Taxpayers on the Hook for Millions in Losses After Ex-JPM Traders’ Leveraged Power Bet Goes Sour

By Tyler Durden | 25 September 2018

ZERO HEDGE — The Norwegian power trader who got caught on the losing end of a 4-sigma move in price spreads is being forced into bankruptcy after liquidating his entire estate. But in the US, two ex-JPM traders who wracked up comparably massive losses have managed to walk away, leaving the end-users and distributors on one of America’s largest energy grids holding the bag.

BusinessWeek on Tuesday published a story about GreenHat Energy, LLC, an ill-fated power speculator that bought a sizable position in long-dated financial transmission rights. FTRs, as they’re more widely known, are an obscure power derivative designed to allow distributors to hedge against sudden spike in transmission costs when parts of the grid are temporarily taken offline (due to inclement weather or some other hazard). Houston-based Greenhat opened the positions via PJM Interconnection, LLC, which oversees a wholesale electric grid serving 65 million people between Chicago and Washington, D.C.

They are used in deregulated power markets to help energy buyers, generators, and distributors protect against localized price swings. Bottlenecks can sometimes form on the power grid—such as during an ice storm or when a plant goes down—creating what are known as congestion costs. Using an FTR, a big power buyer can get paid when congestion costs rise, offsetting its risk. But it might also end up owing money if there isn’t congestion.

Financial players can buy FTRs, too. Much of GreenHat’s portfolio was “long-dated”—meaning it was betting on transmission-line congestion patterns that wouldn’t start until June 2018. And based on historical patterns, most of those positions initially looked like smart moves, according to PJM. That likelihood of success brought a side benefit to GreenHat: Under PJM rules at the time, it could keep building up its portfolio without having to put up much money as collateral. But GreenHat would have to pay if congestion patterns turned out to differ widely from those in the past.

GreenHat opened its FTR position in 2015. By April 2016, the first signs of a problem had emerged. Around that time, another trader on PJM known as DC energy, one of the largest buyers of FTRs, complained to PJM about rival portfolios with no collateral attached. When PJM approached GreenHat, one of its partners, Andrew Kittell, said his firm had offsetting contracts that would pay out more than $62 million should their FTR bet turn sour. PJM mentioned this in one of its filings to the Federal Energy Regulatory Commission. […]

Scientists study the many medicinal uses of black cumin seed (Nigella sativa)

(Natural News) A comprehensive review of the scientific studies concerning black seed (Nigella sativa) showed that the plant possesses numerous medicinal uses. The Iranian researchers reported that the seed and oil of the popular spice possess bioactive compounds that can amend asthma, diabetes, digestive problems, inflammatory diseases, and rheumatoid arthritis, among other diseases. The review…

Kp Message 9-30-18… “Currently ‘on a job’”

I’ll likely not be posting anything (except Ben Fulford) during this next day. I have “work” I’ve been called to attend to. From what I can sense, it is quite important for this time, and I’m getting that it is “essential” for the proper (aka, beneficial) unfolding of the positive (aka, Ascension) timeline for humanity.

More later.

Aloha, Kp

Remember Henry George


By Anna Von Reitz

“The main trouble now is neither any material shortage of the resources of nature nor any inadequacy in man’s power to exploit them. It is all, in one form or another, a maladjustment; not an insufficient productive capacity, but a series of impediments to the full utilization of that capacity. The main obstacles to economic revival have been the hindrances opposed to the free flow of labor, capital, and goods.” 


This quote comes from the 1927 World Economic Conference, Geneva, conclusions provided to the League of Nations. 

It is synonymous with the findings of American Economist Henry George, whose vision smacks of clarity today as it did in the 1880’s and slaps the faces of all those who have fallen into the sophistry and lop-sided pandering of Keynes.  

The Problem and the resulting Mess is entirely the fault of Big Business Interests usurping upon the rights of the living people and their national governments and seeking Unjust Enrichment via their constant official (governmental) and unofficial (private) tampering with commodity markets — including the currency markets.  

It hit a crisis point in 1907 with the bankruptcy of the Scottish Interloper and Impostor calling itself “The United States of America” Incorporated and found its final fruition in the current hegemony of Wall Street. 

To put it simply, Big Business Interests — Robber Barons like the Vanderbilts, Carnegies, Harrimans, and Roosevelts took over our lawful government via deceit and fraud and used the tools of government to afford political and economic advantages to themselves.  

That is, they used the Regulatory Powers of Government as private tools to ensure their market share and market dominance.  We see this in the hideously self-interested birth of the “American Conservation Movement” which we were all taught to venerate just as we were taught to venerate “The Constitution”.  

The actual policy adopted by Teddy Roosevelt was supremely cynical and shrewd— buy everyone else’s natural resources for pennies on the dollar and preserve our own under the guise of “conservation”, and at the same time, limit supply of natural resources coming to market and ensure the value of commodities already under the control of the plotters. 

That is, use the regulatory powers of government to ensure yourselves fat market shares and high prices for generations to come. 

Commodity price rigging and supply rigging and creation of monopolistic interests in all sectors of our economy have been the Order of the Day since the 1880’s, and in many ways, it still is.  

These things must be recognized as the Evil that they are, and there must be an end of allowing the regulatory powers of government to be used as tools implementing the self-interest of private parties.  

We must come to terms with the fact that the two Roosevelts were hideous schemers, liars, and louts, the very worst of the worst kind of criminals in suits — and that Americans were not even the primary beneficiaries of all this fraud; instead, we were set up as the Fall Guys for it, the ones who would be blamed for it even as we suffered from it.  

We need a call to political action busting monopolies and conglomerates and trusts that have functioned as crime syndicates for generations. That includes the entire water and power industry, the communications industry, the stock markets, the banks, and the SEC.  It’s time, America.  

It’s you or them.  Make the right choice while you have a choice left. 

And if you have any questions, read Henry George — Progress and Poverty.  He very succinctly explains why economic models predicated on infinite and continuous growth are worse than Big Lies and why abuse of regulatory powers and manipulation of commodities and markets, including currency markets, inexorably leads to polarization of economies, stagnation, and war.  

If you would have peace, you must have free markets.  

And that requires busting up the regulatory fraud and abuses of federal agencies and the exercise of anti-trust and anti-monopoly legislation to enforce the actual Public Law ensuring competitive free markets. 

The fallacy of the thinking of the — I shall call them pigs —- is that there is no end to the patience of the masses; and, the arrogance that they share in thinking that their activities and abuses are not observed or not understood for what they are. 

It is as self-evident as catching six year-olds with their grubby paws in the cookie jar, but these grown men persist in thinking that their activities are “secret” and that the rest of us haven’t figured it out, don’t see it — and won’t take action against them.  

Prove them wrong. 

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Paul Craig Roberts is Calling for the Arrest and Prosecution of Tech Giants for Mass Censorship and Collusion

As the Left-wing social media giants continue to target Infowars and Alex Jones, banning his channels and pages and disrupting his ability to earn a living, some analysts and experts say the CEOs who run those companies are crossing a legal line and ought to be held accountable.

Paul Craig Roberts, former U.S. Assistant Secretary of the Treasury for Economic Policy under President Ronald Reagan, told USA Watchdog’s Greg Hunter in an interview this week that the only way Leftist elites in government and the private sector can promote their “awful” ideas is to censor and ban free speech from anyone who disagrees.

“The agendas of the elite are hidden,” Roberts said. “They are not something the American people would support. The elite are fearful that their cover stories are so thin that if truth can be shown on their agendas, they will be discredited.

“They will lose their abilities to impose their agendas,” he continued. “So they are closing down truth tellers in order to maintain control over explanations. Alex Jones is a threat to the elites’ control over the explanations… They are sending the message that says get on board with the official explanations or we will terminate you.”

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