Paulson’s head bouncing down the capital steps? If enough people work on this, anything is possible. Old Hank with his head hung low in a jail cell would suffice for now.
When the shock wave of this system imploding hits people, the sound is going to be deafening. Smoke is pouring out the sides of this machine right now.
By the way, you can buy 1 gallon of gas many parts of the U.S. now for $1.70. Sure feels like deflation. Priced in gold, oil and gas have fallen off a cliff.
Brilliant!!!! at last someone who dares to speak the truth.
Max thank you and keep up the good work, I love the podcasts keep them coming.
Its a shame Bill Hicks is no longer with us. I’d love to have seen you both have a debate about the current state of play in the financial/political markets of today. It would have been a blast.
Just sent in my CAP to Gold Money, waiting like a junkie now for my first goldmoney fix.
I wonder how this will play out in my country, that is Sweden. I think it whas 200+ years since somthing exiting happend here when it comes to major civil unrest in sociaty.
All those idiots with no gold will be crying like babys. I could be some kind of Pope here in my house… yes the Gold Pope!!
It´s extremely difficult to get your hands on a pistol here. I´m begining to understand the good things about the second amendment in the US constitution. Where totaly fucked here in Scandinavia if it comes down to serious shit.
I will buy a sword. And if anyone trying to get my gold, silver, weed or anything else I´ll just shop there head off. Making my last stance right here in my living room!
I hope you continue to tell the truth on these programs. But are you concerned that you won’t be invited back if the interviews are perceived by the broadcast people as “too shrill”?
It appears to me that, in some part due to your presence on these shows, awareness of the value of gold, the sham of the dollar, etc. is increasing, even amongst those in power. It would be a loss if your guest appearances were curtailed. Isn’t it possible to speak the truth, inflammatory and damning as it is, in a mostly calm way? Noam Chomsky does this all the time, for example, when he calmly and precisely explains how the US and Israel are the #1 sponsors of terrorism.
Sweden’s government is to seize control of Carnegie after the 200-year-old investment bank took “exceptional risks” with client money and breached trading rules.
It says here that Sweden has lent equivilent of 25ps of our GDP to Eastern Europe?!?!
What I wonder though is if there is any driffrence in out come in a bail-out that lets the wermin keep there jobs and grab the bail-out money for them selfe like they seem to do it in the US and UK. Or kick them out, let the shareholders lose and let the state take the hole company like they seem to do here when they bail them out? I know they did this back in the 90s when Sweden had a mayor bank crisis. Those banks are private now again, but I guess not for long.
Don’t hold back Max, tell us how you really feel. The poor Aljazeera anchor. Hyperbole? What is he smoking? Some of that B.C. bud no doubt. Take care of yourself. Keep those pod cast coming.
This goes out to the MAN with GOLDEN Balls “MAX KEISER”
I am from the UAE, Abu Dhabi and I would like to tell you that you are one of my financial heroes! Oh and I very much enjoy the podcast. keep the truth coming.
This goes out to the fearless MAN with GOLDEN Balls “MAX KEISER”
I am from the UAE, Abu Dhabi and I would like to tell you that you are one of my financial heroes! Oh and I very much enjoy the podcast. keep the truth coming.
True, palladium has dropped. But look at platinum: from a 52-week high of $2252 down to $833. Wow. These are industrial metals and they’re used in things like auto production. They’ve tumbled partly because of the downward trend in the auto industry. They should be great buys once the economy turns around again… sometime in 2016.
You are having an effect. People all over the world are starting to get the message. What is obvious to many people now is that their governments, and worse, their banks, are not the least bit interested in the welfare of their populations. Least of all in the US and UK.
Al Capone would be a saint compared to the New World Order bankers. We need these guys in jail!
I hope you have good security. I hear the CIA drones coming for you already, but DON’T STOP!!
oh… and regarding the comments on your ‘over the top’ passion. Yes, maybe you would be more ‘acceptable’ if you spoke in monotone like the other cardboard cutouts who commentate on things financial, but when people see a well credentialled, respected ‘money man’ showing how desperate this situation is they take notice!
Ha! The cia wont be doing shit! They dont have the money to do anything (paulson and his crony bankers have it)! Unless they intend to pay the cia in pasties!
While I agree with the message, I agree with people criticizing the tone (Jim Kramer was just as vociferous in response to questions about pulling money from Bear Stearns before it went bust [comparing tone only, you've been consistently closer to reality than the Jim Kramers of the world]). What would the post-derivatives economy look like in the best of all possible worlds and how do we get there? Is there any way that the US makes this right with everyone that bought this sh!t while retaining some semblance of sovereignty?
Max, do take care of yourself. You have certainly called it right over the last years and I wish I would have listened sooner and prepared better. Keep the real info coming as long as you can. It looks to be a strong deflationary trend right now and it seems that paper wealth is being destroyed much faster than the powers that be can throw money at it. I don’t think they can throw it fast enough and it is all going to the few and not the many. I see the trend continuing. What do you think?
well the trend will not continue because the fed keeps printing more money which will cause inflation. The markets are being manipulated to make it appear like there is deflation in the currency and gold. but its going to turn into an inflationary depression.
According to peter schiff, along with gold you want to by stocks in asia that give high dividend yields and are companies that you know will be able to weather the storm, lots of those stocks are cheap now and once jp china malaysia and singapore are decoupled form the dollar then the prices will rise again. . (but since you are holding on to those stocks for the dividend profits, it doesnt really matter untill you are looking to sell it. . .since its assumed youre in it for the long term)
However Max doesnt believe that asia would pull out of this as much as schiff does so hes just saying buy gold since the dollar is on a rally now so you have a short window before it collapses and the money is worth “duck feces” same with the sterling pound.
Max thinks that a the chinese banks have been involved in this mess too deeply as well to come out unscathed and in effect trash the chinese economy too when the fall comes
Schiif believes becuase china,japan, malaysia etc. . .has “stuff” like a manufacturing base, (china,Japan,malaysia) lots of savings, personal and government (Japan, China, as a matter of fact as of last year just the personal savings of japanese people totalled $7 trillion dollars, the most of any country) commodities like food, and rice (malaysia, china,philipines, taiwan etc. . .)
as well as china’s un-written alliance with Iran who has oil, the east is poised to take over america’s spot as economic superpower. . . .
so its really up to you to see which opinions you’d want to follow, both people have been right YEARS ago in predicting this (mostly becuase its common sense once you know whats really going on) but one thing I believe, they BOTH say to buy gold, so if you want to well have food when the dollar collapses (assuming youre an american)
get gold. . .Im gettign gold basically because the interest rates are so low here in japan(0.3), its just better to put my money under my futon rather than the bank especially since they charge you monthly for putting anything under 500,000yen (about 4,895 usd) in savings, also charging you for taking money OUT of your savings as well. . .and are usually only open from 9 am to 3pm making it almost impossible to take money out, is signaling that the actual interest rate is negative. . .(governments always fib about their figures)
so yeah. . .gold gold gold currency for 5,000 years. . .
Regarding Max’s TV appearances, I’m not suggesting that Max curtail his message. Its just a question of rhetorical tactics. In his interviews, I think if Max starts off sounding like a mainstream financial expert, answers one question with calm sarcasm, and then toward the end of the interview turns on the rage, he would be more effective. So far, most listeners have not heard Max before, so they’ll assume he’s a mainstream capitalist. He can even pretend to be “shocked, shocked” to discover what’s going on. This would help take the average listener from their deluded state to a state of awareness without shocking them back into ignorance.
first off, massive congrats to max on semi-mastering the french language. especially in your advanced adulthood. this shows a mastery of your will, and unquenchable intellectual need for inquisitive satisfaction. plus, i’m sure it helps you fantasize about the french ladies.
secondly, another brilliant post by chris. great suggestion. mild-mannered max can start out being dr. watson and end up morphing into a surprised screaming sherlock holmes…
this is a great way to hook the listener, and anyway, it doesn’t seem to take much to spark max into a logic-frenzy.
megadeth always sounds better after mozart, and cheese always goes better with wine…
Max! You where talking about “500 trillion worth of derivatives with no collateral”. Is there some estimation possible on this? Jones even talked about 1000 trillion. I can understand that these are ridiculous figures anyways but to convince the nitpicking debunker’s we have to give them no ground, you see? I saw a figure of 44% derivatives of some countries GDP. Which country could this be? Figure it out later myself.
Need a transcript of this interview if there is somebody out there? Made some stunning quotes already maybe make the transcript too.
Asia Times Omline, Jan 26, 2008
THE ROAD TO HYPERINFLATION
Fed helpless in its own crisis
By Henry C K Liu
“…Bank for International Settlements (BIS) data show exchange-traded derivatives growing 27% to a record $681 trillion in third quarter 2007, the biggest increase in three years. Compared this astronomical expansion of virtual money with China’s foreign exchange reserve of $1.4 trillion, it gives a new meaning to the term “blaming the tail for wagging the dog”. The notional value of outstanding over-the-counter (OTC) derivative between counterparties not traded on exchanges was $516 trillion in June, 2007, with a gross market value of over $11 trillion, which half of the total was in interest rate swaps. China was hardly a factor in the global credit market, where massive amount of virtual money has been created by computerized trades. ”
“There are at least eight bubbles in play worldwide and their approximate scale is as follows:
1. Subprime Mortgage linked Loans and other Assets (USD 1.5 trillion);
2. China, India, Eastern Europe and other Emerging Market Loans (USD 5 trillion);
3. Commodities (Commodity Derivatives at about USD 9 trillion);
4. Corporate bonds (USD 15 trillion);
5. Commercial (USD 25 trillion) and Residential property (USD 50 trillion);
6. Credit Card Outstanding Debt (USD 2.5 trillion);
7. Currencies (Foreign Exchange Derivatives at about USD 56 trillion); and
8. Credit Default Swaps (USD 58 trillion) as a subset of all Derivatives (USD 1,144 Trillion).
In the ATCA briefing, “The Invisible One Quadrillion Dollar Equation,” we discussed the main categories of the USD 1.144 Quadrillion derivatives market as quoted by the Bank for International Settlements in Basel, Switzerland:
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 relative scale of the world’s financial engine is as follows:
1. The entire GDP of the US is about USD 14 trillion.
2. The entire US money supply is also about USD 15 trillion.
3. The GDP of the entire world is USD 50 trillion. USD 1,144 trillion is 22 times the GDP of the whole world.
4. The real estate of the entire world is valued at about USD 75 trillion.
5. The world stock and bond markets are valued at about USD 100 trillion.
6. The big banks alone own about USD 140 trillion in derivatives.
7. The population of the whole planet is about 6 billion people. So the derivatives market alone represents about USD 190,000 per person on the planet.
The Four Scenarios:
Debt Deflation, Hyperinflation, Quadrillion Play and Muddle Through
“Banks and brokers were, in effect, printing their own proprietary issues of “money” via complex securities and as a result their supply of money grew to exceed by at least one order of magnitude the money printed by central banks. Central banks failed to recognise this phenomenon and continued to focus on monetary growth and money velocity utilising old metrics rather than acknowledging the wider spectrum of public (central bank / government) and private money taken together. How could the central banks possibly fail to recognise this new phenomenon while securitisation and derivatives, the tools of liquidity creation, were a central obsession of the financial industry? In fact, the central banks played along, humming the mantras of privatisation and deregulation.
These quadrillion dollar worth private currencies — paper assets — have fuelled the globalisation process, massive and unprecedented world GDP growth, mergers and acquisitions, and large scale industrial / infrastructure projects, until natural boundary conditions kicked in, ie, the earth ran out of raw materials and natural resources in sufficient quantities. “
36 Comments
November 16th, 2008 at 2:29 am
Bravo! Finally, someone who is willing to get up and tell the truth.
November 16th, 2008 at 2:48 am
There goes your CNN and MSNBC gigs!
November 16th, 2008 at 3:04 am
Keep those videos coming Max. This Aussie sure appreciates them, oh and your radio show is also great.
November 16th, 2008 at 3:36 am
Paulson’s head bouncing down the capital steps? If enough people work on this, anything is possible. Old Hank with his head hung low in a jail cell would suffice for now.
When the shock wave of this system imploding hits people, the sound is going to be deafening. Smoke is pouring out the sides of this machine right now.
By the way, you can buy 1 gallon of gas many parts of the U.S. now for $1.70. Sure feels like deflation. Priced in gold, oil and gas have fallen off a cliff.
November 16th, 2008 at 4:22 am
Brilliant!!!! at last someone who dares to speak the truth.
Max thank you and keep up the good work, I love the podcasts keep them coming.
Its a shame Bill Hicks is no longer with us. I’d love to have seen you both have a debate about the current state of play in the financial/political markets of today. It would have been a blast.
Go Gold!!!
November 16th, 2008 at 4:54 am
You should have concentrated on the evidence rather than the charges. The viewers can work out the charges for themselves.
November 16th, 2008 at 5:20 am
damn, its really starting to get serious now…even max is pissed.
November 16th, 2008 at 6:05 am
Just sent in my CAP to Gold Money, waiting like a junkie now for my first goldmoney fix.
I wonder how this will play out in my country, that is Sweden. I think it whas 200+ years since somthing exiting happend here when it comes to major civil unrest in sociaty.
All those idiots with no gold will be crying like babys. I could be some kind of Pope here in my house… yes the Gold Pope!!
November 16th, 2008 at 7:18 am
What do people here think about Palladium? It used to be $580, now $212…
November 16th, 2008 at 7:37 am
@anders
or they could just kill you and take your gold. . .
Thats why you have to act like you are poor like everyone else. . .and stay out of sight so they dont know you have gold @_@
November 16th, 2008 at 8:17 am
Bravo, my good man. Well done!
November 16th, 2008 at 8:36 am
Bravo for speaking out, although the focus could be more on fixing the problem and perhaps delivery a tad less passionate.
November 16th, 2008 at 9:39 am
Max, you are one of my heros. Love your radio show with Stacy.
November 16th, 2008 at 10:14 am
@craig
Sounds like a good idea.
It´s extremely difficult to get your hands on a pistol here. I´m begining to understand the good things about the second amendment in the US constitution. Where totaly fucked here in Scandinavia if it comes down to serious shit.
I will buy a sword. And if anyone trying to get my gold, silver, weed or anything else I´ll just shop there head off. Making my last stance right here in my living room!
November 16th, 2008 at 10:41 am
Max,
I hope you continue to tell the truth on these programs. But are you concerned that you won’t be invited back if the interviews are perceived by the broadcast people as “too shrill”?
It appears to me that, in some part due to your presence on these shows, awareness of the value of gold, the sham of the dollar, etc. is increasing, even amongst those in power. It would be a loss if your guest appearances were curtailed. Isn’t it possible to speak the truth, inflammatory and damning as it is, in a mostly calm way? Noam Chomsky does this all the time, for example, when he calmly and precisely explains how the US and Israel are the #1 sponsors of terrorism.
November 16th, 2008 at 10:51 am
Sweden’s government is to seize control of Carnegie after the 200-year-old investment bank took “exceptional risks” with client money and breached trading rules.
http://www.telegraph.co.uk/news/worldnews/europe/sweden/3418965/Sweden-seizes-Carnegie-in-first-bank-bail-out.html
It says here that Sweden has lent equivilent of 25ps of our GDP to Eastern Europe?!?!
What I wonder though is if there is any driffrence in out come in a bail-out that lets the wermin keep there jobs and grab the bail-out money for them selfe like they seem to do it in the US and UK. Or kick them out, let the shareholders lose and let the state take the hole company like they seem to do here when they bail them out? I know they did this back in the 90s when Sweden had a mayor bank crisis. Those banks are private now again, but I guess not for long.
I hate bankers.
November 16th, 2008 at 10:56 am
Max: Next time, don’t sugar-coat your message; tell us how you really feel!
BZ
November 16th, 2008 at 1:28 pm
Don’t hold back Max, tell us how you really feel. The poor Aljazeera anchor. Hyperbole? What is he smoking? Some of that B.C. bud no doubt. Take care of yourself. Keep those pod cast coming.
November 16th, 2008 at 1:33 pm
Wow. Do you get the impression this thing is coming to a head? (pun intended)
November 16th, 2008 at 1:35 pm
This goes out to the MAN with GOLDEN Balls “MAX KEISER”
I am from the UAE, Abu Dhabi and I would like to tell you that you are one of my financial heroes! Oh and I very much enjoy the podcast. keep the truth coming.
November 16th, 2008 at 1:37 pm
This goes out to the fearless MAN with GOLDEN Balls “MAX KEISER”
I am from the UAE, Abu Dhabi and I would like to tell you that you are one of my financial heroes! Oh and I very much enjoy the podcast. keep the truth coming.
November 16th, 2008 at 1:51 pm
@Duncan Idaho
True, palladium has dropped. But look at platinum: from a 52-week high of $2252 down to $833. Wow. These are industrial metals and they’re used in things like auto production. They’ve tumbled partly because of the downward trend in the auto industry. They should be great buys once the economy turns around again… sometime in 2016.
For now I like…
GOLD and SILVER!
November 16th, 2008 at 2:16 pm
You are having an effect. People all over the world are starting to get the message. What is obvious to many people now is that their governments, and worse, their banks, are not the least bit interested in the welfare of their populations. Least of all in the US and UK.
Al Capone would be a saint compared to the New World Order bankers. We need these guys in jail!
I hope you have good security. I hear the CIA drones coming for you already, but DON’T STOP!!
November 16th, 2008 at 2:22 pm
oh… and regarding the comments on your ‘over the top’ passion. Yes, maybe you would be more ‘acceptable’ if you spoke in monotone like the other cardboard cutouts who commentate on things financial, but when people see a well credentialled, respected ‘money man’ showing how desperate this situation is they take notice!
November 16th, 2008 at 5:25 pm
Thank you, for what you said. That was absolutely appropriate for TV.
November 16th, 2008 at 5:27 pm
THIS is the max we love !
the stacy-whipped max is nothing but a brown-noser !
AND bring back Slacks-Miser !
farting, fooling, drinking, libeling, slandering Slacks Miser !
heck, max’s cast of characters could amass an
entire congregation of Misers.
his dad is probably his uncle anyway…….
November 16th, 2008 at 5:52 pm
Ha! The cia wont be doing shit! They dont have the money to do anything (paulson and his crony bankers have it)! Unless they intend to pay the cia in pasties!
November 16th, 2008 at 9:31 pm
While I agree with the message, I agree with people criticizing the tone (Jim Kramer was just as vociferous in response to questions about pulling money from Bear Stearns before it went bust [comparing tone only, you've been consistently closer to reality than the Jim Kramers of the world]). What would the post-derivatives economy look like in the best of all possible worlds and how do we get there? Is there any way that the US makes this right with everyone that bought this sh!t while retaining some semblance of sovereignty?
November 16th, 2008 at 9:45 pm
Max, do take care of yourself. You have certainly called it right over the last years and I wish I would have listened sooner and prepared better. Keep the real info coming as long as you can. It looks to be a strong deflationary trend right now and it seems that paper wealth is being destroyed much faster than the powers that be can throw money at it. I don’t think they can throw it fast enough and it is all going to the few and not the many. I see the trend continuing. What do you think?
November 17th, 2008 at 8:17 am
well the trend will not continue because the fed keeps printing more money which will cause inflation. The markets are being manipulated to make it appear like there is deflation in the currency and gold. but its going to turn into an inflationary depression.
According to peter schiff, along with gold you want to by stocks in asia that give high dividend yields and are companies that you know will be able to weather the storm, lots of those stocks are cheap now and once jp china malaysia and singapore are decoupled form the dollar then the prices will rise again. . (but since you are holding on to those stocks for the dividend profits, it doesnt really matter untill you are looking to sell it. . .since its assumed youre in it for the long term)
However Max doesnt believe that asia would pull out of this as much as schiff does so hes just saying buy gold since the dollar is on a rally now so you have a short window before it collapses and the money is worth “duck feces” same with the sterling pound.
Max thinks that a the chinese banks have been involved in this mess too deeply as well to come out unscathed and in effect trash the chinese economy too when the fall comes
Schiif believes becuase china,japan, malaysia etc. . .has “stuff” like a manufacturing base, (china,Japan,malaysia) lots of savings, personal and government (Japan, China, as a matter of fact as of last year just the personal savings of japanese people totalled $7 trillion dollars, the most of any country) commodities like food, and rice (malaysia, china,philipines, taiwan etc. . .)
as well as china’s un-written alliance with Iran who has oil, the east is poised to take over america’s spot as economic superpower. . . .
so its really up to you to see which opinions you’d want to follow, both people have been right YEARS ago in predicting this (mostly becuase its common sense once you know whats really going on) but one thing I believe, they BOTH say to buy gold, so if you want to well have food when the dollar collapses (assuming youre an american)
get gold. . .Im gettign gold basically because the interest rates are so low here in japan(0.3), its just better to put my money under my futon rather than the bank especially since they charge you monthly for putting anything under 500,000yen (about 4,895 usd) in savings, also charging you for taking money OUT of your savings as well. . .and are usually only open from 9 am to 3pm making it almost impossible to take money out, is signaling that the actual interest rate is negative. . .(governments always fib about their figures)
so yeah. . .gold gold gold currency for 5,000 years. . .
better than paper.
November 17th, 2008 at 9:30 am
@whereisthetruth & nancy S,
Regarding Max’s TV appearances, I’m not suggesting that Max curtail his message. Its just a question of rhetorical tactics. In his interviews, I think if Max starts off sounding like a mainstream financial expert, answers one question with calm sarcasm, and then toward the end of the interview turns on the rage, he would be more effective. So far, most listeners have not heard Max before, so they’ll assume he’s a mainstream capitalist. He can even pretend to be “shocked, shocked” to discover what’s going on. This would help take the average listener from their deluded state to a state of awareness without shocking them back into ignorance.
November 17th, 2008 at 11:01 am
first off, massive congrats to max on semi-mastering the french language. especially in your advanced adulthood. this shows a mastery of your will, and unquenchable intellectual need for inquisitive satisfaction. plus, i’m sure it helps you fantasize about the french ladies.
secondly, another brilliant post by chris. great suggestion. mild-mannered max can start out being dr. watson and end up morphing into a surprised screaming sherlock holmes…
this is a great way to hook the listener, and anyway, it doesn’t seem to take much to spark max into a logic-frenzy.
megadeth always sounds better after mozart, and cheese always goes better with wine…
November 18th, 2008 at 4:30 pm
THE FAIRNESS DOCTRINE… not about Rush, not about Hannity…
it’s a dishonest way for lawmakers to get AL Jazeera on the air in America….
This kind of programing would supplant the Jew owned CNN, CNBC, FOX… [please don't tell me Murdoch is aussie.... he's an Australian JEW]
AL Jazeera is the last best great hope for American Media… the TRUTH of Jews like Paulson and Bernanke… Zarkosky…. all of em..
hang em… every last one of em.
THE FAIRNESS DOCTRINE>>> get Al jazeera news!!
November 18th, 2008 at 8:22 pm
Max! You where talking about “500 trillion worth of derivatives with no collateral”. Is there some estimation possible on this? Jones even talked about 1000 trillion. I can understand that these are ridiculous figures anyways but to convince the nitpicking debunker’s we have to give them no ground, you see? I saw a figure of 44% derivatives of some countries GDP. Which country could this be? Figure it out later myself.
Need a transcript of this interview if there is somebody out there? Made some stunning quotes already maybe make the transcript too.
November 19th, 2008 at 5:42 pm
That depends on what counts as a derivative, or collatoral. I believe the 1.1 quadrillion figure derived from the BIS data includes futures.
http://www.atimes.com/atimes/Global_Economy/JA26Dj06.html
Asia Times Omline, Jan 26, 2008
THE ROAD TO HYPERINFLATION
Fed helpless in its own crisis
By Henry C K Liu
“…Bank for International Settlements (BIS) data show exchange-traded derivatives growing 27% to a record $681 trillion in third quarter 2007, the biggest increase in three years. Compared this astronomical expansion of virtual money with China’s foreign exchange reserve of $1.4 trillion, it gives a new meaning to the term “blaming the tail for wagging the dog”. The notional value of outstanding over-the-counter (OTC) derivative between counterparties not traded on exchanges was $516 trillion in June, 2007, with a gross market value of over $11 trillion, which half of the total was in interest rate swaps. China was hardly a factor in the global credit market, where massive amount of virtual money has been created by computerized trades. ”
via Asymmetric Threats Contingency Alliance (ATCA):
http://cgi.stanford.edu/group/wais/cgi-bin/?p=23685
“There are at least eight bubbles in play worldwide and their approximate scale is as follows:
1. Subprime Mortgage linked Loans and other Assets (USD 1.5 trillion);
2. China, India, Eastern Europe and other Emerging Market Loans (USD 5 trillion);
3. Commodities (Commodity Derivatives at about USD 9 trillion);
4. Corporate bonds (USD 15 trillion);
5. Commercial (USD 25 trillion) and Residential property (USD 50 trillion);
6. Credit Card Outstanding Debt (USD 2.5 trillion);
7. Currencies (Foreign Exchange Derivatives at about USD 56 trillion); and
8. Credit Default Swaps (USD 58 trillion) as a subset of all Derivatives (USD 1,144 Trillion).
In the ATCA briefing, “The Invisible One Quadrillion Dollar Equation,” we discussed the main categories of the USD 1.144 Quadrillion derivatives market as quoted by the Bank for International Settlements in Basel, Switzerland:
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 relative scale of the world’s financial engine is as follows:
1. The entire GDP of the US is about USD 14 trillion.
2. The entire US money supply is also about USD 15 trillion.
3. The GDP of the entire world is USD 50 trillion. USD 1,144 trillion is 22 times the GDP of the whole world.
4. The real estate of the entire world is valued at about USD 75 trillion.
5. The world stock and bond markets are valued at about USD 100 trillion.
6. The big banks alone own about USD 140 trillion in derivatives.
7. The population of the whole planet is about 6 billion people. So the derivatives market alone represents about USD 190,000 per person on the planet.
http://www.mi2g.com/cgi/mi2g/press/151108.php
The Four Scenarios:
Debt Deflation, Hyperinflation, Quadrillion Play and Muddle Through
“Banks and brokers were, in effect, printing their own proprietary issues of “money” via complex securities and as a result their supply of money grew to exceed by at least one order of magnitude the money printed by central banks. Central banks failed to recognise this phenomenon and continued to focus on monetary growth and money velocity utilising old metrics rather than acknowledging the wider spectrum of public (central bank / government) and private money taken together. How could the central banks possibly fail to recognise this new phenomenon while securitisation and derivatives, the tools of liquidity creation, were a central obsession of the financial industry? In fact, the central banks played along, humming the mantras of privatisation and deregulation.
These quadrillion dollar worth private currencies — paper assets — have fuelled the globalisation process, massive and unprecedented world GDP growth, mergers and acquisitions, and large scale industrial / infrastructure projects, until natural boundary conditions kicked in, ie, the earth ran out of raw materials and natural resources in sufficient quantities. “
November 24th, 2008 at 4:39 am
Tnx for the bubbellist harry_w, I like it
Leave a Reply