Tuesday, March 24, 2009

The GDP of the entire world is USD 50 trillion. The Collapse of the Derivatives Market involved a collapse of USD 1,144 trillion or 22 times the GDP of the whole world

What does that tell you? The world's financial system is kaput not a little bit, but a lot, and all the talk about bailouts and rescue and recovery is a gargantuan con. It's stalling, it's buying for time to figure how to spin this. There's no way to spin it. FUNDAMENTAL CHANGE IS INEVITABLE.

The big banks alone own about USD 140 trillion in derivatives, alost 3 times the GDP of the world.
The population of the whole planet is almost 7 billion people. So the derivatives market alone represents about USD 163,000 per person on the planet. The vast majority of the billions of people in the dustbowls of China, India and Africa don't possess even a fraction of that.

Time to call it 'Game Over'?

According to various distinguished sources including the Bank for International Settlements (BIS) in Basel, Switzerland -- the central bankers' bank -- the amount of outstanding derivatives worldwide as of December 2007 crossed USD 1.144 Quadrillion, ie, USD 1,144 Trillion. The main categories of the USD 1.144 Quadrillion derivatives market were the following:

1. Listed credit derivatives stood at USD 548 trillion;

2. The Over-The-Counter (OTC) derivatives stood in notional or face value at USD 596 trillion and included:

a. Interest Rate Derivatives at about USD 393+ trillion;

b. Credit Default Swaps at about USD 58+ trillion;

c. Foreign Exchange Derivatives at about USD 56+ trillion;

d. Commodity Derivatives at about USD 9 trillion;

e. Equity Linked Derivatives at about USD 8.5 trillion; and

f. Unallocated Derivatives at about USD 71+ trillion.

The GDP of the entire world is USD 50 trillion. USD 1,144 trillion is 22 times the GDP of the whole world.
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