World Financial Crisis (and fallout) Part 5

The derivatives are based on the underlying asset values, not the GDPs.
Still, the numbers are staggering. 
You can look at bis.org 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. 

 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 economy...build 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.

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.

From Yellen Put To Yellen Massacre 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!

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....

https://zcomm.org/znetarticle/chinas-offering-a-world-bank-alternative-a...

iyraste1313 wrote:

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

Michael Snyder
Economic Collapse
May 26, 2015

http://rationalwiki.org/wiki/Michael_T._Snyder

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.

 

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

China $550 Billion Stock Wipeout Reminds Traders of 2007 Catastrophe

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.

China’s Stocks Head for Worst Week Since 2008 Financial Crisis...from Bloomberg Business

...so China will dump more dollars to beef up its markets? One more step closer?