{"id":29071,"date":"2020-10-20T13:25:06","date_gmt":"2020-10-20T20:25:06","guid":{"rendered":"https:\/\/www.itmtrading.com\/blog\/?p=29071"},"modified":"2020-12-30T10:10:31","modified_gmt":"2020-12-30T17:10:31","slug":"update-on-global-reset-by-the-time-you-see-it-itll-be-too-late-by-lynette-zang","status":"publish","type":"post","link":"https:\/\/www.itmtrading.com\/blog\/update-on-global-reset-by-the-time-you-see-it-itll-be-too-late-by-lynette-zang\/","title":{"rendered":"UPDATE ON GLOBAL RESET: When you see it, it’s too late… By Lynette Zang"},"content":{"rendered":"

Last weekend the banks, along with the ISDA (International Swaps and Derivative Association) reset $80 trillion derivatives contracts in a test getting ready for the bigger contract resets that will occur in 2021, just a couple of months away. As of this writing, all is quiet on the derivative front\u00e2\u20ac\u00a6eerily so.<\/p>\n

Some may think that is because they didn\u00e2\u20ac\u2122t see markets implode, that all went well, but I think we don\u00e2\u20ac\u2122t yet know the results of this most current experiment. Recent history (just since 2008) shows us that QE money printing can hide a lot of destruction and danger.<\/p>\n

Have more questions that need to get answered? Call: 844-495-6042<\/strong><\/p>\n

Some also think that the only reset is a big, over night blow up. But the reality is that many small resets occur all along the way and by the time you see the big one, it\u00e2\u20ac\u2122s too late to prepare. So the big question is, when do you want to know about the reset that is already underway?<\/p>\n

According to the ISDA, the notional value of global derivatives as of June 2019, was $640.4 trillion, which is almost five times the global GDP. Keep in mind that that does not reflect the true value at risk, just the stated value of the derivative contracts.<\/p>\n

But with the IBORs going away by the end of 2021 and global central banks attempting to create new robust markets for their respective new benchmarks (in the US it\u00e2\u20ac\u2122s SOFR), out of that $640 trillion derivative contracts, only $5 trillion have been written using the new benchmarks. Therefore, with time running short, the push is on. Scott O\u00e2\u20ac\u2122Malia, ISDA CEO, looks at it as a \u00e2\u20ac\u0153once-in-a-generation opportunity to restructure the foundations of the market\u00e2\u20ac\u009d but I\u00e2\u20ac\u2122m thinking that there is no choice. This reset<\/em> of the entire foundation of the markets HAS TO HAPPEN.<\/p>\n

Some may think it\u00e2\u20ac\u2122s no big deal, but I\u00e2\u20ac\u2122m not one of them, I think when an economy, society and financial system reset, it is a VERY BIG DEAL and what I see today, is way more than what I saw in the 1960\u00e2\u20ac\u2122s and 1970\u00e2\u20ac\u2122s.<\/p>\n

Additionally, Kristalina Georgieva, Managing Director of the IMF is calling this \u00e2\u20ac\u0153A New Bretton Woods Moment.\u00e2\u20ac\u009d You might recall that in 1944 the Bretton Woods Accord reset<\/em> the global monetary and financial system from a gold backed system to a dollar backed system. Though at the time the US dollar was backed by gold, so it was still a quasi-gold backed system. Of course that ended in 1971 when Nixon took the US dollar off the gold standard and we went to an intangible debt based system controlled by central banks.<\/p>\n

And what do central banks know about? Debt contracts and interest. What is \u00e2\u20ac\u0153financial innovation\u00e2\u20ac\u009d? Manipulating and leveraging those contracts for profit. But wealth never disappears, it merely shifts ownership. And inflation has gradually reset <\/em>the purchasing power value of the dollar toward the few and from the many. Simply put, when governments and central banks control money, citizens pay the price.<\/p>\n

They can talk all they want about fixing income and wealth inequality, but it is their policies and manipulations that have enabled and created this disparity, along with the fact that almost all of the purchasing power has been removed from the government fiat money and a reset<\/em> of the system is required again. This is why bankers and central bankers are openly talking about it.<\/p>\n

The damage done by the corona virus, socially as well as economically, has created their opportunity to reset <\/em>the entire system. And while I cannot prove this catastrophe was planned, I can say it\u00e2\u20ac\u2122s pretty convenient for resetting <\/em>the system in a way that would continue to benefit the few at the expense of the many, because if most wealth is held in intangible form, it is easier to control and easier to steal.<\/p>\n

That makes owning physical gold and silver in your possession more important today, than it\u00e2\u20ac\u2122s ever been. Some might question the form, but history tells us to keep in mind that desperate governments do desperate things. Personally, since I\u00e2\u20ac\u2122ve lived during a time when it was illegal to hold more than five ounces of gold, I consider that to be a strong possibility again, particularly when you see central bankers massively accumulating gold. Therefore, my personal level of comfort is in owning collectible gold coins that were exempt from confiscation in the past.<\/p>\n

Some say that won\u00e2\u20ac\u2122t happen again, but history does not support this opinion. In fact there are many laws on the books that enforce the right of the government to confiscate gold once again. So I always ask myself, what if I\u00e2\u20ac\u2122m right and what if I\u00e2\u20ac\u2122m wrong. With collectible gold it doesn\u00e2\u20ac\u2122t matter because I\u00e2\u20ac\u2122m able to buy it substantially below fundamental value, which is where it will go when the big reset <\/em>happens. Therefore, I consider them stealth wealth because they fly under the radar and that\u00e2\u20ac\u2122s helps me sleep well at night.<\/p>\n

 <\/p>\n

Have more questions that need to get answered? Call: 844-495-6042<\/strong><\/p>\n

Slides and Links:<\/strong><\/p>\n

\"\"<\/a> \"\"<\/a> \"\"<\/a> \"\"<\/a> \"\"<\/a> \"\"<\/a> \"\"<\/a> \"\"<\/a> \"\"<\/a><\/p>\n

1.\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 http:\/\/assets.isda.org\/media\/ad658249\/f9a2ca23-pdf\/<\/a><\/p>\n

http:\/\/assets.isda.org\/media\/ddcb20e0\/76dd3ab8-pdf\/<\/a><\/p>\n

http:\/\/assets.isda.org\/media\/3554b1ef\/a2b936b7-pdf\/<\/a><\/p>\n

https:\/\/www.isda.org\/a\/cuQTE\/2020.05.14-Pre-cessation-Re-Consultation-Report-FINAL.pdf<\/a><\/p>\n

https:\/\/www.isda.org\/a\/wVrTE\/Collaboration-and-Standardization-in-Derivatives-and-SFT-Markets.pdf<\/a><\/p>\n

https:\/\/www.isda.org\/2019\/10\/14\/isda-common-domain-model\/<\/a><\/p>\n

    \n
  1. http:\/\/assets.isda.org\/media\/ad658249\/f9a2ca23-pdf\/<\/a><\/li>\n
  2. https:\/\/www.isda.org\/2020\/10\/09\/isda-board-statement-on-the-ibor-fallbacks-supplement-and-protocol\/<\/a>https:\/\/www.isda.org\/2020\/05\/11\/benchmark-reform-and-transition-from-libor\/<\/a>https:\/\/www.bis.org\/review\/r190318f.pdf<\/a><\/li>\n
  3. https:\/\/www.imf.org\/external\/mmedia\/view.aspx?vid=6200738336001<\/a>https:\/\/www.imf.org\/en\/Publications\/WEO\/Issues\/2020\/09\/30\/world-economic-outlook-october-2020<\/a><\/li>\n
  4. https:\/\/www.imf.org\/external\/mmedia\/view.aspx?vid=6200738336001<\/a>https:\/\/stats.bis.org\/statx\/srs\/table\/d7?f=pdf<\/a>https:\/\/www.yardeni.com\/pub\/peacockfedecbassets.pdf<\/a><\/li>\n
  5. https:\/\/fred.stlouisfed.org\/series\/GFDEGDQ188S<\/a><\/li>\n
  6. https:\/\/www.cbo.gov\/publication\/56598#:~:text=In%20CBO’s%20extended%20baseline%20projections,than%208%20percent%20by%202050<\/a>.https:\/\/www.google.com\/search?ei=qFWOX4C5Jo6U<\/a>https:\/\/www.occ.gov\/news-issuances\/news-releases\/2020\/nr-occ-2020-121.html-gT585CABA&q=bank+of+canada+crag+database+2020&oq=bank+of+canada+crag+database+2020&gs_lcp=CgZwc3ktYWIQDDoECAAQRzoFCCEQoAFQvSFYkCNgszVoAHACeACAAZoBiAGcApIBAzAuMpgBAKABAaoBB2d3cy13aXrIAQPAAQE&sclient=psy-ab&ved=0ahUKEwiArbHUmcLsAhUOip4KHfk5BEAQ4dUDCA0<\/a><\/li>\n
  7. https:\/\/www.imf.org\/external\/mmedia\/view.aspx?vid=6200738336001<\/a>https:\/\/fred.stlouisfed.org\/series\/W270RE1A156NBEA<\/a>https:\/\/www.epi.org\/publication\/ceo-compensation-surged-14-in-2019-to-21-3-million-ceos-now-earn-320-times-as-much-as-a-typical-worker\/<\/a><\/li>\n
  8. https:\/\/www.govinfo.gov\/content\/pkg\/CFR-2004-title31-vol2\/pdf\/CFR-2004-title31-vol2.pdf<\/a><\/li>\n<\/ol>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

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