One foot on a banana peel …the other in a grave!
By Bill Holter
GoldSeek.com
Monday, 15 December 2014
Never before have I seen so many pieces of information to be put together in the span of just one week. This past week we were bombarded with connectable dot after connectable dot, nearly each and every one of them on their own would have caused a panic 30 years ago. I say “30 years ago” because this was before the 1987 crash, this was before anything and everything, nailed down or not …was levered many times over in what eventually became an inflation orgy. 30 years ago, black was not white, wrong was not right and “debt” was still in its infancy of being money. Fast forward to present day and we now have a monetary system with one foot on a banana peel and the other in a grave!
Let me list what I saw this past week as some very ugly dots to be connected, by no means is this list complete but I think you’ll get the point by the time you are done reading. Early in the week, China announced changes to their collateral rules for the credit quality necessary for corporate bonds to be accepted as collateral (now only AAA and AA bonds can now be used). This caused a 5.6% drop the following day in their stock market which did ripple around the world to other stock markets. This is significant because without a doubt it was an act of tightening credit and will directly decrease the liquidity available for the Chinese exchange. This is not a one day event as CNBC would lead you to believe.
Next, oil has outright crashed in price and finished the week under the recently unthinkable number of $60… and the repercussions have just started to be felt. The 130 year old firm Phibro announced they will be closing up shop while oil exporting currencies (including the ruble) were destroyed. There had been discussion over the last several weeks regarding the future of the shale industry, this discussion is now ended in that no one can say “this will blow over” any longer. $100’s of billions of extended credit is now impaired and this credit market has crashed to yields now over 10%. The crash in oil all by itself is enough to ruin the financial system but by no means was alone this past week.
The next dot to connect was the spending package passed by Congress. As Zerohedge reported Presenting The $303 Trillion In Derivatives That US Taxpayers Are Now On The Hook For , the U.S. public was sold down the river. Just a month after the Republicans won both houses of Congress, they have now allowed the banks to stuff their derivatives portfolios under the FDIC umbrella. Over $300 trillion worth! Prior to this, the FDIC insured over $6 trillion worth of bank deposits with a whopping $54 billion reserve… How could any “true American” have voted for this? Even a calculator with no batteries can understand this will unequivocally bankrupt the country, yet this law is passed little over one month after an election by the American public put trust in the Republicans as their “last hope”? Was this passed by mistake or do you think they knew what they were doing? Was Obamacare passed by mistake? Comically, the architect of Obamacare testified to Congress after calling the American public stupid …a traitor testifying to traitors, they should all be strung up for TREASON! Whether you know it or not, Congress just called the American public stupid also by passing this traitorous law.
The Rest…HERE
