OK, right up front: What I know about high finance, investment banking, and so on, you can write on the back of a postage stamp. In other words, I know next to nothing, and am writing this blog as an "outsider", looking at the unfolding spectacle. And - while I'm laying all my cards on the table - I have to admit I'm utterly and totally bewildered by some if not most of it. We're in some sort of weird financial Alice in Wonderland, where like the Queen of Hearts, we're being asked to believe a few impossible things before breakfast. And one of the weirdest things we're being asked to believe is "negative interest rates," especially on bonds.

I freely confess, when I heard that one, my discomfort passed from the "slightly confused" state to the "totally bewildered." It didn't help that most of the people that I know who do know something about finance, money flows, and so on, were also somewhere on the spectrum between "slightly confused" and "totally bewildered." To paraphrase Churchill, we're looking at a riddle wrapped in an enigma shrouded in mystery, and (to add to Churchill) taken totally black by FASAB56. You can shake the box, listen to what's inside of it rattle and roll, but you're not allowed to open the box and see what's inside.

So when J.K. sent along the following article, I had to sit up and take notice, because there were two things it said that got my high octane speculation motor running in high gear. Here's the article:

So what were the two things that caught my attention?

The first was the question addressed to the author of the blog by one of his readers:

Few questions regarding the future disruption:

1) Could the pledging of negative-yielding bonds as collateral be causing the liquidity problems? As a private lender myself, how can a central bank (or anyone) lend against its par value (even overnight) when held to maturity you receive less than par?

And the second was the answer, which is even helpfully labelled "answer":

ANSWER: There is about $17 trillion in outstanding negative-yielding bonds. It is far too complicated to go into great detail on a mere blog post. Suffice to say that the negative-yielding bonds are going to crash like something not witnessed since 1931. While a complete default is not likely prior to 2025/2026, we are going to witness the start of the collapse in 2020. These bonds have been bought by PUNTERS who are just trading them back and forth like a game of musical chairs. When the music stops, a lot of people will get caught holding these new 2.0 versions of financial debt bombs. Nobody is buying these things to actually hold. It is more akin to trading commodities where people are not actually interested in taking deliveries of lumber, hogs, silos of wheat or bars of silver. These are trading instruments only. (Emphasis added)

Add in negative mortgage rates, bundle these "trading instruments" together like the derivatives of a a couple of decades ago, and voila!, one has a nifty way of repossessing real assets when the game of musical chairs comes to an end, and whoever is playing the music suddenly stops it.

And when the music stops, there will be, the author implies, a "bail-in" of whoever gets stuck as the custodian - i.e., as actually holding - those "trading instruments", and it comes with a warning:

Judge Martin Glenn presided on M.F. Global bankruptcy and created the first BAIL-IN without Congressional Authority. He was the first one to engage in FORCED LOANS by abandoning the rule of law to help the bankers and protect Corzine from losses by taking client accounts to cover M.F. Global’s losses. That is no different from what we saw in Cyprus. He simply allowed the confiscation of client funds when in fact the rule of law should have been that the bankers were responsible and M.F. Global’s losses and it should have been reversed. Never should the clients’ funds be taken for M.F. Global’s losses to the NY Bankers.

What Judge Martin Glenn’s ruling warns is you should NOT trust any company based in New York City.

Now, "bail-ins" are a fancy financial crony crapitalist's euphemism for "theft," in this respect, it's much like socialism; it's a "rules for thee but not for me" sort of thing, but the point is made and has to be connected to the author's earlier analogy of musical chairs: it's a the latest financial capitalist's method of theft of real assets, and in the case of clients' accounts, theft of liquidity, of cash. And the warning he gives about not banking with "any company based in New York City" should sound familiar to those who have been following Catherine Austin Fitts' Solari quarterly wrap ups, and her warnings about getting out of big banks.

But there's an implication to the author's comment about 'Musical Chairs" and whoever ends up as "custodian" of those negative interest rate "trading instruments", and herewith a bit of high octane speculation, because this speculation is an obvious implication of that analogy: negative interest rates were a deliberate concoction of the financial capitalist sector designed precisely to soak up real assets, and thus the financial musical chairs game is very real.

There's another aspect to this story though, but for that we'll have t0 wait until tomorrow...

See you on the flip side...




Joseph P. Farrell

Joseph P. Farrell has a doctorate in patristics from the University of Oxford, and pursues research in physics, alternative history and science, and "strange stuff". His book The Giza DeathStar, for which the Giza Community is named, was published in the spring of 2002, and was his first venture into "alternative history and science".


  1. Pierre on November 23, 2019 at 7:01 pm

    heads they win , tails you loose.
    how about the derivitive death star that was a mere 4 Quadrillion 5 years ago.

  2. Jarret on November 22, 2019 at 6:09 am

    I relish seeing the mental gymnastics that come from discussing this subject, WITHOUT naming the Jew and his role in all of this…

  3. Waterbug on November 22, 2019 at 12:12 am

    Your Life or Your Money – November 21, 2019

    We have, unknown to us, been living in the Land of Oz for almost a century.
    So, here’s the picture: we [American States and people] are the actual, factual primary creditors of these banks, but they are pretending that we and all our earthly assets are instead “donated collateral” backing their debts in a commonwealth (communist) system of government that is in fact foreign to us.

    The Land of Oz.

    The truth is easy to ascertain. We have literally millions of Witnesses. Nobody outside the environs of Washington, DC, was ever told what was going on. Not only were we not told a word about any of this, we were deliberately misled and lied to and coerced under color of law. By our own employees.

    To make things more interesting, the criminals in back of all this fraud and racketeering, sought bankruptcy protection in 2009, and as a result, in 2011, all the “Federal Reserve Notes” became utterly worthless, backed by nothing at all but the good faith of Congress — the same rogues that created the situation in the first place.

    Please bear in mind that Federal Reserve Notes are NOT “United States Dollars” nor “United States Notes”, either. You must pay attention — close attention — to what you are holding in your hands. And in your bank accounts.

    So, there you are, misidentified as a Municipal “citizen of the United States”, on the hook as the “presumed” co-signer for all these debts, and according to them, all your assets should be forfeit to their creditors, most especially, the Communist Chinese.

    Enter two factions of the “US” military and a Wild Card —- one faction, the Municipal DOD, is happy to see America overrun and sacked for debts it doesn’t owe, because the alternative is paying their own debts. They and their endlessly criminal US NAVY are on our backs, as if it were our fault that their Roman Government is led by criminals and schmucks.

    The Territorial Department of Defense is stuck in the middle, having a contract and obligation to defend us. That’s the second military faction.
    And then, there’s the Wild Card. This is basically one man, who they shafted many times too often. He has, all by himself, locked down the hard asset accounts of the world and nothing that they can do is of any avail.

    There they are, wiggling like dying bugs, or vampires, an encrypted computer program straight through their hearts, trying to convince us after all that has gone on, that digital “currency” is the way to go.

    Read more at:
    Keep in mind as your read the word “Municipal” think Pope and “Territorial” think Queen Management as the Pontiff owns it all. Recently he abolished the Office of the Pontiff handing it over to the UN which explains their take-over of the Salt Palace last month under the pretense it was International Territory.

    Then scroll down to read Wednesday, November 20, 2019 article on the first Government Bank Bail-Out.

    Facts on Fraud: the Gold Confiscation Bail-Out in FDR’s Own Words

    “The Federal Reserve “Bank” needed 6,000 tons of gold to remain solvent and ended up with 20,000 tons. It was our first instance of this kind of forced bailout of the central bankers, but not the last. Unfortunately.

    Read that — the Federal Reserve “Bank” foisted off on us in 1913, should have been liquidated in 1933 and the Board of Governors sent to prison.

    Instead, FDR engaged in strong-arm racketeering under color of law to bail them out.”

  4. marcos toledo on November 21, 2019 at 7:31 pm

    Think planetary loan sharks, swindlers throw in planetary serial killers into the mix. Have a nice day and a good night’s sleep pleasant dreams, everyone.

    • anakephalaiosis on November 22, 2019 at 4:10 am

      Grim Reaper is parallel.

      He doesn’t scythe single straw.

      Rivers become deep sea.

      End is beginning.

  5. anakephalaiosis on November 21, 2019 at 11:37 am

    Debt doesn’t exist.

    It’s a lot of nothing.

    It’s real in your mind.


    • DanaThomas on November 22, 2019 at 2:54 am

      Well said: the power of Nothingness driven by intent and dressed up as Debt. Whose intent?

  6. basta on November 21, 2019 at 11:16 am

    The banksters just did to bonds what they did to “mortgage-backed securities” in the run up to the 2008 crash, with the same predictable results. Except this time, I doubt there will be a bail-in on that monumental scale for this latest fraud; it will probably nuke the whole FRN Ponzi scheme entirely and cause a full reset. It’s their plans for the reset that should really give us all pause.

  7. WalkingDead on November 21, 2019 at 10:41 am

    Federal Reserve “Notes” are essentially an IOU, a promise by the private central banks to pay at some future, unspecified date. In reality, the debt belongs to the bankers, not the nation. The only problem with that is they never intended to make their “notes” good, leaving the rest of us hanging. They are essentially converting bad paper into tangible assets at our expense. This is fraud on a global scale. It was intentionally set up this way so they could “foreclose” on the entire earth at some future date allowing them to own it all at absolutely zero expense.
    When you can print an infinite amount of “money” from thin air, you can buy entire governments of corrupt politicians to keep your ponzi scheme going without ever having to worry about anyone ever doing anything about it.
    What a deal…

  8. S Klein on November 21, 2019 at 8:47 am

    A little historical background from “Wall Street on Parade”:

    “The $29 trillion created electronically by the New York Fed from 2007 to the middle of 2010 is astronomical compared to the loans made by the Federal Reserve following the 1929 financial crash and early years of the Great Depression. Those Fed loans aggregated to only $1.5 million or approximately $25.5 million in today’s dollars.

    Consider that $25.5 million in today’s dollars that was distributed by the Fed from 1932 to 1936 to just one day in 2008. On September 24, 2008 the New York Fed pounded away on its money button to pump out $110 billion to the miscreants of Wall Street. (See chart below: where Bank of New York Mellon and JPMorgan Chase are listed in capitalized letters, they were acting as intermediaries for the New York Fed to disburse Primary Dealer Credit Facility (PDCF) money to the securities firms listed directly below each entry.) The $25.3 billion that Morgan Stanley received on just that one day is 1,000 times all the money the Fed disbursed during the 1930s.”


  9. S Klein on November 21, 2019 at 8:34 am

    It appears that Bailout 2.0 began on September 17, 2019.
    The Fed has pumped “upwards of $3 trillion” since September 17(two months!!!). So, the scam continues. But lets all talk about impeachment and climate change. Or evil Trump. I’m a bit weary of the propaganda circus out there. Eddie Bernays would be proud. It looks like no one will stop the plunderers.

    As per Wall Street on Parade:

    As Fed Pumps $3 Trillion into Repo Market, Morgan Stanley and Goldman Sachs Practice Borrowing from the Fed’s Discount Window

  10. goshawks on November 21, 2019 at 6:08 am

    There may be another ‘depth charge’ awaiting the financial system:
    (from the Bank for International Settlements (BIS) Quarterly Review, September 2019)
    Collateralized debt obligations (CDOs) that invested in subprime mortgage-backed securities (MBS) were at the center of the Great Financial Crisis (GFC). The issuance of subprime CDOs ceased after the GFC, but other forms of securitization have grown substantially – in particular, collateralized loan obligations (CLOs). CLOs invest mainly in leveraged loans, i.e. bank loans to firms that are highly indebted, have high debt service costs relative to earnings and are typically rated below investment grade.

    The leveraged loan market has surged in recent years to roughly $1.4 trillion outstanding, of which about $200 billion is denominated in euros and the rest in US dollars. This rapid expansion has been accompanied by the securitization of leveraged loans into CLOs. As of June 2019, over 50 percent of outstanding leveraged loans in US dollars and about 60 percent of those in euros had been securitized through CLOs.

    The rapid growth of leveraged finance and CLOs has parallels with developments in the US subprime mortgage market and CDOs during the run-up to the GFC […] including some that could give rise to financial distress. These include the deteriorating credit quality of CLOs’ underlying assets; the opacity of indirect exposures; the high concentration of banks’ direct holdings; and the uncertain resilience of senior tranches, which depend crucially on the correlation of losses among underlying loans.”

    The big question is whether the banksters are actually in trouble over CLOs (and will need taxpayer bailouts), or the banksters have scouted far-enough ahead to pull a Problem->Reaction->Solution (akin to 9/11 & the Patriot Act) on the citizenry: one world gov’t, universal currency, etc.

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