Full screen recommended.
The Good Ship "World Economy" meets the perfect
storm of the $2.3 QUADRILLION derivatives wave.
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"Global Debt Bubble Of $2.3 Quadrillion"
by Egon Von Greyerz
"As I have outlined in many articles, these towers mentioned above have been instrumental in creating a global debt bubble of $300 trillion plus derivatives and unfunded liabilities of around $2 quadrillion, most of which will turn into debt in the next decade or less. So even if the world can avoid a major nuclear war, it is likely to suffer massive repercussions from the financial calamity coming next. As Gandhi said: “There is sufficiency in the world for Man's need but not for his greed.”
To create $2.3 quadrillion of global liabilities has nothing to do with man’s need but only with the greed of a few at the expense of mankind. When the nuclear financial bubble bursts we will see an implosion of asset prices in real terms by 75-90% as I have outlined in many articles like here.
In my article “In The End The $ Goes To Zero And The Us Defaults” , I also explain that “there is no means of avoiding the final collapse of a boom brought about by credit expansion” as von Mises stated.
So even if the world survives the threat of a nuclear war, a collapse of the financial system is absolutely inevitable. The greed and the adoration of the golden calf that some parts of the world have practiced in the last 50 years, will not go unpunished. This major transformation coming will be like a financial nuclear event. After a difficult transition, the world will not only come out of it with a much sounder foundation but also based on much better human values than currently."
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Full screen recommended.
"US Debt of $30 Trillion Visualized in Stacks of Physical Cash"
For conceptualizing the amount of debt being discussed. This was 2 years ago when the debt was only $30 trillion. Now it's $34,350 trillion, and about to explode higher. Try to imagine $2.5 QUADRILLION of derivatives, an impossibility really, inconceivable. As the glorious Mogambo Guru said, "We're so freakin' doomed!" Oh, we are...
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"Derivatives Time Bomb -
Is YOUR Bank On This List?"
by Hal Turner
For years there has been much talk about how "Derivatives" are a gigantic problem, and if Derivatives Markets collapse, it is the end of the financial world as we know it. We looked at Bank exposure to "Derivatives" and below is a list that will likely frighten you. US Banks are on the hook for two Quadrillion dollars, in "Derivatives." Is **YOUR** bank on this list? If it is, ask yourself "If they LOST all this money, would MY money still be safe in this bank?" Act accordingly.
Below is the list of United States banks and how much exposure they have to "Derivatives." Two quadrillion dollars is the total notional value of derivative contracts off-balance sheet. Need collateral. It’s notional. Not sustainable. Triffins dilemma. Dollar shortage. More collateral. But from where?
Of course, net notional value is completely different than directional risk. Just seeing these numbers does NOT indicate how much the bank itself is on-the-hook for. Moreover, there is still value in the underlying commodities for many of these derivatives. People that think these are all bilaterally netted (Hedged) and those people are partially correct. But that bilateral netting will lead to the complete collapse of equities markets.
The numbers are utterly staggering and logic dictates the banks with the highest exposure, have the most to lose. Being that derivatives are interest rate sensitive, for most of these banks, it’s a doomsday scenario.
The majority of people don’t understand monetary inflation let alone derivatives. So think of it like this: Derivatives are IOU’s backed by other IOU’s. Hustling fast money by selling chickens before they hatch, 5 generations in advance, hoping all the eggs hatch because the money was already spent on fees for a loan to pay interest on credit card debt.
Below is a graphic known as Exeter's Pyramid. It shows financial risk from the safest, GOLD; to the least safe: Derivatives.
Banks Ranked by Derivatives: The following is a ranking of all banks in the United States in terms of "Derivatives". This comparison is based on data reported on 2022-06-30.
View complete, shocking, list here:
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So, if it's truly hopeless, and it is, then why bother?
If you were facing a firing squad, and we all are...
wouldn't you at least want to know why?
And who stood you against the wall? I would...
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