Jan 25, 2016

America's Watchdogs Are Snarling, Sirens Wailing And Angelic Trumpeter Arising

Common Sense Commentary: The only remedy for a hopelessly troubled world...
"And he shall send his angels with a great sound of a trumpet, and they shall gather together his elect from the four winds, from one end of heaven to the other." Matt.24:31.

It is midnight and the watchdog is in high alert mode, barking at maximum volume, snarling in rage at something in the living room. The faithful watchdog's rage even sets off the alarm system which also turns on the lights and the sirens begin to wail their warning that something big is in the living room threatening the sleepers. The homeowner jumps wobbly out of bed, staggers to the living room door to see what is there. But the thing is so big, as big as a massive gray mastodon, all hairy with tusks as of tree trunks and an elephant type nose trunk sucking up everything in the house including the air. The sleepy-eyed, disheveled homeowner blinks with relief and heads back to bed, seeing nothing worthy of disturbing his sleep... just a small swishing gray tail hanging on a rough gray wall of mastodon hindermost hyde. When, in truth, that hindermost part of this mammoth "elephant in the room" is not Donald Trump, Hillary Clinton, Inflation, Deflation, even Terrorism, Muslim infiltration or Illegal immigration. This huge, fiscal and physical elephant in the room, which economists, politicians, News Media and nobody else, seems to see, but which our watchdog is barking at is Derivative Leverage exposure of the big banks. If that doesn't sound very dangerous ... If it sounds like negative thinking, fine ... but it is the truth. Read this USAWatchdog article by Greg Hunter if you want to know what the elephant in the room is.

This from America's watchdog, Greg Hunter in  USAWatchdog.

Four Biggest Banks in America 

have Huge Leverage

By Greg hunter’s USAWatchdog.com 
I keep hammering away at the fact the Fed doled out $16 trillion in the wake of the credit crisis of 2008.  This is an enormous sum that is greater than the all goods and services produced in the U.S. in a single year.  Domestic banks and companies got the money, right along with foreign banks and companies.  In effect, the Federal Reserve bailed out the world financial system.  Now, we are right back to square one facing another financial meltdown with European banks and sovereign debt.  If the Fed spent $16 trillion, why in the heck is this problem not fixed and why isn’t the world economy taking off like a rocket?”  The simple answer is it wasn’t enough money.
The Bank of International Settlements pegs the total world over-the-counter (OTC) derivative exposure at around $600 trillion, but many experts say the real figure is more than twice that amount.  No matter which figure you use, it is a gargantuan sum.  OTC derivatives are an unregulated dark pool of money with no public market.  These are basically debt bets between two entities on things such as credit risk, currencies, interest rates and commodities.  According to the latest report from the Comptroller of the Currency, just four U.S. banks have an eye popping $235 trillion of OTC derivative leverage. 
As a nation, U.S. banks have a total OTC derivative exposure of $250 trillion. So, the fact that just four U.S. banks have this much leverage and risk is astounding!  The banks are listed below in order of size and approximate OTC exposure:
1.)     JP MORGAN CHASE BANK NA OH $78.1 trillion OTC derivatives

2.)    CITIBANK NATIONAL ASSN $56.1 trillion OTC derivatives

3.)    BANK OF AMERICA NA NC $53.15 trillion OTC derivatives

4.)    GOLDMAN SACHS BANK USA NY $47.7 trillion OTC derivatives. 

Considering that the total assets of these four banks are a little more than $5 trillion, I see a frightening amount of risk with a total derivative exposure of $235 trillion!  This is nearly 50 to 1 leverage.  On top of that, assets such as real estate or mortgage-backed securities can be held on the books at whatever value the banks think they can sell them for in the future.  I call this government sanctioned accounting fraud, or mark to fantasy accounting.  Who knows what the true value of the banks “assets” really are.
My Comment.... For clarity, to put $235 trillion into proportion, a thousand thousand is one million. A thousand million it one billion. A thousand billion is one trillion. So $235 trillion is above a quarter of a quadrillion.There isn't that much wealth, property, infrastructure or GDP in the entire world.
So how could this be allowed to happen? Politicians in bed with Banksters!
And what is the only remedy for America and the World? Jesus, Jesus, Jesus ... Only Jesus. RB
The above derivative debt is the U.S. only. For the world 
derivative debt see the article under the following link:

Bigger Risk: $1.2 Quadrillion 

Derivatives Market Dwarfs 

World GDP


No comments: