Posted on 06/24/2014 8:22:06 AM PDT by Renfield
"Banks are worried about their exposure," warns one warehousing source, "there is a scramble for people to head down there at the minute and make sure that their metal that they think is covered by a warehouse receipt actually exists."
The rehypothecated catastrophe that we discussed in great detail here (copper financing), here (all commodities), and here (global contagion) appears to be gathering speed as the China's northeastern port of Qingdao has halted shipments of aluminum and copper due to an investigation by authorities after they found "there is a discrepancy in metal that should be there and metal that is actually there."...
(Excerpt) Read more at zerohedge.com ...
Sometimes I imagine the first flim-flam scam in human history occurred about 37 minutes after the invention of the abacus.
Stolen by jihadis who need all that copper for IED penetrators...
I wouldn’t want to be the person who gets fingered as the fall guy for this one by the Chinese government.
Paging John Corzine ..... Paging John Corzine
Please pick up the white courtesy phone.
Beijing on line 1
There is no form of financial chicanery the Chinese have not practiced for many generations.
Copper and aluminum?
Imagine the chaos if the gold and silver were missing.
What makes you sure its not?
Lots.
Look up Billie Sol Estes!
look up, /sarc.
I compare this to all of the Home Mortgages that were sold and resold... Ad Nauseum to create the Mortgage Backed Security nightmare that helped to destroy our National Home Construction Industry and family after family who were caught up in the whole stinking mess.
This time though it looks like the ‘Big Boys’ are about to be taken to the Cleaners.
Pay attention, imaginary commodities being sold over and over, sliced and diced, fractional banking via derivative marketing playing out in real time. People holding on to paper IOUs and asking for the goods only to find out they are not there. This is the international banking system in a nutshell. This is how you sustain exponential debt systems and keep blowing bigger and bigger bubbles. What happens when no one has faith or trusts this type of market (i.e. when all the suckers have been fleeced)?
By the way, Germany recently gave up on getting their gold back from the NY FED after a year of trying. Gold is no different than copper or other metals, it has been milked the same as the other commodities. We are nearing the end game, no one beats an exponential curve.
>>Imagine the chaos if the gold and silver were missing.
It appears that Germany’s is.
We had it last.
Germany Gives Up On Trying To Repatriate Its Gold, Will Leave It In The Fed’s “Safe Hands”
http://www.freerepublic.com/focus/f-bloggers/3171518/posts
You beat me to it, I gave a link.
Curves associated with the economy going exponential should scare the crap out of anyone with a clue. Unfortunately, the masses are effectively innumerate.
Singularities are likely to really suck.
It’s amazing that highly intelligent people can convince themselves that they are immune to a concept so simple that it is taught in junior high math. Exponential curves tied to debt lead to the end of an economic system. Nation states are now doubling down because the private sector couldn’t cover the bet. The next round of doubling down will be the final round as the derivative market is 10 to 15 times larger than the world GDP. Heck, JP Morgan is sitting on over 200 trillion dollars of derivatives which is 3 times larger than the world GDP. We are way past the Rubicon and we will see this sucker go down in our lifetimes.
Our economy is a lot more fragile than most people realize. Quite a lot of our manufacturing base has moved to China (or otherwise offshore), and most of the fruits and vegetables in the markets are brought in from California, Florida or Mexico. If (when?) our currency collapses, those provident few who have hoarded gold or silver coins my find that there is nothing to buy with those coins.
I see us returning to self-sufficiency at the family, neighborhood and community level, whether we want to or not, and it will be rough transition, given that most people don’t know how to do anything for themselves anymore.
The Chinese gov’t will recycle the ‘Big Boys’ body parts. They have to get the money back somehow....!
Far too many of the ill acculturated children of the infamous Dr. Scam I. Am are still walking the streets and stalking the ‘Halls of Power’.
I’m going to stick my neck out and say that very few people understand rehypothecation because, if they did, there would be rioting in the streets.
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