There has been a great discussion in the previous thread regarding the dire warning and interview that Santa gave to Ellis Martin yesterday. With apologies to those actively participating in it, I felt that it must be moved to its own thread.
Lots of folks come here simply to read the main page. As we all know, that's a big mistake. The true value of this site is in the wise and learned comments that are shared with each thread. The discussion regarding Santa is a perfect example. If you missed it, here is what all the hubbub is about.
First, on his site, Santa posted this last evening:
January 30, 2012, at 7:37 pm
by Jim Sinclair
My Dear Friends,
I was interviewed today concerning the most powerful body in the financial world that now holds in its hands the near future of all markets, from currencies to commodities, based on a single edict to be given.
The interview is being processed and should be posted here later this evening.
This organization supersedes all governments and central banks today in terms of the financial power they edict. This organization can have a greater impact on your pocketbook than the FASB did when they killed "true value" accounting.
This body is made up of the key players of the five largest banks in the USA and other countries. This body by their actions this week will guarantee QE to infinity.
This is relevant to all your assets, yes all. If you have the time listen to it please. If you don’t have the time listen to it please. If you don’t listen to it do not blame me when all hell breaks loose six months from now.
Not one word about this body was on the airwaves today, yet this group by a simple decision rules the financial plant. They will be making this edict in just a few days. They have to do it again this year. It is then that you know what will hit the fan.
I feel this is it for jsmineset.com tonight. I do not want to write another word and detract from the revelations you will hear.
Your financial future, even if you have never heard of them, is in this organization’s hands. Check in later for the interview. If you don’t check in your finances might just check out.
Please remember you have been informed of this impending edict as a service to the community.
As you might imagine, this got everybody's attention. We all sat around for an hour or two, waiting for the interview and then it was finally posted to the Ellis Martin YouTube channel. I will second Santa's sentiment...please take the time to listen to this today:
As we were debating what this all meant, I offered what I still think is a reasonably good explanation:
If I understand this right, here is what Santa is saying:
- In 2008, AIG had sold CDS on CDOs. CDOs defaulted and AIG had to pay. AIG went broke. The counterparties to the CDS were GS, JPM et al and had to be made whole on their losses that they thought were insured by AIG.
- US Govt funnels TARP cash thru AIG to GS, JPM et al to cover losses
- IN 2012, Greece is about to default, just like the CDOs of 2008.
- ISDA (run by Big 5 banks) declares that 70% haircut on Greek bonds is not a default.
- Therefore, Big 5 do not have to pay off on CDOs bought by Greek bondholders. Big 5 off the hook.
- Greek bondholders who thought they had principal insurance are now screwed and left holding the bag.
- Greek bondholders (big Euro banks, big Euro govts, big hedge funds) will now be insolvent.
- Greek bondholders will need massive capital injection.
- Short term euro negative/dollar positive.
- Regardless, lots and lots of money printing to save Greek bondholders.
Also, a significant part of Santa's warning is the timing. He seems to be saying that a decision regarding whether or not this is a "default" will be announced this week. Clearly, a market coming to terms with a massive, new money printing scheme to cover the bondholders will be a market that assigns the precious metals a much higher value in the weeks ahead. We will have to watch this very closely.
OK, have at it. Listen to the interview and discuss the implications in the comments. Learn from each other. Help each other. Prepare accordingly. TF
p.s. I believe that gold is popping this morning based upon this news:
Apparently, some are surprised that El Commandante was able to pull this off. At any rate, 160 tonnes in Venezuela means that as much as 16,000 tonnes has been removed from the LBMA/Comex paper regime. Ponder that one for a while.