Most investors don’t realize that a hidden banking crisis is close to unleashing financial hell.
Michael Oliver’s audio interview released! (Link below) discussing gold futures breaking above $3,700 and how smart investors are going to make a fortune! For now…
Unleashing Financial Hell
September 17 (King World News) – Gregory Mannarino, writing for the Trends Journal: The Balance Sheets…
What people already know…
Banks are loaded with long-dated Treasuries and mortgage-backed securities bought when rates were near zero. Now, with rates higher today, those assets are now worth far less. (On paper, they call it “unrealized losses,” but in truth, it’s trillions in vaporized capital).
What VERY Few People Know About…
(The Banking System with “Unrealized Losses.”) Adding the associated Derivatives these “losses” turn ASTRONOMICAL IN SIZE AND SCOPE…
Listen to the greatest Egon von Greyerz audio interview ever
by CLICKING HERE OR ON THE IMAGE BELOW.
Let’s Break This Down…
Securities Unrealized Losses (what’s admitted). FDIC reports say ~$500 billion on Treasuries + MBS by 2024 numbers. Private estimates put it at $1–2 trillion. (The “real” numbers are unknown).
Derivatives Shadow System. Global derivatives market is estimated $600–700 trillion. US megabanks (JPMorgan, Goldman, Citi, BofA) hold tens of trillions each. As an example. JPMorgan alone ADMITS to holding over $50 trillion in derivatives contracts.
The “unrealized losses” they admit, ($500B), are only the surface. Once you fold in associated derivatives, you’re staring at astronomical risk… HUNDREDS OF TRILLIONS, that no bailout, no facility, no Fed program, AND NO AMOUNT OF RATE CUTS CAN POSSIBLY PAPER OVER… (IT CANNOT BE “CONTAINED”).
It means the true solvency of the banking system is WAY WAY WAY worse than fiction. The entire structure lives only because losses are hidden in derivatives shadows.
Unrealized losses aren’t just trillions in bonds, they are HUNDREDS OF TRILLIONS in derivatives. The system isn’t just wounded, it’s mortally broken.
Babylon’s Spin.
“It’s fine as long as they hold to maturity.”
“Liquidity facilities are in place.”
“Stress tests show strength.”
(Translation… stall, delay, distract, to “buy” enough time to use a cratering economy as an excuse to cut rates).
This mechanism acts as a temporary ‘back door bailout” of the banks, while leaving the general public left holding the bag HOWEVER… no amount of rate cuts, currency devaluation, nor even planetary debt expansion can bail out the entire system.
These losses don’t just vanish. They either…
Get refinanced (Fed/Treasury steps in with QE-style support),
Get restructured (quiet bailouts, “special facilities”), or
Get haircut (investors/depositors take losses)….
None of those paths = stability. All = proof the system is broken. The entire financial sector is completely zombified, walking only because the Fed props it up. A TERRIBLE MOMENT OF RECKONING is coming.
BOTTOM LINE…The credit system is already completely and utterly insolvent. Every bank balance sheet is a fiction, propped up by accounting rules and fake Fed liquidity.
Every rate cut fuels more inflation BUT, rate cuts will also allow the banks to not only refinance their bad debt, (to at least “paper over” losses for a time), but lower rates will also allow for these same institutions to borrow from The Fed at near zero to buy back shares of their own stock.
Expect more “emergency” facilities, more stealth QE, more narrative management/control, which are all signs of crisis, not recovery.
Trillions in bank losses aren’t erased, only hidden. And when the mask slips the world will see the truth… that the banking system died already, and we are living in some kind of twisted zombie afterlife.
Michael Oliver Says Fortunes Will Be Made!
To listen to Michael Oliver discuss gold futures surging above $3,700 this week, silver futures hitting $42.98 and mining stocks surging CLICK HERE OR ON THE IMAGE BELOW.
Also Just Released!
To listen to Alasdair Macleod discuss the wild trading in the gold, silver, and mining shares this week CLICK HERE OR ON THE IMAGE BELOW.
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