Short Squeeze and "Too Big to Fail"
Life is complicated. Well, there are folks who can chew gum and walk at the same time, and can take on "too complicated", even to their advantage. There are some also who only want it simple, and I can assure you keeping it simple always provides the best result if you are in charge of keeping it simple, but the problem is you are typically not in charge. The more complicated the engine, the risk is higher actually that when something goes wrong, you won't be able to fix it very easily if at all, especially if you didn't create the complicated engine and someone else makes money who made it too complicated for you to allow you fix it yourself. So they can profit if it needs to be fixed, because no way can you fix it, but even if fixed it is so complicated it surely will fail again. And again. So while too complicated is bad, you have no control and those who made too complicated are also reliant on other too complicated to succeed in being too complicated.
As for those who say "tell me about it" or are going to be "told about it", they can only take simple. A simple answer to the "tell me about it", or need to be told about it simple if they are not even asking but are being sold something. Because many of those who just want to be told are low information people, they only demand to be told simple but it is complicated so the simple is a lie. And those who are told about it anyway for some other reason, such as a power grab by the one telling about it, are told simple. But it is complicated. So simple is a lie, either way. But the low information person can only handle simple beause they are just spending all their time swimming in complicated and have no time for a long explanation, just to survive in complucated they try to make it simpler by focus, i.e. only chew gum or only walk but not chew gum and walk at the same time.
But it isn't simple. As for solutions, why do the low information types think there is a solution? For many things, real big things, there is no solution. There never will be. You will live and then die, the pestering thing will continue after you are dead with no solution. Ever. The "thing" which needs to be "solved" grows with complicated, becomes "big", it is designed to be unsolvable and when it fails it is so bad and no one can fix it because it is too complicated.
The no solution state becomes too big to fail.
Dollar Short Squeeze:
The emerging market nations carry a lot of U.S.-denominated debt.
As a result they are all now rushing to cover that debt before the dollar gets even stronger.
Once this cycle is complete the dollar is going to reverse course.
The dollar isn't a dollar. In fact, it is just a notation or a bit of paper or a coin that isn't gold, it fluctuates in value, the is no "1" in one dollar for example. Money has no math in the sense of 1 + 1 = 2. An hour later 1 + 1 may equal 4.
The dollar isn't based on the gold standard anymore. Money today is, in a sense, based on the nuclear bomb standard, not gold. But actually, behind the scenes, everything going on is often still hedged on gold. I don't know why gold, but this has been going on since the First City or First City State, since the Kingdom of God. Gold is only a metal. Yes, it is rare. But so is ebola. But that could change. Ebola may not be rare for you soon, and actually there is a lot of gold out there you just need to not be lazy and dig it up. You can dig up turnips, too. Why gold is THE value, no one really knows. For sure, the answer to THAT is VERY complicated.
Gold Short Squeeze:
Some $3.6 billion was pulled from gold ETFs last year 2015, representing about 7.4% of total assets under management.
In the first report for 2016, however, out mid-month, gold ETFs took in about $900,000 during the week ended Jan. 13.
Gold, like the dollar, fluctuates in value. They sort of impact each other. For example, if the dollar is stronger, it takes less dollars to buy one ounce of gold. So gold goes down in value, well down in the sense of how many dollars it takes to buy one ounce. Less. Same with oil.
There are sort of two types of gold.
Alllocated Gold Agreement obliges a bank to hold your gold as your outright property, under a custodial or safe-keeping contract. If for example the bank fails, they return your gold to you, obviously, and you can take back your gold. In other words the private bullion reserve has an owner- you are the owner. You are not a creditor, you are not lending to a bank some value, the gold belongs to you.
Unallocated Gold or Notional Gold is when a creditor is operating as an unsecured creditor lending value to someone else but they actually do not have in holdings all the value in reserve they are lending out, so a bank that is behind the creditor operation uses a book keeping device and funds the operations of the creditor with notional gold. It is a gold account on paper only, in effect lending this notional gold to a creditor operation to backup it's operations if further providing credit to someone else as a business or even a government function. Obviously in this case, the notional gold on paper accounting doesn't belong to the creditor operation, it belongs to the bank, if the bank fails the unsecured creditor operation gets nothing of that notional gold in the creditor's account, nor can they ever claim it as their own. It is the bank's, the bank is in effect lending gold to an unsecured creditor to backup the creditors operation of doling out credit. Governments often become such unsecured creditors to dole out credit, and are backed up if you will for such operations by banks providing notional gold.
This is how banks become too big too fail.
The "too big to fail" is in fact a result of high spending governments who give out more than they can ever create and are unsecured creditors to the banks backed up by notional gold (on paper and owned by the banks and not owned by the unsecured creditor which is in fact the guvernment(s)).
These governnments tend to be leftist governments who are also increasingly going into debt as they spend money they don't have, who increases taxes to the point where they undermine the businesses of their country thus slows down the economy due to high regulation and taxation on business and commerce and results in actually reducing gpvernment revenues collected by taxes as the country run by the government eeks out low GDPs.
The governments quickly become unsecured creditors spending money they don't have, but become clients of banks where their unsecured credit operations are backed up by notional gold on paper that belongs to the banks, not the government. Thus the bank becomes too big to fail, if the bank fails the governments themself fail. So if things go into a deep recession, now these same governments try to save the banks too big to fail using proxy loans to the banks but the governments have nothing to loan to them since the governments are themselves beholden to the banks for their unsecured creditor operations, so they instead use currency manipulation to whatever benefits the banks in trouble or even borrow further from some other foreign oleration to save domestic banks from failure which they route so-called money to these banks via flooding treasury notes back to the banks, whatever manipulation these liberal high tax big spending governments can do via owning reserve currency of the nation in order to save these banks who are now too big to fail because if they fail all the notional gold belongs to the banks, not the governments who are unsecured creditors and are clients of these banks and none of the gold backing the government's distributions as effective credit can be claimed by the government if the banks fail becatse (1) it belongs to the banks, and (2) this gold is on paper only in the accoints, there is no vault where it is sitting, no bank would be that stupid to be waiting to be robbed by a government of physical gold, such governments can only rob FOREIGN currency sitting in a bank, if any, that may work out if you are a government that is not the US and the currency in the bank to be robbed is holding dollars, but it doesn't help much to steal dollars if you print the dollars yourself and can print more dollars anyway...
So while some politicians say they will never be beholden, that no bank is ever too big to fail, in fact these same politicians themselves created the very too big to fail policy and are the very reason they are too big to fail and will alway be too big to fail due to evedything about such governments are too big and too fat and ready to have a heart attack and eat notional gold like Frosted Flakes and created themselves banks too big to fail because if they fail that is the Year Zero for such governments. Thus they turn to "The Fed". The Fed makes sure the banks are fed, no matter what.
Banks use of notional gold is gold that is bought from gold futures contracts - in other words a hedge. Like hedge funds. It gives them a "gold balance" that is gold futures funds/contracts on the bet gold will go up. But it might not.
Currency manipulation. Can effect gold. Interest rates, too. The fluctation of a currency verse inflation. It is complicated.
Who created "too big to fail"?
Hillary Clinton and other politicians are going around saying things like "I will NEVER allow them to be too big to fail again" or something like that. To the low information crowd, it makes too big to fail sound evil. So keep it simple because the lie is in it. Hillary Clinton, George Bush and the others created too big to fail. Those of the government class and Kleptocrats such as Hillary are the very REASON for too big to fail. If it fails, they are gone into the dust. Because they are too big, so the banks are too big to fail. Oddly, it comes down to gold as an institution is too big to fail. How and why of gold, God knows. Maybe aliens decided it would be so, a long time ago. It was a long time ago. Gold is the heaviest metal. So they say. It is also the softest, it will seek the lowest gravity but then bend and taist into a crevice or hole, on the downside of the stream in the crevice of the rock. It will find it's way down. It is even in Hell.
The short squeeze is when there is a rapid rise in value in a short time when the supply is low or being bought up fast, then later followed up by the drop. As some rush to cover debt, the dollar becomes stronger. A stronger dollar normally should mean gold goes down. But in the short term gold went up. Why? Because things are getting so bad, so risky, the panic comes and gold stocks or gold finds or gold hedges or gold is being bought now. This shortens the immediate supply. Then it goes up anyway.
A bad, bad sign. The short squeeze is a bad sign of things to come. Liars are a bad sign. Besides, liars often themselves have no idea of the complicated. They may be a little smart, but like Hillary a lot otherwise. They are liars smart only.
Life is complicated. Well, there are folks who can chew gum and walk at the same time, and can take on "too complicated", even to their advantage. There are some also who only want it simple, and I can assure you keeping it simple always provides the best result if you are in charge of keeping it simple, but the problem is you are typically not in charge. The more complicated the engine, the risk is higher actually that when something goes wrong, you won't be able to fix it very easily if at all, especially if you didn't create the complicated engine and someone else makes money who made it too complicated for you to allow you fix it yourself. So they can profit if it needs to be fixed, because no way can you fix it, but even if fixed it is so complicated it surely will fail again. And again. So while too complicated is bad, you have no control and those who made too complicated are also reliant on other too complicated to succeed in being too complicated.
As for those who say "tell me about it" or are going to be "told about it", they can only take simple. A simple answer to the "tell me about it", or need to be told about it simple if they are not even asking but are being sold something. Because many of those who just want to be told are low information people, they only demand to be told simple but it is complicated so the simple is a lie. And those who are told about it anyway for some other reason, such as a power grab by the one telling about it, are told simple. But it is complicated. So simple is a lie, either way. But the low information person can only handle simple beause they are just spending all their time swimming in complicated and have no time for a long explanation, just to survive in complucated they try to make it simpler by focus, i.e. only chew gum or only walk but not chew gum and walk at the same time.
But it isn't simple. As for solutions, why do the low information types think there is a solution? For many things, real big things, there is no solution. There never will be. You will live and then die, the pestering thing will continue after you are dead with no solution. Ever. The "thing" which needs to be "solved" grows with complicated, becomes "big", it is designed to be unsolvable and when it fails it is so bad and no one can fix it because it is too complicated.
The no solution state becomes too big to fail.
Dollar Short Squeeze:
The emerging market nations carry a lot of U.S.-denominated debt.
As a result they are all now rushing to cover that debt before the dollar gets even stronger.
Once this cycle is complete the dollar is going to reverse course.
The dollar isn't a dollar. In fact, it is just a notation or a bit of paper or a coin that isn't gold, it fluctuates in value, the is no "1" in one dollar for example. Money has no math in the sense of 1 + 1 = 2. An hour later 1 + 1 may equal 4.
The dollar isn't based on the gold standard anymore. Money today is, in a sense, based on the nuclear bomb standard, not gold. But actually, behind the scenes, everything going on is often still hedged on gold. I don't know why gold, but this has been going on since the First City or First City State, since the Kingdom of God. Gold is only a metal. Yes, it is rare. But so is ebola. But that could change. Ebola may not be rare for you soon, and actually there is a lot of gold out there you just need to not be lazy and dig it up. You can dig up turnips, too. Why gold is THE value, no one really knows. For sure, the answer to THAT is VERY complicated.
Gold Short Squeeze:
Some $3.6 billion was pulled from gold ETFs last year 2015, representing about 7.4% of total assets under management.
In the first report for 2016, however, out mid-month, gold ETFs took in about $900,000 during the week ended Jan. 13.
Gold, like the dollar, fluctuates in value. They sort of impact each other. For example, if the dollar is stronger, it takes less dollars to buy one ounce of gold. So gold goes down in value, well down in the sense of how many dollars it takes to buy one ounce. Less. Same with oil.
There are sort of two types of gold.
Alllocated Gold Agreement obliges a bank to hold your gold as your outright property, under a custodial or safe-keeping contract. If for example the bank fails, they return your gold to you, obviously, and you can take back your gold. In other words the private bullion reserve has an owner- you are the owner. You are not a creditor, you are not lending to a bank some value, the gold belongs to you.
Unallocated Gold or Notional Gold is when a creditor is operating as an unsecured creditor lending value to someone else but they actually do not have in holdings all the value in reserve they are lending out, so a bank that is behind the creditor operation uses a book keeping device and funds the operations of the creditor with notional gold. It is a gold account on paper only, in effect lending this notional gold to a creditor operation to backup it's operations if further providing credit to someone else as a business or even a government function. Obviously in this case, the notional gold on paper accounting doesn't belong to the creditor operation, it belongs to the bank, if the bank fails the unsecured creditor operation gets nothing of that notional gold in the creditor's account, nor can they ever claim it as their own. It is the bank's, the bank is in effect lending gold to an unsecured creditor to backup the creditors operation of doling out credit. Governments often become such unsecured creditors to dole out credit, and are backed up if you will for such operations by banks providing notional gold.
This is how banks become too big too fail.
The "too big to fail" is in fact a result of high spending governments who give out more than they can ever create and are unsecured creditors to the banks backed up by notional gold (on paper and owned by the banks and not owned by the unsecured creditor which is in fact the guvernment(s)).
These governnments tend to be leftist governments who are also increasingly going into debt as they spend money they don't have, who increases taxes to the point where they undermine the businesses of their country thus slows down the economy due to high regulation and taxation on business and commerce and results in actually reducing gpvernment revenues collected by taxes as the country run by the government eeks out low GDPs.
The governments quickly become unsecured creditors spending money they don't have, but become clients of banks where their unsecured credit operations are backed up by notional gold on paper that belongs to the banks, not the government. Thus the bank becomes too big to fail, if the bank fails the governments themself fail. So if things go into a deep recession, now these same governments try to save the banks too big to fail using proxy loans to the banks but the governments have nothing to loan to them since the governments are themselves beholden to the banks for their unsecured creditor operations, so they instead use currency manipulation to whatever benefits the banks in trouble or even borrow further from some other foreign oleration to save domestic banks from failure which they route so-called money to these banks via flooding treasury notes back to the banks, whatever manipulation these liberal high tax big spending governments can do via owning reserve currency of the nation in order to save these banks who are now too big to fail because if they fail all the notional gold belongs to the banks, not the governments who are unsecured creditors and are clients of these banks and none of the gold backing the government's distributions as effective credit can be claimed by the government if the banks fail becatse (1) it belongs to the banks, and (2) this gold is on paper only in the accoints, there is no vault where it is sitting, no bank would be that stupid to be waiting to be robbed by a government of physical gold, such governments can only rob FOREIGN currency sitting in a bank, if any, that may work out if you are a government that is not the US and the currency in the bank to be robbed is holding dollars, but it doesn't help much to steal dollars if you print the dollars yourself and can print more dollars anyway...
So while some politicians say they will never be beholden, that no bank is ever too big to fail, in fact these same politicians themselves created the very too big to fail policy and are the very reason they are too big to fail and will alway be too big to fail due to evedything about such governments are too big and too fat and ready to have a heart attack and eat notional gold like Frosted Flakes and created themselves banks too big to fail because if they fail that is the Year Zero for such governments. Thus they turn to "The Fed". The Fed makes sure the banks are fed, no matter what.
Banks use of notional gold is gold that is bought from gold futures contracts - in other words a hedge. Like hedge funds. It gives them a "gold balance" that is gold futures funds/contracts on the bet gold will go up. But it might not.
Currency manipulation. Can effect gold. Interest rates, too. The fluctation of a currency verse inflation. It is complicated.
Who created "too big to fail"?
Hillary Clinton and other politicians are going around saying things like "I will NEVER allow them to be too big to fail again" or something like that. To the low information crowd, it makes too big to fail sound evil. So keep it simple because the lie is in it. Hillary Clinton, George Bush and the others created too big to fail. Those of the government class and Kleptocrats such as Hillary are the very REASON for too big to fail. If it fails, they are gone into the dust. Because they are too big, so the banks are too big to fail. Oddly, it comes down to gold as an institution is too big to fail. How and why of gold, God knows. Maybe aliens decided it would be so, a long time ago. It was a long time ago. Gold is the heaviest metal. So they say. It is also the softest, it will seek the lowest gravity but then bend and taist into a crevice or hole, on the downside of the stream in the crevice of the rock. It will find it's way down. It is even in Hell.
The short squeeze is when there is a rapid rise in value in a short time when the supply is low or being bought up fast, then later followed up by the drop. As some rush to cover debt, the dollar becomes stronger. A stronger dollar normally should mean gold goes down. But in the short term gold went up. Why? Because things are getting so bad, so risky, the panic comes and gold stocks or gold finds or gold hedges or gold is being bought now. This shortens the immediate supply. Then it goes up anyway.
A bad, bad sign. The short squeeze is a bad sign of things to come. Liars are a bad sign. Besides, liars often themselves have no idea of the complicated. They may be a little smart, but like Hillary a lot otherwise. They are liars smart only.
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