NOTE FROM THE EDITOR:
Dear readers, how many times have you recently heard that a possible collapse of the US economy is in the horizons? Is it simply a conspiracy theory as the mainstream media usually calls it, or is it an imminent truth? In the following article, Dave Hodges, of the Common Sense blog, opens up the subject with so much detail that it becomes a de facto full cathedra in economics.
by Dave Hodges
The Common Sense Show
The entire wealth of the planet is estimated to be around $65-70 trillion dollars. Any debt that exceeds that amount should be considered to be a catalyst for global economic collapse and ultimately World War III along with the emergence of extreme authoritarian government similar to what the world witnessed prior to World War II.
Nations that are trying to save themselves from the abyss of economic collapse will seek to plunder the resources of other nations and when these predatory behaviors grow in number, global conflict will breakout. We are already seeing evidence of this in Ukraine (i.e. control of Eurasia’s gas) and in Syria and Iran (i.e. control of the medium of exchange to buy oil, gold vs. the dollar).
In 2011, Bloomberg reported that Bank of America shifted about $22 trillion worth of derivative obligations from Merrill Lynch and the Bank of America Corporation holding company to the FDIC insured retail deposit division. Along with this information came the revelation that the FDIC insured unit was already stuffed with $53 trillion worth of these potentially toxic obligations, making a total of $75 trillion dollars in debt from the toxic holdings of only one bank. In other words, the United States taxpayer owes Bank of America $75 trillion dollars when, not if, the credit swap derivatives market collapses. REMEMBER: ANY DEBT THAT EXCEEDS $70 TRILLION DOLLARS SHOULD BE CONSIDERED TO BE THE CATALYST FOR A GLOBAL ECONOMIC COLLAPSE.
Although this event was prominently reported in Bloomberg, it was not reported on Fox and CNN and the other corporate news entities. Further, the implications of this nation-busting act were never explained to the American people. So, the ignorant American people continue to entrust their life savings to entities who are planning to steal these assets.
Implications
Derivatives are highly flammable financial instruments that are used to insure the banks against risk. The main purpose of a derivative lies in the fact that they are used for speculation (i.e. gambling). The derivatives market comprises the modern day version of the big gaming casino on Wall Street!
Credit swap derivatives are bets made upon the future value of stocks, bonds, mortgages, other loans, currencies, commodities, volatility of financial indexes, and even weather changes. It is a case of the Las Vegas Strip coming to Wall Street. The banksters are playing with house money. Only in this case, the house money is the good faith and credit of the American taxpayer.
And it is not just Bank of America that is stealing your money to cover their derivatives debt. All of the “too big to fail” banks (e.g. JP Morgan, Wells Fargo) have had their gambling addiction guaranteed by the American people. This was supposed to be a secret that would be kept from the American people in order to keep America from rioting and stringing up every banker that they could get their hands on.
So, why isn’t that you have not heard about this before (an estimated 95 percent of the readers are probably ignorant of this fact)? Well, the fact remains that there have been cracks in the conspiracy and there have been people telling all of us about this very fact. Breitbart told you about this fact last year. Politifact came to the party late, but even they reported this fact late last year. Ellen Brown wrote about this development last year. Forbes covered this development in 2013. The Common Sense Show covered this event many times in 2011-12 on several broadcasts. On November 16, 2014, I covered the fact that the G20 nations passed a joint resolution to get their nation’s central banking system to declare that your bank account was not defined as money. This was done because the G20 central banks are approaching insolvency. This put your assets at the bottom of the list for FDIC compensation in the event of a bank failure. In other words, your money is as good as gone.
Even if Wall Street was to net out the worth of the derivatives involved, the amount is so large that the United States could not hope to pay it off. Why? Because the debt is estimated to be at $1.5 quadrillion dollar debt without a major dollar devaluation, if another collapse were to actually occur and a large part of the derivatives were triggered, the U.S. government cannot cover the obligation. Rest assured that the banks would be made whole. However, the same cannot be said for the American taxpayer. The Federal Reserve has not only given their blessing, they approved the transfer of the derivatives from Merrill Lynch to insured retail unit of BAC before the deal was even done. Why would the Federal Reserve participate in the economic suicide of our country? Because these sacred cow banks are owned by prominent members of the Federal Reserve Board. The Federal Reserve members are intent on financial survival at the expense of the people.
Solely based upon the condition of the megabanks, it is a foregone conclusion that these bank customers are going to lose their assets. Since the U.S. only takes in $2 trillion dollars per year, where is the money going to come from to cover the derivatives debt? The interest on the derivatives debt is exploding faster than we can pay the interest on it, $505 trillion per year . This one set of circumstances is enough, on its own, to collapse the U.S. economy. This could be the straw that breaks the camel’s back. However, we have a lot of straws sitting upon the backs of the American camel.
1. The national debt.
2. The national deficit.
3. The stock market bubble.
4. The MERS mortgage fraud which has stolen an estimated 13 million homes.
5. The 1.5 quadrillion derivatives debt.
6. The record low Baltic Index which speaks to the health of the global economy.
7. Record consumer credit debt.
8. 50 million Americans on food stamps.
9. Shadow Stats which states that 23 percent of Americans are unemployed and underemployed.
10. A weakened military as we sit upon the edge of World War III at a time when Obama is downsizing our military and firing its leadership base.
11. Increased foreign reliance of food imports (20 percent of the total).
12. The FCC and Attorney General Loretta Lynch is trying to gain control over the Internet in an attempt to silence the opposition of the independent media.
13. Food inflation which some estimate to be at about 18 percent.
14. The media is owned by six corporations who have helped to create this problem.
15. Unfunded liabilities (i.e. Social Security, Medicare) are now in excess of $240 trillion dollars. Remember, any debt in excess of $70 trillion dollars should be considered to be a catalyst for global economic collapse.
Do you actually believe that various segments of the economy can be collapsing around you and that your life savings, your retirement and your other miscellaneous investments are going to be safe? Why do you think Obama wants your guns? The elite knows what is coming, they have planned for this day. And they are laughing at your ignorance and the fact that YOU have funded their golden parachutes.
