All over the planet, large banks are massively overexposed to derivatives contracts. Interest rate derivatives account for the biggest chunk of these derivatives contracts. According to the Bank for International Settlements, the notional value of all interest rate derivatives contracts outstanding around the globe is a staggering 505 trillion dollars. Considering the fact that the U.S. national debt is only 18 trillion dollars, that is an amount of money that is almost incomprehensible. When this derivatives bubble finally bursts, there won’t be enough money in the entire world to bail everyone out. The key to making sure that all of these interest rate bets do not start going bad is for interest rates to remain stable. That is why what is going on in Greece right now is so important. The Greek government has announced that it will default on a loan payment that it owes to the IMF on June 5th. If that default does indeed happen, Greek bond yields will soar into the stratosphere as panicked investors flee for the exits. But it won’t just be Greece. If Greece defaults despite years of intervention by the EU and the IMF, that will be a clear signal to the financial world that no nation in Europe is truly safe. Bond yields will start spiking in Italy, Spain, Portugal, Ireland and all over the rest of the continent. By the end of it, we could be faced with the greatest interest rate derivatives crisis that any of us have ever seen.
Andy Hoffman joins me to document the collapse for May, 2015. We discuss the Fed’s fudged meeting minutes, the Big Banks latest crimes for which they’ve paid billions in fines yet NO ONE goes to jail, the Bankster’s desire to BAN CA$H, Mockingbird donations to Bill and Hillary Clinton, and the litany of reasons to GOTS: Get Out Of The System!
The death of mathematician John Nash on Sunday was met with a degree of sympathy and publicity seldom enjoyed by mathematicians whose contribution to society is usually a quiet, unappreciated one, behind the scenes. The 86 year old was killed with his wife in a tragic taxi accident in New Jersey.
The 2002 movie “A Beautiful Mind” with Russell Crowe popularised the story of his work on game theory – a mathematical study of how decisions are made – and his life with schizophrenia. He developed what became known as the ‘Nash Equilibrium’ for which he won the Nobel Prize for Economics in 1994.
If you aren’t eating yogurt on a daily basis, you might be shortchanging your health. There’s no easier way to get some healthy bacteria in your system than to enjoy some rich, delicious, full-fat yogurt loaded of active cultures.
I just flew back from a speaking gig at the Las Vegas MoneyShow.
When I wasn’t hustling free cocktails, swatting away hordes of prostitutes, and wining and dining with stinking-rich CEOs, I gave a presentation on dividend stocks and minimizing risk.
Now, when I first started giving these talks, I was keenly aware that every mom and pop investor knew about dividends, and likely owned plenty of your run-of-the-mill blue chips. But I naively assumed that most folks knew the safest and most effective way to maximize returns on them: buying “dividend aristocrats” and plugging them into a dividend reinvestment program.
Workers will be obligated to surrender their life savings to the government.
Teachers and other unionized workers have had to provide the Bank of the Ecuadorian Institute of Social Security (Biess) savings they have accumulated on their own to improve their lousy public pensions.
The teachers’ pension fund is the most significant, with $405 million saved in 23 years by 126,000 teachers. That is why they are the ones denouncing the arbitrary nature of the government’s demand to surrender their hard-earned money. The confiscation of their funds was approved by the Monetary and Financial Code adopted last September by the National Assembly.
How great was the global economy in the first quarter?
We know the US economy was crummy. The revised GDP estimate will likely sink into red mire. Hence the heated proposals these days, including at the Fed, to apply “a second round of seasonal adjustment” that would “correct” the first-quarter GDP estimate, no matter how bad, into positive territory. An elegant way of covering up an unsightly sore.
So was it just a crummy quarter in the US, or was it a global thing, in which case we might have to apply a “second round of” whatever to adjust the global downturn out of the picture?
It can be easy to forget why we’re here or why we’re doing everything we are, and it can especially be easy to give up and turn to things that distract us from our purpose and keep us from helping others. We have to persevere when the stresses pile up and we don’t feel like we can handle it all, because we know on a deeper level that we can.
It’s common knowledge in the conscious community that we’re capable of more than we realize at the surface, and to do anything significant to advance our collective evolution, we have to recognize that we’re infinite and find the inspiration to help the world in ways we enjoy.
… Troubles Our Sleep It is the vision of what the United States will be like when the authorities have obliterated almost three millennia of monetary progress and have their boots on our necks.
Here’s Peter Bofinger, a leading German Keynesian economist, in Der Spiegel magazine:
“With today’s technical possibilities, coins and notes are in fact an anachronism. They made payments incredibly difficult, with people wasting all sorts of time at the cashier as they wait for the person ahead of them to dig through their belongings to find some cash, and for the cashier to render change (rather than, for example, waiting for someone to find the right credit card, complete the transaction, and wait for approval).
As of this week, Citicorp, JPMorgan Chase, Barclays and Royal Bank of Scotland are felons, having pleaded guilty on Wednesday to criminal charges of conspiring to rig the value of the world’s currencies. According to the Justice Department, the lengthy and lucrative conspiracy enabled the banks to pad their profits without regard to fairness, the law or the public good.
Besides the criminal label, however, nothing much has changed for the banks. And that means nothing much has changed for the public. There is no meaningful accountability in the plea deals and, by extension, no meaningful deterrence from future wrongdoing. In a memo to employees this week, the chief executive of Citi, Michael Corbat, called the criminal behavior “an embarrassment” — not the word most people would use to describe a felony but an apt one in light of the fact that the plea deals are essentially a spanking, nothing more.
As the war in the gold and silver markets continues to rage, today King World News is warning readers about incredibly important action taking place in the war in the silver market.
Below is a chart from my friend Jason Goepfert at SentimenTrader showing the massive shorting in the silver market by commercial hedgers. They are now the most short the silver market as they have been in nearly 5 years.