We’re Dealing With Government Lies & Misinformation

I agree with the author's dystopian take on the debt burdens of Europe and the US, including the notional value of derivatives held by the largest banks in the US.  Of course, the market value of said derivatives are worth far less than the notional derivatives, but the point is still taken that the global economy is severely over-leveraged and over-indebted.  These huge debt burdens are like an anchor tied around the neck of these economies, choking the life out of them. 

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/7/5_Greyerz__Were_Dealing_With_Government_Lies_%26_Misinformation.html

Big Risk: $1.2 Quadrillion Derivatives Market Dwarfs World GDP

http://www.dailyfinance.com/2010/06/09/risk-quadrillion-derivatives-market-gdp/

Thoughts for the day

If gold is a barbaric relic, why is the state with the highest GDP called the Golden State? And why is the Denver Mint the top coin facility in the world?

Read your history books, and remember the years 1849 and 1858. The whole western United States expansion occurred after those dates. Blood, sweat, tears, and death went toward producing something of value, unlike an instantaneous computer key-stroke to create trillions of dollars out of thin air.

Today's "prospectors" work around the clock to build value for customers: smarter smart phones, better search engines, smaller computers, faster internet connections, and effective treatment for diseases. Their form of alchemy is transforming sand (silicon) into better communications, deeper knowledge, higher entertainment value, and better health.

These entrepreneurs should be left unfettered to create more value and generate prosperity for all of us, while increasing our quality of life. They are the growth engine of our global economy. They shouldn't be punished for bankers gone wild and politicians gone crooked.

The derivatives bomb--and silver suppression

http://www.gata.org/node/8611

In the latest Office of the Comptroller of the Currency quarterly report , part of the US Treasury Department, the following exists:

The notional value of derivatives held by U.S. commercial banks increased $8.5 trillion in the fourth quarter, or 4.2%, to $212.8 trillion.

Five large commercial banks represent 97% of the total banking industry notional amounts and 88% of industry net current credit exposure.

In Table 1 on page 23, the five biggest banks: JPMorgan Chase, Bank of America, Goldman Sachs, Citibank, and Wells Fargo have total combined assets of $5,464,143,000,000, or almost $5.5 trillion. Yet, the notional value of their derivative contracts is $206,182,123,000,000, or over $206 trillion.

Financial reform? Too big to fail? Our shiftless government and banking regulators haven't learned a thing, and therefore, future financial crises will be unavoidable.

With silver, JPMorgan and HSBC hold derivatives with a notional value representing 106% of annual global production. I'd like to see exactly where they store all this silver, and exactly when these banks got into the mining business.