It
was the same banks that packaged and sold the Sub-Prime Mortgage Investments
and tied them up with a cross lateral fancy bow. For example,
countries such as Greece held these on their balance sheets and included the
income which was not guaranteed or basically didn't really exist. When
the banks sold off the sub-prime mortgage investments it separated them from
the risk if the homeowners could make their payments or not. Also when Greece
tried to re-negotiate interest rates on their debt, the bankers played hard
ball and would not bring down the rates that would be beneficial to Greece over
the long term. Bankers didn't care if they made the deal or not for they
had asset insurance with Lloyd's of London for the full value so in reality
they hoped Greece would default on their debt. I keep hearing from the
Dinar Guru's encouraging everyone to have the bank pay for your asset
protection insurance. Of course they would, after they have squandered
your money away by using it on their personal trading platform, you can collect
the insurance and let them have another go at it.
Now
lets talk about insurance, for example in 2008 when the US Insurance Companies
almost went broke depending on how much sub-prime exposure they had in their
portfolios, it made me realize a few things. Insurance companies are
required to purchase bonds in order to back their promises to pay. I found it
interesting that in permanent life insurance a Third Party Trust Bank is used
by insurance companies for their bookkeeping of cash values. In the contracts,
the cash value is guaranteed to increase every year, but the only way to access
any of this cash value is in the form of a loan which compounds and accrues
interest if not paid back. These rates are based on yields that follow usually
the Moody's Bond Yield. So it they are required to buy bonds, where does this
cash value come from that these Trust Banks create? If you look at the
financials for insurance companies you see that they invest in stocks, bonds,
real estate, and only hold a small portion of cash. It makes you go hmm
doesn't it. Also in the early 90's, the feds came in and told insurance
companies that they needed to increase their reserves. Many of them did not
have the capital to do so, therefore the majority of them became publicly
traded which is how they raised the capital. They now have to make short
term decisions to appease stockholders rather than make long term decisions.
It was these companies that had to get the loaned TARP money just to stay
in business. AIG was forced to sell off assets which is a big part of the
lawsuit they now have going with the US.
Also
the Guru's are advising everyone of how important it is to open a brokerage
account.You do not hold cash in a brokerage account, but rather a money market
fund must exist for all cash to be swept into on a daily basis. There are
internal fees that are in money market funds. After the market decline of
2008 and the funds were only paying a 1/10th of a penny in interest, people
were losing money due to the internal fees were more than the interest being
earned. Also in the down slide of the market, we saw NAV prices drop by 4
to 6 cents per dollar in volatile times of the market. Now lets get back
to those internal fees; a lot of banks create their own proprietary money
market fund, so they are making money off your funds. Or if they choose to have
a contract with Fidelity for example, they are still getting some type of kick
back. Now lets talk about what Money Market Funds usually consist of, the
hold "Commercial" papers, "Preferred" papers which are
created by none other than banks and hedge funds and mutual fund managers.
These types of papers usually cannot be liquidated on a daily basis, but
only at pre-determined auctions scheduled only a few times of the month.
And bids to buy and sale are based off of the past 30 day average yields
of interest rates from some bond yield. Once again, you see how the banks
have their hands in the money market funds.
So
what if a person just wanted to hold cash. If this new money system is
backed by assets and is transparent, why would we need protection insurance,
brokerage accounts? You also keep being advised to purchase multiply
currencies in your brokerage account. Why is this necessary if this new
so called CIX is suppose to keep the world currencies balanced and fair in
order to prevent the past from repeating itself. I guess it could be so
the banks could keep charging those transaction fees every time you converted
to US money.
Just
as I posted yesterday about the FDIC, NCUA insurance being a joke as well.
It was the toxic derivatives that caused a lot of banks to go broke in
2008 and therefore the pool of insurance funds were wiped out. It was up
to all the other banks who had not taken on the risk of the sub prime mortgage
derivatives in their portfolios that had to make the contributions back into
the insurance pool to get it back where it needed to be. I knew of two banks
that got that call and were told they would have their accounts drafted within
48 hours as their contributions to the insurance pool. A large Texas bank
was in the millions to FDIC and a tiny credit union that had only $35m in
assets had to contribute over $300k to NCUA . All it would take is ONE of
the big banks to go broke to wipe out FDIC and a large credit union in a metro
area to wipe out NCUA. So if contributions were being made annually by the
banks, why did it get exhausted in just a few months after the market crash of
2008? There is not enough protection to go around for all account holders, it
appears if there is another economic collapse, it just might be the luck of the
draw! Brokerage accounts work off of SIPC insurance and those limits vary
depending on how much coverage above the minimum the firm chooses to purchase.
Firms have to purchase a membership on an exchange in order to
participate in the insurance programs. What a joke!!! There is always an
agenda isn't there!!!!
So
I have a few questions to the Dinar Guru's. (1) Are you a FINRA
licensed Registered Representative? (2) Do you have the ability to supply
a prospectus for the money market account you are recommending. (3) Do
you have a Group I and P&C license in all 50 states (4) Do yo have a
foreign currency license? (5) Has any of your correspondence to the public been
pre-aprroved by a licensed FINRA principal? I am amazed at how none of
you have been arrested, that is what really makes me go hmm the most!!!!!!
Who is letting you go rogue with your information is what I would like to
know. If we are suppose to be operating under this NEW COMMON LAW SYSTEM
of self responsibility & liability you people need to look out for your are
not guiding the people in the right direction. For some of you, now may
be the time to ask yourself if someone could possibly be using you as their
patsy in this great scheme of things.
The
markets last week were a real eye opener to this NEW TRANSPARENT SYSTEM, it was
not difficult to see the manipulation still continues in the precious metals,
stock and bond markets. Everyone has an agenda for what I can see, except it
sure isn't about "We The People". It is apparent to me that it is
just a new day, but with the same old bull shit!!!
By: 
