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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (4679)	8/16/2002 2:16:10 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 89467

Sinclair: Downgraded Counter-Party Risk... What's that? by James Sinclair of TanRange Exploration There appears to be a forbidden word in established financial circles and the general media. The use of this name is such a blasphemy that it is comparable to the misuse of the name of God in the Old Testament. The utterance of this name in such financial circles is so politically incorrect that it makes punishment by death almost too kind for the transgressor. This horrible word is DERIVATIVES. How many articles have you read in the Wall Street Journal or New York Times concerning the $72,000 billion of these items categorized by Buffet as Sewage? What talking head on financial TV stations has quoted the publicly available figures on total derivatives outstanding or any similar topic? The answer is ZERO. Can you image ZERO discussion in major media of the largest single item ever in world finance? Can you believe, ZERO discussion of the largest mountain of credit ever existing on this planet? Can you imagine, no significant discussion whatsoever in major media of the blatant market manipulation of gold to benefit the private interest of a group of dealers resulting in huge losses to the public? So what is this Counter-Party downgrade announced yesterday for major international investment banks? You got it. The forbidden word was not used. Yes, the downgrade of creditworthiness was referring to these international investment banker's obligations on DERIVATIVES. It certainly was not focusing on the banker's signature on the auto leases. The same investment banks mentioned in the Downgrade as to Creditworthiness seems to be COUNTER-PARTY on the majority of gold producer derivatives as well as the unnamed 89% of the $300 billion so called Carry Trade derivative parties. In my opinion, that 89% so called carry trade are nothing more than a bunch of Wise Guys, preferred clients of the international investment banks who got a rotten plum handed to them. These wise guys found (thanks, to the gold dealer's cartel) a way to borrow the cheapest money ever lent to anyone, anywhere. There is only one little problem. The "wise guys" as a result of this cheap money scheme are short more gold than can be mined in the next twenty years, and more gold than is held in all the central banks on Earth. Central Banks will hear this downgrade of creditworthiness loud and clear. Watch the Gold Lease rate for a tip off on when this reaction in gold is going to turn into a slaughter of the gold bears and new highs in the gold price. The Gold Lease rate, among other things, measures the supply and demand for gold leases. When the gold lease rate rises this time, it will be due to the central banks reluctance to extend leasing and reluctance to renew already outstanding leases. The increase in the rate will be a product of reduced supply. This is the KEY to the meltdown of the $300 billion in gold derivatives and may well be one of the reasons that the downgrade in credit worthiness was issued against the KINGS of the GOLD DERIVATIVES yesterday. WATCH THE ONE YEAR LEASE RATE to signal the demise of the investment bank parents, of the "Mother of All Shorts," the $300,000,000,000 in gold derivatives that the gold dealer's cartel has been violently and publicly manipulating the gold market to protect. -end- wow, the anatomy of the The Mother of All Short Squeezes