How The New Billionaires and Trillionaires Will Preserve Their Capital

Posted at 1:52 PM (CST) by & filed under General Editorial.

Dear Extended Family,

This is how our new billionaires and trillionaires will preserve their capital for ten generations to come.

This letter might as well be to you. The question is not if Bail-In will occur in North America, it is a question of how big it will be. The answer to that is simple.

The size of the Bail-In or "Major Wealth Tax on Unsecured bank lenders (deposits), will be the size of the entire OTC derivative loss less what occurs when Legacy OTC Derivatives are marked to market less the capital of the financial institutions.

Any idea that losses end at the capital position of a financial institution is total nonsense. The size of the loss might well be the final resolve process of the setting up a "Resolution Bad Derivative Trust" for the bankruptcy of the huge amount of legacy OTC derivatives still floating like a mine field financially in cyberspace. This will occurs in the following order.

The Great Flushing = Lehman Brother
The Great Leveling = Bail-In plus even more massive stimulation program 
The Great Reset     = The new monetary system made up of:

1. A virtual reserve currency.
2. Only traded by central banks.
3. Tied voluntarily to the value of central banks gold, valued at market.
4. By voluntary arrangement tied to a M3 of the Western world M3.
5. Gold will have traded for 2 to 5 years emancipated from no-gold paper as the price discovery mechanism.

This is how our new billionaires and trilionaires will preserve their capital for ten generations to come because they have all the above ground physical gold, all of it, by hook or crook.

Are you preparing for this transaction or are you going to be an accident of the Great Leveling of 2015-2016?


Dear Arlen,

Whatever you have in direct registration will free you from the risk of bail in. It does not matter be it corporate personal or joint holdings. Cash balances are best looked at in Singapore, Hong Kong or Taiwan that must remain in liquid form in the currency of your choice for business activities.

Gold should be stored between Switzerland and Singapore. That gold you might be willing to give up very close by. Funds do have risks to how they maintain their balances, how they operate and where and how they store PM. I need more information to opine on the safety of your fund investments.

This is a time to simplify and diversify. It is not a time for great investment decisions, just a change of the mechanics of how you hold your capital.


PS. "The more things change the more they remain the same."

Resolution Trust Corporation
Tuesday, June 4, 2013

In 1989, the nation faced a financial crisis caused by the collapse of hundreds of savings and loan associations, who had taken advantage of loosened regulations to invest aggressively in real estate and other ventures, many of which went sour. Their problem was the government’s problem, too, since their deposits were guaranteed by the federal government.

Fearing both the size of the bill if the troubled institutions went under and the damage such a meltdown might cause to the economy at large, Congress and President George H.W. Bush in 1989 created the Resolution Trust Corporation to take over troubled thrifts, as the banks were known.

The mission of the corporation was to dispose of the assets as quickly as possible for maximum value. Its goal was to reduce taxpayer exposure.

Resolution Trust closed or reorganized 747 institutions holding assets of nearly $400 billion. It did so by seizing the assets of troubled savings and loans and then reselling them to bargain-seeking investors. At the peak in early 1990 there were 350 failed savings and loan institutions under the agency’s control.

By 1995, the S.& L. crisis abated and the agency was folded into the Federal Deposit Insurance Corporation, which Congress created during the Great Depression to regulate banks and protect the accounts of customers when they fail. The total cost to taxpayers was later estimated at $124 billion.