Schultz & Sinclair from FinancialSense on Derivatives
Mountain of Unregulated Derivatives is De Facto Financial Terrorism
by Harry Schultz & James Sinclair
September 13, 2002
US Government Report (Comptroller of the Currency) reveals
massive unlisted & non-transparent derivative (short) positions in bankers' ("weak") hands.
Conclusion
We stand at turning point for the return of gold as currency.
Meantime, gold can rise to $1,450 to $1,700 over next 5 years.
The significance of the recent Quarterly Report of the Office of the Comptroller of the Currency on derivatives on the books of U.S. institutions:
U.S. Banks, all of whom are gold dealer cartel members, carry 69.4% of the $72,000,000,000,000.00 derivatives that exist worldwide.
JPMorganChase alone carries 35% of the $72,000,000,000,000.00 derivatives that exist worldwide.
WE MAKE THESE 5 CRITICAL OBSERVATIONS
1. The war against gold is a war to sustain the entire mountain of "sewage" (Warren Buffett's term) derivatives.
2. The size of the sewage mountain of debt is "over the top," beyond reason & financial insanity. It is the gift to mankind from the "Instant Gratification Economy" of 1970 to 2001.
3. It is the mechanism that history will point to in the future as the place in time, when & why the reinstitution of gold as a currency began in earnest.
4. It is the reason that gold can go to $1,450 to $1,700 over the next 5 years. There will come a clamor for a return to the gold standard to establish "standards of behavior" in society. Gold is where standards can be founded.
5. This mountain of debt insanity is more dangerous to mankind's standard of living than all the terrorists on the planet. It is, in fact, a defacto collective act of financial terrorism.
FOUNDATIONAL FACTS
This derivative sewage mountain of Financial Terrorism is 97%:
* Unregulated
* Unlisted
* Not clearinghouse funded
* Not marked-to-market (i.e. according to real market prices), but rather by computer simulation
* The computer simulation for mark-to-market is not standardized
* Dealers are commonly non-guaranteed as to trade debt subsidiaries generally offshore to the domicile of the well known investment and commercial bank parent holding companies
* Non-transparent instruments
* Without standards, closure (closing out) cannot be made at will. Standards mean similar instruments which, if purchased, close all obligations
Greed must pay the piper in the end
© 2002 (This article appeared on 9/11 in GoldChartsRUs) James Sinclair, Chairman, Tan Range Exploration Corp. (TNX) www.tanrange.com and Harry Schultz, Int'l Harry Schultz Letter, www.hsletter.com |
