Please Listen to JB-SFC

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Even if you only listen to the first 10 minutes of last night's program, please take the time to do so. The "Minsk Agreements" for peace in Ukraine are soon to be dead, completely nullified by recent political actions in Kiev.

It is extremely important that you understand what has happened and John and Steve discuss these details in the first segment of last evening's discussion. The Minsk Agreements, so urgently cobbled together by Merkel and Hollande last month, allow for the following steps to be made for a cease fire and lasting peace in Ukraine:

  • The immediate withdrawal of heavy artillery from the front lines of SE Ukraine
  • A political agreement that called upon Kiev to negotiate with representatives of The Donbass
  • These negotiations would seek to give The Donbass a "special status" but remain within Ukraine and governed by Kiev
  • Finally, there would be votes taken in eastern Ukraine to elect local authorities under national Ukrainian law

However, late last week, the government in Kiev passed new, additional legislation that said, in effect, that none of the steps outlined above per Minsk would be undertaken until the Donbass leaders surrendered to Kiev. This resolution out of Kiev referred to The Donbass as "occupied territory" and assured that no discussion, no elections and no special status would be granted until said surrender took place.

So, now, wait a minute. The NAF was clearly "winning" the civil war with Kiev when the shooting stopped last month but now the NAF leaders are supposed to surrender to Kiev in order for peace to move forward? Seriously?? Something tells me that's not going to happen.

And why would Kiev take these steps to sabotage this process...a peace plan so desperately sought by Merkel and Hollande? Well, it seems that the U.S. is the only Kiev "ally" that still desires war. Just Monday, two days after the Kiev vote sabotaged the Minsk Agreements, the U.S. House voted overwhelming approval of the notion that the the U.S. should now send offensive, heavy weapons to Kiev: Did the U.S. State Department (Victoria Nuland et al, acting at the behest of The White House) actively encourage their puppets in Kiev to take these actions? Recall that the U.S. was never directly involved in the Minsk negotiations in the first place.

And, of course, Russia quickly responded as the state Duma is once again considering a move that will grant Putin the power to directly intervene militarily in Ukraine should the U.S. move to arm Ukraine with the heavy weapons the U.S. Congress seems so eager to supply:

Look, this is exactly why we've been covering this story now for over a year. Besides the fact that this crisis has accelerated The End of The Great Keynesian Experiment in almost countless ways (China-Russia relationship, new Russian SWIFT alternative, new currencies proposed, Russian-China gas pipeline, etc etc etc), this situation has the real potential to evolve into the worst and most dangerous international event since The Cuban Missile Crisis in 1962.

Though the American and European media are once again largely ignoring this story, I urge you in the strongest terms possible to stay on top of the situation. One of the best ways to accomplish that is to listen each week to Batchelor and Cohen. Please listen to last night's episode right now.



Turd Ferguson's picture

And while posting this link to twitter...


I just saw this:


Hammer's picture

Barclays has predicted that if the yields on 10-year Treasury bonds reverted back to their historical average it would wipe nearly a fifth off the tangible book value of European banks.

Yes, a fifth. This is what is meant by interest rate risk. It’s big and it’s real and the banks know all about it. Their answer is to hedge the risk with interest rate derivatives. It’s one of the reasons why there are so many of these contracts in existence. So that’s all OK then.

Just one question though:

Turd Ferguson's picture

And this is certainly an odd story, too

Dr. P. Metals's picture


You almost had me, but this part gave the hoax of your regurgitated propaganda away: "fifth off the tangible book value of European banks"

Under which set of mark to fantasy accounting rules is there a "book value" to begin with again? I forgot. Please remind us all why the nonsense you posted is credible?

Why you all bother to repeat this utter BS stuff on this forum is beyond me at this point. I keep pointing this crap out,many times, and you all keep posting and eating that stuff right up, like good lap dogs. And then get mad at me for pointing this crap out. Lol

Edit: maybe putting it this way for the one here who prefers math: .8i is STILL an imaginary number.

Turd Ferguson's picture

Maybe you're the one who


Maybe you're the one who needs to slow down, Dr. P. Hammer was simply quoting the article directly. If you had taken time to click the link, you would have found this:

"What could go wrong? Let’s say that US interest rates do rise sooner and faster than the market expects. That means bond prices, which always move in the opposite direction to yields, will plummet. US Treasury bonds are like a mountain guide to which most other global securities are roped - if they fall, they take everything else with them.

Who will get hurt? Everyone. But it’ll likely be the world’s banks, where even little mistakes can create big problems, that suffer the most pain. The European Banking Authority estimates that the average large European lender still has 27 times more assets than it does equity. This means that if the stuff on their balance sheets (including bonds and other securities priced off Treasury yields) turns out to be worth just 3.7pc less than was assumed, it will be time to order in the pizzas for late night discussions about bail-outs.

Barclays has predicted that if the yields on 10-year Treasury bonds reverted back to their historical average it would wipe nearly a fifth off the tangible book value of European banks.

Yes, a fifth. This is what is meant by interest rate risk. It’s big and it’s real and the banks know all about it. Their answer is to hedge the risk with interest rate derivatives. It’s one of the reasons why there are so many of these contracts in existence. So that’s all OK then.

Just one question though: who have they bought those derivatives from? Why, other banks of course. This creates what is known as counterparty risk. Bank A sells insurance to Bank B. But then Bank A gets into financial difficulties (a significant deterioration in their creditworthiness would be enough) and suddenly Bank B isn’t as well protected as it thought it was.

Indeed, Bank A might start struggling precisely because of the insurance it has sold to Bank B. What if it can’t honour the contract? This creates a potential Catch-22 situation: the derivatives work as long as they’re not needed; calling them into action renders them useless."

You might also want to read this, which sources information from the WSJ:

This is all a very real risk. You can go ahead and choose to ignore it if you like just as you can continue to label all of us here as "lapdogs". With your disdain for your fellow subscribers, I'm beginning to wonder why you persist in hanging around here. 

Response to: @Hammer
silverflower's picture

It is really frightening

Although I am located in the center of Europe (Rheinland, Germany) you will not believe that people over here do not have the slightest, again slightest clue what is going on in the world. I am talking to a lot of  well educated people on a regular basis. Colleagues, e.g. highly educated mechanical engineers having a university degree. Neither they are aware of the dire shape of the financial system, nor they take the situation in Ukraine seriously. So they are simply not able to establish a link between the dying financial system and the international military conflicts. Ukraine currently is not part of any media news. Really, it's frightening. People may start to wake up and respond when it's too late. You think people have learned from history? Forget it.

Dr. P. Metals's picture

Even you Turd are completely missing my point

by simply repeating banker propoganda, it is propogating it. Every time something like that is mentioned, and a fear raised, that gives it reality. And as SS has been saying for a long time, it's ALL fake. I've been less disdainful when first pointing this stuff out, but not so much any longer, as it's clearly pointless, and yes my time here is limited, most prefer not to hear. So tell me again why is a link to and an article about banking fraud and lies which self references their own propoganda and definitions as ITS OWN starting point valid again? Even to read?

Edit: I stand by what I said, a "fifth" of something which is completely arbitrary and made up to begin with is still imaginary. Will "it" have consequences, probably, precisely because they want it to, and they want you all to believe that it will. That's why it does!  Do you finally see how they work it.

Edit 2: yet another way to say this that might get understood: THEY keep getting YOU to state, repeat, and post (or link to articles that say) that the matrix is real. And you all do. Astounding!

Edit 3: and yet another way to state this specific case of propoganda: banks don't HAVE a book value! It's all made up out of nothings/thin air to begin with! So why oh why would an article about bank book value be nothing more than THEIR propoganda?

Hammer's picture

If you don't like it, read

If you don't like it, read the title of the article again and stop attacking. I'm getting sick of the crapon this site. I've had to deal with zman in the forums and now you are pissing me off with your nit picking and I've been here for a looong time.

Read the title again, take a deep breath and step back before posting ffs.

The world's next credit crunch could make 2008 look like a hiccup

Fatso's picture

USA crashed Germainwings jet killing about 150 Germans???

Joining the AIIB bank and not following USA policy has blow back.

Perhaps all vehicles with on board computers need to be firewalled because they can be hacked and taken over. I may be learning how to protect my car and myself because I am  a stacker.

Dr. P. Metals's picture

You all seem to still be stuck in their matrix

So far yet you don't even know or realize it. Maybe SS will keep trying, I wont. Boggles the mind. I'm glad you've been here so long and still place credence in banker propaganda and then objecting to me objecting to it. I might lurk to hear what Turd says, maybe. He means well and has a good heart at least. Other than that, peace and adios.

Hammer's picture

Are you patronizing me with

Are you patronizing me with such a condescending comment ? Take a big step back and think about it for your own peace of mind. Unreal !

Turd. Sorry about this but I cannot let this poster take easy pops and then just act like everything is everything even after been shown the big picture (in this case the actual title of the article)  A better man would have apologized but I guess not this poster. Once again, apologies.

StevenBHorse's picture


He is the classic case of someone who can dish it out, but can't take it.

I have lost count at how many times he has threatened to leave. 

I'm sure this isn't the last that we will see of him.


Hammer's picture

Back on track... Invisible

Back on track...

Invisible army: the story of a Russian soldier sent to fight in Ukraine

CPE's picture


Thank you for posting the article.  If this were correct even if mispelled:

by simply repeating banker propoganda, it is propogating it.

Then there would be little to talk about at all.  If the whole world is a Matrix, and that topic is off limits, then we'd be left contemplating how does a guy who weights over 600 pounds have the balls to teach people about self-discipline?

Hammer's picture

Turd Ferguson's picture

Well, this is certainly convenient


My primary concern today is that this aircraft was somehow "electronically hijacked" and flown into the ground. If you don't think that's possible, you need to open your mind.


Dr. P. Metals's picture

I haven't

because I keep trying to want to help when nonsense is posted. But that's over, so all your wishes come true now. I've taken every shot thrown at me, without hesitation. No one has even bothered to "slow down" and think about what I've posted even just today, in this thread. Maybe I've helped one person, dunno. If so it was worth it.

Edit: and congrats on finding my spelling error. Truly a great work of intellect. But perhaps it allows you to dismiss what I wrote easier.

Hammer's picture

The road to hell is paved

The road to hell is paved with good intentions...........

Turd Ferguson's picture

And if you don't think that this is possible

Turd Ferguson's picture

Look, P, I understand your point


You're simply wrong.

Yes, the banks use Mark-to-Maturity accounting. This is a fraud and a sham. I've discussed this countless times here and EVERYONE already understands this. So, when you post that we're all "lapdogs" for even discussing the implications that rising rates will have on balance sheets and derivatives, it is YOU who are missing the point.

The marks are there and the derivatives are real. Therefore, a rising rates will lead to another daisy chain derivative meltdown. This is not "the matrix" or whatever other silly nonsense folks like to spout to make themselves feel as if they are the only wise and learned people in the room. This is reality and it is a reality for which we are all trying to prepare.

Response to: I haven't
Dr. P. Metals's picture


I stand by what I wrote above. I encourage you to deeply think through it.  If it's ok, I'll lurk until I'm not stuck (stupid?) playing the miners.

Joseph Warren's picture

well, I hope people with contrary opinions don't leave . . .

as long as they back their views with evidence and sound arguments. I constantly ask myself  " What am I missing ? What may be a blind spot ? "  So, I welcome those who disagree with me, if done in the manner mentioned.

I did a quick skim of the above post. If if I read & understood it correctly, there's much in his viewpoint that I agree with. The current fiat money system is one big complete fraud. Everything based on it is also a fraud, - especially derivatives. I am as guilty as anyone in following all the detailed nitty-gritty of this on sites like ZH. Maybe it's a habit, or a mild addiction. In many ways, it's like arguing whether 4 angels can fit on the head of a pin, or only 3.  -- That said, one reason to follow all this is to get a sense of timing. Are these (at their foundation, bogus) events accelerating ? Are we getting near a massive breakdown ?  Do 'their' actions point to desperation ?

Nowadays I focus on the physical PMs. They have the best long term record as money. But gold is not something to 'believe' in, either. If you think about it, isn't it curious that men would value something because it's 'pretty & shiny'. Perhaps there was some ancient religious association made to the sun and gold because of its color.

Yes, we human beings believe in all sorts of curious things.

IMO no reason to get peevish with one another as to "how many angels"

Hammer's picture

Some old news re Ukraine.

Some old news re Ukraine. This will put pressure on somewhere no matter whether it is actual or not (so far "allegedly" is the key to reading this article).......but to whose benefit ?

and here is some modern news

brokerk22's picture


Man has to value something as a store of value for exchange of goods.  Your post about gold is ignorant in my view.  It is not just something that is "shiny."  It takes energy and utility to get it.  That is why it used as money.  Paper takes no UTILITY to produce.  Get it.  Your might want to know why you own it, before your own it.

Turd Ferguson's picture

And if anyone is looking for a new post this morning...


What would be the point of writing one?

As discussed yesterday, the metals continue to drift higher toward a close tomorrow in gold of $1200 +2. 

There will still be a podcast later today, however.

Turd Ferguson's picture

Please look this over

Joseph Warren's picture

@broker22 - thank you for your reply.

I take it to be in the spirit of trying to be helpful.

I am well aware of the role of gold as money and why it evolved as such in western society.

Among the best works on this subject are by the Austrian school economist Murray Rothbard.  His books "What Has Government Done to Our Money ?" and " The Case for a 100% Gold Standard" are classics. 

Free market economists recognize the role of gold as money, but they don't address human psychology as to why people value it.  Not their field. - And, on a practical basis that doesn't matter much.

Hammer's picture

Yemen's crisis will be high

Yemen's crisis will be high on the agenda at the March 28-29 Arab League meeting in the Egyptian resort of Sharm el-Sheikh, after the country's foreign minister called on Arab states to intervene militarily.

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