"We're in the endgame for paper currency."
—John Hathaway, manager of Tocqueville Gold Fund; speaker at the Casey/Sprott Summit When Money Dies
The US dollar is doomed; so are the euro and many other fiat currencies. At the sold-out Casey/Sprott Summit When Money Dies, more than 20 seasoned investment pros, economists, and freethinkers provided their insights and advice on the coming currency collapse and what you can do to protect your assets. - Financial Sense 15.10.2011
O Muslims, be prepared for the coming day of Riba paper money collapse ! Mint or buy your Dinar and Dirham before the kuffar gobled up the gold and silver supply !
1 comment:
The folks you see above account for the bulk of US banking system derivatives exposure. And these are their charts after a 10% run in the market through Monday of this week. Anyone even tangentially watching did not need me to post their charts. You know what has been happening. Yes, we know lending is not happening. Yes, we know trading has been driving a lot of reported results and it has been a tough few months. Yes, we know bad debts lurk under the cover of non-mark to market on their books. And yes, we know the economy is slowing which is not exactly a wild positive for the banks. But most of this has all been true for years with the economic slowing recent. So why the plunge this year in sympathy with Euro financial sector deterioration? Is it in any way related to the clearly heightened risk in the Euro sector as a counter party to derivatives held by the above? We hear a ton about direct Euro financial sector exposure to PIIGS sovereign debt. What about the large French and German bank’s derivatives exposure? After all, the three French banks BNP, Credit Agricole and Societe Generale have assets that exceed the combined total of JPM, BAC and C. This is just France. And so their derivatives exposure is inconsequential relative to their smaller US brethren?
The fact is that no one has any hard data on US or European bank derivatives exposure or individual counter party exposure. But what we do know, although just a glimpse, is as follows. At the end of 2008, US banks (and it’s really the four key provocateurs above) were exposed to $200 trillion of notional derivatives contracts. By the second quarter of this year, that number is up just shy of 25% to $249.4 trillion. As usual, the bulk of that exposure is interest rate contracts. The funny thing is, though, US bank lending in aggregate from year end 2008 is down substantially.
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