The one year funding continuation bill just passed Congress. It continues Obamacare.  In that bill was a rider that Sen Elizabeth Warren (D. MA) wanted.  It required banks to put 5% of their derivatives into a separate subsidiary forcing some liability for the debt.   I doubt if it got in because the banks did not want it.  As a result, it did not pass.  Therefore, we are all exposed to bankruptcy – the nation and you as citizens personally.That is what the Dodd Frank, “too big to fail” provision is all about .  Bail Ins are  about – – — “DEBT SLAVES – — for the next 100 years”.  A good name for my next Book.

I  wrote a letter to the WSJ Editor in support of Sen Warren’s position. It is attached.  They just notified me (6 Jan 2014) that they will publish it. This surprises me because it is filled with undeniable facts that challenges their allegations – – – and they are not pretty.

1.    According to the WSJ today – 15 Dec 2014, the bill passed and says that the U.S. government is liable for all Bank Derivatives when they fail – – — -per Dodd Frank Law.  It is a BIG BILL $$$$.   How much is addressed in my letter.

2.    Sen Warren wanted to add a rider that puts 5% of the Derivatives into a separate subsidiary for each bank…………..This is what the WSJ derided, ridiculed and made fun of Sen Warren – – -but no facts just allegations and ridicule.  If that 5% failed, it would bankrupt the banks.   The WSJ was  wrong and it appears to me acting as a shill of the Big Banks.This is an example of  what I mean by “Controlled Media.”

3.    The U.S. GDP is about $17 trillion / year  and disposable  income is less than $1 trillion / year.

4.    Now read the letter. I copied Sen Warren.  It is history now but you should be aware of the exposure and what is coming.The Dodd Frank bill needs to be expunged from the books. It only serves big banks.

joe

Below is the Letter to the Editor

Letter to Editor of WSJ

Joseph P. Hawranek, Ph.D. December 14, 2014 Paul A. Gigot Editor of the Editorial Page Wall Street Journal 1211 Avenue of the Americas New York, NY 10036 Subject: Editorial “Let’s Pretend Dodd-Frank Works”, 12 December 2014 Dear Sirs: I disagree with you and agree with Senator Warren.  The issue of each bank moving 5% of its derivative contracts to a separate subsidiary not insured by the FDIC is extremely important.  Your editorial trivializes it and ridicules Sen Elizabeth Warren (D. MA) for her position of proposing it.  Yet, I believe she is right and you are wrong.   Here are a few facts.  First, five Wall Street banks have many trillion dollars in exposure to derivatives – which you conveniently did not mention.  The OCC’s most recent quarterly report shows – JP Morgan Chase $68.3 Trillion, Citibank $61.8 trillion, Goldman Sachs $57.6 trillion, Bank of America $55 trillion and Morgan Stanley $44 trillion. This is $286.7 trillion.  5% of that is $14.3 trillion.   You note that the Dodd Frank law and the Congress did its job of protecting the banks by including the derivatives in the G-SIFI category.  You and other public media did their job by not providing full reporting of the implications of this horrible “Bail In” law to help the big banks. Dr.Gruber of “Obamacare infamy” is wrong.  Americans are not “stupid” but they are uninformed and ignorant when the media wants them that way.  When derivatives fail which is inevitable, then the U.S. government could be liable for up to $286.7 trillion because derivatives are all intertwined which means the U.S. Government will fail or the debt will have to be restructured.  A 5% subsidiary containing $14.3 trillion means that if it fails, then the big banks will fail. They know this and are fighting this change in the law in the Congress and by calling in their media support.  These 5 banks total assets are only $8.3 trillion which is only 2.8% of their Derivative exposure.   The banks are in a good business.  If they make good investments, they win.  If they make bad investments, the nation picks up their debt and they win again. Obviously, this is wrong and needs to be corrected by removing Dodd Frank from the books. The law only serves banks not the people.  Only if Dodd Frank is over turned will this problem be corrected. Sincerely, Joseph P. Hawranek, Economics Wharton School cc: Senator Elizabeth Warren