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Well worth a quick speed read

Well that's ...
- If you can drag yourself away from the MSM coverage of ..birth of the baby "presently known as ..prince X"
(I remember the days when Prince the pop star withdrew from his record deal and became known for legal contract reasons as something like "a squiggle...the artist formerly known as...prince :o)

Anyway moving on
- this is published by the Bank of England & US FDIC
- whilst it is from the end of 2012
- it really does give great insight...as to what is going on... "behind the curtains"
- and how big....a scale

Details proposals & parliamentary changes ....needed...to get the frameworks for the
- DEPOSITOR bail-ins
- moving entities...not already covered by the...Banking Act into being covered by it
- so - they too - will then be covered...by...."the bail ins"

I have already detailed previously some of the Financial Stability Board publications - giving a similar ....taster....of what is "likely to come" on the near horizon

BUT - if you have any doubt as to...what is coming down the track - at ever increaing speed and.....getting closer by the day
- this helps perhaps reinforce further
- 'aving a ....personal plan

Quite hard to envisage ...events...and sequence...of "the big picture" of how day to day life will be...and
- how it unfolds
- WHEN...whats in the document...start swinging into action.

The likely fall of.. dominos (then again a pizza chain failure won't matter much :o)
- and social impact/unrest etc
- is quite hard to try and wrap to wrap the brain cells around

http://www.fdic.gov/about/srac/2012/gsifi.pdf

It's quite short for such a "BIIIIG TOPIC"...and written in suprising clear and plain
- understandable english too

This could be REALLY significant (proposal at this point)

The nutshell - proposal to - have banks list their "gross derivative" positions re repos
(currently they can net off...those derivative positions)

Reason significant
- it will put the asset/liabilties on their balance sheet..up with a bang
- that means......they have to increase...their reserve requirements...with a bump to cover the increased gross exposure.

And the SEC/FEDy - is urging - "procedures" to handle "a default in repos" and also make preparation for....draft templates...in advance.

http://www.zerohedge.com/news/2013-07-22/sec-warns-prepare-repo-defaults

The reason I find it very interesting (& not covered in the article)
- is it - covers the proposal to - STOP THE NETTING OFF of repo liabilities
(A 7 Trillion market)

So - is this a first step towards...stopping...the netting off of ....all ...derivative liabilities.

If so - this is where it gets..... really interesting

After scaring the sh!t out the world by publishing .....the REAL level of derivative exposure
- the BIS rapidly revised its method of calculation - to massage, soothe and slash its original figure....substantially.

So what was the original derivative - exposure figure

1.14 QUADRILLION dollars .....in my speak is
...one thousand, one hundred and fourteen - TRILLION

Now just imagine if the gross requirement of ... reporting, liability and provision of capital....is extended to....all that lot.
- mind bogglingly market destroying.

That in itself is a ???

But lets move on a little and look at how the original....true derivative exposure was made up

(this is from a report covering the BIS original release of info....ie the one before..... they rapidly revised the way they calculated the derivative figure....
knocking about....500 Trillion off the original....repeat 500 Trillion !!! :o)

The Bank of International Settlements (BIS) in Switzerland has recently reported that
- global outstanding derivatives have reached ......1.14 quadrillion dollars:

$548 Tril-lion in listed credit derivatives plus $596 trillion in notional OTC derivatives.
Furthermore, by 2007 credit default swap total value has dramatically increased to an estimated $45 trillion to $62 trillion. Subprime mortgage crisis, credit cri-sis and banking closure all have resulted from the violation of conservation money.

(lets put that 1,114 TRILLION derivatives in context)

Taking into the account that the World’s GDPs .....for all nations
- is approximately $50 trillion
- and all ....of the asset value of the world ....is only $190 Trillion,
- it can be seen easily that the over-valued $1140 trillion financial derivatives
- will lead in the near future
to the collapse of the whole international financial system
(similar to Iceland, Greece, Ireland crises and potentially in Spain, Portugal, and Italy....but global).

And even taking the BIS massaged/revised down figures

Have a look at....the light grey area in this graphic - they are....interest rate...swap derivatives
- imagine the size of hit...to parties ...if when interest rates rise
(in interest rate swaps for every winner...there is a loser....and a small percentage loss on a figure....in hundreds of trillions is...a really big number)
- those big losers also cause...domino effects
- which ripple outwards like a pebble in a pond




Just my thoughts.....on the way I join the dots FWIW

Potential roadmap could be a 'H&S'...



S.

Just one of those interesting ones - we are in unprecedented duration of
- negative GOFO rates

- interesting....what has happened ...after...previous occurences

Bill Holter's latest

The Entire Western World is “Detroit”

http://blog.milesfranklin.com/the-entire-western-world-is-detroit

Gaz, in relation to yesterday's Bill H article and your potential purchase of additional underwear, it is quite staggering how we all know that at some stage we're going to see some extreme changes, but none of us have a clue as to how it will turn out and how bad it would / could be.
I did like the fact that Bill sort of spelt it out as to what would probably trigger the whole collapse......
GOFO is the name and I'm sure the bankers will think that the frigging MOFO GOFO is causing havoc to their plans.......... or maybe this was the plan all along.

This really - just sums up - the sentiments of, around the whole 50 people in the pub last night....

Snurkle - IMO the holter tin hat, bunker style scenario is a given - it's just the when, no question of an..if.

Just, and I mean only, looking at...that piece I wrote about derivatives is mind boggling...when the derivative gross exposure is put in context of
- the whole world GDP & whole world assets
( not so much an 800 pound gorilla in the room, ...more a city filled with 800lb gorillas)

Add in that - they are considering starting with a move to have - repos liabilities shown as gross and not netted off.
- Plus the article re the B of E/FDIC sucking everything in - to be covered by the ...Cyprus template style bail-in
- and added to that - the FSB updates on advice to the G20 and progress re...
- cross border application of the template to...international too big to fails, markets, insurance Co's, brokers & intermediaries etc
- then I think that... they are putting everything in place....and lining up the ducks.

As to your comment - maybe " this was the plan all along"
- if you look up the Aaron Russo interview with Alex Jones
- then you are left in no doubt ....courtessy of David Rockerchappie befriending and effectively trying to recruit/convert Russo; that
- TPTB/Dynasty families have a ....rolling 40/50yr inter generational... plan of objectives.

Sharas link to the documentary "state of mind" - details the access TPTB have to some of the greatest minds via their funded universities, tax free foundations and their, shall we say, specialists and associated organisations.

Every permutation possible is considered, for any, and all, levers TPTB pull....nothing is left to ...chance.

As proof of just one small aspect - Jim Rickards confirms he took part in
- thePentagoons .....currency war games excercise.
(now in play of course)

Everything is planned... to the finest detail (even the cover stories to be run thro' their MSM).

Iceland, Ireland, Greece, Cyprus - were just try out tests of their theories... into practice.

So we await
- the lining up of the ducks & dominoes, and them putting the finishes touches of dotting the i's and crossing the t's
- at which time
- they press the big red button...and start pulling the levers.

Cut straight through the supposed neckline ;-/ ...



Trying to bouncer from the first |Fib line.

Look for the 50/DMA to hold or the 10/DMA and a potential back-test of the 'wedge'...



With Max pain on the miners at 24.50 for August I suppose we cant hope for much to happen till expiry date on the 16th August?/...

http://www.optionpain.com/OptionPain/Option-Pain.php

S.

Just a couple of pointers,
- for when the official sunshine blowing - official stats are
sunshined around in the MSM

- 1/3 (one third) of the ...total... unemployed in Euroland...are Spanish

And as I highlighted recently
- Add in the gov't has just "wonga loaned" for the second time.. this month
- from ...it's pension & welfare fund
- which is itself - app 98% invested in.....Spanish ..gov't bonds
(Unpleasant propect...given risk of ...Greek style sov bond haircut)

- So that's a .....Big domino wobbling in the - world of dominoes


- 101 MILLION Americans
(getting on for 1 in 3)
- are on some form of ....gov't food nutritional support programme
(predominantly..food stamps... etc)

(source USDA.gov june 13 report)

From memory that...exceeds...the number of ..full time employed US workers !!!

Detroit
- is really a microcosm city size view of what - will happen
- in western economies
(eg city employee pensioners to lose say up to 90% of their pensions)

The pension nightmare that is at the heart of the horrific financial crisis in Detroit is just the tip of the iceberg
- of the coming retirement crisis
- that will shake America to the core.

Right now, more than 10,000 Baby Boomers are hitting the age of 65
- every - single - day,
(and this will continue to happen... every single day... until
- the year 2030.

TPTB & puppet Gov'ts
- have made trillions of dollars of financial promises to these Baby Boomers, and...
- there is no way... that we are going to be able to keep those promises.
- The money simply is not there.
Yes, I suppose that we could eventually see a “super devaluation” of the U.S. dollar and keep our promises to the Baby Boomers..... using currency that is not worth much more than Monopoly money,

- But as it stands right now we simply do not have the resources to do.... what we said that we were going to do.
- The number of senior citizens in the United States is projected.... to more than double....... by the middle of the century,
- and it would have been nearly impossible to support them all..... even if ....we weren’t in the midst of a long-term economic decline.

Tens of millions of Americans that are eagerly looking forward to retirement
- are going to be in for a very rude awakening in the years ahead.
- There is going to be.... a lot of heartache and..... a lot of broken promises.

(yes the joy of - jam tomorrow - so pay your taxes today - and we will take care of you tomorrow....being swallowed by the sheeple ...again & again)

Sahara - technical trader Gary Savage, publisher of the Smart Money Tracker

General gist of his thoughts

We [now] have confirmation that June 28th was indeed an intermediate cycle low and a yearly cycle low.
- I think this yearly cycle low is not going to get violated for the rest of the bull market
- and I think we are starting either another C wave advance or this is the bubble phase.
- Each one of these C waves is getting bigger and bigger.
- The last one I think did 170% from the D wave bottom to the C wave top.
- This one should be bigger
- and especially considering that in my opinion we had some manipulation in the market.

So an artificial move down should make the move up that much more aggressive and go that much further.
- So if the last one did 170% and the miners did a little over 300%, this one should be bigger.
- We’re probably going to see 200% or more in gold
- and 400% or 500% in the miners if this is a C wave.
- If this is a bubble phase, then we’re probably going to see 300% to 400% from the bottom [in gold] at $1179 to the bubble top.

http://bullmarketthinking.com/wp-content/uploads/2013/07/7232013savage.mp3

I think the proof of the pudding he suggested

“When assets enter a bubble phase, what tends to happen is the market quickly recognizes that it was positioned wrongly and you get a lot of shorts that have to cover and so it just never pulls back. It just goes right back up to the old highs very quickly, races through them, and then the sentiment reverses to where everybody starts to chase and then the bubble phase unfolds.

So it depends on whether this is the beginning of the bubble phase or whether this is just going to be another C wave advance.

If gold goes back and tests those $1900 all-time highs very quickly in the next three, four months, by November,
- let’s say, if that happens,
- then.. I would say the odds are probably pretty good ...we are entering the bubble phase.”

Quite frank for a US Former Assistant Treasury Secretary

Paul Craig Roberts says,

“The country is not being run by the President.
- It is being run by spy agencies and private interest groups,
- Wall Street and military security complex . . .They run the country.

- The President is a puppet, a figurehead.”

Dr. Roberts contends,
“If you are a lawless state, which the United States is, it obeys no international law. It does not obey the Geneva Convention . . . It tortures people. It doesn’t obey the Constitution. It doesn’t obey anything. It does what it wants. . . . If you are a lawless state, you disguise yourself as a democracy.”

Former President Jimmy Carter agrees.
- Just last week, Carter said,

“The U.S. has no functioning democracy at this moment.”

Why hasn’t the mainstream media picked up this astounding comment from a former Democratic President...?
- Dr. Roberts says,
- “Five firms .........now own..... what used to be .......a large dispersed independent media.
- Nobody can open their mouth, .....they’d get fired.
- They have become a propaganda ministry for government and corporations.”

Dr. Roberts goes on to say,
“My prediction or expectation is by winter,
- the second downturn of the Great Recession... will be in place.
- Unemployment will explode,
- more foreclosures are coming.

It’s going to be worse than the Great Depression.”


Full interview





Some excellent insights too ....into what happens when ...presidents

- buck ....their controllers

- and .....a lot more

One of the - don't miss it ...ones

.

Metals option expiry...today

Thanks Gaz - I had seen the Silver Bear Vid yesterday and read the article by Gary Savage. But nice to see you are there too ;))

7/7 Attack!... But by Whom?...

Note how there is the usual timely bomb drill and how the BBC will/is to be used as a propaganda outlet...

http://www.youtube.com/watch?v=kwyzpzEgUWE&list=FLIJJ73tXXLsUM4AkyexI8lA

S.

Cheers Sahara - Added that to my post grass... list
(update - that;s watch it after I have cut the grass with a lawnmower :o)

This is the very best & most concise version I have seen - the freefall building.
(& I have seen a lot on this subject)

http://www.youtube.com/watch?v=hZEvA8BCoBw

Handy short one too..re any deniers etc
- hat tip to BHG for the link

Good idea Gaz - I like to watch videos like that in down-time instead of having my brain placed into an receptive Alapha sate by the patented flicker rate of LCD TV's so as to absorb all the subliminal programming of the satanic cult that rules us. ;-/

BTW have you noticed the commercials on mainstrem tv lately how childish they have all become, you really would think some of them are aimed at four year olds. Maybe there is a reason for that?...

http://www.ehow.com/about_5059398_tv-commercials-effects-children.html

S.

This rebound could run to the recent high...



Or - Close the 'Gap'...



Which would eerily plot a re-test of the breakoput...



S.

Sahara - That 1st para is impressive - says a hellevu lot in the fewest words possible.

My youngest son was around 5 and his favourite film of the era was the original "transformers movie". If he was colouring or even doing 5yr old maths (and my other son was watching it) - my youngest could whilst doing what he was doing -recite it word perfect, with accents and ...the emotion expressed in the words too.

I think it was Darren Brown - who had a down and out sat in a shopping centre with a begging bowl ...everyone just walked past.
- he then put some innocuous subliminal signage in the shop windows on the approach to the guy.
- nearly everyone gave him money...and from memory one passer by even offered him his trainers.

Amazing what our sub concious picks up. (with kids even more so - they have less already cluttering their sub concious I suppose)

For a time (if I remeber correctly) they slipped single frame subliminal ads in the trailers at the cinema
- when they banned them sales of coke and popcorn dropped significantly.

Looking forward to reading Prof Quigleys 1000 page epic - tragedy and hope
- when amazoon get a used copy over from the US
(new - were listed at.....£2/300 !!)
- been meaning to read it for years.

Many lectures & documentaries will be running in the background whilst I read that one :o)

$26 would be good :o)

Gaz - Very interesting. I have used Derren Brown to explain to others how effective and powerful mind conditioning actually works on the unsuspecting, without their awareness. Usually after they have refuted what I say on the subject of mass programming as ridiculous. You can actually see the penny drop and the sudden awareness (wakefulness) and then a rapid change of subject, rather than debate the fact further.

This attitude that has occurred countless times when I try to engage others to the wider reality has made me realise that there is also the same powerful effective conditioning employed to refute, ignore or sidetrack such an attempt on someone to wake them up. REMARKABLE!!

Yes - $26 is also around the 50% Fib line.

Looks like a 'Bear Flag' on the intraday SLV chart which would be a shame as any weakness here would imply a failed break and a re-test of the lows, currently we have support at the $19.50 line, which I would like to see held.



Look for a pincer action between the Blue 252 average and the uptrend support line.

S.