The Number in Question is $707,568,901,000,000

For those who might not know, a derivative is a bet.  Frequently they are very exotic bets, like 60% of the dollar indexes of the Yuan, the Euro and the Yen will not exceed X.  I kid you not.  One party bets that that the derivative will exceed X, and the other party that it won’t.  The REAL purpose of these derivatives is to paper over the balance sheets of the big banks, so it looks like they are not flat [I want recognition for desperate restraint in omitting the name of an animal here, thank you.] broke.  There is no real formula for valuing derivatives, so the big banks can say they are worth whatever they want to say.  I suggest that the PTB’s plan is to dump the losses from the coming explosion of the derivatives time bomb on to the 99ers.  In fact, that process has already started with the FDIC now insuring one bank’s toxic derivatives.  So when the 99ers are tendered the drivative losses for the enslavement of unborn generations, the PTB hope to suck the last drop of blood from the corpse of the economy.  In theory, the net effect of derivatives is zero, but the reality is that the risk is not evenly spread, and the bets are so large that a hiccup would bankrupt the wrong (read big, derivative playing, politically connected) banks.

What is probably just as disturbing is that in the first 6 months of 2011, the total outstanding notional of all derivatives rose from $601 trillion at December 31, 2010 to $708 trillion at June 30, 2011. A $107 trillion increase in notional in half a year. Needless to say this is the biggest increase in history. 

http://beforeitsnews.com/story/1428/395/707,568,901,000,000:_How_And_Why_Banks_Increased_Total_Outstanding_Derivatives_By_A_Record_107_Trillion_In_6_Months.html 

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