If you live in a Glass House watch out for Ernest T. Bass. He throws bricks.
Economists are having a hard time determining if the glass is half-full or half-empty. Well that would be determined by which half of the currency divorce you end up being on the receiving of in the new and improved Glass-Steagall.
Dave’s pretty sure that the motivation behind the following actions are as scripted as the Andy Griffith Show:
1. Chinese Premier Wen Jiabo calls his own banks on the carpet.
2. JP Morgan turns their treasury into a prop trading department and leaves their investment bankers swinging in the wind.
3. Paul Volcker prepares the media for the onset of the living wills of the Too Big To Fail banks and the implementation of the Volcker Rule.
4. Paul Krugman shines the spotlight on Steve Keen and his mortgage jubilee plan.
5. When the decision does finally come down on the definition of credit default swaps, wouldn’t that be the final nail in the coffin and the main reason that JP Morgan has moved the family jewels from the investment bank back into the bank’s treasury department?
6. We’re well into the spring protest season and there’s barely a whimper from the Occupy Movement.
Why is all this happening now and is there a connection between the upcoming June 4 four-day bank closure holiday for the City of London? Maybe so. The way Dave sees this is the timing is perfect for an upcoming election. You can hit the reset switch on the banks and if it works, then the incumbent is a shoe-in for reelection because the mortgage jubilee is wrapped into the package. If it fails, you hang the incumbent out to dry with the laundered TBTF banks.
It seems a little bit early to Dave, but then again, there’s no time like the present. If the powers that be launch the new global currency initiative in June, then you have until the end of the year to wrap things up just in time for the 100 year renewal of the Federal Reserve’s charter. By then, you can roll-up the TBTF banks into the Fed as a new and improved version of Glass-Steagall and give every citizen their share of the value as you separate their currency into two parts.
To pull this off, the banks would need to be split in half, but not along the traditional lines of a Lyndon Larouche ressurection of Glass-Steagall. Instead, along the Treasury Lines that are being drawn in the JP Morgan/London Whale public relations campaign. How does this manifest itself? Dave is highly suspicious about two things? Who is holding the bag on the short position of Bear Stearns inherited silver and how much of these liabilities could be buried in one fell swoop collapse of the Comex?
If JP Morgan has managed to resolve their silver exposure and if we saw a reset on silver to a traditional 16 to 1 ratio (rather than the current prima facie U. S. Mint eagle (50 to 1 ratio) would this be all that was needed for the reset switch. There’s only one problem the way Dave sees it. Either gold will have to drop to $500 or silver will have to spike to $100. The way Dave sees this, it doesn’t make much difference which way it rolls when you consider the power that central banks have over the price of gold.
Dave wasn’t really expecting this to happen yet, but too many of the calendar issues are lining up to the point where Dave is nearly convinced that the coordinated plan is rolling out now rather than in the future. Add the 4 day bank holiday in conjunction with the Queen’s jubliee and some recent announcements from folks inside the Fannie Mae realm that the idea of mortgage-forgiveness was off the table and Dave’s nearly convinced that it’s on the table.
You see the folks inside the government are the last ones to know what’s happening. Remember the May 6 “Flash Crash.” It happened during Hank Paulson’s testimony to the Financial Crisis Inquiry Commission. While Paulson was saying the following words;
“I am proud of thework we in government did to save our nation’s financial system from collapse andchaos, and our economy from disaster.”
… the stock market was experiencing an unprecedented flash crash on May 6, 2010.
What was the cause of the flash crash. Here’s the SEC’s explanation: http://www.zerohedge.com/news/was-sec-explanation-flash-crash-maliciously-fabricated-or-completely-flawed-due-plain-incompete