Here’s an very good comment regarding JPMorgan’s recent $2 Billion money bet loss. It’s written by Michael T. Snyder who is a lawyer and a respected researcher, writer, speaker and activist. You can follow him on The Economic Collapse blog: http://theeconomiccollapseblog.com/

Basically he says that Banks continually makes huge bets like a casino junkie. When they win, the winning is big. When they loose, they get the taxpayers to pay for their losses.

If you don't have time to read the whole article, the bolded section at the end is the most important.

This article is found at this link :
http://seekingalpha.com/article/584531-j...market-collapse
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JPMorgan's $2B Loss: A Preview Of The Coming Derivatives Market Collapse
By Micheal T. Snyder May 13, 2012

When news broke of a 2 billion dollar trading loss by JPMorgan (JPM), much of the financial world was absolutely stunned. But the truth is that this is just the beginning. This is just a very small preview of what is going to happen when we see the collapse of the worldwide derivatives market. When most Americans think of Wall Street, they think of a bunch of stuffy bankers trading stocks and bonds. But over the past couple of decades it has evolved into much more than that. Today, Wall Street is the biggest casino in the entire world. When the "too big to fail" banks make good bets, they can make a lot of money. When they make bad bets, they can lose a lot of money, and that is exactly what just happened to JPMorgan.

The bank's Chief Investment Office made a series of trades which turned out horribly, and it resulted in a loss of over 2 billion dollars over the past 40 days. But 2 billion dollars is small potatoes compared to the vast size of the global derivatives market. It has been estimated that the the notional value of all the derivatives in the world is somewhere between 600 trillion dollars and 1.5 quadrillion dollars. Nobody really knows the real amount, but when this derivatives bubble finally bursts, there is not going to be nearly enough money on the entire planet to fix things.

Sadly, a lot of mainstream news reports are not even using the word "derivatives" when they discuss what just happened at JPMorgan. This morning I listened carefully as one reporter described the 2 billion dollar loss as simply a "bad bet".
And perhaps that is easier for the American people to understand. JPMorgan made a series of really bad bets and during a conference call Friday night CEO Jamie Dimon admitted that the strategy was "flawed, complex, poorly reviewed, poorly executed and poorly monitored". The funny thing is that JPMorgan is considered to be much more "risk averse" than most other major Wall Street financial institutions are. So if this kind of stuff is happening at JPMorgan, then what in the world is going on at some of these other places?

That is a really good question.

For those interested in the technical details of the 2 billion dollar loss, an article posted on CNBC described exactly how this loss happened:

The failed hedge likely involved a bet on the flattening of a credit derivative curve, part of the CDX family of investment grade credit indices, said two sources with knowledge of the industry, but not directly involved in the matter. JPMorgan was then caught by sharp moves at the long end of the bet, [it] said. The CDX index gives traders exposure to credit risk across a range of assets, and gets its value from a basket of individual credit derivatives.

In essence, JPMorgan made a series of bets which turned out very, very badly. This loss was so huge that it even caused members of Congress to take note. The following is from a statement that U.S. Senator Carl Levin issued a few hours after this news first broke:

The enormous loss JPMorgan announced today is just the latest evidence that what banks call 'hedges' are often risky bets that so-called 'too big to fail' banks have no business making.
Unfortunately, the losses from this trade may not be over yet. In fact, if things go very, very badly the losses could end up being much larger, as a recent Zero Hedge article detailed:

Simple: because it knew with 100% certainty that if things turn out very, very badly, that the taxpayer, via the Fed, would come to its rescue. Luckily, things turned out only 80% bad. Although it is not over yet: If credit spreads soar, assuming at $200 million DV01, and a 100 bps move, JPM could suffer a $20 billion loss when all is said and done. But hey: At least "net" is not "gross" and we know, just know, that the SEC will get involved and make sure something like this never happens again.

And yes, the SEC has announced an "investigation" into this 2 billion dollar loss. But we all know that the SEC is basically useless. In recent years SEC employees have become known more for watching pornography in their Washington D.C. offices than for regulating Wall Street. But what has become abundantly clear is that Wall Street is completely incapable of policing itself. This point was underscored in a recent commentary by Henry Blodget of Business Insider:

Wall Street can't be trusted to manage-or even correctly assess-its own risks.

This is in part because, time and again, Wall Street has demonstrated that it doesn't even KNOW what risks it is taking.
In short, Wall Street bankers are just a bunch of kids playing with dynamite.

There are two reasons for this, neither of which boil down to "stupidity."

• The first reason is that the gambling instruments the banks now use are mind-bogglingly complicated. Warren Buffett once described derivatives as "weapons of mass destruction." And those weapons have gotten a lot more complex in the past few years.

• The second reason is that Wall Street's incentive structure is fundamentally flawed: Bankers get all of the upside for winning bets, and someone else- the government or shareholders- covers the downside.

The second reason is particularly insidious. The worst thing that can happen to a trader who blows a huge bet and demolishes his firm-literally the worst thing- is that he will get fired. Then he will immediately go get a job at a hedge fund and make more than he was making before he blew up the firm.

We never learned one of the basic lessons that we should have learned from the financial crisis of 2008. Wall Street bankers take huge risks because the risk/reward ratio is all messed up. If the bankers make huge bets and they win, then they win big. If the bankers make huge bets and they lose, then the federal government uses taxpayer money to clean up the mess. Under those kind of conditions, why not bet the farm?

Sadly, most Americans do not even know what derivatives are. Most Americans have no idea that we are rapidly approaching a horrific derivatives crisis that is going to make 2008 look like a Sunday picnic. According to the Comptroller of the Currency, the "too big to fail" banks have exposure to derivatives that is absolutely mind blowing. Just check out the following numbers from an official U.S. government report....

• JPMorgan Chase - $70.1 Trillion

• Citibank - $52.1 Trillion

• Bank of America - $50.1 Trillion

• Goldman Sachs - $44.2 Trillion

So a 2 billion dollar loss for JPMorgan is nothing compared to its total exposure of over 70 trillion dollars. Overall, the 9 largest U.S. banks have a total of more than 200 trillion dollars of exposure to derivatives. That is approximately 3 times the size of the entire global economy. It is hard for the average person on the street to begin to comprehend how immense this derivatives bubble is.

So let's not make too much out of this 2 billion dollar loss by JPMorgan. This is just chicken feed. This is just a preview of coming attractions. Soon enough the real problems with derivatives will begin, and when that happens it will shake the entire global financial system to the core.

Here's the latest news about the progress of the new Global Economic Restruture. This is the highlights of Drakes latest radio show. Drake is the spokeman in the past couple of months for the US Military who is charged to prepare the US people for proper action. He's been maintaining many weekly radio shows and invited in many other shows.

This is his new website : http://americannationalmilitia.com/

------- the Highlights of his last radio show --------

Drake wants "the people" to vote on a proposal as to how the Dark Cabal/Banking Families need to surrender and on what terms. What is our demands? Options are to have an all-out war of violence in taking out the banking families or should we negotiate with the dark cabal to transition into a peaceful new way of freedom.


Do you (the people) want all-out war? If so the Civilian Military will be fighting the mercenaries and loyalist of the Dark Cabal/Bankers. It is estimated that 2/3 of both sides of the fight would be dead or wounded. Both sides want to transition without war or violence. A proposal needs to be written so that a peaceful transition can occur.


Three (3) principals are involved in this new proposal
1. We The People
2. Collateral Accounts Representatives
3. Banking Families/Dark Cabal

Banking families want to surrender but nothing is in writing. Banking families and the Civilian Military leaders want to know what “the people” want. What would the people except as a surrender.


The Proposal will be open for everyone to vote on about the transition to freedom. Lady Dragon will post a link to a poll on her website www.ladydragon.com . The link will be open June 7th at 12:00pm and will close on Saturday June 9th at 12:00pm. Drake will take the data collected and present it to the Civilian Military and the Banking Families. The proposal will be discussed among those who are at the top of the power structures from both sides. Results of votes will be sent to the Banking Families to show them what the people want. Drake: There will still be adjudications for those who committed crimes. Tuesday is the latest we should hear a response about how the banking families react to the proposal.


NESARA = Financial Freedom and Debt Forgiveness

-Taxes & The Federal Income Tax eliminated and to be replaced with “User Fees”
-Release of Advanced Technologies
-Collateral Accounts would be used to set up manufacturing facilities for development of Free Energy technologies which -would help create jobs and introduce energy independence
-IRS Eliminated
-Go back to the 1787 Constitution with the original 13th Amendment


Government and the Federal Reserve can no longer print money


Neil Keenan Lawsuit – Neil is thinking about withdrawing lawsuit and then refilling the liens against the Federal Reserve with additional backing by major countries and secret societies.


Drake knows about the frustration of waiting that people are feeling.


600-800 patents have been confiscated and hidden by the Federal Government


5% unemployment after the Collateral Accounts are released which can be used to build MFG facilities


Drake: Can you imagine being free in a month or sooner?


1.2 Trillion Dollars is the real national debt of the nation. The rest is of the debt is by banks and the USA Corporation.


There is technology that allows for the regeneration of severed limbs. The medical technology can regrow arms, legs, hands, and other appendages.


Free energy technologies for homes and cars.


After the changes there will be very little government left.


Drake wants this proposal to help with a peaceful transition.


Minute Man: Agrees with a proposal to help facilitate a peaceful transition. “I see an opportunity for new freedom.” Tired of fighting and don’t want to worry about my children and grandchildren.


Much more was discussed but this is the best I can do from the first round of listening live on air broadcast.
These Notes written by enerchi of http://www.ascensionwithearth.com/

See Below for Additional Notes from Jim of http://src-fla.us


* I Missed first 15 minutes. Live now; site keeps going down.
* Using New Link Above at 23 minute mark. I will restate from tape tomorrow.
* We need to go to local rule.
* Neil Keenan is considering refiling his lawsuit and having other countries
file with him.
* The banks are looking to surrender.
* Drake suggests we make an offer to the military??
* This is an open proposal to the people, bankers and military: Military - Stand down;
Banks stay open.
* He will set up a site where all can go to vote.
* [sounds like open negotiation time; nothing has been agreed upon]
* Voting from tomorrow until noon Saturday.
* Actual National debt is 1.3 Trillion; rest is bankers' debt.
* [Drake indicates that Keenan will refile and that a proposal will be made to the military
to stand down. If he is real, sounds like everything has crashed and we are
back to square one as far as legalities.]
* Voting Site: ladydragon.com , then go to page titled "Drake".
Voting page to be up by noon Thursday. Results to be sent to the key players.
* Lost connection past 3 minutes.
* His terms will require the majority of adverse legislation to be struck rescinded;
we go back to constitution.
* There will be no arrests. There may be an accounting and charges later.
* We have a choice: All out war with 2/3's casualties or Peaceful negotiation.
* The banking corporations are going broke and will be out of play.
* Illegal politicians will be adjudicated.
* The majority of the military and some of the bankers are in favor of a peace treaty.
They want to hear from the people feel about a treaty. They want terms.
* The treaty will give us freedom, hidden technologies and peace.
* The NESARA Act will financially compensate the people.
* Treaty removes Cabal's control over us. They are out of money.
* We will be free of the Crown of England.
* NESARA Act will strip the Cabal of its power; Released technology will boost the
economy; The military does not want to engage the people.
* The Peace Treaty will go before the congress for approval.
* The vote will later allow us to see the peace documents.
* The collateral accounts will prevent the printing of fiat currency.
* The Cabal is seeking surrender.
* Call in number for this show: 805-399-1200 code 153938
* Search "History of NESARA" It goes back to the 1800's. Hopefully it will be
posted on the Ladydragon.com website tomorrow.
* Currency RV's may or may not occur, based on the treaty. Dinar may still RV.
* Damaging actions against our health will stop per the peace treaty.
This will show how serious the Cabal is. The Cabal has made first contact for peace.
* There are other bargaining chips that the Cabal is not aware of. This involves Keenan
refiling the lawsuit with other countries as plaintiffs. This scares the Cabal.
* The Cabal will admit defeat and we will have our original freedom back.
Some of the Cabal will get prison time, but most will be free.
The Cabal is afraid the military and militias are about to come after them.
* NESARA will cause all debts to be zeroed out.
* If the treaty is reached, the drone programs will end immediately.
The people that control the military industrial complex are the ones asking for peace.
* It will be Monday or Tuesday before we will know if the offer is accepted.
* We will go back to original 13th Amendment.
* [Chat rooms are said to be most concerned about negotiations and unsure of
all of this.]
Recap Source: http://src-fla.us/index.php/news2e629

At this moment, I do not know if Drake is a good guy or not, or mis-informed or not. I'm not proposing nor encouraging anyone to vote. If you are considering it, let the Spirit guide you.

It seems this peaceful surrendering for the Cabals is what is taking place right now. It made me think of 1The 5:3 "For when they shall say, Peace and safety; then sudden destruction cometh upon them, as travail upon a woman with child; and they shall not escape. "

This is an important time for prayers. Let's be watchful of what the Lord has in mind to do and to reveal us. The news will be interesting the next coming two weeks.

It is said that the Mass Arrest will still be an option but only as a last resort if the Cabals don't surrender. So from June 15 to June 20th there will be very important meetings of negotiations. Apparently, the Cabals wants surrender and knows they are toast.

If the meetings are not fruitful or satisfactory to the demands, then the White Dragon Society(Kings of the East) will resort to mass arrest or measure of that sort on June 21st or soon after. Watch the news. Time will soon tell.

Here's the latest news by Benjamin Fulford. It's only the highlights for most of it.

--------------- Highlights -----------------------------------------------


-There will be a series of both secret and public high-level meetings from June 15 to June 20th aimed at ending the financial crisis… The hope is that the G20 meeting set to start on June 18th will lead to a breakthrough.

-To help make that possible, the White Dragon Society sent a message to the Committee of 300 proposing the announcement of a campaign, similar in intensity to a world war, aimed at ending poverty, stopping environmental destruction, eliminating disease and otherwise trying to save our wonderful, but ailing planet.

If the committee responds positively and yet the high-level financial blockage continues, then the next level response will be directed at the P2 freemason lodge and the BIS, according to sources involved in the negotiations.

-The other culprit known to be directly involved in stopping the new financial system is… Barak Obama, hired hand for the Federal Reserve Board owning cabal families.

-the Bushes, the Rothschilds, the Rockefellers, the Black Pope and a who’s who of the Western power elite have already been offering astronomical bribes to White Dragon Society members…

-What the cabal families do not have is what they need the most, the goodwill of the people of the planet earth.

-We also need to keep in mind the possibility that the blockage of the financial system in the West does not originate either with the Federal Reserve Board families, the committee of 300, the P2, the BIS or any other human organization. In that case, the rogue artificial intelligence story being put out by MJ12 will have to be taken seriously. It would mean temporarily ending all electronic money, unplugging all bank and financial institution computers and reverting temporarily to cash and carry until the system can be safely rebooted. This is the worst case scenario for financial system collapse. It will mean considerable, temporary, hardship but not mass starvation.

-In any case, enough people have become aware of the scam that is privately owned fiat (out of nothing) money that the genie cannot be put back into the bottle. The process of monetary creation and distribution will have to be carried out in total transparency from now on.

-The cabal will also have to start telling the truth about their secret rule… appearing before a… truth and reconciliation committee and talking about their crimes against humanity in exchange for forgiveness.

-It will involve a total rewriting of history… opening the Vatican library to international scholars would be a good place to start.

-The White Dragon Society believes that from now on humans will only need one commandment: “do unto others (including non-human others) as you would have others do unto you.”

-One cabal family member seemed perplexed and scared and in awe of the idea of people being set free. The cabalists somehow think civilization will collapse…

Anyone who wants to see all kinds of links concerning Bank high profile resignations since Feb 20th 2012, there is a 56 pages compilation of "Massive Bank and High Profile Resignations Across the World" by Sabrina at this link : http://projectavalon.net/forum4/showthre...cross-the-World

Also found on page 56 this video clip.

Massive Debt Collapse with Author, F. William Engdahl

I noticed on the forum list, the topic, "Ufology, Extraterrestrial Contact", caught my eye.

And? Project Avalon Forum is a worldwide forum and it so happen that many in this world believes in ETs. ETs beleivers has as much rights to Free Speech as to Christian does and others.

What does this has to do with the Economic Restructure at hand?

Sorry, I mistakenly thought project avalon was a specific project of some sort. Do you think it was wrong that UFOs caught my eye?

Spain's bailout loan questioned by Britain's Nigel Farage at European Parliament

The UK's Nigel Farage appears before the European Parliament in this short video:



He concludes that "the Euro Titanic has now hit the Iceberg and sadly there simply aren't enough lifeboats."

The short speach shows the ridiculous terms of last week end's Spanish bailout. It was actually a 3% loan from the European Central Bank, and he says that 20% of that loan had to come from Italy.

So Italy has to borrow $20 billion at close to 7% interest in order to loan the money to Spain at 3%.

Where's the wisdom in that deal, especially when Italy appears to be the next in line for a bailout. Perhaps Italy will then get a similar 3% loan, and Spain will have to borrow money at near 7% to loan to Italy???

Gordon Brown says France and Italy may need bailout

Posted by Linda Joslin on June 15, 2012 at 7:27pm

Gordon Brown has warned that France and Italy may need to be bailed out like Spain because of the unfolding eurozone crisis.

The former UK prime minister said it was not only Greece, Portugal and Ireland facing the threat of euro exit. But, he added, some of the EU's largest countries such as France, Spain and Italy were also at risk.

Mr Brown also warned that Germany might have to seek additional funding to safeguard its banks.

In a stark warning ahead of next week's G20 summit in Los Cabos, Mexico, Mr Brown said: "The euro area is finally approaching its own day of reckoning."

The former PM said, in a blog for Reuters, that "we are in a downward spiral that shows no sign of ending."

He accused EU leaders of adopting "well-meaning half measures."
"If there is a failure of global leadership next week [at the G20], not only will Europe be condemned to a lost decade but the whole world will pay a fearful price."

The G20 summit is a meeting of 19 countries plus the European Union, which between them account for 80% of global gross domestic product and 80% of global trade.

As host, Mexico's President Felipe Calderon wants the summit to concentrate on how to reduce food price volatility, promote green growth, and boost investment in scientific and agricultural technology.

But in truth, the eurozone crisis is likely to overshadow proceedings, with all eyes on Germany as the potential answer to the region's debt crisis.

Germany 'not immune'

Mr Brown accused eurozone leaders of seeking to "wish away" Spain's banking problems by providing only 100 billion euros of credit when their banks had two trillion euros of liabilities.

Mr Brown also predicted that Italy and France may have to follow Spain in seeking a rescue package for their banks.
"Even German banks," he said, "which are some of the most highly leveraged, are not immune from needing more capital."

Mr Brown said "the final showdown" could be postponed but eurozone leaders had to accept "the inescapable logic" of a fiscal union.

http://www.bbc.co.uk/news/uk-politics-18460596