- The notional value of all outstanding derivatives now
totals approximately $1.144 QUADRILLION.
- This appears to be Bank of International Settlement Spin
to announce the largest gain in derivatives outstanding since they started
to report. As of the last report it appeared that both listed and OTC derivatives
was under $600 trillion. Now listed credit derivatives alone stood at $548
Trillion. The OTC derivatives are shown as $596 billion notional value,
as of December 2007. One can only imagine what number they are at now.
- Well we hit a QUADRILLION. We have more than $1000 trillion
dollars in all derivatives outstanding. That is simply NUTS because notional
value becomes real value when either counterparty to the OTC derivative
goes bankrupt. $548 trillion plus $596 trillion means $1.144 quadrillion.
- It would be an interesting piece of research to see what
the breakdown is of listed derivatives according to exchange to see if
it adds up to the reported number. Spin is now everywhere.
- This means that no OTC derivative house can be allowed
to go broke. This means that whatever funds are required to rescue failing
international investment banks, banks and financial entities will be provided.
- Keep this economic law in mind. Monetary inflation proceeds
price inflation and is its primary cause in economic history from Rome
- Nothing can stop the juggernaut of price inflation heading
towards every nation like a runaway freight train down a mountain.