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well found and well executed.

Good to see you here too Gaz.

http://www.zerohedge.com/news/2013-06-12/summarizing-known-rigged-markets

Snurks - that should make your link above live.

And your Bill Holter link too.

http://blog.milesfranklin.com/what-a-complete-farce

Just use the hyperlink - 2nd icon from the end - at the top of the post box. :-)

Regardless by whom the following article is written, it speaks for itself what we we're about to face.


Sprott's Thoughts
June 12, 2013



The Dijssel-Bomb
Eric Sprott and David Franklin (dfranklin@sprott.com)

This past March, Jeroen Dijsselbloem, the head of the finance ministers of the eurozone, shocked the markets with seemingly off-the-cuff comments suggesting that the Cyprus banking solution will, “serve as a model for dealing with future banking crises.”1 Depositors across Europe took a collective gasp of horror – could banks possibly confiscate depositors’ funds in a form of daylight robbery? Indeed they could, and last week the Bank for International Settlements (“BIS”), the Central Bank's Central Bank, published what we have referred to as ‘the template’; a blueprint outlining the steps to handle the failure of a major bank and the conditions to be met before ‘bailing-in’ deposits.

In their recently published paper “A Template For Recapitalising Too-Big-To-Fail Banks”, authors Paul Melaschenko and Noel Reynolds argue for a “simple” mechanism to recapitalize failed banks without the use of taxpayers' money. They propose a process whereby a bank, if it reached the point of failure, could transfer ownership to a newly created holding company over a weekend and be recapitalized. The bank would then be sold, enabling the market to determine the ultimate losses to previous equity holders and creditors. And, yes, this scenario includes losses for depositors above a guaranteed limit. Presto! A new bank with a clean balance sheet, ready to receive liquidity support from the prevailing central bank, without the need for handouts, bailouts, TARP programs, or any other form of government assistance. Previous debt and equity holders and depositors of this failed bank would be left with an equity position in the new entity. This ‘template’ would ensure that “shareholders and uninsured private sector creditors (read: depositors and bond holders) of such banks, rather than taxpayers, bear the cost of resolution.”2 While at the moment this framework is only outlined in a discussion paper, it confirms our suspicions. While the old template involved “bailing out” banks through the transfer of toxic assets from the corporate sector to the taxpayer, the new template calls for “bailing in”. In this model the risk is contained within the affected institution at the expense of equity holders, bond holders and finally depositors. Far from being an idle comment, the unscripted 'bomb' that Mr. Dijsselbloem dropped on the market during the Cyprus Banking crisis is on its way to becoming a reality across Europe and other major banking centers.

In our opinion, the problem with the banks stems from an over-levered banking system that still has not been brought under control. Traditionally, banks would “de-lever” by selling portions of their loan portfolios to other banks, but since 2008, this hasn’t happened in most instances and leverage has remained elevated. In fact, an example of a bank “bail-out” that highlights the over-leverage still plaguing the system, happened recently in Mr. Dijsselbloem’s own back-yard. In this instance, the Netherlands nationalized SNS Reaal, a banking and insurance group, in a $14 billion rescue that highlights the continued fragility of the European banking sector.

From The Wall Street Journal:

The government rescue was inevitable after SNS Reaal suffered a run on deposits and failed to raise capital on its own. “It is worrisome. Nearly the entire Dutch banking system is now on a government lifeline,” said Arnoud Boot, a professor of corporate finance at the University of Amsterdam. The Dutch state will inject €2.2 billion ($2.99 billion) into the company, write off €800 million from an earlier bailout and €700 million on the value of SNS Reaal's toxic property loans. It will also provide an additional €6.1 billion in loans and guarantees to put the firm on a sound footing. The burden to taxpayers will be eased somewhat through a €1 billion contribution from the other Dutch banks through a special levy.3

Can you see the pattern? Depositor runs triggered a bailout of an over-levered institution, leading to a write-off of toxic assets, additional lending and guarantees by the government. All of this committed to by Mr. Dijsselbloem on behalf of the Dutch people. This will likely be the last time we see a rescue in this fashion, for now we have a new ‘template’ whose prima facie case was Cyprus. It is interesting to note that, to the best of our knowledge, there was no discussion of “bail-ins” for Dutch depositors of SNS Reaal.

It is clear now that the crossing of the Rubicon into the confiscation of depositor funds was not a one-off emergency measure limited to Cyprus. We can only speculate as to what triggered these new rules. Perhaps the public would no longer tolerate the use of taxpayer-funds to effect bailouts of banks? Maybe this is the beginning of an attack on offshore banking havens? Or possibly the regulators are hoping to impose some market discipline on the banks, forcing depositors to review bank balance sheets before opening an account. Regardless of motivation this is a game changer.

So what is the impact of this ‘template’ for investors? By law, when you put your money into a deposit account, your money becomes a liability of the bank. Above an insured amount, you become an ‘unsecured creditor’ with a claim against the assets of a bank if it were to fail; your deposits are now pooled with other assets and divided amongst other creditors. We urge investors to consider any deposits above the insured amounts to be only as safe as the credit-worthiness and capital structure of the bank indicates. Only by understanding where you are in the creditor ‘pecking order’ will you avoid a ‘Dijssel-Bomb’ in the next phase of the on-going financial crisis.

Snurkle - likewise (nice to be back amonst friends) & good to have a board with working links , pictures & charts again

- I think ftb I will tend to just post over here, just on this silver board

A gratuitous 'hello' from me :)
DD

Well generally it's worth looking at as many permutations of future guesses
- from QE to infinity - through to global preparations for the "Cyprus Template"
- and expert thoughts and opinions

Someone has kindly put the legwork in and knocked up a chart based on his assessment of cycles over the last 25yrs......and where and when prices ....could be going
(based on his model)

Seems a reasonable test fit to actual (retrospectively).....but then again
- they didn't have plunge protection, full spectrum market manipulation, global central bank co-ordinated QE to infinity, manipulated near zero interest rates, near total ownership & control of MSM, metal ETF's, algo boxes and 100 other etc's

So just a fwiw addition.

But all the above are "possibly" just supressing perhaps the desired trend like a spring.



For full methodology, assumptions and caveats etc
- see

http://www.deviantinvestor.com/4603/4603/

Hi & Welcome DoobyD - good to have you over 'ere too

Squirrell - you are getting busy with the headers - excellent work
- so as well as seeing welcome names coming over
- looking more and more like home up there at the top too :o)

Interesting - in my speak - just taxpayers potentially bailing out...the banksters (again)

Government buys up - the shite underwater mortgages - restructures and writes off some of the debt.....so the householer can afford the reduced restructured debt
(&....the banks get rid of shite loans off their balance sheets....and who picks up the tab for the gov't writing off some of the mortgage debt.....yes - joe public, the taxpayer)

From the FEDy

With more than 11 million homes still “underwater,” the mortgage debt overhang caused by the housing bubble
- remains an impediment to economic growth and a burden on communities across the country.

One possible solution to this problem
- is for state and municipal governments
- to use their eminent domain authority..... to purchase and restructure underwater mortgages.
This novel solution...... is proposed in a new report from the Federal Reserve Bank of New York.

Many analysts agree that .....principal reductions..... are the best way to assist underwater homeowners
(those who owe more on their mortgages than their houses are worth).

Such write-downs can be difficult to achieve, however,
- when..... the underlying mortgages are securitized and held by private-label securitization trusts. Specifically, such loans are subject to pooling and servicing agreements that require collective action by a large majority of security holders before a loan can be modified.
- As a result, ......carrying out write-downs is challenging and sometimes impossible.

In “Paying Paul and Robbing No One: An Eminent Domain Solution for Underwater Mortgage Debt,” author Robert Hockett argues that one possible way to sidestep this problem is

- by having governments buy
- and ..restructure ..underwater mortgages.
(By utilizing their eminent domain authority, state and municipal governments could bypass the coordination problems posed by the pooling and servicing agreements).

They could then... reduce the principal.... on underwater loans,
- lowering the amount.... owed by borrowers
and thereby reducing the risk of default.

http://www.zerohedge.com/news/2013-06-11/eminent-domain-back-table-following-feds-latest-bailout-proposal

(& the taxpayer - picks up the tab.... as a result of the "lowering the amount.... owed by borrowers" & the banksters offload yet more of their shite - once again
- but they phrase it much more... succinctly...than I)

Regarding the run on JP Morgan's Gold vault.
- They saw 28.4% of their Gold get up and leave ....overnight.
Well, not exactly correct. Yes the withdrawal was 28.4% of the total but the withdrawal was entirely from their CUSTOMER side of the vault!
- The customer side dropped by 217,844 ounces...
- only leaving 136,380 ounces of Gold left.

This represents OVER 61% of JP Morgan's customer Gold
- leaving...... in one day!
By the way there was another 136 notices issued today which represents another 13,600 ounces or
- another 10% of the remaining which should leave.... tomorrow!
Is this a run on the bank (vault) or what?

But wait, if you thought it couldn't get any better...it does.
- If you look at the what has so far been issued this month it amounts to 4,946 contracts, this is .....494,600 ounces
- yet JP Morgan claims to have only..... 413,525 ounces ....in their dealer account.
- This means they have ....a negative 81,074 ounces of Gold ....for delivery?

I bring this up because so far this year I don't believe that they have added..... ANY Gold to their dealer account.

Harvey Organ went back and checked each and every day this year and sees ...none,
- zero,
- not one single ounce ....added to the dealer side.
What's up with this? Is this a default?

They also "owe" over 81,000 ounces that was to be delivered by..... May 31st - from the customer side due to a 1,000 contract issuance,
-yet today is June 12th...am I missing something here?

So - if you are a fan of connecting the dots
- does this look like people not only - want their Gold
- they want it..... now !

What if you were one of the owners of part of the remaining dregs of 136,000 ounces?
(Would you maybe want to get your hands on it now...while they say that it's there?)

Looks like Gensler
(Head of CFTC & the 4/5 or is it 10yr investigation into.... silver manipulation)

- looks like getting - the push.....for being....to hard on...
- wall st.

If that's an example of being too hard
- makes you wonder - how soft the new (ex SachsOFgold) replacement will be on wall st
- when (Ex sachsOFgold) Gensler goes

http://www.huffingtonpost.com/2013/06/11/amanda-renteria-cftc-chief_n_3419039.html

Even the DUTCH
- are bailing out the Banksters - wring off their toxic shite
- and even - an earlier bailout
- and saddling - the taxpayers with - the tab

I would imagine - The next - will probably be "Cyprus bail in" style

The Wall Street Journal:

The government rescue was inevitable after SNS Reaal
- suffered a run on deposits and.....
- failed to raise capital on its own.

- “It is worrisome.- Nearly the entire Dutch banking system is now on..... a government lifeline,”
(said Arnoud Boot, a professor of corporate finance at the University of Amsterdam).

The Dutch state will inject €2.2 billion ($2.99 billion) into the company,
- write off €800 million from .....an earlier bailout
- and €700 million on the value of SNS Reaal's toxic property loans.
- It will also provide an additional €6.1 billion in loans and guarantees
to put the firm on a sound footing.

BUT
- The burden to taxpayers will be eased somewhat through a (piddly) €1 billion contribution from the other Dutch banks through a special levy.3

This latest correction, more than any I can remember, has the experts scratching their heads.
-When an upward or downward spike in the market .....proceeds sans logical underpinnings,
- a snap-back rally or correction...... often follows.

The last such incident in the gold market occurred in 2008.
- The market sold-off roughly 30% at the height of the financial crisis,
- and then..... regained and .....superseded those losses
- before 90-days had elapsed.
(From there the market climbed to all time highs in 2009.)



First,
reserve bank credit has gone vertical since November’s near-term bottom — up over 15%. The Fed might reverse or moderate its purchases at some point in the future, but at the moment, it has the pedal to the metal. While Ben Bernanke couches his rhetoric and keeps the markets guessing, he quietly – in reality — engages the Fed in what could be a new round of quantitative easing.
- In short,
the markets should be paying attention to what the Fed does, not ....what it says.

Second,
- the gold price, as a result of its recent plunge,
- has crossed decisively under the reserve bank credit trend line.

The two developments together have made for
- an interesting chart divergence
- the sort of thing that catches the attention of technicians and.... value investors alike,
- particularly....... if it defies logical explanation.

http://www.usagold.com/cpmforum/2013/06/11/the-connection-between-quantitative-easing-and-the-gold-price-3/

Gaz and squirrel.
Thanks for trying to tell me how to post live links, but as a technophobe I absolutely cannot get my head around tech speak so have no idea what you're on about when you explain

Just use the hyperlink - 2nd icon from the end - at the top of the post box. :-)

it's all Japanese to me.

Is there an English way of telling me how to do it.... idiot fashion??

Slightly off topic.
Look at the difference in price of a 1/2 oz krugerrand gold coin
between CID £507.48 and GuernseyM £483.02

However with the gold / silver ratio very high and rising would gold be the right purchase right now? Gold is cheap, but silver even cheaper....decisions, decisions

Snurks - when you start typing in the box - look to the left and you will see this

B I U

after that there are two more images - the one next to the U is the hyperlink - looks like a link chain and the one next to that is a box with a little bit of blue in the middle.

The chain is for posting links so that your links become blue and live - click on the chain and then paste your link inside the pop up box (you will need to delete the http that is already in there).

Don't worry about charts etc. for now - I've only just learned how to do those. But basically the box after the chain is what is used to post charts, graphics etc.

Give it a try - we'll be patient. :-)

Glenn Beck - Teaser - next 24hrs
- a whistleblower will reveal info that can take down - "the whole...power structure"
- and that's his teaser - from having seen .....only one document

">

In the 2 mins - Beck says - the guy will only testify before congress....and on TV at that
- effectively the guy says - he's a "dead man walking"

Beck claims - when the whistleblower reveals...

"The American people, ......you haven’t even begun.. to be outraged".

Squirrell - deep joy
- can even embed... click and play videos on here too
(you can watch, if you wish - without even leaving the page ...nice touch :o)

Watching it now. I like this site - very user friendly.

FYG Squirrel. Frankel isn't a shorter nor is he winnifroth.
His comments certainly were not defamatory either so you might want to tone it down yourself.