- Hidden Failure of SIFI Banks
by Jim Willie CB, GoldenJackass.com, via http://www.goldseek.com/
…. The historically unprecedented ongoing collapse has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, USDollar, Treasury Bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.
Big systemically important banks could be in failure mode. A small group of big Western banks are in deep trouble. The officials might keep it all secret, working feverishly behind the curtains to patch their myriad holes with paper. These SIFI banks are likely major recipients of USFed overnight aid in the form of Repurchase (REPO) and Permanent Open Market Operations (POMO) activity, plus gigantic hidden funny money infusions. Beware the advent of chaos, with lost control. Possibly the main markets will remain tame under tight controls, while the precious metals prices zoom to multiples higher. Always keep in mind then when the POMO volume rises significantly, it means that QE has returned. When the volume is tremendous, it means that Infinite QE is here. Since Chairman Powell admitted in May that QE was a permanent feature with monetary policy, we must conclude that we are at the doorstep of Infinite QE Forever. Thus the Gold price will be required to double and the Silver price triple. All in time. It is written; it will be done.
THE SIFI ANGLE
No, this is not the Science Fiction angle. But in reality, all banks are not Quiet on the Western Front. They are operating in the Twilight Zone. By definition the Systemically Important Financial Institutions (SIFI) are of such size and scope, that they can topple the entire Western financial system. The meaning of SIFI bank is unspoken as not to be permitted to fail. It is the new Too Big To Fail term. Since 2008, the big important banks have been lashed together. Hence, if one fails, they all stand at risk to fail. These banks will be preserved at all cost, even if converted into gigantic Zombie trees. Many are technically insolvent, except for the mythical value of their USTreasury and Corporate Bonds. They are hollow reeds in my opinion. In recent two or three years, they have badly abused leverage. They enter the room to take USTBonds in Reverse REPO, then leverage up to 50 times, maybe even 100 times, in buying sprees. They are reportedly the last bastion to prevent overt Treasury Bond auction failures. Imagine a series of Sears Towers 200 stories high but with lobby footprints only 1/4 the size, as in foundation to support the mass above. They cannot withstand storms with high winds.
The Jackass is hearing rumors, which build upon my own suspicions, to the effect that at least two big SIFI banks are currently in failure mode. They require massive derivative patch jobs. They require massive attention in restructure efforts. They require immediate fixes to avoid global contagion. They require secrecy at the same time, to prevent bank runs and bond market collapse. The list might grow. Bear in mind that in 2008, two banks failed, Lehman Brothers and Fannie Mae, while a third in AIG was killed in order to facilitate the Goldman Sachs criminal conclusion. The Jackass has stated for three or more years that this Systemic Lehman Event will be around five times bigger in impact. Thus expect around eight or ten big SIFI banks to fail. These banks to follow are all likely receiving gigantic swaths of money, with precedent set in 2009 when Citigroup led the parade with $2 trillion in secretive hidden illicit aid. Expect the same to be happening right here, right now.
GOLD & SILVER
The true save haven is precious metals. Their price could rise double or triple quickly. The Basel End Game Plan calls for the major central banks to accumulate gold, to convert impaired sovereign bonds to Gold reserves, and then finally to push the Gold price up 10-fold, like over $10,000 per oz. The Basel hive is executing this plan right here right now, in the Jackass opinion. They are using closely aligned financial firms to do the Gold purchases, and using false accounting with double books to conceal their activity.
Some unconventional vehicles and platforms might enter the picture, like golden crypto-currencies, and the hailed digital Chinese cryptos, maybe even Ripple XRP. The personal Jackass desired outlook is to see a universal acceptance of Gold Trade Note for trade payment, and a $2500 Gold price aside a $50 Silver price next year.