Bank of International Settlements states total notional credit derivative instruments world wide are over a QUADRILLION noww...most fantastic destructive bubble in all history. The credit default swaps, big enough to sink us, are only around $60 trillion. Here is an excerpt from a couple of months ago from Jim Sinclair of www.jsmineset.com on derivatives..
“The notional value of all outstanding derivatives now totals approximately $1.144 QUADRILLION.
This appears to be Bank of International Settlement Spin to announce the largest gain in derivatives outstanding since they started to report. As of the last report it appeared that both listed and OTC derivatives was under $600 trillion. Now listed credit derivatives alone stood at $548 Trillion. The OTC derivatives are shown as $596 billion notional value, as of December 2007. One can only imagine what number they are at now.
Well we hit a QUADRILLION. We have more than $1000 trillion dollars in all derivatives outstanding. That is simply NUTS because notional value becomes real value when either counterparty to the OTC derivative goes bankrupt. $548 trillion plus $596 trillion means $1.144 quadrillion.
It would be an interesting piece of research to see what the breakdown is of listed derivatives according to exchange to see if it adds up to the reported number. Spin is now everywhere.
This means that no OTC derivative house can be allowed to go broke. This means that whatever funds are required to rescue failing international investment banks, banks and financial entities will be provided.
Keep this economic law in mind. Monetary inflation proceeds price inflation and is its primary cause in economic history from Rome to present.”
Wow. I am sick.
There will soon be major geo-political shifts.
I assume the Government has not figured out a way to tax this "money"?
But who is participating in the derivative bubble, and if they made all sorts of funny money on paper, then so what if it never becomes real?
People are finally beginning to understand. Thank you God...
Folks, protect your families. Get some cash-on-hand that will last you at least one month. Same goes for food.
The elation coming early next week won't last.