The best Tragicomedy is never fiction. For anyone busy here is the encapsulated red pill version: Greece will default, but it wont be called a default – thanks to ISDA [Intentional Swap & Derivative Association]. This will keep the 5 largest (American Banks) laden with 97% of the Greek & Euro Credit Default Insurance alive, banks like the Morg with 1.4 trillion in assets and 89.9 trillion in off balance sheet derivatives.
A FASB redux.
The veil’s opaqueness has an opacity of 30 percent, and the financial mafia’s ways are clearly visible to anyone not fixated on “Jersey Shore.” I have a minute by minute post-mortem of the Ellis Martin/Sinclair interview [Click Here for Sinclair’s blog] but the CliffNotes are: Like the Fed, the member banks also own and control ISDA. Sinclair says that MF Global had insurance for its psychopath [my words] bets—but that ISDA didn’t call it a default. Basically the insurance was ruled null and void by ISDA according to Sinclair. It unveils why someone walking two unleashed dogs [Click Here] gets tazered and MF Corzine walks free when 40,000 clients are missing 1.2 billion. In other words, ‘Don’t blame me, go talk to the White House Chief of Staff about his bank and the insurance plan they call the shots on.’ Link:Citigroup Replaces JP Morgan as White House Chief of Staff
When Dr. “OBGYN” Doom called two figure gold a barbarous relic, Jim Sinclair was calling it to go to $1,706. Which begs the question: Who are you going to trust? They guy with sculpted female private parts [Click Here] on his wall or the 50 year veteran who was mentored by Jesse Livermore, the man tapped by Volcker to help unwind the Hunt Bros. silver trade?
A or B?
Sinclair suspects that a 30% haircut won’t be a default. He rightly wonders what will happen at 0%.
He reveals how “Swinging & Swapping Ben S. Bernanke” is, once again, rolling auctions that should fail. Just like he was when Grayson wore his dollar tie and called him out on 1 a trillion dollar swap with our money going to foreign banks. Note to the X-Box addicted kids: Your the tax slaves that’ll pay for this insanity.
So here is the long version and the audio of the interview. And remember, unless your in the financial mafia – keep your effing lapdogs on a flipping leash and tell the female park ranger your real name! What happened to the days when cops were there to help? When a, “Hey bud, put your dogs on a leash next time,” was all it took?
- ISDA International Swaps Derivatives Association
- Determine if an event is a default or not
- Will Determine if 5 US Banks will go insolvent — with respect to impending Greek debt
- 5 largest banks control 97% of swaps (see my many previous posts or table above)
- 3:00 if it is called a default then the swaps have to function
- 97% of the CDS insurance is held by 5 largest banks
- 4:00 Greece with 11 million people could set off default for US/world
- 4:30 At 30 cents on dollar will the ISDA call it a default – in all probability NO
- 5:10 5 major banks heavily influence the ISDA which determines if it is a default. More gas on the fire
- 6:30 Those who bought the longs on the Euro Bond, how MF went broke because the ISDA said 50% wasn’t a default so they had no insurance
- 7:25 sold worthless paper called Credit Default Swaps
- 8:06 50% haircut on Greek debt was not a default by ISDA those who (did business) with those who thought they had insurance got hosed because the ISDA said it wasn’t a defualt
- 8:50 ISDA is made up of the member banks
- 9:10 Anyone using Other Peoples Money OPMs these other clearing houses are going to get screwed, we’re in worth shape for we were in 2008
- 10:22 50% is a default, 30% is a default and when it gets to 0% just what the hell are they going to call it
- 10:40 we’re at more of a risk now than we were at 2008
- 11:12 Risk to the public is another 2008 with another bailout
- Election year will push it to a 30% haircut not being called a default
- Plugging the hole and not fixing it
- 12:44 Dollar negative goes into trash can with all the printing
- People don’t understand fragility of the system
- ISDA will trigger papering over
- 14:20 QE great for equities, QE is liquidity, it is the grease of the wheels
- 16:15 Feds financing rollovers on bad Euro debt
- 19:45 standing on the threshold of a credit event (Greek Debt) and ISDA will call if it is a sovereign default or not, with 5 major US banks holding 97% of the insurance and the banks being members of the ISDA and with this being an election year they won’t be calling this a default.
- 22:25 This of course means more liquidity, be it swaps or other
- Bullish for gold and equities stinks for Uncle Buck
- 23:26 you can not kick this can much further, the point is 0% at which it is an obvious default. Compare bank capitol to derivative risk
- 24:20 Gold is a currency