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Q:  Just wondering what’s to stop the elites from just writing off the 1.5 quadrillion dollar massive global paper derivatives scheme once it tumbles and calling it null and void due to illegal implications or something. 
David Schectman’s Answer:
And while they’re at it, why not print up another $17 trillion and balance the budget and then send another $100,000 per person to everyone in America?  That’s just another $30 trillion, give or take.  A mere drop in the bucket compared to the 1,500 trillion you reference in your question.  If it were “doable,” then things like this would be on the drawing board.  But you can’t “print your way” to prosperity or print your way out of trouble.  Not without consequences.
Beyond that, derivatives are a sum zero game.  For every loser there is a winner.  Writing them off only benefits the issuers, not the entities that bought the “insurance” as a hedge against rising interest rates or any number of other activities.  All that would be accomplished by writing them off would be to shift the losses from one group to another.  The central banks would then have to print enough money to save the losing side and printing up hundreds of trillions of dollars would destroy the dollar.  This is not an option.  And unfortunately, there is no solution to this other than to try and keep it from happening.  That means putting the clamps on interest rates!  And that is one of the main reasons that the central banks are holding down gold and silver prices (with paper contracts).  They have to fool the markets into thinking that inflation is not a problem in order to hold down interest rates.
If the derivative bomb does go off, it will make the 1930s look like the good old days.  It will take down all of the markets and probably most of the world’s paper currencies as well.  The central banks are fighting to keep this from happening in advance by holding interest rates down.  Since most of the derivative contracts are interest rate sensitive, it is the only strategy that makes sense, but the scary thing about this is that sooner or later interest rates will rise.  That light’s the fuse to the derivatives nuclear bomb.
The derivatives will never be “written off,” but the Fed may bail some of the big banks and insurance companies or hedge funds out, once again.  The result can only be one of two things:  either it will be a hugely inflationary event as trillions of dollars are created out of thin air, or the losses will be so large that bail outs will not be viable and then massive deflation (defaults, bankruptcies, outright global depression) will rule the day.  Either a meal or a fill up at the gas station will cost a small fortune, in dollars – or there won’t be any food on the shelves or gas at the pump.
The chances are good that we will experience this event.  God help us should it happen, but I will feel safer (in a not so safe world) owning physical gold and silver knowing that at least my wealth will not collapse the way that stocks, bonds and currencies will.
Q:  Does income from being the owners of the Federal. Reserve appears on the big banks balance sheets?
Bill Holter’s Answer:
I am not sure.  It would appear on their income statement as a “dividend” but not their balance sheet.  The shares themselves may show on the balance sheet but as I said I am not sure.  Perhaps this is a question you should pose to JP Morgan’s investor relations department or even of the Fed themselves.  Sorry not to have a concrete answer for you.
Q:  I would like to know why “The Silver Users Association” was never charged as an illegal short side price fixing cartel in violation of antitrust law. What other commodity has a user’s group? They were instrumental in getting silver out of money. Then at tax payer expense “Silver consumers argue the Treasury should keep selling at 91 cents an ounce from its “free” supply until it runs out. This says Donald J. Ramsey, treasurer and Washington lobbyist for the “Silver Users Association”, would avoid the kind of sudden price rise that could result from an immediate halt in sales.” From “The Silver Raiders “October 16, 1961. 
Andy Hoffman’s Answer:
The “Silver Users Association,” much like the “World Gold Council” and all other major trade organizations (not to mention, the CEO’s of major PM miners) have not done a single thing to improve the gold and silver price situation in the 12 years I have been observing.  That said there is no evidence they have done anything illegal.
The fact remains, that until the Cartel is overrun – which it most assuredly will be – one should not expect any “help” from professional, trade or government organizations of any kind.  All financial markets are 100% corrupt these days; and none more so than precious metals, which represent the “Kryptonite” of the fiat currency system.