2015: Illinois to Postpone Pension Payments “We Are out of Money Now”

This article was written by Joshua Krause and originally published at The Daily Sheeple. Editor’s Comment: This has been a long time coming, but the state is no better prepared for having seen in coming. Like derivatives, the housing bubble and over-priced assets, the pension problems are a serious millstone around the neck of the economic system, and more than weighty enough to send the whole thing into a nosedive. For the past 4 months, Illinois has been embroiled in a budget impasse between the state’s Republican governor, and the Democratic legislature. They’ve gone so long without a budget, that they have to pay their lottery winners in IOUs and may have to shorten the length of their school year. They’re essentially rationing and juggling the finances of their public institutions until the government comes up with a budget. This has resulted in a frightening situation for Illinois’ retirees, […] Read More

2015: $1.5 Quadrillion Time Bomb

When investing becomes gambling, bad endings follow. The next credit crunch could make 2008-09 look mild by comparison. Bank of International Settlements(BIS) data show around $700 trillion in global derivatives. Along with credit default swaps and other exotic instruments, the total notional derivatives value is about $1.5 quadrillion – about 20% more than in 2008, beyond what anyone can conceive, let alone control if unexpected turmoil strikes. The late Bob Chapman predicted it. So does Paul Craig Roberts. It could “destroy Western civilization,” he believes. Financial deregulation turned Wall Street into a casino with no rules except unrestrained making money. Catastrophic failure awaits. It’s just a matter of time. Ellen Brown calls the “derivatives casino…a last-ditch attempt to prop up a private pyramid scheme” – slowly crumbling under its own weight. For years, Warren Buffett called derivatives “financial time bombs” – for economies and ordinary people. Unless collateralized or […] Read More

2015: Coming for Your Funds: Supremes “Justify Seizure of Pension Funds to PROTECT Pensioners”

This article was originally published by Paul Joseph Watson at Infowars.com. Editor’s Note: Incredibly, and in direct defiance of any sane logic, a recent Supreme Court decision has justified “government seizure of private pension funds to protect pensioners,” according to famed economist Martin Armstrong. This unsettling decision puts 401ks and plenty of other funds in the crosshairs. How that can be considered consumer protection, or government shepherding is unclear, if not unfathomable. Nonetheless, the rationale is in place – so beware. It has long since been legalized for Wall Street equity firms to gamble away pensions – including public pensions for states like California – through derivatives, while it has long since been legalized for the Federal Reserve to literally grow paper on trees, hand out free candy to sugar addicts and make money (for those at the top) so cheap its practically free – all driving down the […] Read More

2015: The Six Too Big To Fail Banks In The U.S. Have 278 TRILLION Dollars Of Exposure To Derivatives

The very same people that caused the last economic crisis have created a 278 TRILLION dollar derivatives time bomb that could go off at any moment.  When this absolutely colossal bubble does implode, we are going to be faced with the worst economic crash in the history of the United States.  During the last financial crisis, our politicians promised us that they would make sure that “too big to fail” would never be a problem again. Instead, as you will see below, those banks have actually gotten far larger since then.  So now we really can’t afford for them to fail.  The six banks that I am talking about are JPMorgan Chase, Citibank, Goldman Sachs, Bank of America, Morgan Stanley and Wells Fargo.  When you add up all of their exposure to derivatives, it comes to a grand total of more than 278 trillion dollars.  But when you add […] Read More

Bailout is Back: Fannie and Freddie Likely Need “Additional Treasury Investment” After Derivatives Losses

There is trouble again for federal mortgage backers and bailout queens Fannie Mae and Freddie Mac, whose failures helped to trigger the housing market collapse and subsequent 2008 economic crisis. The government enterprises are again turning their lowest profits since the recovery, thanks to derivatives losses – where most of the mortgage lender money is invested: Fannie Mae will make its smallest payment to taxpayers in more than four years after large derivatives losses crimped its fourth-quarter profit, the government-controlled mortgage financier said on Friday. Fannie Mae said a drop in long-term interest rates sharply reduced the value of the derivatives contracts it uses as hedges in financial markets, adding that low capital buffers are raising the risk it could need taxpayer money in the future. The derivatives losses helped reduce quarterly profit to $1.3 billion, about 80 percent less than a year earlier, and the $1.9 billion check […] Read More

2015: “Massive Headache”: Rising Dollar Threatening Trade and $74 Trillion Derivative Tsunami

This article was graciously contributed by Michael Snyder via his Economic Collapse blog. Editor’s Note: Many have warned that a silent but ongoing global currency war is underway. Call it a reevaluation or shift if you like. The Euro is falling fast, in large part due to Greece’s woes, and is headed towards parity with the dollar and beyond. The stronger dollar means pain for the American export market – some 40% of U.S. business – and creates a difficult, and perhaps impossible, climate for foreign governments to repay debts and other obligations, which become more expensive under a stronger dollar, in which many are denominated. Market pains and suffering could spread pretty rapidly if things got out of control and sequenced towards destruction. Does this create a window for China’s intent to offer the next global currency? That remains to be seen, but China’s intentions are clear enough […] Read More

2014: 12 Numbers About The Global Financial Ponzi Scheme That Should Be Burned Into Your Brain

The numbers that you are about to see are likely to shock you.  They prove that the global financial Ponzi scheme is far more extensive than most people would ever dare to imagine.  As you will see below, the total amount of debt in the world is now more than three times greater than the global GDP.  In other words, you could take every single good and service produced on the entire planet this year, next year and the year after that and it still would not be enough to pay off all the debt.  But even that number pales in comparison to the exposure that big global banks have to derivatives contracts.  It is hard to put into words how reckless they have been. At the low end of the estimates, the total exposure that global banks have to derivatives contracts is 710 trillion dollars.  That is the […] Read More

2014: The Size Of The Derivatives Bubble Hanging Over The Global Economy Hits A Record High

The global derivatives bubble is now 20 percent bigger than it was just before the last great financial crisis struck in 2008.  It is a financial bubble far larger than anything the world has ever seen, and when it finally bursts it is going to be a complete and utter nightmare for the financial system of the planet.  According to the Bank for International Settlements, the total notional value of derivatives contracts around the world has ballooned to an astounding 710 trillion dollars ($710,000,000,000,000). Other estimates put the grand total well over a quadrillion dollars.  If that sounds like a lot of money, that is because it is.  For example, U.S. GDP is projected to be in the neighborhood of around 17 trillion dollars for 2014.  So 710 trillion dollars is an amount of money that is almost incomprehensible.  Instead of actually doing something about the insanely reckless behavior […] Read More