National Guard May Be Called in Alabama County to Quell Anarchy.

An Alabama County may have to call the National Guard in to help with emergency services and quell any possible rioting and anarchy all because the Jefferson County Board tried to hedge their bets with interest rate swaps from JP Morgan, Lehman Brothers and Bank of America. OMG! They are now soundly thrashed and trashed and have run clean out of cash. Bankrupt.

So you wake up one morning and have a nice breakfast of biscuits and gravy washed down with a big glass of orange juice and with happy face on, you head into work. The day gets much worse from here. You find out that your boss, the county, wants to pay you with an IOU or you're fired. Bummer. Hmmm? No fire, sheriff or county workers. No jailers, no dispatchers or 911 workers.

The counties solution is to call the National Guard.

I been sayin' it, ain't I been sayin' it? Cities in bankruptcy. Who ya gonna call. Nobody, that's who.

These guys bought interest rate swaps they didn't have a clue about and got stung hard. I don't know if they made a fixed for floating rate swap or fixed for fixed but when the mortgages went bust, there was a collateral call into the hundreds of millions.

My opinion, the bankers that offered these high risk instruments to a municipality should be have a finger wagged at them at the very least but ultimately, the responsibility and the blame, falls on the county commissioners that thought this was a great idea. Cause they had no clue.

This will happen again too, with others who've made the same mistake, especially in any area where an investor might hold ETFs for a commodity. How about holding equities or stocks. What if many of these instruments of trade are backed by nothing but thin air and grand hopes and dreams.

Very naughty. Market manipulation. Fraud. But hey, if no one carps about it to loud, why bother with the little things. The excessive and fraudulent paper promises to deliver gold and silver that does not exist strike me as the height of fraud and manipulation.

When the call for collateral comes, who will answer. Why, yes sir, here's your gold or silver or copper or palladium bullion . We've had that tucked away for you. By that, I mean, when the call for the real treasure, the actual physical metal is issued by the certificate holders. (investors) There will be a lot of wailing and throwing of things.

Especially in the silver market where there is about $200 Billion of Paper silver out there and only about 680 million oz. mined in a given year year. Silver is a consumable as well. Jewelry, electronics and a host of other applications. Over 90% of all the silver that has ever been mined in the last 5000 years has been used up by industry and is gone forever!

Privately held silver and silver in the hands of governments and banks still does not come close to the paper out there. As a matter of fact, in the entire history of the world, total silver mined comes to an estimated 43 billion ounces. At $15 bucks an ounce, that comes in at 645 billion dollars. In the entire history of the world.

So how are they going to come up with the $200 Billion (almost 1/3) if there is ever a call for the physical silver. You do the math. All it would take to crumble this ponzi scheme would be for 1000 governments or individuals with huge PAPER stock piles to request their REAL/PHYSICAL silver and the whole shootin' match is over. Not just in the silver market. This would topple the world.