Donate Bitcoin

Donate Paypal


PeakOil is You

PeakOil is You

Americans on the hook for 303 trillion dollars.

For discussions of events and conditions not necessarily related to Peak Oil.

Americans on the hook for 303 trillion dollars.

Unread postby Kylon » Mon 15 Dec 2014, 03:40:25

The American people are on the hook now for 303 trillion dollars.

http://www.dailykos.com/story/2014/12/1 ... rivatives#

The funding bill for the next 9 months includes something that makes it where the American people will be forced to pay for all the bad derivatives that banks have when they decide to offload them.

It's 303 trillion dollars now, but it will probably be much higher since they can dump all the risk and cost onto the American people. They can run up future debts future derivatives and that means it might end up being 400 trillion or 800 trillion. Essentially whatever amount they want.

Essentially, what this bill has done, is made Americans debt slaves. Even if you didn't run up a debt, when the banks want to be bailed out, and the American government needs money, it's going to be tempted to enslave everyone and nationalize everyone's assets.

What does everyone think?
User avatar
Kylon
Expert
Expert
 
Posts: 836
Joined: Fri 12 Aug 2005, 03:00:00

Re: Americans on the hook for 303 trillion dollars.

Unread postby Keith_McClary » Mon 15 Dec 2014, 12:35:23

New G20 Rules
Cyprus-style Bail-ins to Take Deposits and Pensions
by ELLEN BROWN
On the weekend of November 16th, the G20 leaders whisked into Brisbane, posed for their photo ops, approved some proposals, made a show of roundly disapproving of Russian President Vladimir Putin, and whisked out again. It was all so fast, they may not have known what they were endorsing when they rubber-stamped the Financial Stability Board’s “Adequacy of Loss-Absorbing Capacity of Global Systemically Important Banks in Resolution,” which completely changes the rules of banking.

Russell Napier, writing in ZeroHedge, called it “the day money died.” In any case, it may have been the day deposits died as money. Unlike coins and paper bills, which cannot be written down or given a “haircut,” says Napier, deposits are now “just part of commercial banks’ capital structure.” That means they can be “bailed in” or confiscated to save the megabanks from derivative bets gone wrong.
Facebook knows you're a dog.
User avatar
Keith_McClary
Light Sweet Crude
Light Sweet Crude
 
Posts: 7344
Joined: Wed 21 Jul 2004, 03:00:00
Location: Suburban tar sands

Re: Americans on the hook for 303 trillion dollars.

Unread postby Revi » Mon 15 Dec 2014, 13:05:39

Good luck with that. Most of us have nothing in the bank anyway.

We are all too broke.
Deep in the mud and slime of things, even there, something sings.
User avatar
Revi
Light Sweet Crude
Light Sweet Crude
 
Posts: 7417
Joined: Mon 25 Apr 2005, 03:00:00
Location: Maine

Re: Americans on the hook for 303 trillion dollars.

Unread postby Revi » Mon 15 Dec 2014, 13:06:09

Good luck with that. Most of us have nothing in the bank anyway.

We are all too broke.
Deep in the mud and slime of things, even there, something sings.
User avatar
Revi
Light Sweet Crude
Light Sweet Crude
 
Posts: 7417
Joined: Mon 25 Apr 2005, 03:00:00
Location: Maine

Re: Americans on the hook for 303 trillion dollars.

Unread postby BobInget » Mon 15 Dec 2014, 16:17:12

Saudi Arabia and Russia, currently in a gigantic oil price war that has removed 1.5 trillion dollars from the oil industry. This is not 'on the hook' , potential losses.
Watch, how this reverbs though the economy.

So far it looks like Saudi Arabia (and the US) are winning.. Short term.

here's an excerpt from one respected oil and gas guru, Robry
You may find it interesting.


......OIL (OPEC): OPEC continues to rhetorically push prices lower, and I continue (despite the rhetoric) see it as aimed at
......Russia and possibly Mexico more than US Shale (The rhetoric meaning to scare Russia mostly and the US shale rhetoric
......intended to avoid cornering Russia where it could not find a face-saving way to give in to OPEC?). US Shale plays nicely
......into East-Uropean disagreement between Russia and the US & Europe.

......I am quite confident (in my own thinking) that a deal was offered by OPEC at the Vienna pre-meating, and is likely on the table
......for Russia still (or why have the meeting and the discussioins leading up to it). Should Russia cave (at any time) oil funda-
......mentals change radically and suddenly.

......I don't think the US oil industry gets hurt seriously by this, given the size of their hedge vs the size of the pricing drop. The "Part 9-
......Position & Profits of Traders" post has more than 32 Billion in oil hedging gains implied since the end of July from the NYMEX
......CL contract only. Add in other markets and private contracts, iprofits are probably in the 60-75 BCF range.

......There are many possibilities for producers to play with their contracts. If an E&P was hedged for January at $96.50 (with oil
......at $56.50 on my screen), that E&P can make $40 per BBL by simply leaving its oil in the ground and buying back its Jan-15
......contracts. Could that same E&P earn more by selling those barrels for $56.50 on the physical markets at the same time the
......Jan-15 contracts payed out? Or would the E&P have a loss (on the $56.50 sale of the oil) to deduct from the $40 hedging gain
......(if it went ahead and produced & sold the physical oil that was hedged)?

......If that same E&P (that sold that $56.50 oil) had costs for its oil at say $66.50, the E&P that had the $40 hedging gain takes a loss
......of $10 on producing the oil ($56.50 proceeds of selling the oil less its $66.50 cost), reducing the gain on the combined transact-
......ion ($40 hedging gain less $10 producing loss, per BBL = $30 gain) and at the same time looses the ability to profit from the sale
......of those BBLS (that it just sold) when pricing recovers.

......Why not leave the oil in the ground for a $40 / Bbl profit, rather than give it away for a $30 / Bbl profit?

......I think sophisticated E&P's profit from this situation by leaving the oil in the ground, laying down drilling rigs, monitize futures, and
......build cash to drill later... and in so doing make of themselves coiled springs, waiting for pricing to reset itself to more rational levels
......($90's).

......I think that the OPEC-led pricing gambit in the long term plays right into US free-market disciplines. This will cull US E&P's (as
......every US economic downturn culls US industry), removing a few of the week hands while at the same time strengthening the strong.
......This pricing fiasco plays right into the hands of free-market thinking.

......For my part, I am fully invested on the oil side, and very overweight CWEI (1/3 of assets?). I think lower pricing from here speeds the
......process of supply-demand balance. And I am very comfortable and excited at this turn of events.

......OPEC does not need to bully oil down 45% long-term to correct a 2 percent supply/demand imbalance. Neither can OPEC afford
......too. This is a givaway (and a horrible blunder) on OPEC & Company's part.
BobInget
Lignite
Lignite
 
Posts: 200
Joined: Sun 12 Feb 2012, 17:46:44

Re: Americans on the hook for 303 trillion dollars.

Unread postby salinsky » Mon 15 Dec 2014, 16:45:09

Well now, looks like Ol' Bob's got his ducks lined up. Are they heading south or north?
I think we're in a long-term change of the typical flight paths, and the whole frickin' flock will land dead on the doorstep. Opec can outwait everyone.
If you believe something is true, then it must be true or you wouldn't believe it was true, therefore, everything you think is true, is true, or is it?
Señor Salinsky

A people's culture is their best ignorance.
SAL
User avatar
salinsky
Master Prognosticator
Master Prognosticator
 
Posts: 101
Joined: Sat 13 Dec 2014, 20:05:04

Re: Americans on the hook for 303 trillion dollars.

Unread postby GHung » Mon 15 Dec 2014, 18:27:41

The timing of this thing is interesting, especially if the tight oil bubble is set to bust. With the major banks posting near record profits recently, one wonders about the urgency to attach this to a spending bill. Maybe there's more to this....
Blessed are the Meek, for they shall inherit nothing but their Souls. - Anonymous Ghung Person
User avatar
GHung
Intermediate Crude
Intermediate Crude
 
Posts: 3093
Joined: Tue 08 Sep 2009, 16:06:11
Location: Moksha, Nearvana

Re: Americans on the hook for 303 trillion dollars.

Unread postby careinke » Tue 16 Dec 2014, 00:03:57

Unlike coins and paper bills, which cannot be written down or given a “haircut,” says Napier, deposits are now “just part of commercial banks’ capital structure.” That means they can be “bailed in” or confiscated to save the megabanks from derivative bets gone wrong.


Although not in this context, the US gave a huge "haircut" to its coins starting in 1964 when they took the silver out.
Cliff (Start a rEVOLution, grow a garden)
User avatar
careinke
Volunteer
Volunteer
 
Posts: 4668
Joined: Mon 01 Jan 2007, 04:00:00
Location: Pacific Northwest

Re: Americans on the hook for 303 trillion dollars.

Unread postby Revi » Wed 17 Dec 2014, 15:07:29

I think people should boycott the banks. There are a lot better places to put our hard earned. They seem to feel that our money is their money, so why give it to them?
Deep in the mud and slime of things, even there, something sings.
User avatar
Revi
Light Sweet Crude
Light Sweet Crude
 
Posts: 7417
Joined: Mon 25 Apr 2005, 03:00:00
Location: Maine


Return to Geopolitics & Global Economics

Who is online

Users browsing this forum: No registered users and 22 guests

cron