Sunday, 14 October 2018

“Derivatives" – the Greatest Threat to Human Civilization and Something that People have Heard Very Little of Even though they are so Important to Our Future Existence

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Forget any perceived long-term threat from BREXIT; forget any purported military and cyber aggression from Russia; forget any threat from a global trade war initiated by the USA; forget for the time being the threat to humanity from growing global industrial climate emissions and climate change; forget  the threat of a nuclear holocaust; forget the global threat that Avian Flu has for humankind with the potential to kill over 300 million humans when it eventually evolves to another human-to-human killer virus as it will according to former D-G of the WHO Dr Margaret Chan who has always said, it is not if, but when (there are no cures to date and never will be as the virus continually mutates to bypass our human immune system)…the ‘REAL’ threat to the human civilization is something completely different and something that people know very little about, but where it will totally devastate the human experience and humanity far more than anything else in the history of the future world.  

Indeed, this ‘real’ and constantly growing ‘ULTIMATE’ threat to all of us is driven completely by the selfish financial interest of the world’s top bankers and the world’s richest 1% that have no empathy (or intelligence I have to say) with 99% of their fellow man, woman or child.

For this ‘ULTIMATE’ threat to our species is a little known or understood mechanism called,

“DERIVATIVES”

A simple word, but which has the potential to destroy all that he love and hold so dearly.

 
Indeed, ‘Derivatives’ are what Warren Buffet the 3rd richest man in the world has described as “financial weapons of mass destruction”, but where he is part of this ultimate destructive force on humanity, by being one of the 1% and not forcefully changing the highly potential and totally destructive power of ‘Derivatives’. And a far more destructive force than any World War.

“In our view, however, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal,” wrote Buffett in Berkshire Hathaway’s 2002 annual letter

For those that do not know what ‘Derivatives’ are, they are speculation in futures and credit default swaps and other exotic instruments et al by the bankers and the world’s richest investors that is totally driven by sheer greed, as they can never spend what they have got, never mind a few more trillions here and there.

No-one can ever forget the global meltdown of 2008 that affected the world like no other where the global populace was overridingly impoverished and will be for many years to come. That is except the 1% rich and powerful writing the history of the world including the top bankers who are part of this global control cabal. Indeed, these elites did not suffer but greatly prospered through the peoples’ losses and hidden debts that we the people have to pay off, not the rich 1%, because they knew what was coming, as they had designed the system that they knew would eventually fail.

We the people were left to bail out the banks and to pay off the interest on this unimaginable hidden global bad debt created by the very few in control (note not to pay off the principal debt which will never in reality be achieved and an impossible situation). As an example USA citizens lost $11 trillion when their property market collapsed and ‘DERIVATIVES’ did their worst in wreaking havoc on the world. It is also the reason why Deutsche Bank AG has major financial problems and Merkel knows this very well as their exposure to ‘Derivatives’ is over $70 trillion.

For DERIVATIVES are not securitised, but where they are just contracts and when the underlying security fails (that has no contractual connection), derivatives are not worth the paper that they are wrote on…worse still than ‘junk’ bonds. This is what happened in 2008 when the underlying securities failed and derivatives became worthless (as they really are from the very start of the casino investment mechanism that goes into quadrillions of dollars every year now (yes, $1000,0000, 000,000,0000s or $1,00,000 Billions) and dwarfs the present annual global GDP (total economic turnover of the world economy) of around $87 trillion in nominal terms (2018).

 The International Monetary Fund (IMF) has estimated (this institutions and similar elite institutions are always on the low side based upon historical evidence and always take the least alarmist conservative figures until things catastrophic happen) that ‘Derivatives’ with no real security behind them are over $750 trillion (3/4 of a quadrillion), but where this is the disclosed figure and not the disclosed figure. In this respect you will not believe this, but although after the 2008 crash politicians imposed more disclosure, out astute politicians allowed the banks to make private deals that they did not need to disclose. This madness allowed the banks and their heads driven by greed to make more money to do as they like with ‘Derivatives’ and to this day, no-one knows how high ‘Derivatives’ actually are. But it is known by some of the ‘insiders’ within the financial markets that these secret deals/contracts in ’Derivatives’ is up to a further $750 trillion, making the derivatives market at the moment in the order of $1.5 Quadrillion (but where they could be higher than this also).

 But this then gets onto what is the total estimated debt of the world?

In this respect quite a few informed economists and respected analysts have estimated that this in 2018 is in the order of $2.5 Quadrillion ($2.5 Million Billion),

1. Total Global Debt of the people, governments and business - $247 trillion
2. Fiscal Gap (what governments, people and business have financial legally-binding commitments to
    pay in the future) – $500 trillion
3. Off-balance sheet debt of the banks - £17 trillion
4. Off-balance sheet debt of governments - $1 trillion
5. Reported ‘Derivatives’ - £750 trillion
6. Unreported ‘Derivatives’ and non-securitised bank investment contracts – estimated at $985
    trillion (but could even be higher)

Therefore if these estimates are right or within the right region within a statistical confidence of 5% according to by eminent analysts, ‘Derivatives’ declared and undeclared account for nearly 70% of all world debt (current and forward) and where derivatives are not secured by any individual security, other than speculation. Therefore if the underlying security (which they have no contractual relationship with) fails, ‘Derivatives become worthless and that is what happened in 2008 with the knock-on effect of this casino gambling with the world’s futures.

But this next time when it comes and it will, the repercussions will be catastrophic for humankind. The big question is, how have our politicians allowed this to happen over since after the Crash of 1929?  Indeed, after the 2008 global financial meltdown, how have our politicians allowed global debt to get to these levels and allow the  ‘Derivatives’ market to grow to destructive levels? The only answer to these questions can only be that politicians are hand-in-glove with the banks and the world’s richest 1%, who apparently care little for their people. Indeed, this can only be the case as otherwise this psychopathic mentality in a sane world would never have been allowed to happen.

The terrible hidden and secret situation held back by our political elites and the world’s richest investors (out of sheer greed) from the people is that the global financial market is guaranteed to fail over the next two decades and most probably around 2032. But, and this is a big BUT, the fallout from this catastrophe will really take the global economy down (not just the financial markets like last time) and where humankind will it has to be stated, never recover from this unique but devastating catastrophe in the history of the human experience. That shows how much in reality our politicians think of us mere humans who know nothing.

It is time therefore that people became ‘real’ to what is really on the horizon for us all and recognise that politicians are not for us, but for themselves and their powerful and controlling friends.
 

Dr David Hill
CEO, World Innovation Foundation
14 October 2018

 

References:
Another Financial Crisis Looms as World Marks 10th Anniversary of the Lehman Bros. Collapse - https://www.lombardiletter.com/derivatives-trigger-financial-crisis/30104/

Brexit and the Financial Derivatives Time Bomb - https://www.globalresearch.ca/brexit-and-the-financial-derivatives-time-bomb/5533819

Global debt hits record $247 trillion - https://www.irishexaminer.com/breakingnews/business/global-debt-hits-record-247-trillion-854806.html


Political and Corporate Sociopaths and Psychopaths are Destroying the World Order, but where the Political and Corporate Psychopaths are Really Not aware of what they are doing to the world-at-large, because of their insane thinking - Globalization is the Weapon they are using to Sequentially destroy the planet and the People are the Only Ones who will ultimately suffer, not the rich and powerful who have created this monster - https://worldinnovationfoundation.blogspot.com/2014/12/corporate-psychopathy-is-destroying.html







Big Risk: $1.2 Quadrillion Derivatives Market Dwarfs World GDP - https://www.aol.com/2010/06/09/risk-quadrillion-derivatives-market-gdp/





The coming economic world crisis by James I. Ausman, MD, PhD - https://haciendapublishing.com/articles/coming-economic-world-crisis-james-i-ausman-md-phd

CONTROL - The Most Powerful Word in the World and What Corporate Leaders and the Political Elite Crave For to the Extent of Being Psychopathic in 'Their' Thinking and Actions Against the People - https://worldinnovationfoundation.blogspot.com/2015/01/control-most-powerful-word-in-world-and.html

The Multi-Trillion Dollar Derivative Bubble: Deutsche Bank, The Biggest Derivative Exposure In The World - https://www.globalresearch.ca/the-multi-trillion-dollar-derivative-bubble-deutsche-bank-the-biggest-derivative-exposure-in-the-world/5333472

THE 2007-9 CRISIS WILL RETURN IN 2018 – WITH A VENGEANCE - https://goldswitzerland.com/the-2007-9-crisis-will-return-in-2018-with-a-vengeance/



'Andrew Gause and The Real World of Money – Derivatives: 2.2 Quadrillion Dollars in Bets That Are Really Risky – August 13, 2014' - https://oneradionetwork.com/the-real-world-of-money/andrew-gause-real-world-money-derivatives-2-2-quadrillion-dollars-bets-really-risky-august-13-2014/

The Six Too Big to Fail Banks in the U.S. Have 278 Trillion Dollars of Exposure to Derivatives - https://www.globalresearch.ca/the-six-too-big-to-fail-banks-in-the-u-s-have-278-trillion-dollars-of-exposure-to-derivatives/5442764


DERIVATIVES – A RECIPE FOR DISASTER & SYSTEMIC COLLAPSE - https://goldswitzerland.com/derivatives-a-recipe-for-disaster-systemic-collapse/

These Instruments Could as Easily Spark a Financial Crisis Today as They Did in 2008 - https://www.lombardiletter.com/derivatives-trigger-financial-crisis/30104/

How close are we to another financial crisis? 8 experts weigh in. - https://www.vox.com/2018/9/18/17868074/financial-crisis-dodd-frank-lehman-brothers-recession




The Role of Derivatives in Creating Mortgage Crisis - https://www.thebalance.com/role-of-derivatives-in-creating-mortgage-crisis-3970477


How close are we to another financial crisis? 8 experts weigh in. - https://www.vox.com/2018/9/18/17868074/financial-crisis-dodd-frank-lehman-brothers-recession