The GDP of the ENTIRE PLANET is $50-60 Trillion Dollars.
At the time of the mini-crash in 2008, there were approx $140 Trillion Dollars in Derivatives...
Yep... 'TFU'... (totally fuckin unbelievable)...
... today there's now $1.2 QUADRILLION in this fully unregulated,
HIGHLY speculative market !!!
... today there's now $1.2 QUADRILLION in this fully unregulated,
HIGHLY speculative market !!!
...that's 1,200 Trillion.... $1,200,000,000,000,000 !!!
Now remember folks, that $1,200,000,000,000,000 is the amount that is being INSURED by the aggregate community of financial institutions that have taken in premiums on the repayment of $1,200,000,000,000,000... (that's 20 times larger than the ENTIRE global economy !!!)
...when (not if) losses do occur to the buyers of these insanely written 'Financial Weapons of Mass Destruction' ... as Warren Buffet likes to refer to them.
George Soros famously said back in 2003: “The more I’ve heard about them, the more I’ve realized they’re truly toxic,” “It’s like buying life insurance on someone else’s life, and owning a license to kill.”
The net affect of the shockingly destructive systemic implosion of this pile of badly written and totally UNFUNDED insurance on the world’s economies is quite simply incalculable ... they are such complex products (by design?)... no one truly knows their actual value !!!
And our major banking sector is outrageously overexposed. All told, the nine banks seen below, including Goldman Sachs, Bank of America, and JPMorgan Chase, own almost 1/4 quadrillion worth of derivatives. That's just a little off from topping the total U.S. debt 15 times over!
The Commodity Futures Modernization Act of 2000 (CFMA) was the federal legislation that officially ensured the deregulation of financial products known as over-the-counter derivatives. Signed into law on December 21, 2000 by Bill Clinton. It clarified the law so most over-the-counter (OTC) derivatives transactions between “sophisticated parties” would not be regulated as “futures” under the Commodity Exchange Act of 1936 (CEA).
These derivatives, especially the credit default swap, would be at the heart of the financial crisis of 2008 and the subsequent 2008–2012 global recession, and are going to be a HUGE part of the immense financial meltdown that is to come.
Does anyone out there vaguely comprehend why AIG Insurance went under and what it cost this country and the world?
When this monster breaks out of his all too small cage, it will prove to be just one of the contributing factors to the SECOND wave of the Super Tsunami breaking over all the financial markets of the earth... in the very foreseeable future (likely 2013, or at the latest 2014) !!!
Only this time, it is going to be the mother of all economic collapses !!! ... and it is going to take decades (not years) to recover.. if such a thing would be possible at all..
... remember, in addition, at this same time we'll be dealing with our 'mother earth' resource and climate calamities.
Frederic Bastiat, the famous French political economist, and author of some of the most influential political essays of all time including 'The Law' wrote 150 years ago...
"When plunder becomes a way of life for a group of men, they create for themselves in the course of time a legal system that authorizes it, and a moral code that glorifies it."
Should you like to learn more about this huge market... this Paul Jay (The Real News Network) interview with Marcus Stanley is a good place to start...
Bottom line... could not say it strongly enough... ignore these most dangerous situations at your own peril. Be sure to be EXTREMELY conservative in all your immediate financial plans and dealings. Most all current assets are going to be taking a tremendous hit, and along with that, the overall unemployment rate more than likely will at least double from current figures throwing untold millions more into financial chaos.
As for what governments can do... very little... printing more money can only hold off the inevitable for so long.. and we've just about run out of that option being of any real value.
What are they gonna print... 20-30-40-50 TRILLION... would be just a drop in the derivative bucket !!
It appears our unavoidable time of reckoning is very close at hand... get ready for 'the shift.'
