Posted on 03/22/2013 6:03:13 AM PDT by Diana in Wisconsin
*SNIP*
The following is the global financial pyramid scheme by the numbers...
-$9,283,000,000,000 - The total amount of all bank deposits in the United States. The FDIC has just 25 billion dollars in the deposit insurance fund that is supposed to "guarantee" those deposits. In other words, the ratio of total bank deposits to insurance fund money is more than 371 to 1.
-$10,012,800,000,000 - The total amount of mortgage debt in the United States. As you can see, you could take every penny out of every bank account in America and it still would not cover it.
-$10,409,500,000,000 - The M2 money supply in the United States. This is probably the most commonly used measure of the total amount of money in the U.S. economy.
-$15,094,000,000,000 - U.S. GDP. It is a measure of all economic activity in the United States for a single year.
-$16,749,269,587,407.53 - The size of the U.S. national debt. It has grown by more than 10 trillion dollars over the past ten years.
-$32,000,000,000,000 - The total amount of money that the global elite have stashed in offshore banks (that we know about).
-$50,230,844,000,000 - The total amount of government debt in the world.
-$56,280,790,000,000 - The total amount of debt (government, corporate, consumer, etc.) in the U.S. financial system.
-$61,000,000,000,000 - The combined total assets of the 50 largest banks in the world.
-$70,000,000,000,000 - The approximate size of total world GDP.
-$190,000,000,000,000 - The approximate size of the total amount of debt in the entire world. It has nearly doubled in size over the past decade.
-$212,525,587,000,000 - According to the U.S. government, this is the notional value of the derivatives that are being held by the top 25 banks in the United States. But those banks only have total assets of about 8.9 trillion dollars combined. In other words, the exposure of our largest banks to derivatives outweighs their total assets by a ratio of about 24 to 1.
-$600,000,000,000,000 to $1,500,000,000,000,000 - The estimates of the total notional value of all global derivatives generally fall within this range. At the high end of the range, the ratio of derivatives to global GDP is more than 21 to 1.
Are you starting to get the picture?
What we witnessed back in 2008 was just a little "hiccup" in the system. It caused the worst economic downturn since the Great Depression, but global financial authorities were able to get things stabilized.
Next time it won't be so easy.
The next wave of the economic collapse is quickly approaching. A full-blown economic depression has already started in southern Europe. Unemployment is at record highs and economic activity is contracting rapidly.
The major offshore banking centers in Cyprus are on the verge of collapsing. It was just announced that they will now be closed until Tuesday, but nobody really knows for sure when they will be allowed to reopen. And there is already talk that when they do reopen that there will be strict limits on how much money people can take out.
And now the IMF is warning that the three biggest banks in Slovenia are failing and that a billion euros will be needed to bail them out.
The dominoes are starting to tumble, and the United States won't be immune. In fact, the greatest financial problems that the United States has ever seen are on the horizon.
But you can just have faith that Ben Bernanke, Barack Obama and the U.S. Congress know exactly what they are doing and will be able to save us from the coming financial collapse if you want.
The mainstream media will provide you with all of the positive economic news that you could possibly want. They are giddy about the fact that the Dow keeps hitting all-time highs and they would have us all believe that we are in the midst of a robust economic recovery. You can listen to them if you want to.
But when you are tempted to believe that everything is going to be "okay" somehow, just go back and look at the numbers there were posted above one more time.
There is no way that the global financial pyramid scheme is going to be able to hold up for too much longer. At some point it is going to totally collapse. When that happens, will you be ready?
ßookmark
I just installed a hand pump that can pump fresh water all year round, even when the temperature hits minus 20 at my cabin in northern Wisconsin. When SHTF I guess I am packing up the wife and kids and heading up. I know we can thrive on hunting, fishing, etc. I have no plans for electricity.
How can anyone be ready?
-$56,280,790,000,000 - The total amount of debt (government, corporate, consumer, etc.) in the U.S. financial system.
U.S.A is 56 trillion $ in debt. that shows the U.S. is living off of debt and not producing anything really. and the news media says the economy is booming . the media is lying
THX
What comes after a "trillion?"
I think I'm gonna need a bigger calculator...
5.56mm
The death of the golden goose really won’t mean anything to the average American until they actually starve in the streets.
You cannot frighten complacent people who have come to see Government as their omnipotent parent who will always be mollified if they will just vote for a living.
Why would one expect current moneies to cover long-term mortgage debt. Of course there would not be enough. The payments are a long term proposition.
Sadly, you are correct. As long as most slothful Americans can still stuff a Big Mac in their mouth at 12noon everyday, they aren’t worried about anything until it is too late.
The Central Bankers can still write checks and create money.
I think they will keep kicking the can down the road until the inflationary blowoff occurs.
As inflation ramps up, anybody with cash in the bank will be desperate to purchase things of lasting value, preferably on credit.
The Crash happens when the common people cannot afford basic food and fuel.
Hungry, desperate people will cause civil unrest. Revolution is the only thing that will stop the central banks from continuing printing money.
So, get the mortgage paid off. That’s your security against deflation and loss of income.
Then buy Southern farmland on credit in a non-recourse state. If deflation hits instead of inflation, you can always let it go back to the mortgage company.
I say Southern because we may be entering a Little Ice Age. People gotta eat.
That’s my Jedi foresight anyway.
Please note that I am not positive on this matter but it seems to me that you will be joined by millions of others doing the same hunting and fishing. If this is so, how long do you think the supply of game and fish will last?
1.09x10^44 molecules of air in the atmosphere!!!!!!!!!
Having been educated in all the same universities by the same professors for 30 years or so, they now all agree: government, not business, creates wealth.
Insofar as private interests are concerned, only those with a global reach and those who are willing to "partner" with government are presumed to have social value. Private entities that seek to operate outside of this sphere of influence (primarily small businesses) must be subject to levels of taxation and regulation by both national and international authorities necessary to prevent them from disrupting stable markets or trade agreements, or from unfairly depriving governments of necessary revenue.
So, the socialists and collectivists have won. They control the world's money, as well as the direct and derivative leverage against it. Let's see how this works out for everyone.
But here's a hint: get yourself a well-stocked storage closet. And buy a gun.
I think everyone should just try at least to be prepared for about 3-6 months ...this is about how long the current society is going to last, without the normal structures in place. Probably even less.
Sadly, there will be huge shifts during this time. So many vulnerable people will not survive this. It’s horrible to consider, but true.
If you can, try also to stock up on antibiotics. You could prep all you want, but end up with a simple infection that has the potential to kill you off, as medical treatment will be in short supply.
Complacent. Yup, that’s the word.
The “supply line” is about 3 days for food and bottled water. After that? Well, gee...I wouldn’t want to be in a hell hole like (most of) Chicago, Philly, Atlanta, Oakland...etc.
Have some food and water stocked up folks. It’s not like it will go to waste....just eat the oldest first. Oh, and buy some cheap multi vitamins and dog/cat food. And get a few months of any prescription drugs. None of this will cost you in the long run. You need these things anyway...so time to splurge and put it on your credit card even if you have little money in the bank. YOU NEED FOOD if things go dicey. Looks like they are.
I’ve been reading the site ZeroHedge for a year or so.
Yes, it’s snarky. But boy, I think they have this mess figured out. Not going to be pretty. At this point....just make sure you can take care of your own family, then friends...then strangers.
If this really does go south...it will in a hurry. Look at Cyprus.
If you live in an urban area...figure out a place OUT OF THE URBAN AREA to flee to. Have some provisions and but out bags.
I know most everybody HERE knows this stuff, but just in case there are new comers here....
This doesnt include unfunded liabilities.
Oh, gack! Not this rubbish about comparing aggregate notional values of derivatives with actually meaningful aggregate numbers like GDP, public debt and the like. Cue the graphic of the 1950’s guy holding his head saying “Oh, jeez, not this s**t again!”
Adding up notional values of derivatives more or less analogous to adding up the maximum benefit of all life-insurance policies, the maximum coverage provided by all liability policies, the property value covered by all homeowners, renters and commercial real estate insurance policies, the maximum payout on all crop insurance policies, . . . then fretting that the insurance companies don’t have enough assets to pay all the claims simultaneously.
Actually it’s even more absurd than that because a lot of derivatives have purposes such that they will never be exercised simultaneously, or functionally their simultaneous exercise has no net effect (e.g. a put on a stock at price x and a call on the same stock at the same price held by a different person).
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.