The 'Other' Parabolic Chart That Has Central Bankers Running Scared

Tyler Durden's picture




 

Presented with no comment...

 

and its not just 'search',

 

But remember - Barroso said "the worst of the crisis is over"

 

Source: Google

 

(h/t Ian T)

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Wed, 04/03/2013 - 12:25 | 3403785 McMolotov
McMolotov's picture

Holy parabola, Batman!

Wed, 04/03/2013 - 12:27 | 3403787 Pinto Currency
Pinto Currency's picture

The action in Cyprus and the revelation that the BIS / IMF / EU / Cdn Gov etc., etc. plan to confiscate cash deposits to protect distressed banks may lead to depositors withdrawing enough cash that banks are forced to sell bonds/debt to raise further cash.

This could be the trigger that raises interest rates and sets-off a crisis.

Wed, 04/03/2013 - 12:28 | 3403797 McMolotov
McMolotov's picture

I anxiously await the day that I come to ZH only to find the deer-in-headlights picture and a snarky caption from Tyler.

Wed, 04/03/2013 - 12:33 | 3403824 nope-1004
nope-1004's picture

Cdn gov't now willing to confiscate your money.  Page 144 and 145.

 

www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf
Wed, 04/03/2013 - 12:50 | 3403926 sitenine
sitenine's picture

Yes, but lets not forget that this time is different and it can't happen here. Now kindly go back to sleep.

Wed, 04/03/2013 - 13:08 | 3404046 fonzannoon
fonzannoon's picture

I just fell the fuck down. Marketwatch is running an article 'gold drops as demand for paper gold shrinks". It goes on to talk about a massive seperation between paper and physical.

Wed, 04/03/2013 - 13:12 | 3404049 ZerOhead
ZerOhead's picture

If I were a smart banker right now I would be thinking about getting into the habit of sponsoring chartity runs.

Maybe a 5 Mile Bank Run for Detroit or Stockton in the States... perhaps a 10 Kilometer Bank Run for Cyprus in the Eurozone...

Just for some search engine cover and better PR you know...

 

Wed, 04/03/2013 - 13:12 | 3404061 BaBaBouy
BaBaBouy's picture

Getting Tempted For AU Buy Soon ...

 

Give Me More ...

Wed, 04/03/2013 - 13:18 | 3404069 BaBaBouy
BaBaBouy's picture

Much Easier To Confiscate Your CB Issued Paper Fiats ...

That Reside ONLY On Some Banksters HardDrive ===> And Will Never Ever Be Even Printed ...

 

Wed, 04/03/2013 - 13:19 | 3404101 DeadFred
DeadFred's picture

They can't confiscate our physical without some serious scuba gear :)

Wed, 04/03/2013 - 13:30 | 3404152 redpill
redpill's picture

Deep sea submarine, even.

Wed, 04/03/2013 - 13:54 | 3404261 cifo
cifo's picture

TZA will go parabolic soon too.

Wed, 04/03/2013 - 15:41 | 3404843 Karlus
Karlus's picture

I kinda suspected this was coming.

What will be the really big indicator is the govt announcing a $500 and $1000 note. It will make printing the paper to cover a run that much quicker.

They might have already printed it and have it staged at a warehouse...I would if I was them.

Also look for some additional reporting on PM transactions.

Wed, 04/03/2013 - 17:08 | 3405485 Gief Gold Plox
Gief Gold Plox's picture

If I've learned anything from ZH it's that the readership contains some of the best deep water divers in the world.

Horrible sailors, but damn fine divers  Go figure. :)

Wed, 04/03/2013 - 14:25 | 3404440 Flagit
Flagit's picture

what # would make you jump?

Wed, 04/03/2013 - 14:44 | 3404548 Marley
Marley's picture

14 FRNs

Wed, 04/03/2013 - 13:43 | 3404207 GOSPLAN HERO
GOSPLAN HERO's picture

MarketWatch (MW) is a bulltard propaganda site.

Piss on MW.

Wed, 04/03/2013 - 15:39 | 3404827 candyman
candyman's picture

Its like getting your news at "The Onion".  Itds a good site for laughter, nothing serious.

Wed, 04/03/2013 - 14:42 | 3404545 zaphod42
zaphod42's picture

Hey!  Gold is just a commodity.  There is not enough of it to mint coins with it any more, and if you did you would run the price too high.

Actually Au is valuable for its conductivity and ductility.  Not much else to say for it.  Oh... yeah.  It is pretty and makes nice jewelry if you alloy it down to 14Kt or so (18 kt is way to soft).

I just don't understand you gold bugs.  It is already selling for way more than its real value.  Get over it, for heaven's sake.

 

Wed, 04/03/2013 - 14:53 | 3404604 Pinto Currency
Pinto Currency's picture

 

Droll attack.

Wed, 04/03/2013 - 16:15 | 3405143 Scarlett
Scarlett's picture

When comex defautls, the gold moves will be by $1000 a day.

Wed, 04/03/2013 - 15:05 | 3404677 Rogue Trooper
Rogue Trooper's picture

Yeah, just like why would you need to even own a gun unless you_________ (add strawman).

This 'meme' gets real boring zaphod42. Unless you just forgot the sarc tag?

Yawn.

Wed, 04/03/2013 - 15:11 | 3404699 akak
akak's picture

He forgot to mention "you can't eat it".

His paymaster is going to be cross with him over that little slipup.

Wed, 04/03/2013 - 15:53 | 3404943 new game
new game's picture

I ATE IT -tasty ass shit...

special 24K-everything you need for a Goooooood day.

Wed, 04/03/2013 - 15:19 | 3404736 augie
augie's picture

ohhh avril....

Wed, 04/03/2013 - 15:54 | 3404949 jumbo maverick
jumbo maverick's picture

I ordered silver from NWTM back in January with up to a 10 week delivery date. I called them today to inquire about the status of the delivery. They told me it will be at least another month.

Is there any physical silver left out there to buy? What is going to happen in the next few months? The train is going off the rails and I think the government is shoveling more coal into the firebox as quick as they can. Major train wreck coming.

Wed, 04/03/2013 - 19:26 | 3406056 SilverDOG
SilverDOG's picture

fonzannoon

 

Fell down over your stack right?

Wed, 04/03/2013 - 12:51 | 3403930 Croesus
Croesus's picture

Coming soon to a USA near you:

http://www.fdic.gov/about/srac/2012/gsifi.pdf

Page 6, Section 13...

Wed, 04/03/2013 - 12:57 | 3403964 resurger
resurger's picture

WOW Kudos to both of you, but what about the US, is it written somewhere?

WE ARE ALL FUCKED WORLD WIDE!!!

Wed, 04/03/2013 - 13:07 | 3404003 Croesus
Croesus's picture

@ Resurger:

I quoted the location in the document, but here it is (pay attention to the bold parts):

An efficient path for returning the sound operations of the G-SIFI to the private sector would be provided by exchanging or converting a sufficient amount of the unsecured debt from the original creditors of the failed company into equity. In the U.S., the new equity would become capital in one or more newly formed operating entities. In the U.K., the same approach could be used, or the equity could be used to recapitalize the failing financial company itself — thus , the highest layer of surviving bailed-in creditors would become the owners of the resolved firm. In either country, the new equity holders would take on the corresponding risk of being shareholders in a financial institution.

TRANSLATION:

So, bank fails, we take depositor money above what we can insure, and make it shares. We use the money from the shares as capital in the new bank, while the depositors become owners of the defunct bank, and take on the risk of being shareholders. 


Wed, 04/03/2013 - 13:09 | 3404044 Beam Me Up Scotty
Beam Me Up Scotty's picture

Gee, most people put their money in the bank to avoid the risk of the stock market and save.  Who knew they could actually be made shareholders?  Shareholders of a dead business even.  Most sheep have no idea what the ramifications of this are.

Wed, 04/03/2013 - 13:17 | 3404083 Croesus
Croesus's picture
It's ironic....most people are afraid of having their money stolen at home by local thieves, so they put it in a bank where it is free to be stolen by global thieves.
Wed, 04/03/2013 - 13:36 | 3404175 Dr. Richard Head
Dr. Richard Head's picture

I have sent the link to this joint FDIC/BOE paper to Lew Rockwell, Andrew Wilkow, posted it on my LinkedIn page, and tweeted it.  Local newspaper doesn't want to cover it.

Wed, 04/03/2013 - 13:40 | 3404198 CH1
CH1's picture

Local newspaper doesn't want to cover it.

I am shocked, I tell you! Shocked!!

Wed, 04/03/2013 - 14:46 | 3404282 Dr. Richard Head
Dr. Richard Head's picture

I know it was a stupid move, but you never know.  I have had the local paper run many stories about shit like this.  It is always worth a shot. While it is a local paper, they are one of the top 10 in the US in terms of total circulation.

Wed, 04/03/2013 - 14:02 | 3404294 The Gooch
The Gooch's picture

Merry Christmas, Bedford Falls!

Wed, 04/03/2013 - 15:28 | 3404777 KnightTakesKing
KnightTakesKing's picture

Welcome to Pottersville. There, fixed.

Wed, 04/03/2013 - 15:59 | 3404996 jumbo maverick
jumbo maverick's picture

Epic fix

Wed, 04/03/2013 - 13:49 | 3404244 ziggy59
ziggy59's picture

Think global, act local...

Wed, 04/03/2013 - 13:04 | 3404008 resurger
resurger's picture

can the FDIC bail everyone?!

does the FDIC only insures deposits which are more than $100K

 

Part 346.6 permits branches to
engage in certain retail deposit activities that do
not trigger a requirement for deposit insurance.
Uninsured branches may accept initial deposits
of less than $100,000 from the following type of
depositors or resultant activity

 

http://www.federalreserve.gov/boarddocs/supmanual/us_branches/usb_p7.pdf

Wed, 04/03/2013 - 13:13 | 3404062 Croesus
Croesus's picture

@ Resurger:

Fuck no they can't.....they only have $25 Billion in insurance money, insuring $9.3 Trillion in deposits, to say nothing of the $300 Trillion in derivatives exposure....(which is probably a lot higher than that).

FDIC changed the insurance rules: Years ago, it used to be $100K Per Account. Post-Lehman, they changed it to $250K, to keep people from panicking. Back in Dec2012 (date?), they changed it to $250K TOTAL for all accounts in your name (tracked via Social Sec#).

The bottom line is, they will change the rules as much as necessary, to keep the game going a little longer. But lately, they have to constantly change it, which to me, is a strong indication that something must really be wrong, and we are closer to the breaking point than most people realize.

Wed, 04/03/2013 - 13:35 | 3404179 cornedmutton
cornedmutton's picture

cite for Dec 2012 rule change?

Wed, 04/03/2013 - 14:05 | 3404324 Croesus
Croesus's picture

@ Cornedmutton: Here you go!

http://www.fdic.gov/deposit/deposits/changes.html

Quote: "Deposits held in noninterest-bearing transaction account are now aggregated with any interest-bearing deposits the owner may hold in the same ownership category, and the combined total insured up to at least $250,000."


Wed, 04/03/2013 - 15:54 | 3404959 cornedmutton
cornedmutton's picture

thanky

Wed, 04/03/2013 - 14:43 | 3404551 Professorlocknload
Professorlocknload's picture

"The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category."

Looks to me like,"Aggregated" applies to varied accounts within an insured institution. As with all government rules, they are intentionally ambiguous, to allow weaseling room.

Like (per insured depositor and per insured bank) or (per insured depositor or per insured bank) ??

Just don't keep more than $250k in any one bank, IF you still believe FDIC has enough dead presidents stockpiled to cover a physical run. Let alone, what the value over and above the price of wood pulp those bills still retain by the time you get them.

If you are going to run, best to just debit card everything out down at walmart, the chevy agency and the PM dealer before the mob gets there with their fist full of dollars.

All this run bs is most likely by "strategic design" in my estimation. The central banks are obviously giving their friends a heads up before announcing these so called "confiscations."

Jawboning alert!

It's a game to these freaks. Sooner of later they step in it, and down it comes.



As of 1 JAN 2013

http://www.fdic.gov/deposit/deposits/dis/


Wed, 04/03/2013 - 15:19 | 3404735 Croesus
Croesus's picture

In my newsletter, when I broke the FDIC-BoE paper to my readers, I made the point that you want to be highly-liquid, and ready to move.

When a Cyprus-style screwjob happens here in the US, the last place anybody wants to be, is in line at the ATM's with the "rest of the herd". You want to be a step ahead of them. 

Also, I don't know how completely I would trust electronic payment systems at retail PoS; some stores may only accept cash in payment.

 

Wed, 04/03/2013 - 14:08 | 3404331 MachoMan
MachoMan's picture

They changed to $250k per account to stop the bank run...  It's one of those facts that seems to go unnoticed since 2008...  THERE WAS A REAL, VIABLE BANK RUN IN THE U.S.  We already have precedent for it...  it's why the FDIC came out and made the announcement and upped the limits...  this announcement was instrumental in curbing the bank run.

The strangest part, the bank run wasn't due to withdrawals per se (e.g. to cash), but instead was from small and regional banks to TBTF banks...  the thought process being that the larger banks would be backstopped no matter what. 

It's kind of weird how everyone can get really smart, really quickly when they're finally incentivized properly...

Wed, 04/03/2013 - 15:38 | 3404830 Spigot
Spigot's picture

I know you, Croesus, have no concern due to high gold bullion ownership. However here's the point: The FDIC would confiscate ALL THE ACCOUNTS and USE ALL THOSE FUNDS AS THEIR RESOLUTION MONEY. Essentially they can clami to have $9.x TRLLION in "Insurance Funds". It just so happens that YOU ARE PROVIDING THE INSURANCE FUNDS DIRECTLY.

We are screw.

You do not prepare for what is not expected. Or in the positive voice: Observe the preparations to understand what they are expecting...

Wed, 04/03/2013 - 16:29 | 3405249 Croesus
Croesus's picture

@ Spigot:

Essentially, that is what they're going to do, but instead of recapitalizing failed banks, they're going to let them fail, and use the proceeds to start a new bank instead. Why? Because there's no way to clear the derivatives mess off the books. So, they let the whole thing die, bury it in the back yard, and start all over again. 

It's important to understand that the nature of being a depositor in a bank is being changed to that of a creditor in that document. These terms have big meaning in Bankruptcy court. That alone should scare people into getting their money out of banks.

Unfortunately, I lost all my bullion in a tragic boating accident.... :(

 

 

 

Wed, 04/03/2013 - 13:06 | 3404034 New England Patriot
New England Patriot's picture

If one in ten people decide not to trust the bank with their money anymore, the house of cards comes down.

 

Fractional reserve banking: a great idea until it isn't.

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