$1.4 Quadrillion Derivatives Meltdown, Chaos & $11,000 Gold

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/5/10_%241.4_Trillion_Derivatives_Meltdown%2C_Chaos_%26_%2411%2C000_Gold.html

Global Markets Now On The Verge Of Total Panic & Meltdown

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/7_Global_Markets_Now_On_The_Verge_Of_Total_Panic_%26_Meltdown.html

What happened on Friday certainly suggests that something major could be just around the corner.  It is well known that a rise in interest rates beyond certain levels will lay naked the insolvency of governments around the world.

While we certainly do not relish the chaos that would result from a meltdown of the bond market, it will not come as a shock to those who have studied financial history.  It is always the result of the fiscal and monetary policies which have been irresponsibly pursued, whether well-intended or not.

There are no examples in history of any paper currency not culminating in a violent collapse.  None.  It has been tried by all of our ancestors throughout human history.  All examples resulted in failure.  The lesson never learned is that humans cannot be trusted with the ability to create money out out thin air.  The list of those who have come before us include the Mongols, Chinese, French, Germans, Romans, Hungarians, etc.  It is not about a particular culture or a period in time.  It just does not work.

If the carnage in the bond market continues next week, we could finally be at that moment where the system reacts chaotically and violently.  It is sad, but it is the predictable end to the financial path that was chosen in the mid-1960s.

For those who are dispirited by the action in the energy and precious metals markets, a true panic out of financial assets into so-called real assets will cause those markets to skyrocket when denominated in fiat currency.  Today was a warning that this moment might finally be at hand.

Cyprus scrambles to avert meltdown, EU threatens cutoff

http://ca.news.yahoo.com/cyprus-throws-bailout-disarray-seeks-russian-help-074339638--sector.html

Truman Show, Jim Grant, Gold & Economies Close To Meltdown

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/9/11_Truman_Show%2C_Jim_Grant%2C_Gold_%26_Economies_Close_To_Meltdown.html

BNP Paribas Sold $2 Billion French Swap, EBA Says

http://www.bloomberg.com/news/2011-12-09/bnp-paribas-sold-2-billion-swap-protection-on-france-eba-says.html

“Some of this is trading rather than pure hedging,” said Gary Jenkins, head of fixed income at Evolution Securities Ltd. in London. “If European counties [sic] the size of France or Italy actually defaulted and triggered CDS, there would be total carnage and meltdown. It would be the end of the world, and at that stage it’s likely your counterparty would be the least of your worries.”

Panic in the S & P 500 pits

This is what a panic meltdown (and meltup) sounds like.

http://www.zerohedge.com/sites/default/files/Market%20Crash.mp3