In order to know what is really going on in the world, you need to first shut off the parade of mainstream media clowns and start tuning into alternative media.
One commentator recently pointed out what should seem obvious to anyone who actually has a brain and uses it.
Just take a daily synopsis of the headlines on the front pages of some of the biggest news sites on the Internet and you constantly find this type of garbage listed below while truly important news is almost completely ignored:
CNN
"Is this baby doll really saying b****?"
"Toddler accidentally served vodka"
"Elton John frets over Gaga"
MSNBC
"Zimmerman stocks up on Cheetos in jail"
"Axl Rose robbed of $200,000 worth of jewelry"
"Did Jewel get teeth fixed?"
Fox News
"Custom Car Builder Claims Hot Wheels Stole His Truck"
"Lighter Side of 'Tanning Mom'"
"Nudist expo bares all in naked tourist industry"
And where would we be without another story and pictorial of the Kardashians, some Hollywood idiot or professional athlete doing something stupid and getting major media coverage over it?
WHO CARES ABOUT THIS CRAP?!
If Robin was still here today, he'd probably say, "Holy Hell Batman, is there any intelligent life left on planet earth?"
Unfortunately, most of what passes for "news" these days is essentially just brain-dead 'infotainment.'
That's one of the reasons we have seen such a surge in the popularity of alternative news outlets in recent years: More and more people are dumping the mainstream news squids and searching for the truth.
Hallelujah!
In doing so, they are starting to connect the dots about what is really going on behind the scenes and who the real enemies are...
These are the people who want answers to the truly important questions right now like:
- Why is the mainstream media in the United States so silent about the grave threat that Fukushima reactor number 4 poses to the entire Northern Hemisphere?
- Shouldn't we be alarmed that a thousand tons of radioactive water from the Fukushima nuclear disaster is being poured into the Pacific Ocean every single day?
- Why are radiation levels in the rain falling in southern California five times above normal?
- Why is the EPA now using drones to spy on farmers in Nebraska and Iowa?
- What in the world was Mitt Romney doing at the Bilderberg Group conference? Reporter Charlie Skelton claims that he has four different eyewitnesses that saw Romney there....
- What is the real story behind the incredible lack of reporting regarding the European crisis — especially in the countries of Greece, Spain, and Italy right now?
- Why has Citigroup been put in charge of issuing "digital-identity badges" to individuals that work for Defense Department contractors?
- What does the fact that "organized shoplifting" is rapidly rising in America say about the level of social decay in our nation?
- Why does the United Nations want to govern the Internet? Why aren't more people getting upset about their attempted power grab?
- Why have TSA agents been caught committing so many crimes? The following is what one member of Congress recently had to say about a new report detailing dozens of serious crimes that TSA agents have committed in recent years:
"TSA needs to immediately remove themselves from the human resource business. This report details highly disturbing cases where pedophiles and child pornographers wearing federal law enforcement uniforms are not only patting down unsuspecting travelers, but in many cases stealing valuables from their bags. Enough is enough. It's time for Congress to step in and demand accountability from Administrator Pistole." - Why are some schools in Texas planning to use RFID tracking chips to monitor the movement of their students? Check out what one school district down in the San Antonio area has planned:
"Northside Independent School District plans to track students next year on two of its campuses using technology implanted in their student identification cards in a trial that could eventually include all 112 of its schools and all of its nearly 100,000 students."
I am sure many of you could add more questions about other truly serious issues facing us on an individual, national, or global basis, but I think you get the point.
I bring these items to your attention because if you are trying to be a wise investor, it is mighty difficult to have success when you don't know the truth about things.
We are living in a time of unprecedented events. Throughout world history, there have always been good times, bad times, wars, rumors of wars, and problems that may have seemed insurmountable at the moment.
But in our so-called modern-day age of high-tech wonders and medical miracles, we now have a titanic problem the world has never seen before: derivative liability on a scale that boggles the mind.
What is even more puzzling is the fact that 90% of the people have absolutely no understanding or the slightest clue how this is now going to affect us.
A recent article posted at ZeroHedge.com clearly illustrates the necessity for alternative media to help us wrap our arms around this situation.
Raoul Pal was a Goldman Suks employee who co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe. After Goldman, he was the founder of Global Macro Investor, co-manager of GLG Global Macro Fund in London for GLG Partners, one of the largest hedge fund groups in the world.
As ZeroHedge accurately notes, "This is not some doomsday sprouting windbag arbitrarily pasting together disparate charts to create 200 page slideshows."
With Pal's resume, this is someone who is well-connected financially and knows things most others don't.
His latest writings — specifically his latest presentation — are what we want to pay attention to, as they portray the most disturbing and scary forecast related to these derivatives for the global economy:
- We don't know exactly what is to come, but we can all join the very few dots from where we are now, to the collapse of the first major bank...
- With very limited room for government bailouts, we can very easily join the next dots from the first bank closure to the collapse of the whole European banking system, and then to the bankruptcy of the governments themselves.
- There are almost no brakes in the system to stop this, and almost no one realizes the seriousness of the situation.
- The problem is not Government debt per se. The real problem is that the $70 trillion in G10 debt is the collateral for $700 trillion in derivatives...
- Yes, that equates to 1200% of Global GDP and it rests on very, very weak foundations...
- From an EU crisis, we only have to join one dot for a UK crisis of equal magnitude.
- And then do you think Japan and China would not be next?
- And then do you think the U.S. would survive unscathed?
- That is the end of the fractional reserve banking system and of fiat money.
- It is the big RESET.
Pal continues:
- Bonds will be stuck at 1% in the U.S., Germany, UK, and Japan (for this phase).
- The whole bond market will be dead.
- Short selling on bonds — banned.
- Short selling stocks — banned.
- CDS — banned.
- Short futures — banned.
- Put options — banned.
- All that is left is the Dollar and Gold.
It only gets better (we use the term loosely)...
- We have around six months left of trading in Western markets to protect ourselves or make enough money to offset future losses.
- Spend your time looking at the risks of custody, safekeeping, counterparty etc. Assume that no one and nothing is safe.
- After that... we put on our tin helmets and hide until the new system emerges.
And the punch line: From a timing perspective, I think 2012 and 2013 will usher in the end.
After hearing this, we start to wonder about the recent revelations regarding J.P. Morgan Chase and their $2 billion derivative loss (or was that $4 billion?). The latest news seems to indicate $6 to $7 billion, but suddenly it's starting to sound like just the tip of the iceberg, similar to how the 2008 derivative meltdown started.
For those not familiar with the current derivative liability hanging over the head of the financial system, here are the facts: There is nearly $1 quadrillion (that's 1,000 trillion) of unsecured derivative liability in the world.
This number is absolutely insane! A million seconds is roughly 12 and half days. A billion seconds is 32 years. A trillion in terms of seconds represents 32,000 years. A quadrillion is 1,000 times 32,000 years in terms of seconds.
It's hard to get one's head wrapped around such a number.
The Best Free Investment You'll Ever Make
Stay on top of the hottest investment ideas before they hit Wall Street. Sign up for the Wealth Daily newsletter below. You'll also get our free report, "Gold & Silver Mining Stocks".The Top 5 U.S. banks make up $230 trillion ($230,000,000,000,000) of this quadrillion dollar liability.
Here is the breakdown of this number as accurately described by noted retired writer Paul Roberts who was famous with the Washington Post...
We just got done talking about the derivative liability in Europe in the ZeroHedge article; now Paul Roberts enlightens us about another $230 trillion:
However, the $230,000,000,000,000 in derivative bets by U.S. banks might bring its own surprises. JPMorgan Chase has had to admit that its recently announced derivative loss of $2 billion is more than that. How much more remains to be seen. According to the Comptroller of the Currency, the five largest banks hold 95.7% of all derivatives held by banks. The five banks holding $226 trillion in derivative bets are highly leveraged gamblers.
For example, JPMorgan Chase has total assets of $1.8 trillion but holds $70 trillion in derivative bets, a ratio of $39 in derivative bets for every dollar of assets. Such a bank doesn't have to lose very many bets before it is busted.
Assets, of course, are not risk-based capital. According to the Comptroller of the Currency report, as of December 31, 2011, JPMorgan Chase held $70.2 trillion in derivatives and only $136 billion in risk-based capital. In other words, the bank's derivative bets are 516 times larger than the capital that covers the bets.
It is difficult to imagine a more reckless and unstable position for a bank to place itself in, but Goldman Sachs takes the cake. That bank's $44 trillion in derivative bets is covered by only $19 billion in risk-based capital, resulting in bets 2,295 times larger than the capital that covers them.
Bets on interest rates comprise 81% of all derivatives. These are the derivatives that support high U.S. Treasury bond prices despite massive increases in U.S. debt and its monetization.
U.S. banks' derivative bets of $230 trillion, concentrated in five banks, are 15.3 times larger than the U.S. GDP. A failed political system that allows unregulated banks to place uncovered bets 15 times larger than the U.S. economy is a system that is headed for catastrophic failure. As the word spreads of the fantastic lack of judgment in the American political and financial systems, the catastrophe in waiting will become a reality.
How did we allow this to happen?
Do you want to know where we stand and what is going to happen to the U.S. economy and global economies?
Stop listening to the mainstream media and start getting acquainted with what is going on with this terrible derivative situation.
No wonder Ben 'the Liar' Bernanke has to tell so many lies... He told us after QE1 there would be no need for QE2 and yet we did QE2 in spades. As of today, he is telling us there is no need to do QE3 — but plans are already under way for exactly that.
If you listen to what Ben says in the mainstream media, you are almost certain to lose your shirt in the investment world in the coming months and years ahead.
Banksters and politicians are caught between a rock and hard place as the consequence phase for decades of abuse and stupidity finally catch up and overtake them. They have become professionals at providing sound bites to the unsuspecting and trusting public who desire to believe the lies.
However, the public is becoming more wary of them by the day...
A global economic disaster and resulting paradigm shift had to happen at some point, and it appears that time has come. We are now coming to a point where there is no more "kicking of the can" down the road.
History clearly shows that governments and central banks can hide their mistakes for many years, but they all eventually go bust. What we are witnessing in Europe, in my opinion, is just a precursor for what will eventually come to London, the United States, Japan, and China.
People ask me if the bull market in precious metals is over. Most of these individuals are the very ones who are still listening to the mainstream media, who have a constant propaganda machine to bash the precious metals.
Let's look at this thing from an objective standpoint for the past 12 years to help you understand if you haven't already figured it out...
Each and every year for the past 14 years, I have been bullish on owning gold and silver.
Now, realize I am not talking about the fraudulent paper representations of gold and silver like pooled accounts, certificate programs, or ETFs...
You will never see the full benefit of those investments as the precious metals soar to levels the average investor can't even understand at this point. The reason: They are not backed with real metal as is fraudulently advertised.
I also want to mention the fact that for eleven years in a row, gold and silver have hit a new high each and every year since 2001.
When gold was at $350, I remember the mainstream media coming out in droves saying how gold would never cross $400 and was most likely headed to $150. Each and every year for the past eleven years, these manipulative morons have said the same thing as gold kept tracking higher and higher. They were wrong, and guys like me have been right.
Who are you going to listen to?
Why would the secular bull market in precious metals be over at this point? Has anything changed for the better?
Of course not. They are getting much worse very quickly... and governments and their central banks don't know what to do about it other than create money out of thin air and pump it into the system.
It's not working. Look at what Merkel and the Euro jackals told us just three months ago that all has been solved with debts in the European Union and not to worry. Now we find out there is plenty to worry about, and QE3 will be happening in a big way despite what the banksters say.
The fact is that after reaching each and every new high the past eleven years, the precious metals markets have always corrected back 10% to 25% from the latest high before trekking to the next new high.
The reasons to own gold and silver have never been stronger than right now.
They will become even more so in the coming months and years ahead as the calamity of banksters and politicians is fully exposed for the entire world to see.
And people are going to become irate as they lose their savings, pensions, etc., etc.
As Richard Maybury recently said in his Early Warning Report (1-800-509-5400), the evidence is quite clear:
Socialism doesn't work. The leviathan state in Washington needn't be overthrown because it is committing economic suicide. Like the Kremlin in the Union of Soviet Socialist Republics two decades ago, the whole statist structure is collapsing of its own weight, because it is rotten to the core. The trouble we have been seeing all over the world during the past several years is the beginning of this spontaneous disintegration everywhere.
What will the U.S. and the world be like as the disintegration unfolds?
How can anyone think the bull market in precious metals is over?
The only people who would think so are those who believe what politicians tell us and who listen to the Kool-Aid propaganda being served up daily by the elitist-controlled media.
Look for alternative sources to find the truth and set yourself free from the "lying media presstitutes," as Gerald Celente refers to these vermin in the mainstream media.
Get ready for gold and silver to make a run to the next new highs before the year is out as the problems with debts, fiat currencies, and derivatives all come to a head at once.
It's not going to be pretty for those who are unprepared, so do what you can to get your house in order before it's too late...
Ownership of physical gold and silver that is in your possession will be paramount to your financial success in the coming months and years ahead. Eventually, the right mining stocks could offer insane leverage to drastically higher precious metals prices.
Seek out and learn the truth as quickly as possible in order to protect you and your loved ones from the coming financial calamity that has been unleashed upon all of us by greedy, power seeking, elitist banker and political scum. They are our common enemy as everyone will soon find out when the dominoes begin to tumble.
And if you want to know who the last man standing will be in the coming debacle, you need only heed this quote by George Bernard Shaw:
You have a choice between the natural stability of gold and the honesty and intelligence of the members of government. And with all due respect for those gentlemen, I advise you, as long as the capitalist system lasts, vote for gold.
Until next time,
Greg McCoach
Analyst, Wealth Daily
Investment Director, Mining Speculator
P.S. If you need help in locating a legitimate precious metals dealer who will take the time to educate you and answer all your questions without any sales pressure, please call AmeriGold.com at 1-800-574-0047 or 720-870-8021.
