The Markets Edge Closer To Collapse – What About The Derivatives?…”The pension funds are dead meat.”

Friday, December 18, 2015
By Paul Martin

SilverDoctors.com
December 17, 2015

The pension funds are dead meat. They have no hedging alternatives.
Their only “hedge” is if the Fed/Government decides to shut down the markets to in order to prevent selling.

Submitted by PM Fund Manager Dave Kranzler, Investment Research Dynamics:

The massive, unprecedented level of Central Bank intervention in the markets has terminated the purpose for having capital markets. Currently the only goal of the Fed is to do what needs to be done in order to prevent the markets from collapsing. This has been the mission since 2008 – and, really, since 1987.

Currently there’s a gargantuan tug of war going on between the hedge funds and the Fed. The hedge funds are leveraged up on extremely overvalued stocks and bonds. Most of them are about to become impaled on their OTC derivatives, which have zero liquidity and function to “turbo-charge” the margin debt extended to hedge funds by Wall Street. On the other side of the tug-of-war rope is the Fed/ECB/BoE, which are working furiously to prevent forced hedge fund selling from collapsing the markets.

The ongoing effort to push down the price of gold and silver is essential to prevent a big move higher in the metals from signalling to the world that global financial system is collapsing. If you don’t want everyone rushing out of the coal mine, remove the canary before it dies. Imposing downward pressure on the metals using their derivatives form is the Fed’s act of removing the canary. At some point the canary will escape and fly back into the coal mine…

The Rest…HERE

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