Guest Post: "Is The Global Financial System On The Brink Of Collapse?", by "Denver" Dave Kranzler

About the only items that were UP in Friday were gold and bonds. Everything else was down sharply, including the Dow Jones average which fell by nearly 300 points. Is this just a simple, one day selloff or is something larger afoot? Our pal Denver Dave has some excellent analysis here and I strongly urge you to take the time to read this post.

Since last autumn, here at TFMR we've been discussing a pending global derivative collapse. The likelihood that the global markets can ingest a greater than 50% move down in crude oil and/or a 25% move down in the euro without triggering all sorts of derivative issues is extremely low. But you have to give these things time to play out...and eight months seems about right. Into this discussion steps Denver Dave with this astute bit of observation and analysis. PLEASE TAKE THE TIME TO READ THIS AND FULLY CONSIDER THE IMPLICATIONS.


"Is The Global Financial System On The Brink Of Collapse?",

by Dave Kranzler

A reverse repurchase agreement, also called a “reverse repo” or “RRP,” is an open market operation in which the Desk sells a security to an eligible RRP counterparty with an agreement to repurchase that same security at a specified price at a specific time in the future.  LINKIMF tells regulators to brace for global ‘liquidity shock’ - LINK.

The financial news spin-doctors are attributing Friday’s abrupt sell-off to a report of a Bloomberg terminal outage and to a report that China has expanded its list of stocks available for shorting.   This explanation for the plunge in stocks globally is so absurd it almost leaves me speechless.

I have been postulating since mid-December that the strange volatility we’ve been experiencing in the markets – combined with the most intensive effort I’ve ever seen by the Plunge Protection Team (the Fed + the Treasury’s Working Group on Financial Markets) to prop up the stock market and keep a manipulative cap on gold – is occurring because there’s is a massive derivatives melt-down going on behind the scenes.  The volatility reflects the turmoil and the market intervention in stocks and precious metals reflects the effort to keep the problem covered up.

But a good friend and colleague showed me graph Friday morning that shows my thinking about a derivatives collapse may be correct – click to enlarge:


That graph shows the Fed’s Reverse Repurchase Agreement operations with foreign Central Banks and big foreign banks.   A reverse repo is an operation which generally is thought of as being used as a tool to remove short term liquidity from the banking system.  However, as you can see from the timing of the first massive spike up, which occurred in early September 2008, it is an absurd notion to think the Fed would have removed liquidity from the system. (Note:  the second spike up in 2011 coincided with the Fed’s “Operation Twist” which was essentially a huge QE extension disguised with a “twist” – but nonetheless was done to keep the system from collapsing).

No, instead the massive operation was conducted to INJECT Treasury collateral into the global banking system.  Treasuries are used as collateral against derivatives positions.  It’s in a sense margin collateral for the big boys.   When an entity (typically a bank or hedge fund) takes on a derivatives bet, it needs to post collateral to protect the counterparty from a decline in the value of the bet.  Treasuries are the de rigeur collateral, although the ECB now allows everything for collateral except loans to lemonade stands.

When the value of the derivatives bet declines because the value of the underlying asset declines (think:  Greek debt, oil debt), more collateral has to posted.  Eventually, the market runs out of collateral and there’s a collateral short squeeze.  The use of hypothecation exacerbates the situation by several multiples.  Please note that ZeroHedge intermittently reports big spikes up in Treasury settlement fails.  This reflects the extreme shortage of collateral.  When collateral has been posted but not hypothecated, it can be called and used for settlement.  When that Treasury has been hypothecated by the custodian of the collateral, it becomes harder to call, especially when it’s been hypothecated several times.  Big spikes up in settlement fails occur.

Circling back to my postulation that a massive, ongoing derivatives melt-down has started, as the derivatives lose value, more Treasury collateral has to be posted.  When the situation becomes extreme, collateral isn’t posted and counterparties begin to fail, especially if the counterparty can’t come up with the cash needed to remedy a derivatives bet gone bad.   My bet is that the Greece situation ignited the problem and the collapse in the price of oil threw millions of gallons of napalm on the situation.

The reason I believe this explanation is correct, is from the graph above.   We know that in 2008 we were told that a big derivatives accident started in Europe and spread to the U.S.  Lehman filed for Chap 11 on Sept 11, 2008.    We also know that AIG and Goldman experienced a massive counterparty default collapse in September 2008 that was remedied thanks to rather explicit lies circulated by Ben Bernanke and Henry Paulson about systemic collapse if TARP wasn’t approved.

A reverse repo can be looked at as tool to remove liquidity from the system OR as a tool to inject Treasury collateral into the system.  We know the Fed has been “testing” a new Reverse Repo system since mid-2013 that take Treasuries from its “SOMA” holdings (SOMA = the Treasuries the Fed purchased with QE) and use them for reverse repos, including reverse repos with MONEY MARKET FUNDS and foreign central banks/ Too Big To Fail banks.  Nothing happens by accident and that spike above shows us why the Fed was “testing” a new reverse repo system.

The only reason the Fed would need to inject massive amounts of Treasuries into the global banking system is because there’s an extreme shortage.  A massive derivatives accident requiring massive amounts of collateral to be posted has developed.  If Treasuries are not available to post as collateral, while at the same time a massive amount of hypothecated (Treasuries out on loan, several times over) collateral fails are occurring, it will cause the banking system to seize up.  The giant spike up shown in the graph above is occurring because the Fed is engaging in an enormous reverse repo operation in order to prevent the global financial system from collapsing.

Remember I suggested some time ago that the elitists like give us a warning before something bad is about to happen.   As my colleague John Titus states:  “the true elite aristocracy are polite criminals – they consider it gauche to flush the toilet while we’re in the shower without giving us a heads up.”

This is why the IMF issued this warning yesterday for the financial media to publish:

The so-called ‘flash crash’ on US bond markets last October and the collapse of the Swiss currency floor in January showed how quickly liquidity can vanish, acting as “a powerful amplifier of financial stability risks.”   LINK:   IMF tells regulators to brace for global ‘liquidity shock’

THIS is why stock markets globally sold off hard on Friday. Typically, the Plunge Protection Team will move to prop up the S&P 500 once it falls by over 1% intraday. However, on Friday, the sell-off only accelerated.

I guarantee that the reason for this is unequivocally NOT because the Chinese Government is letting the public short a few more stock issues OR because Bloomberg experienced a widespread terminal outage. But it does go a long way to explaining THIS:  LINK

More great info at:

Follow Dave on Twitter @InvResDynamics 


Dr. P. Metals's picture


Where art thou? (You're slipping again) :)

Turd Ferguson's picture

And if you follow Dave on Twitter...

MODERATOR get to see some real gems. This is still one of my all-time favorites:

SubjectivObject's picture

A great lie

[... a question for Dr. Willie ... ? ]

I also have been covering the Chinese shift away from the dollar and into the arms of the IMF’s currency basket for years.

The great lie today is that China and Russia are anti-New World Order. Yet as I discussed in my last article, China (and Russia) have consistently called for a global conversion into the SDR basket system, and they want this system to be run by the IMF. The IMF, in turn, has consistently called for the end of the dollar as the world reserve currency and has openly embraced institutions like the new Asian regional bank, the AIIB, which is dominated by China, despite the fact that many people wrongly believe that the AIIB is somehow “competition” to the IMF or World Bank.

This excerpt comes from the International Business Times:

World Bank managing director Mulyani Indrawati told Xinhua in an interview.

“We will definitely open for cooperation with AIIB [sic]. Even now, we are working very closely in the beginning and looking at the setting, principle and framework of this institution.”

She also dismissed worries that the AIIB will compete against the World Bank or existing regional development banks and noted the global need for infrastructure is huge to accommodate multiple organisations.

Speaking at the opening of the China Development Forum in Beijing, IMF chief Christine Lagarde said the IMF would be “delighted” to co-operate with AIIB, and the institutions have “massive” room for cooperation.

Marchas45's picture

Ok! Ok!

I'm here taking a break from yard work and I'm sore already. Lol Keep Stacking

ReachWest's picture


Yikes! Thanks for highlighting this article, Turd. My first reaction to hearing about the worldwide Bloomberg terminal story yesterday was, "No way - sounds like BS cover for something else". Dave's speculation would seem to possibly explain that.

There have certainly been a number of sensational warnings about impending crashes over the past few years and I think we've all become numb to the harsh realities of where we are (the Boiling Frog, again). BUT - someday - one of these warnings will become reality - is this the one? Could be.

tyberious's picture

Re: A great lie

Here in lies the problem with that article and JC Collin's thesis. The US controls 16.75% of the IMF voting rights, it takes an super majority, 85% vote to be added to the basket. Will the US vote to add the Yuan to SDR, I wouldn't hold my breath.

These people act as if the IMF is omnipotent and the SDR is real currency. The SDR is just a big club that China want to been in to be recognized as a world power. Other than that the SDR hold little to no utility.

Turd Ferguson's picture

Again, how can there be a collateral shortage?


Because The Fed owns half of the available supply:

Marchas45's picture

Boy We May Have

An Interesting Week Ahead Including This Weekend. Lol Keep Stacking

SteveW's picture

Two sides of the reverse repo

Glad Dave explained this. I always thought that the exercise was to remove liquidity, but in essence he says it can be viewed as injecting collateral. I guess that bank currency has limited use but Treasuries can be rehypothecated ad infinitum to support the derivatives.

So with all the Treasuries the Fed has on its books can they delay a derivatives crash for years?

Owtovit's picture

@and if you follow......

No candle could be big enough...

Blythesshrink's picture

I don't think they can delay

I don't think they can delay if for that long, those on the wrong side of the derivative bets still have to pay cash to purchase the treasuries - which they can only do for so long as they can raise the capital.  The fact that there's an entity available and very willing to supply the collateral into the market must help for a time though.

SS121's picture

I'm just askin'...

First let me say that I appreciate Denver Dave's presentation of the IMF announcements and the lame Bloomberg terminal/Chinese policy excuses surrounding the big sell off.  I really do.  Because, to track what the system says is happening is a large part of why i'm here.

But I have to ask-  Are we really to assume that all the unseen, behind the charts, system machinations are so legitimate, operational, and adhered to,  that an unplanned global financial crisis really could just be caused by an RRP induced liquidity shock that quickly morphs into a derivatives meltdown??  Really?

Let's think back to the 2008 crisis for which we now have the benefit of hindsight.  At the time it seemed so real, all the interbank lending charts locking up,  imminent global meltdown, martial law if some bill isn't passed, remember all that silly shit?  Remember the DJIA dropping like a rock so all the sheeple would buy in to (demand) the "solution"?

Since 2008 we have been re-re-re-reminded many times that the markets (charts) can be moved anyway the gov approved bankers see fit.  And that the only way the stock market chart takes a dive is with the full approval of it's owners.

Also looking back at the 2008 "crisis" with 20/20 hindsight we can see what it really accomplished.   It was a manufactured means to an end.  It gave the bankers carte blanche to TARP/Bail out/QE to their hearts content.  AND as demanded by the people (sole purpose for the "crisis") so as to create the perception of banker immunity.

Also, we now know that the TBTF banks create (derive) as many digital dollars as they please, and they have no accounting or oversight (thanks Bernie wink).   And the charts, aka the Straight Man for these productions, are all fair game for the bankers to manage as they see fit.  Legally and since 1934!

We have seen so many false flags and manufactured crises in the last 3 years alone that they are too many to list.  And now here we set,  ...cell phones silenced, popcorn at the ready, speaking in hushed tones while watching sci-fi horror derivatives previews.  But if/before this thing kicks off, i've gotta ask-

Are we really going to believe it's a legitimate crisis?  Again?

i'm just askin'

canary's picture

IMF meeting this week

Topics: Greece, Ukraine, yuan/SDR basket.

SubjectivObject's picture

I'm jus' ruminating' ...

If enough of the acting parties that think they are acting in a market believe there is a legitimate crisis, then, irrespective legitimate or not, it becomes a self fulfilling, and thereby legitimate, crisis.  Which only stands as proof that lemmings, unrealized by themselves, can have Real Raw Power (RRP).  Lemmings of the market unite!  Grasp your fate with all paws, feel the hyperbolic urge, and claim that parabolic trajectory as your own!

Safety Dan's picture

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bp9291's picture

IMF status of U.S.

So just off the top of my head I remember LaGarde discussing the US not voting on the new reforms for the last 4 years or so, also I remember a quote last year as she said the IMF would be moving to China at some time as the largest paying  member had the rights to host the headquarters.   I also remember the budget passed in Dec, 14 had no money allocated to pay the dues, which I believe are 67 billion a year.   So I wonder the status of the U.S.  in the IMF and the plans to pay dues and so forth.   All this makes me think this may be a done deal and I'm not sure the U.S. would veto China as the little matter of treasuries owned plus other matters of leverage they hold.  May not be a big deal but sure would be another hit in an increasingly large number of hits.  

Turd Ferguson's picture

The Fed may have a few trillion in bonds...


...but recall that the total derivative pile is measured in quadrillions.

tyberious's picture


Market Report: PMs confined to tight trading range

By Alasdair Macleod

Posted 17 April 2015

"One of the more intriguing news developments is a joint World Gold Council/Official Monetary and Financial Institutions Forum (OMFIF) meeting this morning in New York to discuss the inclusion of gold in the SDR basket when it is revised later this year. It was agreed in 2010 that the renminbi should be included, but this has never been ratified by the Americans. It is believed by close observers that China's exclusion from the SDR is one of the reasons China set up the Asia Infrastructure Bank rather than pursue the IMF relationship. However, if the proposal to include a weighting for gold in the SDR1 gets any traction at this morning's meeting, it will be interesting to see the reaction from the Americans, given that the Chinese appear to want to incorporate gold into international settlements. It could also provide the Chinese cover for declaring an increase in the gold content of their official reserves.

For what it's worth, the chairman of OMFIF (Lord Desai) is quoted as saying gold's inclusion in the SDR is quite likely to happen. However, there are legal obstacles to overcome.

[1] After the collapse of the Bretton Woods system in 1973, the SDR was redefined as a basket of currencies. Today, the SDR basket consists of the euro, Japanese yen, pound sterling, and U.S. dollar. The value of the SDR in terms of the U.S. dollar is determined daily and posted on the IMF's website.

gldslv's picture

@SS121 - Not a crisis, a process

When you get to borrow free money, free being not your money, the only thing stopping you from borrowing more is the quality of the collateral you put up.  Bad collateral stops borrowing.  At which point, the borrower looks up and looks for more quality collateral. Another way of looking at Exeters Pyramid is that credit collapses to the quality of the collateral used for the loan.

I've been waiting 8 years for the collateral vacuum to appear.  

Now everyone is going to start the process of  looking around for collateral. We've been saying for years that you don't convert PMs to USD, soon you can buy things with it...and just as importantly put it up for collateral to borrow.

First though you will need to figure out how to hold on to it.

Forget gold as money, to bankers GOLD is the perfect collateral. Fungible, divisible, easily measured, portable, counter party risks......etc...

mfields111's picture

Once the collateral meltdown starts

it can't be stopped. The shadow banking system has 1.5 quadrillion in party counterparty risk with no real collateral outside U.S. Treasuries and now some corporate bonds.  This system is very fragile because there is no solid collateral such as gold or silver to back it.  Once mistrust happens and it is happening one there is no real basis from which to restablish that trust. It does not matter how much treasuries you have they themselves are not real value. That's why it's called a fiat system

mfields111's picture

You have to realize

The shadow banking system is only as good as its weakest link and believe me all the links are massive debt ridden over extended insolvent counties who lean on each other like a big group of blind,en leading each other

Silverhog's picture

Great post Dave

Looks to me like the Fed is trying to steer an ocean-liner traveling 1000 times faster than the ship was designed for. I'm working hard to try and get out of the way of this accident. But like you, I think time is running short. I hope we all have the luck to look back and say "whew" that was truly close. 

gldslv's picture

You can smell how this crap ends

No collateral will vaporize the derivatives.  You really should be converting to things that make ideal collateral. this thing does not end gracefully.  They need more treasuries quickly...i.e. raise taxes, fees, reduce handouts ...take the low hanging fruit of money deposits, CDs, substitute 401Ks with treasuries promises.....get the pattern now?  Stop wasting your time watching the daily prices.  Its going to change overnight and too late for 99% of the people you know...and you'll have every law designed to get it from you....

lund175's picture

@ Safety Dan

I see now the hot vaccine is for dogs. Seems to be some type of outbreak  killing some  canines   around Chicago. Someone on the news was telling everyone to get man's best friend a shot as soon as possible.

Pretty soon they will have a vaccine for hamsters.

Thought you would get a kick out of that.

StevenBHorse's picture

More IMF

It was agreed in 2010 that the renminbi should be included, but this has never been ratified by the Americans. It is believed by close observers that China's exclusion from the SDR is one of the reasons China set up the Asia Infrastructure Bank rather than pursue the IMF relationship.

This is exactly the point that I have been making.  Why would US ever vote to diminish their own power within an organization that had its founding when Bretton Woods II was initiated?  If gold was in fact approved, I would imagine they would want to the Chinese to prove they had as much they claim.  There would be a verification process for all the countries and their stash of gold.  This means a real 3rd party audit, proof of ownership, etc.  I don't think US would want a light to shine into Ft. Knox, since most likely that gold is long gone.

So I stand by my thesis that China applying for IMF SDR status is nothing more than a play to force US into denying them a seat at the table, and then the subsequent launch of the new system.  The blame for the chaos that would ensue would be squarely blamed on US, by the rest of the world, and not to China. 

So gold will re-enter the system regardless, the only question is how. 

The Chinese are giving US enough rope to hang ourselves. 

Sun Tzu nods in approval.

Safety Dan's picture


Reactions from vaccine for dogs

vaccine for hamsters

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Safety Dan's picture

Gold and Economic

Gold and Economic Freedom

By Alan Greenspan

April 19, 1998

An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense-perhaps more clearly and subtly than many consistent defenders of laissez-faire-that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other.

In order to understand the source of their antagonism, it is necessary first to understand the specific role of gold in a free society.

Money is the common denominator of all economic transactions. It is that commodity which serves as a medium of exchange, is universally acceptable to all participants in an exchange economy as payment for their goods or services, and can, therefore, be used as a standard of market value and as a store of value, i.e., as a means of saving.

The existence of such a commodity is a precondition of a division of labor economy. If men did not have some commodity of objective value which was generally acceptable as money, they would have to resort to primitive barter or be forced to live on self-sufficient farms and forgo the inestimable advantages of specialization. If men had no means to store value, i.e., to save, neither long-range planning nor exchange would be possible.

What medium of exchange will be acceptable to all participants in an economy is not determined arbitrarily. First, the medium of exchange should be durable. In a primitive society of meager wealth, wheat might be sufficiently durable to serve as a medium, since all exchanges would occur only during and immediately after the harvest, leaving no value-surplus to store. But where store-of-value considerations are important, as they are in richer, more civilized societies, the medium of exchange must be a durable commodity, usually a metal. A metal is generally chosen because it is homogeneous and divisible: every unit is the same as every other and it can be blended or formed in any quantity. Precious jewels, for example, are neither homogeneous nor divisible.

More important, the commodity chosen as a medium must be a luxury. Human desires for luxuries are unlimited and, therefore, luxury goods are always in demand and will always be acceptable. Wheat is a luxury in underfed civilizations, but not in a prosperous society. Cigarettes ordinarily would not serve as money, but they did in post-World War II Europe where they were considered a luxury. The term "luxury good" implies scarcity and high unit value. Having a high unit value, such a good is easily portable; for instance, an ounce of gold is worth a half-ton of pig iron.

In the early stages of a developing money economy, several media of exchange might be used, since a wide variety of commodities would fulfill the foregoing conditions. However, one of the commodities will gradually displace all others, by being more widely acceptable. Preferences on what to hold as a store of value, will shift to the most widely acceptable commodity, which, in turn, will make it still more acceptable. The shift is progressive until that commodity becomes the sole medium of exchange. The use of a single medium is highly advantageous for the same reasons that a money economy is superior to a barter economy: it makes exchanges possible on an incalculably wider scale.

Whether the single medium is gold, silver, sea shells, cattle, or tobacco is optional, depending on the context and development of a given economy. In fact, all have been employed, at various times, as media of exchange. Even in the present century, two major commodities, gold and silver, have been used as international media of exchange, with gold becoming the predominant one. Gold, having both artistic and functional uses and being relatively scarce, has always been considered a luxury good. It is durable, portable, homogeneous, divisible, and, therefore, has significant advantages over all other media of exchange. Since the beginning of Would War I, it has been virtually the sole international standard of exchange.

If all goods and services were to be paid for in gold, large payments would be difficult to execute, and this would tend to limit the extent of a society's division of labor and specialization. Thus a logical extension of the creation of a medium of exchange, is the development of a banking system and credit instruments (bank notes and deposits) which act as a substitute for, but are convertible into, gold.

A free banking system based on gold is able to extend credit and thus to create bank notes (currency) and deposits, according to the production requirements of the economy. Individual owners of gold are induced, by payments of interest, to deposit their gold in a bank (against which they can draw checks). But since it is rarely the case that all depositors want to withdraw all their gold at the same time, banker need keep only a fraction of his total deposits in gold as reserves. This enables the banker to loan out more than the amount of his gold deposits (which means that he holds claims to gold rather than gold as security for his deposits). But the amount of loans which he can afford to make is not arbitrary: he has to gauge it in relation to his reserves and to the status of his investments.

When banks loan money to finance productive and profitable endeavors, the loans are paid off rapidly and bank credit continues to be generally available. But when the business ventures financed by bank credit are less profitable and slow to pay off, bankers soon find that their loans outstanding are excessive relative to their gold reserves, and they begin to curtail new lending, usually by charging higher interest rates. This tends to restrict the financing of new ventures and requires the existing borrowers to improve their profitability before they can obtain credit for further expansion. Thus, under the gold standard, a free banking system stands as the protector of an economy's stability and balanced growth.

When gold is accepted as the medium of exchange by most or all nations, an unhampered free international gold standard serves to foster a world-wide division of labor and the broadest international trade. Even though the units of exchange (the dollar, the pound, the franc, etc.) differ from country to country, when all are defined in terms of gold the economies of the different countries act as one--so long as there are no restraints on trade or on the movement of capital. Credit, interest rates, and prices tend to follow similar patterns in all countries. For example, if banks in one country extend credit too liberally, interest rates in that country will tend to fall, inducing depositors to shift their gold to higher-interest paying banks in other countries. This will immediately cause a shortage of bank reserves in the "easy money" country, inducing tighter credit standards and a return to competitively higher interest rates again...

Much more here:

Can The United States Return To A Gold Standard?

By Alan Greenspan

January 10, 1998

Can a leopard change his spots...?

Following is a verbatim article published in the Wall Street Journal on September 1, 1981. Its author is Alan Greenspan, who at the time was a partner in Townsend-Greenspan & Co. - an economic consulting firm. It is relevant and very significant to also know that Greenspan was the Chairman of the Council of Economic Advisors from 1974 to 1977, a period witnessing dramatic changes in the price of gold.

The growing disillusionment with

SamSchlepps's picture

A shadow of SS121's comment

Its just really interesting that the G7 met, G20 met, and imf / world bank meetings going on when markets hiccuped. Not saying it wasn't partly due to collateral issue but timing is a bit odd. So perhaps  somebody wanted to take it down as part of message and somebody responded - we end up down in numbers - but perhaps just a salvo and who won, lost, or if it was a draw we're not told.

On the other side of the world, things continue to go back and forth. Russia okays S-300's to Iran and then Iran goes after the possible underbelly of the US military (per J Willie) - see link

Iran, Afghanistan join hands to fight drug trafficking, terrorism Its interesting that they have agreed ob Afghan refugee status - making them Iranian citizens. And if you follow the related links China is cracking down on drugs and the drug rings.

So US military may be initiating in Europe and Middle East or reciprocating - missed the conference call on that.

J Willie referred to the Iran nuclear talks as the USA surrender talks once and only once in all my listening to him- so maybe its true. Maybe we just are boiling down to that confrontation with the military or they see more money to be pulled out of the system before mutual agreement. IMF and World Bank love the AIIB now. China claims responsibility for the UN. China heads over to Pakistan to make sure Silk Road gets moving and Saudi's don't go too far. India comes to Canada to settle down that ratdog - Harper. And the AIIB says Iceland is a good fit - 57 founding members and counting?  There's love breaking out everywhere except the Ukraine, and the Middle East. Of course Russia building up naval access to that critical Greece/Cyprus area and China's working on logistical access with Greek port buying. And the G20 meets in Turkey this year - maybe they all get in an accident - wouldn't that be terrible.wink

End of June - the "framework on the framework for the Iran nuclear talks" gets filled in - final marching orders or agree to disagree??? We have to go through the end of this month per some folks to get there and it goes full retard in September. Who's on the bbq - for some reason I'm feeling warm all over.

FWIW - musings on a Sunday

tyberious's picture


IMF,  I totally agree! The Chinese know that the US will not allow them into the SDR.

But perhaps by the US not paying IMF dues this allows the IMF to somehow reduce the influence of the US? Interesting none the less. I contend that China has not taken all this effort to develop the BRICS, AIIB, SOC, and the BRICS Bank AKA NDB (New Development Bank) just to turn around and be beholden to US and Western influences.

That's alot of effort for Kabuki Theater!

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