http://jsmineset.com/2009/09/13/mountain-of-otc-derivative-wmds-waiting-to-explode/

Dear CIGAs,

Size and major risk have been confirmed for those with the eyes to see and the ears to hear. It is exactly what I have been teaching.

Translation:

Unless financial contracts have standards there is no way to clear them.
Unless financial instruments have accurate means of daily valuation, there is no way to clear them.
OTC derivatives outstanding from 1991 to 2008 have no standards.
OTC derivatives outstanding from 1991 to 2008 have no sound means of true valuation in any time frame, certainly not from day to day.

With this being the incontrovertible set of facts:

The Bank for International Settlements is for the first time proposing the world’s central banks take over the financial risk of the entire mountain of more than one quadrillion one hundred and forty four trillion dollars (valuation before the change to "value to maturity" method valuation of nominal value of OTC derivatives) of OTC derivatives created from 1991 to 2008.

The reason is simple. This unchanged in size mountain of weapons of mass financial destruction as still sitting there ready to explode in the second chapter of the greatest double dip depression of 2007 – 2009.

Can you blame China for simply saying no to Western crack cocaine finance?

Now do you understand why China is buying raw materials, entering joint ventures and purchasing energy and raw material companies while utilizing their dollar instruments for payment?

And just one very important information: from 1977 to 1981 at the time of the last Gold bubble, some Gold stocks went from 0.35$ to 55$, imagine that, hod on to your shares!