Derivatives 10 times the size of the global economy: trigger to a global financial meltdown?
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Today on The Janssen Report (#88): the financialization of pretty much everything has caused incredible systemic risk on top of so-called collateral. In fact, this collateral is the true value upon which most derivatives are based, such as gold, silver, oil and real estate. It turns out that even the biggest financial experts do not truly understand derivatives. It's a large "unknown". Just recall Warren Buffett's letter to shareholders about his failure to unwind the derivatives portfolio of one of his newly acquired companies in the late 90s. He called derivatives a potentially lethal time bomb. Estimates concerning the volume of the derivatives market range from 700 Trillion dollars to upwards of 1.5 Quadrillion dollars (including what is sometimes referred to as shadow derivatives). Let's look at the sheer size of the numbers alone: 700 Trillion = 700,000,000,000,000 1.5 Quadrillion = 1,500,000,000,000,000 The size of the economy is at about 70 to 75 Trillion dollars (annual World GDP): 75 Trillion = 75,000,000,000,000 All it takes is one domino to bring down this house of cards (or inverted pyramid) and create a vortex that will suck all the value out of this scheme. Imagine the epic blow to financial institutions around the globe if their balance sheets start to vaporize. And then imagine what this will do to your personal financial situation. Educate yourself, act and become self-reliant. Stay tuned to The Janssen Report! Sources: - Treasury Statement November 26, 2014: https://www.fms.treas.gov/fmsweb/viewDTSFiles?dir=w&fname=14112600.pdf - China's gold: http://goldsilverworlds.com/physical-market/dramatic-increase-in-gold-flows-into-china/ - Charles Hugh Smith (OfTwoMinds.com) on The Oil-Drenched Black Swan (3 parts): http://www.oftwominds.com/blogdec14/oil-black-swan12-14.html, http://www.oftwominds.com/blogdec14/financialized-oil12-14.html, http://www.oftwominds.com/blogdec14/oil-risk12-14.html - "Official" statistics on total value of outstanding drivatives, source BIS Bank: http://www.bis.org/statistics/derstats.htm - Derivatives risk and Warren Buffett: http://www.investopedia.com/articles/optioninvestor/08/derivative-risks.asp - Gross World Product (global domestic product): http://en.wikipedia.org/wiki/Gross_world_product - Even Forbes.com on financial (derivatives) meltdown: http://www.forbes.com/sites/stevedenning/2013/01/08/five-years-after-the-financial-meltdown-the-water-is-still-full-of-big-sharks/ Please share this video! * More info on www.thejanssenreport.net * Cheers! Marco Janssen www.thejanssenreport.net
Comments
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Global, systemic collapse seems inevitable, in fact, many say has already started. So, if you have the means, then join us in southern Costa Rica. Our amazing community is called Serenity Gardens Eco Village. We've planted thousands of fruit trees and created lots of other food producing infrastructure. email me if interested jimpgale@gmail.com
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And people worry about gossip stuff etc..... How stupid have we become.... The world is living in one big debt bubble... It has to crash sooner or later.. QE in Japan,, QE in US,, Now QE in Europe,, We have to move money from the debt based system to a sane system of savings and higher interest rates... I thought that there has to be capital in capitalism ???? The system is rigged,,, the rich gets richer and more and more get poor,,,,
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Think about this... how many derivatives, or side-bets, are based on the price of oil NOT dropping below $50? And now that it has... how many of those derivatives need to be paid? Will those institutions have the money to pay them if the price stays low long enough?
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very well explained. Highly appreciated it.Thanks.
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This is the real reason oil is dropping. Insiders know this and even Bill Gates is getting involved in this.
http://www.extremetech.com/extreme/191754-cold-fusion-reactor-verified-by-third-party-researchers-seems-to-have-1-million-times-the-energy-density-of-gasoline
BlackLightPower, Solar Hydrogen Trends, QEG and many others are coming to market. Oil is finished. -
All bubbles come to an end ... sooner, or later
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That is why the Paper money Rich are buying hard assets, Land, Property, Art and real gold. PS Don't tell anyone.
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Thanks for being honest and hopefully at the same time Marco. Great video.
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