The Derivatives Market = Estimated $542.4 Trillion – Gross market value = Significantly Less: approximately $12.7 Trillion.

 

Investopedia – Worldwide Derivatives Market!  Derivatives, for those who do not know, are bets on the future.  It is a complicated worldwide casino with bets on such nonsense as the high temperature in Nova Scotia on November 22, 2019.  More often it’s on the future value of a product, service or equity of some sort.  Although Investopedia is claiming a worldwide market of $542.4 Trillion, there are those out there who are claiming it’s over $1 Quadrillion; and closer to 1 1/2 $Quadrillion!  That figure far and away exceeds the world GDP (gross domestic product).  HERE is the BIS (Bank of International Settlements – the banker’s bank) official web site.

What happens when some heavily vested entity (a too big to fail bank) can’t pay off on one of their bets?  It sends a ripple through the entire banking sector, and everyone starts to freeze up.  Remember, we exist today – worldwide – as a debt based currency system.  That means that there is no growth, and no new money, unless and until someone goes further into debt.  Regarding U.S. dollars, of all that are in the world economy, only 3% have been printed.  The rest are all digital.

What happens when the economy constricts, and people either stop going into debt, or cannot pay off existing debts?  You end up with less money in the world.  Times get tight, and people go to their bank accounts to withdraw funds, and voila – no funds available.  Then we go into Cypress mode, and Americans are only allowed to withdraw up to $50 a day from their accounts, and that after a one, or maybe two week bank holiday until the printing presses get fired up and the new money gets distributed.

Let’s run the numbers from above.  According to “official” sources, there’s $542.4 Trillion in derivatives (for simple math, we’ll eliminate the .4).  To give these gamblers the benefit of the doubt, we’ll up the actual worth to $13 Trillion.  Now, divide $542 Trillion by $13 Trillion, and you get just slightly under 42.  So, the $13 Trillion worth is 1/42nd of the whole estimated value of derivatives.  That’s approximately 2 1/2%.  That means, that the banks are worth approximately 2 1/2% of what they say they are worth.  The banks are insolvent, and the deposits they have are not there.

Keep in mind that banks have, at best, a reserve of 10%, and this writer has talked to a banker recently who told him they were only keeping approximately 1 3/4% reserve.  Again, let’s work some of the numbers.  If a bank claims that it has $1 million in deposits, and therefore is keeping a reserve of 1 3/4%, it actually has on hand $17,500 per million on deposit.  If the derivatives market starts to collapse (Deutsche Bank, the largest German and EU bank is already in legal trouble – 13 of it’s executives being charged with crimes regarding derivatives, and they are on the verge of bankruptcy), then the scam of having no cash on hand will become quite evident in a heartbeat.  All banks will stop lending, and hang onto what little cash they have.  It won’t be enough, because the populace will be at their front doors before they even open in the morning to withdraw all, or as much as they can, of their money.  (Watch the old Jimmy Stewart movie It’s A Wonderful Life – a paean to the bankers.)

The 1 3/4% reserves will be gone within the first few minutes of a panic.  The banks will shut down, and have the holiday spoken of above.  For the time that the “holiday” is in place, cash will be incredibly valuable.  When the printing presses get fired up, and they add a couple of zero’s to the currency, so we have Zimbabwe style inflation (increase in the money supply), your $10,000 bills won’t buy you a loaf of bread.

What happens then?  An ounce of gold minted 1000 years ago, is still an ounce of gold.  A one dollar bill printed 100 years ago is now worth in the neighborhood of two cents or less.  The one ounce of gold now goes for close to $1500.  What changed – the paper or the metal?  The United States Constitution calls for gold and silver to be the only money.  But, who pays attention to the Constitution any more?

The roller coaster is at the top of the climb, and just cresting over that top – get ready for a thrilling ride!  The bankers are notorious for creating distractions away from their evil predatory ways; one is war, two is civil/political strife, and three is economic chaos.  In this ride, we may see all three.

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Pensamiento Peligroso writes the truth as he sees it, and if it upsets you, then it makes you think!

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THERE ARE  22 LINKS AT THE BOTTOM OF THIS PAGE ON THE RIGHT SIDE – OTHER REPUTABLE SITES FOR YOUR EDIFICATION INCLUDING G. Edward Griffin, John Stossel, Walter Williams, Zero Hedge to name a few.

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