BackDoc - THINK LIKE A BANK !

[DinarThug]

CNN. Broadcasting While Thinking Like A Piggy Bank - Where's Cisole ?

 

 

KTFA:

BACKDOC:   THINK LIKE A BANK

"GOOD MORNING, GOOD AFTERNOON, GOOD EVENING, AND GOOD NIGHT," (SINCE I DON’T KNOW WHEN YOU’LL READ THIS)!
 
IN YESTERDAY’S POST, “THINK LIKE A COUNTRY,” I MENTIONED THAT I EXPECTED THE NEW ASSET BACKED DIGITAL CURRENCY TO BE INTRODUCED ON THE 8TH OR PRIOR TO A RATE CHANGE.

AFTER SLEEPING ON THAT THOUGHT I HAVE COME TO THE REALIZATION THAT I NEEDED TO ALSO “THINK LIKE A BANK”.
 
AS A RESULT, I THINK THE FOLLOWING PROCESS MAY ENSUE. LET’S CONSIDER THIS SCENARIO: THE DAY OF RATE CHANGE HAS COME UPON US AND WE NEED TO EXCHANGE OUR CURRENCY FOR THE NEW HIGHER VALUE.
....

 

AN APPOINTMENT IS MADE AT A BANK OR EXCHANGE CENTER AND OF COURSE WE ARE ANXIOUS TO REALIZE OUR GAINS.

HERE’S WHERE THINGS START TO GET DICEY!
 
YOU ARE HOLDING ASSET BACKED CURRENCY AND IF YOU ARE IN AMERICA YOU WILL BE EXCHANGING TO NON-ASSET BACKED CURRENCY COMMONLY KNOWN AS FIAT MONEY.

 

REMEMBER, MARK FABER’S COMMENT WAS THAT ALL PAPER MONEY WOULD BECOME WORTHLESS, AND I DEFINED PAPER MONEY AS FIAT MONEY (SINCE ASSET BACKED MONEY WILL ALSO HAVE PAPER REPRESENTATION).

I THINK THE WAR ON CASH HAS BEGUN AS WE SEE THE 500 EURO BEING RECALLED AND LOTS OF TALK FROM LARRY SUMMERS, FORMER TREASURY SECRETARY, CALLING FOR THE REMOVAL OF THE U.S. $100.00 BILL.
 
UNLESS THE NEW DIGITAL ASSET BACKED CURRENCY OFFICIALLY EXISTS AT THE TIME YOU EXCHANGE, YOU WILL BE FORCED INTO FIAT. COULD THIS BE PART OF THE CENTRAL BANKS PLAN TO RESTORE THEMSELVES FINANCIALLY? MMMM
 
IN OTHER WORDS, TO PUT IT MORE SIMPLY, YOU HAVE APPLES AND YOU GET ORANGES. HEE HEE! THE VALUE OF APPLES AND ORANGES MAY BE OF EQUAL VALUE ON THE DAY YOU EXCHANGE BUT ON OCTOBER 1ST, THE UNITED STATES NEW FISCAL YEAR, THEY MAY NOT BE EQUAL ANYMORE.
 
WHY WOULD THAT OCCUR? WILL THERE BE SOMETHING THAT HAPPENS IN SEPTEMBER THAT WOULD CHANGE THE VALUE OF THE APPLES AND ORANGES THAT THE BANKS KNOW AND YOU DON’T? MMMM

 

APPROXIMATELY TWO YEARS AGO, THE U.S. TREASURY CHANGED BANKING RULES TO ALLOW BANKS TO HOLD FOREIGN CURRENCIES AS AN ASSET ON RESERVE! MMMM
 
DO YOU THINK THEY DID THIS WITHOUT FORETHOUGHT? NOT ON YOUR LIFE! THIS IS A VERY WELL ORCHESTRATED SYMPHONY. THIS IS WHY YOU NEED TO "THINK LIKE A BANK"!
 
REALIZE THAT THE NEW REALITY IN WHICH WE TRANSITION TO WILL BE DIGITAL AS I’VE SHARED. THE QUESTION COMES DOWN TO WHEN THE BANKS WILL PLAY THEIR HAND, DOESN’T IT?
 
REMEMBER, ONCE YOU GIVE UP YOUR APPLES FOR ORANGES YOU'RE STUCK WITH THEM! WHAT HAPPENS IF THE MARKET FOR ORANGES TANKS AND BECOMES SHARPLY DEVALUED OR IN TIME ESSENTIALLY WORTHLESS LIKE MARC FABER SUGGESTS? OUCH!
 
SO DECISION TIME WILL BE UPON YOU, WON’T IT? MY PLAN WOULD BE TO EXCHANGE ENOUGH APPLES INTO ORANGES TO REMOVE ALL DEBTS.

THEN I WILL HOLD MY APPLES UNTIL THERE IS A GLOBALLY RECOGNIZED DEFINED PRICE DIFFERENCE FOR APPLES AND ORANGES! I WON’T DO BUSINESS IN ORANGES IF YOU CATCH MY DRIFT! THAT’S A BAD BET!

 

COULD THE BANKS BE WAITING TO GIVE YOU FIAT UN-BACKED DOLLARS SO THEY CAN AQUIRE THE REAL ASSET AND BE HOLDING IT AS A RESERVE WHEN THE APPLES AND ORANGES SEPARATE IN VALUE? MMMM
 
IT SEEMS TO ME WE MAY BE HEADING DOWN THAT PATH! REMEMBER THIS WHOLE GCR WAS ABOUT REPAIRING COUNTRIES AND THE BANKING SYSTEM; NOT US!
 
WHAT BETTER WAY TO HELP THE BANKS, THAN TO HAPPILY TAKE YOUR ASSET-BACKED CURRENCY AND GIVE YOU WHAT IS ABOUT TO DEVALUE; FIAT DOLLARS! WE KNOW THIS IS THE YEAR OF TRANSITION TO ASSET-BACKED CURRENCIES. HOW OR WHEN THEY ACKNOWLEDGE IT IS THE MYSTERY!
 
WITH THE CREDIT BUBBLE ABOUT TO BURST, AN ECONOMIC DEBT BOMB IS ABOUT TO GO SUPERNOVA, LIKE BILL GROSS RECENTLY SAID. IN FACT, HE JUST SAID HE COULDN’T BUY SOVEREIGN BONDS BECAUSE THEY ARE TOO RISKY! MMMM
 
PETER BOOCKVAR (MANAGING DIRECTOR AND CHIEF MARKET ANALYST AT THE LINDSEY GROUP) SAYS "THE BOND MARKET IS IN AN EPIC BUBBLE OF COLOSSAL PROPORTIONS". SPAIN AND PORTUGAL JUST MISSED THEIR DEFICIT CORRECTION DEADLINE IN THE EU. THE CHERRY ON TOP, IS ITALY STANDING ON A PIN AND LOSING ITS BALANCE! HEE HEE
 
IF APPLES ARE WORTH 10,000 TIMES MORE THAN ORANGES AFTER THE DIGITAL REALITY COMES ON THE SCENE, WHO HOLDS THE REAL VALUE NOW? RIGHT! THE BANKS!

 

WE KNOW THAT IRAN SAID THEIR FOREX CURRENCY VALUE WOULD MEET ITS' REALITY VALUE WITHIN FOUR MONTHS (WHICH WOULD TAKE US TO OCTOBER WHEN CHINA IS ADDED TO THE SDR BASKET). WHY IS THAT?

COULD IT BE BECAUSE OF THE NEW FISCAL YEAR FOR THE U.S.? WELL, THE POINT HERE IS TO KNOW WHEN TO HOLD 'EM AND KNOW WHEN TO FOLD 'EM! BAAA HAAA
 
TO "THINK LIKE A BANK", YOU HAVE TO LET THEM PLAY THEIR HAND FIRST SO YOU CAN SAY, I SEE YOUR ASSET BACKED CURRENCY NOW AND I’LL RAISE YOU…..!
 
AFTER THAT, IT’S TIME FOR YOUR NEW LIFE!

THINK LIKE A BANK AND YOU WILL HOLD THE REAL ASSETS! THEN IT’S TIME TO MAKE REAL MONEY, WITH REAL MONEY, SINCE THE GAME OF MONOPOLY IS OVER!
THAT’S A GOOD BET AND I’M "ALL IN”!

8@8, DOC   IMO

SPECIAL THANKS TO MRS. DOC FOR EDITING MY WORK! 

THANKS TO THUNDERHAWK FOR HIS EXCELLENT PICS AND CONVERSATIONS.

THANKS TO P.J. FOR BEING A HUGE SOUNDING BOARD TODAY!

[rw.sutton]

Thanks Thug,,some good thoughts there.

[DinarThug]

1 minute ago, rw.sutton said:

Thanks Thug,,some good thoughts there.

 

We Need More Cowbell !

(see his avatar)

            

 

[BJinMontreal]

Interesting - but given that the banks are allowed to include bonds, stocks, derivatives and other worthless paper as part of their 'asset-backed currency' it's still just a house of cards waiting to fall ...

[BJinMontreal]

And the fact he referenced GCR ... also left me shaking my head ...

[umbertino]

Wow!  Grazie DT....Ciao

[Gypsygirl11]

Irans currency to increase in October .... that's what the man said. We Will See!!! LOL

Thanks for post DT.

[jeepguy]

MMMMMM !  think like  a  bank ,   well ,  I will trade enough of them apples too get above water ,have a couple toys, pay off other things ,   and wait a couple days  { only a couple days }  enough of the "  sandy go round "  roller coaster  ...  I am sure  the bank would love too take this paper I hold for  the good `ole dollar  at  a cost  to me I am sure   ... 

[TennesseeCherokee]

These gurus & pumpers are, without a doubt, the most maniacal paranoid folks i have ever witnessed. They immerse themselves in every whack job conspiracy theory of the moment &  have absolutely no ability to reason or think for themselves.

[sandfly]

Ok

[DinarThug]

1 hour ago, sandfly said:

Ok

 

Thanks For Elaborating ....

             

 

 

[King Bean]

6 hours ago, sandfly said:

Ok

Please try to keep your responses brief......K ???   

[BJinMontreal]

Want to think like a bank?  Consider this.  The new Basel III compliance for asset-backed currency ONLY has a 7% limit on Tier 1 assets.  A full 93% of their assets don't really have to be that secure!!!

Why so low?  So the bankers bonuses and big salaries wouldn't be affected by an economic downturn.  How's that for thinking like a bank? 

http://lexicon.ft.com/Term?term=Basel-III

Definition of  Basel III

Global banking regulators sealed a deal, in September of 2010, to effectively triple the size of the capital reserves that the world’s banks must hold against losses, in one of the most important reforms to emerge from the financial crisis.

The package, known as Basel III, sets a new key capital ratio of 4.5 per cent, more than double the current 2 per cent level, plus a new buffer of a further 2.5 per cent. Banks whose capital falls within the buffer zone will face restrictions on paying dividends and discretionary bonuses, so the rule sets an effective floor of 7 per cent.  The new rules will be phased in from January 2013 through to January 2019.

Banks will be required to triple core tier one capital ratios from 2 per cent to 7 per cent by 2019. This ratio measures the buffer of highest quality capital that banks hold against future losses.

The long-awaited agreement, developed by central bankers and officials, follows months of wrangling among the 27 member countries of the Basel Committee on Banking Supervision over how to make banks more resilient to financial shocks.

Jean-Claude Trichet, president of the European Central Bank and chairman of the negotiating group, called the deal “a fundamental strengthening of global capital standards ... Their contribution to long term financial stability and growth will be substantial.”

Tougher capital standards are considered critical for preventing another financial crisis, but bankers had warned that if the new standards were too harsh or the implementation deadlines too short, lending could be curtailed, cutting economic growth and costing jobs.

In addition to the 4.5 per cent core tier one ratio, and the 2.5 per cent buffer, the reform package also endorses the idea of an additional buffer of up to 2.5 per cent of core tier one capital to counter the economic cycle.