Episode-79 The Quadrillion Dollar Derivatives Time Bomb
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How in the world can we have a quadrillion dollar problem when there isn’t anywhere near a quadrillion dollars in the world? What the hell is a derivative and why should the average person care? This may not be the most practical action podcast we do and it may be a bit hard to understand some of the points but I felt that I needed to discuss this with my listeners because it is in the words of Warren Buffet a “financial weapon of mass distruction” and it may go off any day! Global thermal financial war!
Tune in today to hear…
- Exactly what a derivative is
- Why derivatives are the largest black market in the world today
- How at one time derivatives were almost outlawed as illegal gambling
- The ponzi scheme that may fall apart and tank the global economy very soon
- The very few real options we have to dismantle this weapon and why it might be to late anyway
- The real reason the Fed saved AIG and Freddie and Fannie
- Why foreign investors are running to the dollar even though it is screwed
- Why banks stopped loaning money to each other, it has little to do with sub prime mortgages
- The bull shit story from the government about the mortgage market – it could be fully paid off with 200 billion – so why 700 billion in the bail out.
- The continued pumping in of money by the Fed – 540 Billion Yesterday alone
Resources for today’s show
- The Fed Pumps ANOTHER 540 Billion into the Banking System
- It’s The Derivatives, Stupid! Why Fannie, Freddie, AIG Had To Be Bailed Out – Best article on derivatives I have seen
- Depository Trust, LCH.Clearnet to Combine in $951 Million Deal
- Will the Bail Out Equal Hyperinflation – Um Yea!
- The Derivatives History – Yes it almost was made illegal as a form of gambling
Videos for Todays Show From YouTube (watch these after my show)
The first one emphasizes a bit to much on the mortgage market but he gets most of it right!
Remember to comment, chime in and tell us your thoughts, this podcast is one man’s opinion, not a lecture or sermon. Also please enter our listener appreciation contest and help spread the word about our show.
How can I put this? Oh I know, Holly Shit!
I first need to say thank you Jack, I have heard over and over “the derivatives are the real problem” but I just didn’t get it or understand how this works. I now feel like the cover was just pulled off of this for me and I understand it now at least the jist of it.
On the other hand this scares the crap out of me. You just shoved a red pill down my throat and I can’t go back to not knowing.
Seriously I don’t know who these people are that “don’t want shows about politics and the economy” but many of us do and we need to know about stuff like this. I really like your varied approach, please keep doing the rice and beans and guns stuff, the garden stuff but keep doing some of the economic stuff to. Thanks again, I am off to ponder my next move and see if I can find a cheap piece of land.
Great show! I listened twice. I have been trying to figure at what a credit derivative really was. You explained it so well. Everything else I read or listened to did not make any sense to me. I got the feeling they were trying to explain quantum mechanics… or pull the wool over my eyes, hmmm. I just love these shows. You always make me think.
Thanks folks, I almost did not do this show as I thought it might be to “heavy” in both theory and emotional weight but figured this is the biggest threat so it needs to be understood, appreciated and above all planned for.
I must say Jack, you’ve scared the hell out of me. I just want to go crawl into bed and pull the blankets over my head (for tonight). Then tomorrow time to continue with my preps.
Jack when you said quadrillion is that the U.S. system 10 to the 15th power or the British system fo 10 to the 24th power? Whatever it is, it scares me. On Yahoo! finance Ben Stein said something that if things get bad with derivatives that the U.S. government will null and void the derivatives because there no real assets backing them up. I suppose the government can do that but I bet that’ll piss some people off in other parts of the world. Whatever happens we may be in a heck of a ride. You’re doing a great job. Keep it up.