Wednesday, September 24, 2008

Derivatives were a key lubricant in the system that kept dollars moving around the world.

Another devil in the financial crisis

This crisis is no longer about the U.S. housing market or mortgages, or even about failing Wall Street institutions. We're way beyond that. What's at stake now is the entire global financial system that has underpinned world economic growth over the past two decades or more.

Posted by malct @ 11:58 AM (649 views)
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2 thoughts on “Derivatives were a key lubricant in the system that kept dollars moving around the world.

  • OK, here’s a thought for the conspiracy theorists:

    China was on its best behaviour in the run-up to the Olympics. Is it purely coincidental that this market mayhem has only really kicked off now the Olympics are over?

    The answer – probably – but I can’t be sure..

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  • planning4acrash says:

    Uncle Tom, you missed the border skurmish between Russia and America at Georgia on the cover of the first day of the Olympics. It being 8/8/08 (read from that what you will), It came out in mainline news that Georgia attacked first, and it is patently obvious that no breakaway region of the old Soviet Pact would ever be capable of considering a pre-emptive attack against a superpower without support from another super power, and anybody with any knowledge of South Ossetia know that Russian troops were in the region on a peace keeping mission under the mandate of UN resolutions. 90% of S.Ossetians carry a Russian Passport and want Russian troops there! Then we had their president on telly, eating his tie, and calling for a new world order. You can’t make this stuff up! Now we have Russia moving nukes towards Venezuela, right out of the Communist handbook. I fear that we are seeing the onset of WWIII, it is clear at least that this is where some want us to go.

    Back to the article. Derivatives were made legal by Greenspan, I think, in the mid 1990’s. They were illegal before, are totally unconstitutional in the States at least, and are basically paper assets on leverages of loans backed by other assets, which may be leveraged puts or loans on other assets, which could be leveraged puts, etc. etc. – They are an economic weapon of mass destruction, because the value of derivatives is in the hundreds or thousands of trillions. The US economy is only a couple of trillion, so the derivatives market is worth thousands more than the entire economic output and value of all of the world’s output and assets combined. Liquidated and invested in real assets, like gold, oil and food, this cash WILL cause hyperinflation that will make Mugabe look like a Fiscal Conservative. Then, out of the ashes, riseth the Luciferian Phoenix. United Nations and the World Bank, et al acting as saviour providing world government under capitalist marxism. Global socialism will make National Socialism appear like a walk in the park. There is a department in the UN for every department in your nation and there are whole floors in the UN building that nobody in the mainstream knows anything about, this is the reason. American politicians are openly calling for a 100yr war. I wonder whether the war they talk of began in 1913 with the Feral Reserve Act, and that they see culmination in 2012/13 with one world government and Global Socialism.

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