The upside down pyramid morass

I think that Jim Willie is one of the best writers/analysts in the world.

I hope that this snippet from a recent article will encourage you to study his work closely:

"Another distilled conclusion pertains to the upside down pyramid morass that is the derivatives market. JPMorgan is well known to own the lion's share of the bond derivatives. Interest rates have risen in the last year, as have mortgage rates. Up till now not a peep on quarterly statements for JPM on massive writedowns. Why? My inference is that JPMorgan has been integrated into the US Federal Reserve, with certain operations on that side of the wall, other operations on this side of the wall. Worse still, JPM merged with Japanese giant Sumitomo bank, complete with a $1400 million dowry delivered over two years ago. The belief that the USFed and Bank of Japan are a unified conglomerate entity is inescapable.

...Here is yet another pearl distilled. Given that JPMorgan, Goldman Sachs, and others are on the hook for gigantic cartel gold short obligations, why are these guys now touting gold and profiting from it on the bank side? My guess is the USGovt has taken, relieved, absolved, and assumed their gold short positions and risk, all for the greater good. Now the individual banks can open new, clean, fresh pristine accounts free to profit from the gold bull market. Why? Because the banks see a profit potential, and their past positions have been forgiven. If these guys are winning suddenly in the gold game, then something had to occur on the down side, with sanitized books and absolutely zero transparency and plenty of stock options."