your logic! But It is hilarious how you talk about the downfall of society and the best way to buy beer after in the same sentence! haha </div></div>

Here in the Pac NW we have more home/micro brewers per capita than anywhere in the country. Of course I will be able to buy beer after the collapse

Thats why I have been stocking my crawl space with barley and hopps.