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CFTC Announces It Is Undercounting Size Of Swaps Market By As Much As $55 Trillion

Tyler Durden's picture





 

What is $55 trillion between friends? Very little according to the CFTC. In perhaps the biggest under the radar news of the day - to be expected with every watercooler occupied by taper experts - the WSJ reports that the Commodity Futures Trading Commission said Wednesday that technical errors at two so-called swaps data repositories, which collect and supply regulators with transaction data, have led the CFTC to misreport the overall size of the swaps market by undercounting its size. Isn't it curious how all these "glitches" always work out in the favor of preserving market calm and confidence and away from spooking investors and speculators? Either way, a better question is how big was the so called undercounting? The answer: as large as $55 trillion!

Regulators aren't sure how much the repositories are undercounting. One CFTC official familiar with the matter said the discrepancy could be as high as $55 trillion, though another official said the figure is closer to $10 trillion once regulators cancel out certain transactions to prevent double counting.

One just has to laugh: the total US swaps market is what - roughly $400 trillion? So... just add enough notional to that number equal to the GDP of the entire world - or 4 times the size of US GDP - and call it a day. And in this environment somehow the Fed and other central planners are expected to have any clue what they are doing on a day to day basis?

Naturally this discovery makes a mockery of such transaprency enchancing initatives as Dodd-Frank.

The lack of clarity over the size of the market may undermine a key plank of the 2010 Dodd-Frank law aimed at bringing transparency to the opaque derivatives market. Swaps, which were at the heart of the 2008 financial crisis, are complex financial contracts that allow financial firms and their clients to hedge against risks or bet on an asset's value.

 

The CFTC has issued a number of rules to bring transparency to swaps trading so regulators can detect risks that could pose a threat to a firm or the financial system.

It would appear that those rules, uh, failed. It gets better:

The CFTC said in a footnote to its weekly swaps report that the largest data repository, the Depository Trust & Clearing Corp., "has informed us that due to a…technical coding issue, the notional values in the interest rate asset class have been understated." The agency also reported "a processing error" by a separate repository operated by CME Group Inc. A CME spokeswoman didn't respond to a request for comment. A CFTC official characterized the data problems as "growing pains." The agency formally began to report swaps data on a weekly basis just last month.

A technical coding issue with 12 zeroes?

Sure enough, the CFTC was quick to scapegoat someone for this epic clusterfuck - naturally, this someone was evil Congress for not spending even more money on the CFTC's toothlessness, something popularized recently by the recently departedBart Chilton, who more or less told gold traders that manipulation in the gold market will continue because the government just doesn't have the funds to stop it.

The official said the error also reflects the agency's chronic lack of resources. Just two employees at the agency are charged with putting together the weekly swaps report and it takes them 12 days to prepare the data for publication compared with three for another report the agency publishes. The agency is reviewing the matter and hopes to have firmer figures by next week's report, due Thursday.

 

In a statement, DTCC said: "We notified the CFTC immediately after we uncovered this matter and are working overtime to resolve these issues as soon as possible to ensure that the agency has timely access to the most accurate, highest quality market data."

Oh that's ok then, after all what's a little eletronic $55,000,000,000,000 shuttling back and forth between insolvent counterpa.... oh hey look, over there everyone, the Fed just tapered!

 


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Thu, 12/19/2013 - 09:24 | Link to Comment Shitters_Full
Shitters_Full's picture

Come on, Bart. Get your head outta your Krugman.

Thu, 12/19/2013 - 09:38 | Link to Comment XAU XAG
XAU XAG's picture

55T......................that's alot of SMOKE!

Thu, 12/19/2013 - 09:51 | Link to Comment Took Red Pill
Took Red Pill's picture

and mirrors

Thu, 12/19/2013 - 10:00 | Link to Comment BigJim
BigJim's picture

 Either way, a better question is how big was the so called undercounting? The answer: as large as $55 trillion!

55 trillion? Is that all you got?

Wake me up when they discover it's 55 quadrillion.

Thu, 12/19/2013 - 10:10 | Link to Comment gold-is-not-dead
gold-is-not-dead's picture

Oh yeah, bitcoin is the bad guy over here with 9 billions in total, yeah, it's a bubble all right, and CDS are not.

Thu, 12/19/2013 - 10:35 | Link to Comment CounterPartyVice
CounterPartyVice's picture

CFTC as in Commodity Fraud Trading Cartel?

Thu, 12/19/2013 - 10:54 | Link to Comment SafelyGraze
SafelyGraze's picture

these notional amounts are unimportant

if you agree to pay me the difference in interest rates on a hypothetical amount, such as a trillion dollars, the trillion dollars doesn't exist

and the difference in interest rates is likely to be small, so that you might pay only 0.1 percent on it, or a billion dollars

that billion dollars sounds like a lot, but you are using it to hedge, or offset, a larger position, thereby reducing your overall risk, which might have cost you several billions rather than just one billion

the actual first-order risks on those hundreds of trillions are probably on the order of only hundreds of billion, which are offsetting larger positions. 

consequently, the real "risk" of these seemingly large notional amounts of swaps is probably on the order of only a few tens of billions, spread across the entire market so that no single participant assumes more than negligible risk in these safe and stability-assuring instruments.

with kindest regards,
tim and mike and friends

http://www.banking.senate.gov/public/index.cfm?FuseAction=CommitteeInfor...

 

Thu, 12/19/2013 - 11:05 | Link to Comment Manthong
Manthong's picture

aw c'mon..

what's a couple of 25 or 50 trillion between wise guys anymore?

Thu, 12/19/2013 - 11:26 | Link to Comment CounterPartyVice
CounterPartyVice's picture

Yeah because these are only "swap" they are unimportant, ... no interest rate risk, no counterparty risk, no credit risk, ... only in the hundred of billions of exposure after all like you say, ... because after all we live in a TBTF zero interest rate world. It's such a safe world out there

With kindest regards, from rainbow unicorn financial ltd.

Thu, 12/19/2013 - 12:24 | Link to Comment donsluck
donsluck's picture

Assuming you're not being sarcastic, isn't this what forced the FED to bail out an INSURANCE company...AIG? You are refering to the difference between gross and net, and it is clear that gross can become net quickly when a big counter party folds.

Thu, 12/19/2013 - 13:46 | Link to Comment 1Inthebeginning
1Inthebeginning's picture

Collateralized Mortgage securities were assumed to be safe because people pay their mortgage.  That assumption of safety lead to greater and greater risk taking.  Will your assumption of safety lead you to greater and greater risk taking?  Thank you for posting.

Thu, 12/19/2013 - 14:25 | Link to Comment giggler321
giggler321's picture

Don't worry, it's just bus fair chaps, pocket change, penny shrapnel, nothing to see here move along...

Thu, 12/19/2013 - 15:17 | Link to Comment StychoKiller
StychoKiller's picture

Even if that's correct, it would be easier to untangle the Ghordian knot!

Thu, 12/19/2013 - 13:18 | Link to Comment InTheLandOfTheBlind
InTheLandOfTheBlind's picture

and lubricant

Thu, 12/19/2013 - 09:53 | Link to Comment jekyll island
jekyll island's picture

recently departedBart Chilton, who more or less told gold traders that manipulation in the gold market will continue because the government just doesn't have the funds to stop it.

Uhhh, it's the government that is maniipulating the gold price Bart, but you already knew that, didn't you?   

Thu, 12/19/2013 - 09:53 | Link to Comment Divided States ...
Divided States of America's picture

Headline for next week:

BLS Announces It Is Overcounting Size Of Job Market By As Much As 55 Million Jobs

Thu, 12/19/2013 - 11:35 | Link to Comment Luckhasit
Luckhasit's picture

That's alot of drugs.

Thu, 12/19/2013 - 14:16 | Link to Comment G.O.O.D
G.O.O.D's picture

A trillion here, 50 trillion there, before you know it we are talking some real money.

Thu, 12/19/2013 - 10:44 | Link to Comment Jumbotron
Jumbotron's picture

If you add up the entire derivatives market you come close to 1 QUADdrillion dollars on paper.   That's 999 trillion + 1 trillion.

So.....with that in mind......55 trillion is not such a bad oversight.

sarc/off

Thu, 12/19/2013 - 11:11 | Link to Comment mess nonster
mess nonster's picture

Yeah, I mean, what's the big deal? 55 trillion is only 0.055% of the entire market.

Besides, if 55 trillion in derivatives bets went south, those losses will be taken by the banks, and the Fed will just bail them out! So, what's the big deal? Why is everyone so upset about this?

When ZH gets obsessed with trifles like this, it only makes us look bad. The real threat to the economy is all the money laundering and arms and drugs trafficking that could happen with bitcoin. That and the continuing UFO/alien coverup that is going on at the highest levels of government. Not to digress. I mean, no-one could ever launder money with derivatives! Let's get it straight: Bitcoin will make it almost impossible for the CIA and the big banks to eliminate competiton in the money-laundering and illicit-drugs-and-arms-business! The entire monopoly could be at risk!!!! So, let's stop being henny-penny with all this worrying about derivatives. The stock market goes up, the unemployment numbers are going down, and my bonuses are getting bigger every year!

PS, if you don't know whether or not I'm being sarcastic, you should indicate your below average reading and comprehension skills with a down-vote.

 

Thu, 12/19/2013 - 14:07 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Nice post.

Dunno how long you've been around but under the radar during the Greek debacle, ZH and the commenters here were on top of the CDS risk there like white on rice.

Swaps are THE black swan swimming around waiting for a chance to kill people, literally.  They are the biggest elephant in the room that not only does no one talk about but that daring to do so probably will get a knock on the door. 

This is the story of the year from ZH, but it will scroll quickly.

Thu, 12/19/2013 - 11:44 | Link to Comment Son of Captain Nemo
Son of Captain Nemo's picture

If Zerohedge knows whats good for it, it will keep this read "in gray" at the top of it's site until the prices for PMs exceeds what it was at the end of 2011.

Thu, 12/19/2013 - 13:42 | Link to Comment q99x2
q99x2's picture

He's got his Bernanke up his Krugman so far not even a pair of yellen pomos could pull it out.

Thu, 12/19/2013 - 09:23 | Link to Comment GrinandBearit
GrinandBearit's picture

With every day that passes we get closer to the end.

Thu, 12/19/2013 - 09:29 | Link to Comment Big Corked Boots
Big Corked Boots's picture

We are already a banana republic. What comes after banana?

Thu, 12/19/2013 - 09:33 | Link to Comment Kina
Kina's picture

55 Trillion banana peels lying around gave the CFTC the hint it needed.

Thu, 12/19/2013 - 09:50 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

The NSA gets all the latest techmology.....the CFTC is still using a TRS80 to keep tabs on things.

Thu, 12/19/2013 - 10:24 | Link to Comment kralizec
kralizec's picture

It's just a liitle "oops", no biggie...a newer machine would only complicate matters...

Thu, 12/19/2013 - 10:47 | Link to Comment nuclearsquid
nuclearsquid's picture

Hahah, probably using a program i wrote when i was 12 using basic.  Just after I made a zork knockoff 

Thu, 12/19/2013 - 09:32 | Link to Comment XAU XAG
XAU XAG's picture

We are already a banana republic. What comes after banana?

 

banana ..........................skin!

Thu, 12/19/2013 - 09:35 | Link to Comment Sudden Debt
Sudden Debt's picture

America isn't a Banana Republic.

IT'S THE FAST FORWARD ZAPPER NATION!

Thu, 12/19/2013 - 09:36 | Link to Comment jerry_theking_lawler
jerry_theking_lawler's picture

galactic empire?

Thu, 12/19/2013 - 11:08 | Link to Comment unrulian
unrulian's picture

curfew and FEMA camps

Thu, 12/19/2013 - 11:13 | Link to Comment mess nonster
mess nonster's picture

Put the lime in the coconut an' drink it all up...

Thu, 12/19/2013 - 09:26 | Link to Comment Central Wanker
Central Wanker's picture

A trillion here, another trillion there, soon we're no more talking about real money... 

Thu, 12/19/2013 - 09:28 | Link to Comment XAU XAG
XAU XAG's picture

and the FED could only manage 10B

Thu, 12/19/2013 - 09:57 | Link to Comment mickeyman
mickeyman's picture

Maybe we could take up a collection?

Thu, 12/19/2013 - 09:28 | Link to Comment Kina
Kina's picture

Does any of it matter anymore. Surely everybody knows everything is a facade and that below is miles empty space...so keep looking up and all will be fine.

Thu, 12/19/2013 - 09:28 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Happens to me all the time.

Thu, 12/19/2013 - 10:02 | Link to Comment ThisIsBob
ThisIsBob's picture

Jusat a little coding error.  They happen all the time. No biggie.

Thu, 12/19/2013 - 11:22 | Link to Comment Skateboarder
Skateboarder's picture

Whoops, I must have missed another 5. It's 555 guys, my bad.

Thu, 12/19/2013 - 11:38 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Dude, it was in cell S55 of the worksheet, a total brain fart!  My bad!

Now back to business.  Due to the adjustment, Santa won't be coming around for 3.8 generations or until such time as debts are paid.  Have a nice day.

Thu, 12/19/2013 - 09:30 | Link to Comment Kina
Kina's picture

 

The USD is confetti... but lets keep calling it money and never look down, or in the mirror.

Thu, 12/19/2013 - 09:32 | Link to Comment buzzsaw99
buzzsaw99's picture

the moar swaps you have the moar $ you make. simple really.

Thu, 12/19/2013 - 09:33 | Link to Comment Dr. Engali
Dr. Engali's picture

If this doesn't tell you that it's one big fucking joke that they are making up as they go along, I don't know what will.

Thu, 12/19/2013 - 09:51 | Link to Comment Race Car Driver
Race Car Driver's picture

+1 making up as they go along

Who's gonna stop 'em?

Thu, 12/19/2013 - 09:59 | Link to Comment Skin666
Skin666's picture

Reality

Thu, 12/19/2013 - 11:39 | Link to Comment BLOTTO
BLOTTO's picture

Also, 'they' are dysfunctional.

.

They are masters at manipulating, lying and perverting and it will eventually lead to their collapse.

The snake eating its own tail eventually gets smaller and smaller...

Thu, 12/19/2013 - 10:01 | Link to Comment eclectic syncretist
eclectic syncretist's picture

Sounds like they either don't know what they're doing or they don't want us to know what they're doing.  My guess: both are probably true at the same time.

Thu, 12/19/2013 - 09:34 | Link to Comment NoDebt
NoDebt's picture

Jamie and Lloyd just read this and decided to increase the size of their lawyers' and lobbists' Christmas Bonuses.  And, of course, they increased their own as well.

Fine work, gentlemen.  Fine work.  One might even say God's Work.

Thu, 12/19/2013 - 09:40 | Link to Comment Meatballs
Meatballs's picture

I think they shoud go meet with him.

Thu, 12/19/2013 - 10:28 | Link to Comment OneTinSoldier66
OneTinSoldier66's picture

Part of God's work was to be crucified on a cross. They stepping up to the plate?

Thu, 12/19/2013 - 09:32 | Link to Comment toady
toady's picture

So, this means there is 10-55T of extra paper in the TBTFs hands that has no physical gold behind it?

Don't be surprised if you never hear this again. That is, until everyone is shocked, shocked I tell you, that there is 500T in unbacked paper in the gold market.

Thu, 12/19/2013 - 10:50 | Link to Comment Bobbyrib
Bobbyrib's picture

No one goes to jail and there will be no investigation. Transparency 'you can believe in.'

Thu, 12/19/2013 - 09:35 | Link to Comment 22winmag
22winmag's picture

Pitchfork and torches bitchez!

Thu, 12/19/2013 - 09:35 | Link to Comment Winston Churchill
Winston Churchill's picture

I wonder what the true figure is if they  admit to $55tn.

Thu, 12/19/2013 - 11:01 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Well, they say it could be anywhere between $10T and $55T.  Which is to confirm what we already know - they have no idea what they are doing.  The CFTC is a ruse, a holding pen for political wannabes and over-starched quantitative finance dropouts who struggle to figure the tip on a lunch tab.

Thu, 12/19/2013 - 09:36 | Link to Comment youngman
youngman's picture

Must have worked for John Corzine before going to the CFTC

Thu, 12/19/2013 - 09:39 | Link to Comment Mr. Magoo
Mr. Magoo's picture

Chump Change

Thu, 12/19/2013 - 11:51 | Link to Comment XAU XAG
XAU XAG's picture

I miss calculated my proffits by 55T on my tax return

 

Will anything happen!! ??

 

 

Thu, 12/19/2013 - 09:39 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

If I may add, Sinclair called this one a long time ago.  Time to revisit his other forecasts.

Thu, 12/19/2013 - 10:17 | Link to Comment Grinder74
Grinder74's picture

But will it snow today?

Thu, 12/19/2013 - 11:15 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Depends.

Thu, 12/19/2013 - 12:06 | Link to Comment Jumbotron
Jumbotron's picture

What do Depends have to do with snow.....other than yellow snow ?

Thu, 12/19/2013 - 12:21 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Oh sure, drag the Japanese demographic into this with your raaaacist diatribe.  Add homonym attack!

Thu, 12/19/2013 - 10:52 | Link to Comment OneTinSoldier66
OneTinSoldier66's picture

Jim Sinclair talks in such high highfalutin esoteric gibberish, most of the time, I can't even tall what the hell the guy is trying to really say.

 

"If I may add, Sinclair called this one a long time ago."

 

Been quite a while now, nearly a year think, but on KWN interview he stated that Gold was NOT GOING BELOW $1,600! Personally, I'm tired of crystal balls.

Thu, 12/19/2013 - 11:11 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Actually, he does spout a lot, something that rings in my mind is "learn to sell".  He also said to be prepared to ride a 30% roller coaster.

Thu, 12/19/2013 - 11:39 | Link to Comment OneTinSoldier66
OneTinSoldier66's picture

Learn to sell? You talking about Gold? I don't sell Gold. I might be willing to spend it. But sell it? No f'ing way!!

 

For instance, let's say a car dealership has a sign out front that they're accepting Gold/Silver for their cars that they have for sale on their lot. I might be willing to buy one. It would depend upon how much Gold and Silver they are wanting for one though.

 

I spent some once, in order to pay a guy who does some work for me. In other words, I paid for something in Gold.

Thu, 12/19/2013 - 11:40 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

If you don't care to sell, what do you care about $1600?

Thu, 12/19/2013 - 12:12 | Link to Comment OneTinSoldier66
OneTinSoldier66's picture

You're right ParkAveFlasher. I shouldn't care about anything at all in the entire foooking world, about anything fucking thing. I shouldn't point out, for a fact, what Jim Sinclair said, and the fact, that I am tired of crystal balls. And I should just SELL all my Gold. Happy now?!?

 

Perhaps you you could tell me what exactly it is that you want from me.

Thu, 12/19/2013 - 12:20 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Gimme back me pot o' gold!

Thu, 12/19/2013 - 09:41 | Link to Comment ak_khanna
ak_khanna's picture

Fun and Games with taxpayers money

The whole system of crony capitalism works towards making a minute portion of the population rich at the cost of the others. In true capitalism, weak and inefficient organisations fail to be replaced with better managed ones whereas in the current democratic system those very incompetent organisations are made bigger by tax payers funded bailouts.

http://www.marketoracle.co.uk/Article40231.html

Thu, 12/19/2013 - 09:43 | Link to Comment Skin666
Skin666's picture

And people are calling Bitcoin a Ponzi Scheme????!!!!

 

LOL

Thu, 12/19/2013 - 09:48 | Link to Comment ghostzapper
ghostzapper's picture

Bro - I hear ya.  Every single day there is stuff like this.  This is one reason why my attitude has been "Why not hedge with some?"  

People need to be repeatedly hit over the head with a frying pan and forced through a long castration process apparently before they absorb that there is a way to at least try to make it through the inevitable collapse of the house of cards.  

Thu, 12/19/2013 - 10:14 | Link to Comment Winston Churchill
Winston Churchill's picture

Its ALL a Ponzi scheme right now.

There is nowhere to hide anymore.

Ben's true legacy.

Thu, 12/19/2013 - 10:39 | Link to Comment ghostzapper
ghostzapper's picture

I understand and respect your sentiment but disagree.  We all know eventually this collapses.  One line of thinking seems to be that we fall back into the stone age and those that have been "stacking" and buying farm land will be just fine and dandy.  Well, if we end up in complete chaos then you better have a militia to protect that farm land and gold.  if bullets are flying just so people can use violence in order to eat do we really give a shit at that point?

Another possible scenario is that yes the world's financial system does indeed collapse but not only do individuals and businesses but also sovereign nations seek to adopt a new system and a new currency/platform.  Will that be bitcoin?  Hell if I know.  One thing I do know is that IF, and I emphasize IF, society does find a way to move forward peacefully and productively the ONLY way to do that is with a financial system/platform that is NOT controlled by humans.   

Thu, 12/19/2013 - 10:56 | Link to Comment Skin666
Skin666's picture

It will probably be bitcoin, and then followed by others.

 

For those who want electronic gold and silver payment systems, they will come, but first the GOV's need to be destroyed.

 

E-gold failed because it was centralized. Crypto will succeed because it is de-centralized.

 

Then it will be e-gold and e-silver versus crypto, competing as it should be.

 

Let battle commence

 

 

Thu, 12/19/2013 - 20:36 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

goldmoney (James Turk) HASN'T failed and it's centralized.

Thu, 12/19/2013 - 20:35 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

"the ONLY way to do that is with a financial system/platform that is NOT controlled by humans"
That day will mean humans don't live here anymore.

Thu, 12/19/2013 - 09:43 | Link to Comment sudzee
sudzee's picture

Timing seems perfect. Taper, USD, bonds and market smash.

Thu, 12/19/2013 - 09:49 | Link to Comment goldenbuddha454
goldenbuddha454's picture

I'm just shocked that they could manipulate the numbers like that, what are they the BLS now!?

Thu, 12/19/2013 - 10:12 | Link to Comment jay28elle
jay28elle's picture

just everyday, run of the mill government workers.  nuff said.

Thu, 12/19/2013 - 09:50 | Link to Comment vxpatel
vxpatel's picture

Everyone take a chill pill....the invisible hand will sort this all out....

 

Long live the free market and its efficieny.

Thu, 12/19/2013 - 10:42 | Link to Comment Jumbotron
Jumbotron's picture

I just wish the "invisible hand" would take itself out of my ass once in a while.

Thu, 12/19/2013 - 09:55 | Link to Comment williambanzai7
williambanzai7's picture

Thu, 12/19/2013 - 10:04 | Link to Comment falak pema
falak pema's picture

I always knew that Captain Nemo had his place in there somewhere! 

Looking for the giant Squid!

With all 800 trillion of its tentacular electronic poisonous kiss and carry trades. 

Thu, 12/19/2013 - 10:17 | Link to Comment Freedom Isnt Cheap
Freedom Isnt Cheap's picture

Well done..I think I saw this on the science channel last night trying to explain what the fourth dimension looked like.

Thu, 12/19/2013 - 10:26 | Link to Comment Hubbs
Hubbs's picture

I like this depiction. Easier to understand than what they claim they are doing in the markets.

 

Of note that there are no units of distance (light years).  In reality, it matters not whether  the numbers spewed forth by the financiers and government are millions, billions, trillions, or quadrillions, because even exponents are not accounted for.

Thu, 12/19/2013 - 10:34 | Link to Comment fxrxexexdxoxmx
fxrxexexdxoxmx's picture

WB7 brillant

Thu, 12/19/2013 - 10:58 | Link to Comment vxpatel
vxpatel's picture

consciousness expanding art.

Thu, 12/19/2013 - 12:34 | Link to Comment joego1
joego1's picture

Where is "Gold Member" in all of this?

Thu, 12/19/2013 - 13:44 | Link to Comment 1Inthebeginning
1Inthebeginning's picture

Where does quantum debt entanglement fit in?

Thu, 12/19/2013 - 14:38 | Link to Comment Son of Captain Nemo
Son of Captain Nemo's picture

Is that 'Mandrake Pattern" at the tip of the enclosure 'pre' or 'post' Ponzi Event ejaculation?

I'm sure Ben got the best "bang" for his "buck" before pulling out!

Thu, 12/19/2013 - 10:06 | Link to Comment Save_America1st
Save_America1st's picture

who needs oversite or regulations and proper accounting?  and paper silver and gold aren't fraudulently and criminally manipulated consistently on a daily basis either...

BTFD, folks...we have another sale on phyzz this morning.  Silver spot currently at 19.20 and dropping.

Ya gotta love it. 

Can't wait for 12pm EDT today either...Turd will be having a live webinar interview with G. Edward Griffin until 1pm EDT.  Should be very kick ass!!!

Register here to listen in live today from 12 to 1pm EDT:  https://attendee.gotowebinar.com/register/1450633324671744513

 

Thu, 12/19/2013 - 13:52 | Link to Comment AGAU
AGAU's picture

My bullion dealer appears to be completly sold out, dropped him an email yesterday - he said he would call me today but I didn't hear from him.

Thu, 12/19/2013 - 20:18 | Link to Comment MeelionDollerBogus
Thu, 12/19/2013 - 09:59 | Link to Comment tnquake
tnquake's picture

Must be the 2 taking 12 days to put out a weekly report as writing healthcare.gov!

$55T, everyone dig around and get your pocket change, that should cover it!

Incompetence knows no bounds we these fools!

Thu, 12/19/2013 - 10:13 | Link to Comment yogibear
yogibear's picture

"Incompetence knows no bounds we these fools!"

It's not Incompetence, it's intentional.


Thu, 12/19/2013 - 10:12 | Link to Comment LawsofPhysics
LawsofPhysics's picture

55 trillion?  Even by today's standards, this is not a "rounding error."

roll the motherfucking guillotines.

Thu, 12/19/2013 - 10:11 | Link to Comment yogibear
yogibear's picture

With fantasy accounting it's probably more. What's a 55 or more trillion among fellow criminals.

One big black hole. 

Thu, 12/19/2013 - 10:15 | Link to Comment Grinder74
Grinder74's picture

And yet, the mainstream media is consumed with Phil Robertson accurately quoting Scripture.

Thu, 12/19/2013 - 10:20 | Link to Comment FilthyPhil37
FilthyPhil37's picture

Does this sound to anyone else like someone added some code that rounded all transactions off to the nearest cent and then deposited those fractions of cents into an off-shore bank account... only, there was a problem with the code--a decimal was misplaced and within a month the bank account grew to $55T, far too big for no one to notice.

They did the same thing in Superman 3.

Thu, 12/19/2013 - 10:37 | Link to Comment fxrxexexdxoxmx
fxrxexexdxoxmx's picture

It was also done in the movie " Office Space". Which for me is one of the best comedies ever made.

Thu, 12/19/2013 - 14:27 | Link to Comment Kelley
Kelley's picture

Either that or it's time to bring back "Fat Finger II: Man Hands."

Thu, 12/19/2013 - 20:17 | Link to Comment MeelionDollerBogus
Thu, 12/19/2013 - 10:22 | Link to Comment ptoemmes
ptoemmes's picture

If no one had won Mega Milliions this week, the next winner might have been able to cover that with ease.

Thu, 12/19/2013 - 10:26 | Link to Comment KTV Escort
KTV Escort's picture

After all of the exposed manipulation, fraud, crimes, fines and lack of prosecutions in recent memory how can anyone take government / financial agency / bankster / Fed reported numbers seriously? 10 billion a month reduction by the Fed next month my ass, who the fuck knows how much they create and where it's funneled. My eggnog latte is good though, cheers.

Thu, 12/19/2013 - 10:29 | Link to Comment grid-b-gone
grid-b-gone's picture

Prudence favors tangible, unlevered, assets, especially productive assets.

Do you really think the Fed never had to exceed $85 billion to keep the up trend in place in recent years?

Do you really think a taper statement means they will allow a reversal of their wealth effect strategy?

Jim Grant has it correct, "The Fed can change how things look, it cannot change what things are."

Just this article reveals obligations in the CB penumbras that equal almost four years of total U.S. economic activity. How does an obligation like that get resolved?

Thu, 12/19/2013 - 10:29 | Link to Comment NoWayJose
NoWayJose's picture

$55 Trillion is hardly worth mentioning. All it would take to cover that are three tubes of 20 coins - if you use the $1 Trillion Obama-Coin...

Thu, 12/19/2013 - 10:41 | Link to Comment esum
esum's picture

this is the pilot speaking. were cruising at 45000 feet at mach one. will everyone kindly leave your seats and step out onto the wings in an orderly fashion... women and children first...  thanks ... the crew and i will be ejecting in our bail out taxpayer funded capsule... good luck..your captain..

Thu, 12/19/2013 - 10:44 | Link to Comment esum
esum's picture

Corzine, Hank Greenberg, Madoff, Milken and Dimon can straighten this out in a nano second with one hit on the enter key... 

Thu, 12/19/2013 - 10:54 | Link to Comment esum
esum's picture
CME Group also operates CME Clearing, one of the world’s leading central counterparty clearing providers. We are the guarantor of every transaction that happens in our markets, providing unparalleled safety and soundness for our customers. CME Clearing offers clearing and settlement services for exchange-traded contracts as well as for over-the-counter derivatives transactions. Guaranteed............. now do you feel better.
Thu, 12/19/2013 - 11:09 | Link to Comment Son of Captain Nemo
Son of Captain Nemo's picture

Is this why "Bukake Bart" part just split?

Thu, 12/19/2013 - 11:23 | Link to Comment edifice
edifice's picture

I have one of those 100 Trillion notes hanging on my office door, with a little blurb explaining what it is.  I had a guy with a masters in economics stare at it, perplexed; he had never heard of the Zimbabwe hyperinflation.  This story just shows that, no one really knows what's going on; it's all best-guesses, I think.

Thu, 12/19/2013 - 23:12 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

What it actually shows is the people who claim to be most qualified to know in fact are out to lunch permanently
The higher the degree of "education" from an Ivy League the smellier the bullshit and larger the pile.

Peter Schiff: the best way to silence a Nobel laureate economist is to ask him about the economy: http://youtu.be/mFdnA5UNmVw

Thu, 12/19/2013 - 11:25 | Link to Comment rwe2late
rwe2late's picture

$55 trillion ?

'Tis but a mere rounding error.

Thu, 12/19/2013 - 11:34 | Link to Comment 22winmag
22winmag's picture

A few years back, Chris Christie worked as Bernie Madoff's lobbyist-apologist (look up Securities Industry Association) and barely a word has ever been spoken about this.

 

Maybe Christie can help with a little PR for the CFTC.

Thu, 12/19/2013 - 11:37 | Link to Comment Herdee
Herdee's picture

Commodore86's at the CFTA.You'd think that a lot of zeros like that would be of concern to national security.Terrorism takes mostly the economic route against the United States.The site DeepCapture just brushes the outskirts of it.Why isn't the NSA concentrating on economic terrorism instead of watching a lot of kids playing Xbox?

Thu, 12/19/2013 - 12:17 | Link to Comment Uchtdorf
Uchtdorf's picture

$55 Trillion...it's only a flesh wound.

Thu, 12/19/2013 - 13:41 | Link to Comment The Econ Ideal
The Econ Ideal's picture

It is historically very difficult to get accurate data on the swaps markets -- many transactions are still OTC despite the move to central clearing and exchanges, i.e., more disclosure and transparency. Many swaps (and forwards) are tailored to two parties, so OTC has served its purpose, but it is also important to get the market sizing data, notional and market values of the swaps, etc. to understand flow, risk, etc. The participants that don't make this happen are only screwing themselves. 

Thu, 12/19/2013 - 13:45 | Link to Comment 1Inthebeginning
1Inthebeginning's picture

.

Thu, 12/19/2013 - 14:08 | Link to Comment MFLTucson
MFLTucson's picture

The entire global economy is only 75 Trillion and these clowns missed they projecton by $55 Trillion?  lol!!

Thu, 12/19/2013 - 14:09 | Link to Comment BudFox2012
BudFox2012's picture

55, 56 trillion, whatever it takes...

Thu, 12/19/2013 - 14:17 | Link to Comment no more banksters
no more banksters's picture

"The spiraling debt of the Federal Government to "Federal" Reserve, is due to repeated quantitative easing policies, i.e. primarily "printing" new money, supposedly made to stimulate the economy. Instead, however, the money went solely to bailout biggest banks, some of which participate in the "Federal" Reserve! Which means that, money returned to the banks through a circle, while uploaded US government with more debt, which will be passed on to future generations! Unanswered questions remain also, about the case on the basis of which, the "Federal" Reserve secretly supplied through the "back door" with more than $ 9 trillion, various financial institutions with questionable balance sheets during the financial crisis in the US. Nobody seems to deal with this issue today. [http://www.counterpunch.org/2010/12/20/the-tax-payers-tab-a-cool-9-trill...]"

http://failedevolution.blogspot.gr/2013/10/new-deal-vs-obamacare-one-rea...

Thu, 12/19/2013 - 14:18 | Link to Comment Peter Pan
Peter Pan's picture

When the squid is fully in control the number will be in the squillions.

Thu, 12/19/2013 - 14:17 | Link to Comment Darkdoc
Darkdoc's picture

If you are going to re-re-re-re-re-re-re-re-re-hypothecate every particle of asset out there, you need to re-re-re-re-re-re-re-hedge every transaction, all by trading the risk to the next sucker.

Thu, 12/19/2013 - 14:21 | Link to Comment Kelley
Kelley's picture

Come on! What's $55 Trillion among friends?

Thu, 12/19/2013 - 15:15 | Link to Comment ReligiousAtheist1
ReligiousAtheist1's picture

Well if you want your swaps you can keep your swaps

Thu, 12/19/2013 - 16:33 | Link to Comment SweetDoug
SweetDoug's picture

'

'

'

'

Why was this being hidden?

 

And what was this hiding?

 

•J•
V-V

Fri, 12/20/2013 - 00:48 | Link to Comment pparalegal
pparalegal's picture

How fortunate for the Lamborghini class that the CFTC is using Radio Shack TRS-80 computers programmed by their moles.

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