Ignorant Depositors…” Just because the regulators have allowed banks to mark their assets to fantasy levels does not mean the bad collateral will not fail. It will. IT ALL WILL! “

Thursday, April 9, 2015
By Paul Martin

Bill Holter
April 9, 2015

The plan for today was to pen an article regarding silver. I believe silver to be the cheapest, most undervalued asset on the planet. From these current levels I believe any capital in silver is a no brainer. Let’s hold off on this thought until next week however, a more pressing thought has come up.

Let’s start with a question. Would you ever lend money to someone you knew for a fact was bankrupt? Or, would you lend money to someone who told you to your face they were cooking their own book? Isn’t this exactly what you are doing any time you deposit money into most any bank? Without getting long winded on this aspect, you do remember back in 2010 or thereabouts our banks in the U.S. were allowed to outright cook their books? The banks were no longer required to price their portfolios at “marked to market” prices. Since then, they can simply “make up” whatever prices they choose and report those.

It is the same situation in Europe but they have had a little “help” in their fraud. For example let’s look at Greek bonds that are held in banks all over Europe. Greece without a doubt cannot mathematically pay back their debt. They do not have enough cash to even make next month’s “credit card payment” without an infusion from somewhere. I use this term credit card payment because that is exactly what these are, this week for example is a miniscule 500 million euros, not even half a ham sandwich in the global scheme of things. If they cannot make a payment or they go through a restructuring, or in all probability they cut a deal with the Russians and Chinese followed by “we quit and we aren’t paying you” …what are these bonds really worth? Ten cents? Five? Zero?

The Rest…HERE

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