World Financial Crisis (and fallout) Part 5

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is tomorrow the final straw to crack the system? (gradually)

......According to the Bank for International Settlements, 26.45 trillion dollars in currency derivatives are directly tied to the value of the euro.

Let that number sink in for a moment.

To give you some perspective, keep in mind that the U.S. government spends a total of less than 4 trillion dollars a year.

The entire U.S. national debt is just a bit above 18 trillion dollars....from Michael Snyder.....

Will the European Troika cave in to the demands of Syriza? or is exit on the table...meaning that the banks will start falling like a house of cards, threatening the existence of the euro and then the collapse of the derivative trade on euro currency derivatives


Yes, the whole rotten edifice is definitely tottering. Someone compared it to those moments in roadrunner cartoons when the coyote was briefly suspended in the air just beyond the edge of the precipice and just before the drop began...

Here's some more big numbers that should rock everybody's world:


China's Monumental Debt Trap - Why It Will Rock the Global Economy

"Bloomberg News finally did something useful this morning by publishing some startling graphs from McKiney's latest update on the worldwide debt tsunami. If you don't mind a bit of rounding,

the planetary debt now stands at $200 trillion compared to world GDP of just $70 trillion...

China is the New Greece - but one sporting 40 X more GDP and 70 X more debt."

Get ready for the big and sudden drop people, it can't be long now...


montrealer58 montrealer58's picture

The derivatives are based on the underlying asset values, not the GDPs.
Still, the numbers are staggering. 
You can look at to see the total derivatives overhang which may be around $700 trillion now.
$700 trillion being the value of the underlying assets people were willing to write derivatives contracts over.
This would be all the wealth ever made. 


Hmm, is this what`s in store for Canada, as the gutting of our economy via globalization, forcing our dependency on commodities markets, all going down the tube, what with the accelerating depression of the global capitalist system?......

Danish Krone Collapses After Hints Of Capital ControlsTyler Durden's pictureSubmitted by Tyler Durden on 02/20/2015 08:39 -0500
Following numerous rate cuts and backdoor QE (halting government bond issuance), Denmark's Krone is collapsing this morning following the head of Denmark's Economic Council, Hans Jorgen Whitta-Jacobsen said:


This has sparked the biggest drop in DKK against EUR since 2001 and as SEB chief strategist Carl Hammer exclaimed, "currency markets are extremely nervous."


The Krone collapses...




 The problem with the following advice is its individualist orientation....we are in way worse shape on this country, so dependant on the collapsing commodities sector, the endangered retail construction industry...and with the police state infrastructure soon to be put in place, to weed out the dissidents?
The solution lies in building community, taking control of our local governments, to propvide safety nets, as we transition to a socially/econopmically sustainable self defence protection strategy!

Submitted by Michael Snyder via The Economic Collapse blog,

When the coming economic crisis strikes, more than half the country is going to be financially wiped out within weeks.  At this point, more than 60 percent of all Americans are living paycheck to paycheck, and a whopping 24 percent of the country has more credit card debt than emergency savings.  One of the primary principles that any of these “financial experts” that you see on television will teach you is to have a cushion to fall back on.  At the very least, you never know when unexpected expenses like major car repairs or medical bills will come along. 

And in the event of a major economic collapse, if you do not have any financial cushion at all you will be a sitting duck.  Yes, I know that there are millions upon millions of families out there that are just trying to scrape by from month to month at this point.  I hear from people that are deeply struggling in this economy all the time.  So I don’t blame them for not being able to save lots of money.  But if you are in a position to build up an emergency fund, you need to do so.  We have been experiencing an extended period of relative economic stability, but it will not last.  In fact, the time for getting prepared for the next great economic downturn is rapidly running out, and most Americans are not ready for it at all.

The following are 14 signs that most Americans are flat broke and totally unprepared for the coming economic crisis…

#1 According to a survey that was just released, 24 percent of all Americans have more credit card debt than emergency savings.

#2 That same survey discovered that an additional 13 percent of all Americans do not have any credit card debt, but they do not have a single penny of emergency savings either.

#3 At this point, approximately 62 percent of all Americans are living paycheck to paycheck.

#4 Adults under the age of 35 in the United States currently have a savings rate of negative 2 percent.

#5 More than half of all students in U.S. public schools come from families that are poor enough to qualify for school lunch subsidies.

#6 A study that was conducted last year found that more than one out of every three adults in the United States has an unpaid debt that is “in collections“.

#7 One survey discovered that 52 percent of all Americans really cannot even financially afford the homes that they are living in right now.

#8 According to research conducted by Atif Mian of Princeton University and Amir Sufi of the University of Chicago Booth School of Business, 40 percent of Americans could not come up with $2000 right now without borrowing it.

#9 That same study found that 60 percent of Americans could not say yes to the following question…

“Do you have 3 months emergency funds to cover expenses in case of sickness, job loss, economic downturn?”

#10 A different study discovered that less than one out of every four Americans has enough money stored away to cover six months of expenses.

#11 Today, the average American household is carrying a grand total of 203,163 dollars of debt.

#12 It is estimated that less than 10 percent of the entire U.S. population owns any gold or silver for investment purposes.

#13 48 percent of all Americans do not have any emergency supplies in their homes whatsoever.

#14 53 percent of all Americans do not even have a minimum three day supply of nonperishable food and water in their homes.


more on the scam that is our capitalist financial system...

According to Goldman, in 2015 buybacks will amount to a near record $450 billion, making corporations by far the biggest source of equity buying in the US stock market (at least until the Fed returns with QE4). In fact, corporations are now using the generous funds of creditors to offset a little over $400 billion in equity withdrawals (i.e., sales) by both households and pensions, which is also understandable...

so we keep our interest rates low or negative in real dollar terms, so the corporations can keep borrowing to buy their own stock to raise their share price...while of course there is no incentive to save funds, rather to invest in riskier and riskier financial assets that brings a return on investment...all guaranteed to destroy thye economic system, hmm I wonder who is behind this scam


from Brandon Smith.... Alt Market


The establishment has done everything in its power to hide the most foundational of economic realities, namely the reality of dying demand. Why? Because the longer they can hide true demand, the more time they have to steal what little independent wealth remains within the system while positioning the populace for the next great con (the con of total globalization and centralization). I will cover the many advantages of an economic collapse for elites at the end of this series.

For now I will only say that the program of manipulation we have seen since 2008 is clearly changing. The fact of catastrophic demand loss is becoming apparent. Such a loss only ever precedes a wider fiscal event. The BDI does not implode without a larger malfunction under the surface of the financial system. Oil and exports and manufacturing do not crumble without the weight of a greater disaster bearing down. These things do not take place in a vacuum. They are the irradiated flash preceding the deadly fallout of a financial atom bomb.


George Victor was a hoot in this thread wasn't he?


From Yellen Put To Yellen Massacre Tyler Durden's picture Submitted by Tyler Durden on 03/12/2015 08:27 -0400

I can´t help but confess my eagerness to portray the imminent calamity we are facing, especially in so fragile a country as Canada so dependent as it is on a failing commodities market due to the now present global economic (as opposed to the continuing financial inflationary) depression as it spirals to horrific collapse.

The Fed meeting is for next Wedenesday, which may be the final catalyst if Yellen is forced to begin raising their base rate.

So you have to wonder why the US BLS keeps doctoring their unemployment numbers, now down to 5.5% what with 92 million US unemployed not counted!

And it is this rate that will force the Fed to raise their interest rates? Further propelling the rise of the US dollar? Which will collapse the promise to pay debt obligations of the commodity currencies (in US dollars!).

If this is the scenario, than the elites may be pulling the plug on this global ponzi scam?

Yet our not in our lifetime posters here continue to trace the trivial ups and downs of the mainstream political parties as if they have any relevance in a collapsing system?

Now´s the time to offer some real perspectives into the Canadian political scene!


Why We're Drifting Towards World War 3

"The Economist argues that there are ominous parallels between the conditions which led to the first world war and today..."

including the stupifying ignorance of most of the Canadian population to the looming danger. As Chomsky recently said: 'We're at 3 minutes to midnight. After midnight, we're finished.'

epaulo13 epaulo13's picture

China’s Offering a World Bank Alternative — and U.S. Allies Are Signing Up

“With friends like this, who needs enemies?”

This must be what Washington policymakers muttered to themselves following the decision by their allies in London, Paris, Rome, and Berlin to join a new development bank proposed by Beijing.

The anger in Washington most likely mounted as two of its key allies in the Pacific, Australia and South Korea, also joined the bandwagon. In fact, as of mid-April, nearly 60 countries had accepted Beijing’s invitation to be founding members of the Asian Infrastructure Investment Bank, or AIIB.

$50 billion of the initial target capitalization of $100 has been committed by China.

Washington insiders fear that the AIIB would rival the U.S.-dominated World Bank and Asian Development Bank as sources of development finance in the region. They’re probably correct.

Despite the efforts of World Bank President Jim Yong Kim to improve the image of the bank, the widespread perception of the institution is that it carries out Washington’s priorities. The Japanese-controlled Asian Development Bank is similarly seen as following the World Bank’s lead, much like Tokyo broadly follows Washington’s directions in foreign policy.

As a result, there’s widespread global appetite for an alternative. And Beijing is only too happy to offer one....


Is The 505 Trillion Dollar Interest Rate Derivatives Bubble In Imminent Jeopardy?

Michael Snyder
Economic Collapse
May 26, 2015

All over the planet, large banks are massively overexposed to derivatives contracts.

Interest rate derivatives account for the biggest chunk of these derivatives contracts.  According to the Bank for International Settlements, the notional value of all interest rate derivatives contracts outstanding around the globe is a staggering 505 trillion dollars.  Considering the fact that the U.S. national debt is only 18 trillion dollars, that is an amount of money that is almost incomprehensible.  When this derivatives bubblefinally bursts, there won’t be enough money in the entire world to bail everyone out.  The key to making sure that all of these interest rate bets do not start going bad is for interest rates to remain stable.  That is why what is going on in Greece right now is so important.  The Greek government has announced that it will default on a loan payment that it owes to the IMF on June 5th.  If that default does indeed happen, Greek bond yields will soar into the stratosphere as panicked investors flee for the exits.  But it won’t just be Greece.  If Greece defaults despite years of intervention by the EU and the IMF, that will be a clear signal to the financial world that no nation in Europe is truly safe.  Bond yields will start spiking in Italy, Spain, Portugal, Ireland and all over the rest of the continent.  By the end of it, we could be faced with the greatest interest rate derivatives crisis that any of us have ever seen.


iyraste1313 wrote:

Is The 505 Trillion Dollar Interest Rate Derivatives Bubble In Imminent Jeopardy?

Michael Snyder
Economic Collapse
May 26, 2015

Snyder has created a new blog recently where he attempts to interpret the Bible called What The Bible Says About.... Considering his older signs of insanity claims to fame, this blog doesn't disappoint. It is filled with the same writing style and format, along with headers leading people to buy books by other fundamentalist cranks. Great topics include:

  • Christians can drink, but if they feel any effects of alcohol it's a sin.[11]
  • We are all lawbreakers of God's will. Including loving anything more than God at any time, doing anything on the sabbath, not honoring your mother/father completely, ever hating or holding anger towards anything/anyone, or lusting after a women (even thinking, including your own wife).[12]
  • Anyone who hasn't accepted the word of God like Snyder has is equivalent to rapists, murderers, and child molesters.[13]
  • Divorce is only acceptable if there is adultery or if one's spouse is not Christian. This does not include abuse. Snyder states that this is "because God knows best."[14]

Snyder is against homosexuality, and all sex outside of marriage. He does state first and foremost one thing that stands him out from the pack of fundamentalists, in that people should still love gays like every other one of God's creations.[15] So, y'know, at least there's that.



re bekayne...what is perhaps most pathetic, is that it is the rightwingers, the business investment community that have a handle on the economic system and how its under threat...while us so called leftist progressives prefer to live in ignorant bliss, focussing our attentions on trivia, too damn lazy to bother trying to understand the systemic context


from Bloomberg.....How close are we, one can only wonder!

China $550 Billion Stock Wipeout Reminds Traders of 2007 Catastrophe

 Chinese Stock Markets

  • JUN. 1, 2015, 11:07 AM

Read more:


montrealer58 montrealer58's picture

The $505 trillion is down from almost $700 trillion in 2008.

Economic growth is going to "disconnect" from the apparent numbers because of the shift away from carbon. This is why all the traders are freaking out. Business as usual is waitiing for its final curtain. In a more decentralized zero carbon economy we will not need the monoliths of capital.

We could see anomalous figures like a decline in GDP not connected to a decline in employment. Gold and oil prices not being so important.

If you are in any kind of speculation, expect to get spanked. A speculation is buying anything on the hope it goes up. That is not an investment, despite what many fools will say both on TV and via spam e-mail.

Although our banks are detestable, they have high enough capital requirements and controls to weather an apocalypse such as our friend was advocating.

Everything I hear about markets is crap, and this just added to its pile.


of course the overblown real estate bubble of Canada, hit by the commodities drop, would be vulnerable to rising interest exploding in Europe...and if Greece does make its June 5th payment?


Investors Start To Panic As A Global Bond Market Crash Begins

Michael Snyder
Economic Collapse
June 4, 2015

Is the financial collapse that so many are expecting in the second half of 2015 already starting?



China’s Stocks Head for Worst Week Since 2008 Financial Crisis...from Bloomberg Business China will dump more dollars to beef up its markets? One more step closer?


The US Continues Its Collapse  -  by Paul Craig Roberts

"Clearly, this is not an economy that has a future."


China Enters Currency War - Devalues Yuan By Most on Record

"The Chinese currency complex is collapsing..."