Opinion (Avery B. Goodman, a licensed attorney, a member of the roster of neutral arbitrators of the National Futures Association and the Financial Industry Regulatory Authority): “Bloomberg reports that Bank of America has shifted about $22 trillion worth of derivative obligations from Merrill Lynch and the BAC holding company to the FDIC insured retail deposit division. Along with this information came the revelation that the FDIC insured unit was already stuffed with $53 trillion worth of these potentially toxic obligations, making a total of $75 trillion.
“Even if we net out the notional value of the derivatives involved, down to the net potential obligation, the amount is so large that the United States could not hope to pay it off without a major dollar devaluation… But, if such an event ever occurs, Bank of America’s derivatives counter-parties will, as usual, be made whole, while the American people suffer. This all has the blessing of the Federal Reserve, which approved the transfer of derivatives from Merrill Lynch to the insured retail unit of BAC before it was done.”
My Comment: Naturally, whoever has the money and power uses the power to save money. It’s not only the American people that will pay for the devaluation of the dollar, but the whole world. Obviously, this is the plan: All shall not perish, but generally lose. No wonder, the FDIC is busy….