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

Brain - Public DomainThe 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 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 an amount of money that is almost unimaginable.  And the reality of the matter is that there is really not all that much actual “money” in circulation today.  In fact, as you will read about below, there is only a little bit more than a trillion dollars of U.S. currency that you can actually hold in your hands in existence.  If we all went out and tried to close our bank accounts and investment portfolios all at once, that would create a major league crisis.  The truth is that our financial system is little more than a giant pyramid scheme that is based on debt and paper promises.  It is literally a miracle that it has survived for so long without collapsing already.

When Americans think about the financial crisis that we are facing, the largest number that they usually can think of is the size of the U.S. national debt.  And at over 17 trillion dollars, it truly is massive.  But it is actually the 2nd-smallest number on the list below.  The following are 12 numbers about the global financial Ponzi scheme that should be burned into your brain…

-$1,280,000,000,000 – Most people are really surprised when they hear this number.  Right now, there is only 1.28 trillion dollars worth of U.S. currency floating around out there.

-$17,555,165,805,212.27 – This is the size of the U.S. national debt.  It has grown by more than 10 trillion dollars over the past ten years.

-$32,000,000,000,000 – This is the total amount of money that the global elite have stashed in offshore banks (that we know about).

-$48,611,684,000,000 – This is the total exposure that Goldman Sachs has to derivatives contracts.

-$59,398,590,000,000 – This is the total amount of debt (government, corporate, consumer, etc.) in the U.S. financial system.  40 years ago, this number was just a little bit above 2 trillion dollars.

-$70,088,625,000,000 – This is the total exposure that JPMorgan Chase has to derivatives contracts.

-$71,830,000,000,000 – This is the approximate size of the GDP of the entire world.

-$75,000,000,000,000 – This is approximately the total exposure that German banking giant Deutsche Bank has to derivatives contracts.

-$100,000,000,000,000 – This is the total amount of government debt in the entire world.  This amount has grown by $30 trillion just since mid-2007.

-$223,300,000,000,000 – This is the approximate size of the total amount of debt in the entire world.

-$236,637,271,000,000 – According to the U.S. government, this is the total exposure that the top 25 banks in the United States have to derivatives contracts.  But those banks only have total assets of about 9.4 trillion dollars combined.  In other words, the exposure of our largest banks to derivatives outweighs their total assets by a ratio of about 25 to 1.

-$710,000,000,000,000 to $1,500,000,000,000,000 – The estimates of the total notional value of all global derivatives contracts generally fall within this range.  At the high end of the range, the ratio of derivatives exposure to global GDP is about 21 to 1.

Most people tend to assume that the “authorities” have fixed whatever caused the financial world to almost end back in 2008, but that is not the case at all.

In fact, the total amount of government debt around the globe has grown by about 40 percent since then, and the “too big to fail banks” have collectively gotten 37 percent larger since then.

Our “authorities” didn’t fix anything.  All they did was reinflate the bubble and kick the can down the road for a little while.

I don’t know how anyone can take an honest look at the numbers and not come to the conclusion that this is completely and totally unsustainable.

How much debt can the global financial system take before it utterly collapses?

How recklessly can the big banks behave before the house of cards that they have constructed implodes underneath them?

For the moment, everything seems fine.  Stock markets around the world have been setting record highs and credit is flowing like wine.

But at some point a day of reckoning is coming, and when it arrives it is going to be the most painful financial crisis the world has ever seen.

If you plan on getting ready before it strikes, now is the time to do so.

  • Kristen Marie Embler

    Brace yourselves and inform those who haven’t the slightest clue what’s going on.

    • kfilly

      Unfortunately, that is like talking to a wall. Most don’t care because they are too dam apathetic.

      • Kristen Marie Embler

        Those who choose not to care will be among the first to feel the backlash. Most of said people know something isn’t quite right, yet they don’t look to see what is causing all these problems. They think things will just magically get better overnight. They are in for quite a shock when shtf. My gut instinct tells me something very dire is just right around the corner; it’s just a matter of when the boat will sink, not if.

        • Hammerstrike

          Does July 2015 ring any bells?

          • Guest

            It doesn’t for me. What’s the significance of that date?

          • Annette Smith

            How about September 2015. That is the end of the seven year cycle when another crash happens. It happens every 7 years, right on time. I checked it out. Look up 2008, (duh), 2001, go back another 7 year, and then another…amazing…

          • mdemetrius

            Sort of like a week of years, eh?

          • mdemetrius

            Yes, that’s a good date. Whether false flag or real and external, the next month or so may well be crucial.

        • Donald Wilson

          The problem with these yardbirds they think the federal government (aka FEMA) will magically arrive and rescue them. They will all find themselves in FEMA camp not knowing what will happen next.there are millions like that throughout the USA. The End

          • Annette Smith

            I worked for FEMA. FEMA offers you money when your house is damaged in a storm, (Sandy). They give you a loan, if you qualify, and they want you to qualify, so that they can charge you interest. It’s all about “follow the money”. I was disgusted when I was done with training. I really went out of my way to help people, cause I just didn’t feel that they had a lot of people on their side.

          • Donald Wilson

            FEMA was a well managed operation when Mr. James Lee Witt was the director. He actually had emergency management experience. After his tenure the other directors were less knowledgeable and it definitely showed. After DHS was created and FEMA was placed under the DHS umbrella that is when the problems started to appear. This was definitely apparent when Katrina devastated the Gulf Coast in 2005. The rest as they say is history. The End.

          • guguciao

            Right. It seems that most did not learn from what happened after Hurricane Katrina and the lack of help from the government. Or they have forgotten.

        • Douglas M. Green

          You are absolutely right, but beware. Most you talk to will do nothing to prepare, but when the SHTF and they are desperate, they will come knocking. My best guess for when things get real bad is 2016/2017 because of the uncanny ability of the fed and gubment to keep things afloat. James Rickards and Martin Armstrong seem to think by late 2015/2016. Prepare fully, then enjoy life. This might be the best it will be for a decade or more.

          • mdemetrius

            Nowadays, if you don’t have food, safe eater and other urgent needs on hand for yourself and your family, you are being irresponsible with their safety. All sorts of things can and probably will happen before the whole bottom falls out.

            Milestone 1 is surviving the first week of a disaster.
            Milestone 2 is surviving the first 90 days. After that, people will be pretty rare.

      • Scared Economist

        What time is American Idol on?

        • Mondobeyondo

          Don’t know, but I do know America’s Got Talent is on every Tuesday at 7pm Mountain Standard Time…

      • mdemetrius

        The one begets the other, doesn’t it?

      • Drud

        The ironic thing is: I get called a “conspiracy theorist” all the time. I am most definitely not one. I believe there are elite Oligarchs in charge of the system, but they are not super-human, nor even competent. That, in fact, is one reason why the system will fall, incompetence at the top. The reason people make ad-hominem attacks like “conspiracy theorist”: is fear. They don’t want to think about collapse, so they by dismissing the messenger as a lunatic, they don’t have to. It is so very human. We are all guilty of it.

        • Cassandra

          I am told that I’m all doom and gloom. People look at me like I have three heads when I try to have this conversation. At the top of every operation are a few people who know nothing about the true nature of the very operation that they control. I’ve noticed it time and time again. One computer glitch could have it all come crashing down. At the top: puppets. The math does not add up any way we slice it. I truly hope for a slow and gradual decline. If not, the clueless masses will be suddenly wracked with the fear that I have been slowly digesting for years in an instant. There are so many issues that could erupt at anytime. People are unaware and completely unprepared. The possibilities terrify me. It amazes me how few are willing to do the simple math.

    • Rodster

      You’d be surprised how many on alternative websites like these thinks it’s just all gloom and doom, that TPTB will fix things and save us all.

      • Douglas M. Green

        Right, but nobody who thinks that way can explain to you how everything will be ok. We have the math, they only have hope. The two are not equal predictors of outcome. I will take the math.

    • MeMadMax

      Like kfilly said, it’s like talking to a rock.
      Some of them yawn while ur trying to explain BASIC economics and how our system “works”.

      So, I changed tactics: I make it more interesting.

      I start off my monologue with something along the lines like: “People are GONNA DIE because…” and so on and so forth.

      Some people, you can’t even hammer the concept home because it’s only a concept to them, it’s invisible to them, so therefore it may as well be some sort of event on mars… that is, until it comes to bite them on the rear, like the obamacare event…

      • Jimbo

        German concentration camps worked because they led their victims into believing that they were heading into work camps. They may have heard whispers of their real fate and smelled the stench as they approached their “work camp” but right up until the door was locked and the lever was pulled, the victims believed that they were taking a shower. The alternative was too horrific to contemplate.

        People will believe whatever is most comforting.
        You tell them that things are getting bad economically and that they should prepare. You can show them numbers and blog articles to support your argument but then they turn on CNN and get told how everything is great.
        You end up being branded as a nut along with Mayan Apocalypse and Rapture advocates.
        It is your human duty to inform others of impending troubles. If people are too complacent to listen, that is just human nature. You can’t really do much about that.

        • laura m.

          I’m not under any obligation to inform anyone. I used to but no more, a waste of time, as they ignor the facts anyway. Read Top Gun’s remark- it is late in the game and people will snitch on others. Stay low key and focus on your self and immediate family. You are only responsible for them. Adults shouldn’t have to be told anything what to do. If they can’t see the writing on the wall, then too bad.

          • Daddyotis

            Agree wholeheartedly, Laura. OPSEC is crucial in this day and age. Why put yourself at risk trying to convince some neighbor to get prepped? They are (presumably) adults, and should be allowed the opportunity to reap what they sow.

          • xander cross

            This is true.

        • toadsticker

          We’re already loaded on the cattle cars. The door has been closed and the lever pulled. We are on our way to the camps, but we just don’t want to believe it. The audacity of hope makes us look away.

          • Daddyotis

            Disagree. For many this is true, but for “Those Who Can See” (and who have prepared), it is a completely different ball game. Yes, the vast majority of the sheeple may well have already been loaded onto the boxcar and the door slid shut. However, don’t count us all out. They can try to load me & my family onto one of their boxcars, but they’ll likely end up also loading some of their comrades into hearses as well.

          • Mondobeyondo

            The most shocking thing, IMHO, is that the victims of the camps were totally complicit. They didn’t rebel. They didn’t fight back. They actually believed they were heading for a summer vacation on a German beach, not to a concentration camp. That is Scary.

          • Douglas M. Green

            Check out Argentina and other more recent examples of normalcy bias that proved costly to the sheeple who didn’t open their eyes and see what was going on. It never ceases to amaze me how clueless and gullible people are. In fact, the MSM hardly covered the negative GDP we had last quarter. They talk about bad weather, but never really pointed out negative growth. Used to be a time when the press was critical of growth below 3%. Now that is considered high, even with BS inflation calculation intended to make real GDP as high as possible.

          • Drud

            Read “Mother Night” by Kurt Vonnegut. He paints a brilliant, chilling, but all-too-human picture of the Nazis.

    • Top Gun

      I have said this on many occasion, don’t. Don’t talk to people about it. It is now dangerous, you know, the whole see-something say-something. I can almost see the cattle cars in the distance….

      • xander cross

        I agree. I don’t say noting about it except to a few that that already know what I know about the economic collapse.

    • K2

      People here already know that.Some people already did with people listening to them .So people did with no result

    • Mondobeyondo

      Not for lack of trying though.
      We warned you. We warned you.
      WE WARNED YOU!!

      Oh well….

  • Water boy

    There’s no way out without pain.

    • apeiron

      The pain might have been manageable if common sense solutions had been pursued decades ago. The longer these issues fester the worse the pain will be. At this point the pain will be horrible no matter what is done. In fact, the damage is probably already irreparable. This is just what happens eventually with fiat money schemes, they simply can’t be sustained indefinitely.

      • GSOB

        The Lord Jesus Christ reigns now and forever.

        Faith, hope and love remains.

        • Richard

          I see. Thank you for the information.

  • K

    All smoke and mirrors, there is nothing real about the economy. Sad so few are able to grasp that fact. Even when told.

    • British Bird

      Surely, when a massive financial crash comes, the biggest losers will be the ultra rich as all their paper wealth will be gone and only the tangible assets will remain. OK they may have a few more cars, houses etc.. than the average and even own a productive company or two, but currency is just a promise of future human effort/creativity and if there is a crash no one i.e. The working public will be unable to fulfil that promise as they will be using all their energy producing for themselves and their families and will also possess whatever assets they have. Therefore all that ‘wealth’ will be gone.

      Bit like a massive re-boot which would be incredibly equal using.

      • British Bird

        That should read ‘equalising’

      • K

        No the ultra- rich will only loose on paper. They have already provided for themselves, more than enough to ride out any crash. On top of that, they usually have fairly large gold and silver stockpiles. Also many of them have weapons stockpiles, that far exceed anything a normal person would have access to. When most people loose everything. A person with a decade worth of supplies, and perhaps 10 million in precious metals is still pretty much top of the heap.

        • Jimbo

          The very rich have mobility as well. They have multiple residences in different countries, private jets and boats. They will continue to make money right up to the end and will have diversified asset portfolios so that if one asset loses, another will gain. Their only interest at the moment is to keep the ponzi going for as long as they can so that they can make even more.

          • Albert8184

            Bingo

          • owl

            You must mean those who have powerful “influence.” Not everyone who “has money” will be “so-called” privileged as that. And they are not at all immune to having ALL stripped away from them. Good to keep that in mind, so if that scenario would take place, that these people do not lost their minds as well. ..

        • Owl

          Cannot be so sure about that……….

      • JB

        Actually the only safe haven will be the 1.2 trillion in cash because that is what holds the system together. so stack!

      • Albert8184

        No. The ultra rich are using their worthless paper to buy up real assets before the crash happens. It is YOU who will be left holding the confetti. You and I.

        The wealth will not be Gone. It will be in the hands of the ultra rich. Paper money isn’t wealth.

      • arizonadiane

        Don’t you imagine the ultra rich are the ones who have all the gold?

        • owl

          One’s gold can be taken away, as well.

      • Patriot One

        BB a financial collapse will be a leveling event everyone will have almost nothing worth anything. Bullets, beans, bandaids, seed, water, farming and ranching will be wealth.

        What good are 10 homes and a 100 cars without fuel or power. Just like ISIS as they past the the banks in Iraq they plundered them all. That’s what will happen at every bank in the world within days of a collapse.

        While everyone is over at the bank, Walmart, and the grocery store. The smarter ones who have collected the intel in there geographic area will quietly stroll into distribution hub and centers to top off.

      • Victor Cesario

        Actually the way it works is all the debt is owed to the super rich. They will take everything from anyone who owes them money. It will be the biggest land and asset grab in the history of the world we will be nothing but surf and slaves. This is the plan it was the plan in the great depression and it is the plan now.

    • Mondobeyondo

      “Believe what you’re told, because we tell you the truth. Even when we’re lying to you, it’s the truth, because we say it’s the truth.”

      Wake up, BEFORE you smell the smelling salts!

      • Bill

        Wtf is the truth?

        • Gino Schafer

          The truth is what they tell you it is.

          • Mondobeyondo

            “I can’t lie –
            I – 55!
            BINGO! We have a bingo!”

            (FYI, there is no such thing as an I-55. It’s I-16 to I-30)

          • Bill

            They’re getting all of us ready for the “funny farm”.

          • DhannaReaderaci

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  • Guest

    “But at some point a day of reckoning is coming, and when it arrives it is going to be the most painful financial crisis the world has ever seen.”

    I sure wish we knew when that day is. Is it a month, six months, a year, five years from now? We just don’t know. And the uncertainty drives me nuts.

    • Top Gun

      Maybe this whole “collapse” thing is made up. What if everything is falling apart by it’s own hand? Collapsing in on itself not by design, but just because we are stupid and did everything wrong. The human race leaves a lot to be desired…

      • Bill G Wilminton NC

        Hi Top Gun, I had some of the same thoughts but if things happen on their OWN…. somethings should fall the other way but as u may have noticed nothing falls OUR WAY. This is traceable start with the FEDERAL RESERVE which is not federal and not a reserve. Enacted in 1913 is/was the most corrupt evil act ever imposed on the American people. This was/is BY DESIGN a plan to put the American people and this country into financial Tyranny. The Fed prints money out of thin air and we the people pay interest on this money. Last year interest was 350 billion. The Fed has never been audited and pays no taxes. Who owns the FED? answer… the central banks. Who owns the Central banks?… google the info up and become a informed sheeple. The NWO people count on disbelief of the sheeple. THEY used to operate stealthy/hidden and their actions were called conspiracy. But now They operate out in the open telling the sheeple inflation is 2% and unemployment is 6.5% and the DEBT keeps climbing. BY DESIGN look on your 1 dollar bill it says novus ordo seclorum NEW WORLD ORDER haha it is done when THEY are ready the switch will be hit and the dollar will collapse and when the checks do not go out we will have chaos and riots BY DESIGN. This will lead THEY to declare martial law. In 230 years from tyranny back to tyranny.

    • Rebecca

      I feel the exact same way! :(

    • Donald Wilson

      It’s just like asking when will I die? No one knows the answer until that dreadful day hits you…The End

      • GSOB

        God knows everything there is to know.

    • Drud

      The collapse is not a single day, it is not planned per se, and it will not result in bigger badder empire (NWO). Rome, perhaps the greatest empire in human history, took some 400 years to fall from its peak. There were many significant events during that time, but there was no Hollywood-style fall where one day Rome was the greatest place on earth and the next it was in ruins. The American Empire is falling for the same reasons that Rome and all other Empire in history have fallen: resources and power have been shifted up to a few elites at the top of the pyramid for decades (or a century, if you wish to place the founding of the Fed as a starting point…I can think of no better one). Over time, the people at the top have become decadent, wasteful, ever more greedy and needing more power to fulfill their desires, and all along have deceived themselves into believing that a) they deserve the power they possess, b) they are doing a great job and c) they can continue to hold power forever. Now, don’t get me wrong, these are very dangerous people with huge amount of power, wealth, resources and egos, but they are not all-powerful and most certainly not all-knowing, and they are no better at predicting the future than anyone else (in other words, they are NOT Keyser Soze). They can do a lot of damage on their way down, but the NWO stuff is pure fiction. Rome didn’t fall so that Super Rome could be formed. When Empires collapse they fragment. Period. The American Empire will be no different. Fear is good and fear is justified, but do not fear NWO. Preparation is absolutely critical, but the future is entirely unknown, so make plans, but be prepared to change them on a moments notice.

      • Luis Rosales

        I believe the Roman empire evolved into the Roman catholic church and continued its conquests around the world via peoples minds. I agree with everything else.

      • Prophetic

        Nope. USA collapses in ONE HOUR…not one day…because that’s as long as it takes for a volley of Russian and Chinese nukes to make the entire land mass of the USA uninhabitable. And they will hit us first because we have already made known our intentions of first strike on any nation/s that challenges our “superiority”. That and the fact that America is out of control will lead competing nations to this decision. Of course you still have time to get out…how much time is anyone’s guess but I’d venture to say that it would be better to error on the side of caution and get out soon…

        • larry

          am open to building a sustainable living community near chiang mai thailand if anyone’s interested. I already live here.

          • Thomas Robinson

            How do you get around retirement visa if you are under 50? I’ve been to LOS and I know money talks, but is it possible for a person who has not yet reached forty years old to get a retirement visa?

          • larry

            not in Thailand must be 50 + but you can stay here for 9 months on a tourist visa or 1 yr on an education visa and go a few hours a week to learn Thai, or marry a Thai. many options but for me I just cant stay in the states anymore have had enough, will be back to visit july-sept

          • Nicknakthetruthspeaker

            u can stay in Thailand as much u want. tourist visa is given one after one.

          • Albert8184

            I’m retiring to Vanuatu, but thanks anyway. I just hope things hold together for another 5 years or so.

          • larry

            yea I think thats a great place to all the best and hope it holds together to at least long enough for many to get out.

          • Albert8184

            How long you been in Thailand Larry? Ex-military?

            I bet you’ll get some takers on that community. Keep an eye on China though. They look scary.

          • larry

            this is my 24th time to Thailand in the last 18 yrs was volunteering at an orphanage during the winter months. not retired military was just in the Navy for 4 during Vietnam. whats the cost of living in Vanuatu I like that place to did some research on it years ago. China will be a problem for all someday.

          • Albert8184

            The COL is about the same as Honolulu. I’d say above average on the world scale. Less than the Caymans or Bermuda or Manhattan, but more than your average US city. But there’s no taxes except on rental property and foreigners are allowed to buy property and become citizens. But there is no freehold land. It’s only lease. I’m looking to buy a small cottage on a small lot and live simply somewhere near Port Vila. I haven’t been in a hurry to buy though. I’m taking my time. The real estate prices are very reasonable I think. I’ll get enough when I sell my house in the states to buy outright. New Zealand may end up being a better cholce for my wife and I though.

        • Donaldo

          They can’t use nukes. They can’t even use an EMP for that matter.

          We have 300 Fukushimas in this country.

          One or two going down would irradiate us. Several hundred would microwave the planet.

        • Nicknakthetruthspeaker

          right, I m in South East Asia. here life is good.!

  • Bill

    We are all insane: 1. those who created the problem
    2. Those who recognize it and do nothing 3. Those who don’t know and/or don’t care.

    • Mondobeyondo

      And those who voted for them…

      • xander cross

        And those who buy items from them.

      • Bill

        Them?

  • RealityCheck

    When this financial train wreck finally does come to fruition, the people that ran the train off of the tracks will all have a place to go. As for the rest of us: let them eat cake.

    Our major cities will resemble a banana republic with troops patrolling the streets to keep order. Did you know that in Brazil, the members of the financial oligarchy live in estates with their own helo pads? They also have their own private armed security force. When they want to go shopping, they just helo in to their shopping malls, then helo back out. It’s easier to avoid the working riff raff.

    I live in a Florida retiree town. The barrier islands to the east are home to some of the richest residents of our country. It will be interesting to see what happens when the proletariat class decides to do some creative redistribution among the wealthy communities.

    • Top Gun

      The whole helo in/out riff raff stuff is priceless. lol. Thanks, I needed that.

  • Micha-el Harbert

    The last figure… a 1 with fifteen digits following…. What realm are we into here… Don’t tell Barry what comes after a Trillion.

    • Tony Baker

      Quintillion

      • Daddyotis

        Quadrillion

    • Tim

      A 1 with fifteen zeros after it is a quadrillion.

      • Micha-el Harbert

        That is 12, 15 is a QUINTRILLION

        • Tim

          No, 1 with 15 zeros is a quadrillion. 1 with 12 zeros is a trillion. There are a number of sites that will confirm this. Just google it.

  • MeMadMax

    heh, I got a chuckle out of that one. ^.^

  • Jimbo

    I don’t believe in a deliberate collapse by design. I believe that the system is badly designed, is going to crash and those in power are trying to make sure it doesn’t happen on their watch.
    There is nothing wrong with debt if it is used for the right reasons. Borrowing to improve a business so that it can make more widgets next year makes good sense. Borrowing to build ports and major highways so that business can get their goods to market makes sense.
    The borrowing we are doing now is simply to keep the system from collapsing today. Of course this means that when the system does collapse, it will be much worse.
    The UK is currently celebrating growth of 3% but is borrowing 7% of GDP each year to achieve it. This same thing is happening with just about every developed economy on the planet.
    Any kid knows how to build a house of cards and every kid knows that they can build quite complex structures but that they will collapse at some point. They also know that every card they add, increases the chance of the next card being the one that causes the collapse.

    • dmitry

      Jimbo, good explanation. thank you.

      • Jimbo

        When you strip away all of the smoke and mirrors and jargon, economics can be simplified. The economy of a country is no different to the economy of a household. Spend more than you earn and eventually you will go bust.

  • Mondobeyondo

    U.S. National debt approaching $18 trillion.
    Wow. Just… wow.
    We’ve reached inevitable levels, folks.
    Forget unsustainable…

    • harshmellow

      Which begs the question, how can the world’s greatest superpower simultaneously be the world’s greatest debtor?

      • Jimbo

        If the guy with the massive house, expensive car, boat and glamorous girlfriend asks you to lend him $10, you wouldn’t think twice. If the local bum asks you to lend him $10, you would walk away.

        You wouldn’t stop to analyse their financial situations.
        The guy with the massive house owes more than the house is worth. The boat and car are on credit and are due to be repossessed.

        The local bum owes nothing to anybody and started a new job on Monday and just needed $10 to tide him over until his first paycheck. He wanted to buy some flowers for his new girlfriend. She was going out with the guy with the house, boat and car.

        • harshmellow

          Putin’s master plan, stealing the girlfriend of America?

        • British Bird

          Excellent analogy.

      • Mondobeyondo

        Something’s got to give.
        My guess is that we will steadily decline as a world power while we attempt to sort out our fiscal Mess.

        It’s. Already. Happening.

        Exhibit A: Iraq. The Al-Qaeda baddies have taken over Mosul and much of northern Iraq. Baghdad’s days may be numbered. “Hamburger Hill”, about that infamous Vietnam War conflict, comes to mind.

        There’s lots more examples….

      • Mike Smithy

        That’s easy. All you need is bread and circuses that are complimented by smoke and mirrors. The Ministry of Disinformation is alive and well.

    • Tim

      Have you ever seen one of those Youtube videos that show how much $1 trillion is? There are several of them. It boggles the mind when you see just how much money it is. Yet this nation’s total debt is in the tens of trillions. These debts are simply unpayable.

      • Douglas M. Green

        Have you ever seen the graphic showing how much money FDIC has relative to how much money it insures? It is equally mind boggling, hence the probability of BAIL INS. Otherwise, the fed will have to create money orders of magnitude higher than the 2008/2009 crisis to paper over the new one, instantly trashing any remaining confidence in our currency. Be careful!

        • Tim

          Hi Douglas,

          I haven’t seen that particular graphic, but I audited the FDIC funds’ financial statements for several years. (Back then there were two separate insurance funds–one for banks and one for savings associations. Today there is just one insurance fund.) So I know that the FDIC has very little in reserves relative to total insured deposits. In fact, it was during my time at the FDIC that I first heard the term “Too Big Too Fail.”

      • Donaldo

        So then obviously if you can’t satisfy all your creditors, they have to accept longer payback periods while you squeeze your population for cash flow… or else you eliminate your creditors.

        What’s truly interesting this time around is the fact that you can’t.

        I fail to see any war scenario that doesn’t result in a couple hundred Fukushimas, either accidentally or in retaliation.

  • harshmellow

    Michael, by “getting ready” I’m sure you are referring to prepping. Perhaps its time for another article on this topic, with the cash strapped consumer in mind?

    • xander cross

      Excellent point. Also, how to prep in small cities and communities. I also want to know how to move spread your resources around.

  • chilller

    Ever notice the one common link to all of this debt listed above…$$$. dollars.
    The BRICS nations are fully aware of the coming dollar collapse as are most other nations who wish to get their gold back as future economic systems will be gold based. If you believe our gubermint’s claims about their gold in Fort Knox, then I have a bride over some swamp land you might be interested in. For the past several decades, gold in the US financial sector has been considered an archaic relic of little use, so why even have it? That gold has been leased, hypothicated and rehypothicated into oblivion and that is the reason the west is vehemently opposed to allowing a gold standard to come to fruition…because we have virtually none to do business with in a gold standard world. I have no doubt the west has a scorched earth policy when it comes to protecting their paper empire…

  • Richard O. Mann

    This landing is really going to hurt. Every where.

  • XSANDIEGOCA

    How can we survive this? There is not enough money, freeze dried food or anything else to get through the coming collapse. Maybe if one were to head off to the middle of Montana and live off the land but how many are really capable of doing this? Anarchy and Martial Law are a certainty in the initial stages of the meltdown but…then what? It is time for truth. Default is inevitable. The Mother of all Haircuts is inevitable. We are going to have to write it all down to zero and start over. The suffering will be terrible.

    • harshmellow

      Agreed, no matter how much food you stockpile in your home the “zombies” will soon be coming for it in any disaster scenario. So where do you go for safety? This is the truly difficult question to answer.

      • XSANDIEGOCA

        I don’t know. I can survive in place for awhile but have no doubt I would have to fend off marauders. We used to have Civil Defense in this country but that was another time, another country.

        • Scared Economist

          I know some communities are QUIETLY organizing militias. Groups dedicated to defending their homes and neighbors. Lone preppers will be no match for hungry desperate hoards. Korean War vets will tell you after so long the barrel on a machine gun will melt and they will keep on coming. Only through organizing and dividing responsibilities will people insure safety and sufficient resources.

          • XSANDIEGOCA

            Excellent points well taken.

      • Daddyotis

        By all means, let the zombie “Gimmedats” come try to take my preps if they’d like. They’ll find that there will be plenty of precious metals there as well (lead & brass) headed downrange toward them.

        • Joe Kleinkamp

          Whatever helps you sleep at night but. . . after you’ve taken care of the unprepared Gimmedats the gubmint Gimmedats will show up looking to arrest those they will label domestic terrorists for conspiracy and hate crimes. Every battle plan begins to deteriorate with the first shot fired.

    • apeiron

      Doesn’t it get really cold in Montana? Isn’t it arid & isn’t the growing season really short there? I know it’s sparsely populated but I’d think “living off the land” there would be a challenge VERY few would survive. I’m a Southern boy, where there’s ample rainfall & a long growing season & I’m sure “living off the land” would be difficult at best, even here.

      • XSANDIEGOCA

        Maybe if we still possessed the skills we had 150 years ago but we don’t. If you have not read One Second After by Forstchen, I recommend it. He really goes into this theme. Very few of us are capable of living off the land.

        • apeiron

          Thanks for the recommendation. I know one thing for sure, most will need community to survive what’s likely to come & living in an increasingly isolated, atomized culture few have that.

          • XSANDIEGOCA

            In the book, a novel of the after affects of an EMP burst, 75% of the “community” were dead after just one year. The survivors learned to pull together or they knew they would die. I give it a 6 for writing but a 10 in the though provoking category. Really makes you think.

          • apeiron

            It seems I’ve heard that 75% mortality rate would be about accurate within a year/year & 1/2 of an EMP strike or Carrington Event.

    • Mike Smithy

      Many won’t survive the pending storm. All you can do is try to prepare and do the best you can do with what you have. This may sound fatalistic, but there are no guarantees. Never have been and never will be.

      • XSANDIEGOCA

        Indeed! We are going to return to the World of our ancestors.

  • FidFed

    * If you plan on getting ready before it strikes, now is the time to do so. Pray tell how can one get ready? The whole world will collapse. Don’t you know Harry Reid and Obama will save the day, The biggest problem is there is no accountability ask Hillary!

  • wally

    Would a reset work. Wipe out all debt personal and private?Sure there would be losers but there would be many winners. I guess it would take 2 civil entities to make that work.

    • Drud

      The idea of debt jubilee is the only equitable way out of this mess. The only problem is that it hurts the financial elites most, and since we here realize that it is really this group that makes the laws, how would such a law ever get passed?

      • Scared Economist

        It’s not so much the money the Elites fear losing as it is the Power and Control debt gives them.

        • Drud

          Of course, but either way, it means that Jubilee will never happen.

          • Rando

            We’re all rightfully concerned about these ‘man-made’ financial disasters, but no one speaks of the hand of our Creator. Once He’s had enough, He’ll surely let us know.
            The next Shemittah (29th Elul) is September 13, 2015. If this house of cards hasn’t already fallen by then, it will. Google what He did the last two Shemittahs. This next one is likely to be a real doozy… perhaps a forced Jubilee.

  • Syrin

    “Why do you keep using this word “unsustainable”? What does that even mean?”

    -every liberal ever

    • xander cross

      I like the Spawn avatar.

    • GSOB

      If we don’t get a grip on government spending, there will be no growth.

  • JailBanksters

    The system is NOT going to crash as long as their are more Guns in the USA than people, and you can take that to the Bank. Until that happens they are just going to keep pumping this up. Once the majority of guns are removed, the self destruct countdown will begin, and nothing will stop that countdown. And that’s when it gets really bad, their will be a One World Bank, One World Currency and a One World Governance, Guess Who will control it ?

  • Trailer Park Investor

    ONE, TWO, THREE Months tops
    Everything, EVERYTHING is stretched so tight a sailors fart in North Dakota could set the whole thing in motion.
    Once it starts rolling it will be like a snow ball rolling down a big hill growing bigger and Bigger and BIGGER until it swallows the whole world. Get ready (IT) is coming.
    Hell on Earth is Coming, with a Vengeance!

    • Kristen Marie Embler

      July 1st, 2014 will surely be a day to remember.

      • Get a job

        And then it will be Oct 1st and then Jan 1st…

  • Trailer Park Investor

    Unfunded liabilities, pensions, food stamps, disability etc. makes that 18 Trillion look small. Over the next 10 years it will amount to (thanks to Obummer care) over 220 Trillion dollars. The government hides a lot of their debt.

  • Jeff

    But the President and his administration says economically everything is fine and we only had a winter flu, (sarcasm).

  • Mike Smithy

    Western central banks creating inflation and calling it growth. That’s been the scam for far too long and none of the media shills will call them on it. The illusion of growth is a farce and a pipe dream.

  • Mondobeyondo

    A few years back, there was a popular game show called “Are You Smarter than a Fifth Grader?”

    Our economists and high level officials whom we’ve entrusted with our national financial affairs? Their mentality seems to be at the third grade level. Even a third grader knows that when outgo exceeds income, you are not in a good situation. Wow, how did they get through all those tough classes at Harvard, Yale and Brown?

    And why won’t they just come out and tell the truth – that the President doesn’t run the U.S. The banks run the country. That, by definition, is a plutocracy.

    Our current situation is unsustainable, and the end result will be inevitable.It doesn’t have to be that way It CAN be changed. But it won’t happen. Why? Two words: normalcy bias.

  • Mondobeyondo

    “It’s deja vu all over again”… — Yogi Berra

    2007 was seven years ago. What have we learned in those seven years? Nothing.

    Irrational exuberance? Uh huh. The piper’s been rather benevolent so far. Sooner or later, just like your average landlord, he’ll demand full payment, plus interest. The party is almost over, folks.

    “In the sunshine, drinking moonshine, ain’t we got fun….”
    Not for much longer. Get ready.

  • Malcolm Reynolds

    Picked up the movie Jack Ryan: Shadow Recruit yesterday.
    Great flick. It gives you the +1 pucker factor because it compliments today’s financial world events.

    • GSOB

      How does it compare to
      “Jack Reacher”
      with Cruise?

      One jarhead to another….

  • Mondobeyondo

    Are you better off than you were four years ago?
    (yep, that’s a Ronald Reagan classic! Circa 1984)

    Me? I’m worse off. I suspect many of you are as well.
    Some of you, are better off. Maybe even a Learjet or two.
    Um, Mick Jagger, Kim Kardashian, who else? Oh yeah, the folks behind the Aeropostale clothing line.

    But most people I know, are NOT better off.
    Wanna know what else is circa 1984?

    “I’m proud I’m an American, I m glad that I am free
    But I wish I was a little dog
    And Reagan (or insert current /fave prez) was a tree”

  • Mike Smithy

    Great advice. It’s best not to let too many people know that you have preps.

  • Drud

    The issue in my mind is not that the financial slaughter will be worse than that of the ’29 crash, but that today’s population is MUCH less resilient and self-sufficient that that of 85 years ago. We have a large segment of the population that rely’s entirely on the government, but even those of us that work hard everyday and are fully awake to the dangers, rely so much on easy transportation, cheap electricity, running water, etc, not to mention computers, TV and the internet. Be honest, how many of us here would be fine for a significant amount of time in a world without gasoline for transportation, natural gas for heat and cooking, running water and electricity? Not I, and to be honest, I am a little pissed about it. My Grandfather lived an amazing life without those things (at least for a good portion of his life). I never had the chance to live in a world without conveniences. Something tells me that even though many thing were harder to do, life itself was far richer.

    • El Pollo de Oro

      Drud: I think that one huge difference between now and the 1930s is that even though you had electricity, cars, busses, running water, radios and gas stoves back then, you also had grandparents who were old enough to remember a time when you didn’t have those things. I’m an aging Gen-Xer, and when I was growing up, abuelita told me how her grandmother grew up in the 19th century without electricity. She learned self-reliance. So during the 1930s, people were better able to cope if you couldn’t pay your bills and the gas or electricity got shut off. But a lot has changed since then. And imagine how these smartphone zombies of today are going to react if find themselves with no Internet access, no natural gas or electricity, no car, and no TV.

      Even if the economic situation in the BRA doesn’t turn out to be worse than the Great Depression as Gerald Celente, Nomi Prins and others are predicting (although I have every idea it will), you still have three generations that don’t have the coping/survival skills my grandparents had during the ’30s. Plus, the family unit was much stronger back then.

  • Suckapuncha

    What will all you do if none of this happens EVER??!! Its sick how many of you want this to happen. Oh you are prepared…my ace you are. Get a real job and quit whining and hoping something will happen because it wont. Nothing but a bunch of sorry lazy people waiting something to happen so thry will be ‘saved’

    • Guest

      I hope it doesn’t happen! But I’ve looked at the situation forward, backward, sideways, upside down and inside out, and I don’t see how it CAN’T collapse. And, you’re right, I don’t think anyone can fully prepare for the storm is coming. But we do the best we can with out limited financial resources and trust the Lord to carry us through the storm.

  • JW

    You should have included that the total world stock market is about 54T and the total world bond market is about 157T, just for additional perspective. Overall great post !

  • krinks

    Odd isn’t it how the politicians tax the little guy to death and yet not one of them proposes confiscating the wealth of Central Bankers? Shouldn’t one of them have figured out by now that they are the real enemy?

    • Isthmus B.

      As far as publically-elected officials/politicians are concerned, banksters are NOT the enemy. They are the source of the majority of their campaign funding (and other perks).

  • Priszilla

    We should also realize that the banks are betting with money they don’t have.

    If you do that in a poker game you get shot. Maybe it’s time to shoot some bank managers?

    • Isthmus B.

      Bank managers are lackeys. If you want to hurt the ones who actually do the cheating, you need to go to the top – the top banks’ CEOs and boards of directors.

  • JB

    Crazy numbers, but who cares about the notional value because most of the derivatives offset each other. So I think it would be wise to look at NET exposure.

    • Rando

      No, they don’t offset each other. May I suggest you read The Death of Money, by James Rickards. And follow his Twitter.

    • Isthmus B.

      Yeah, there’s also this annoying little factor called counter-party risk.

  • Jimbo

    One question I often get asked is “who is the money borrowed from?”
    The best answer is “you”.
    That pension you were expecting to get at 65, the free education that your yet to be born grandchildren were going to have. Then there is the free or subsidised healthcare.
    Bonds are sold by governments to raise cash to spend now and the repayment will be made by a future taxpayer. Promises are made by governments to taxpayers that can only be funded by selling even more bonds in the future.

    • Isthmus B.

      Well put. Governments have other options as well: raising taxes, seizing and/or confiscating assets, counterfeiting, expanding balance sheets, further deficit spending and default. None of these options is pretty.

      • GSOB

        Wisdom in judgment produces benefits for all, including the ruler who possesses such wisdom.

  • brian harrington

    and it just keeps getting bigger and bigger and bigger no sight of getting smaller

  • Gay Veteran

    plus a lot more people lived on farms during the Depression

  • C’est moi

    Apparently the economy is progressing according to plan…it isn’t “our” plan, but its is moving in “their” direction.

  • MrPissonyourgrave .

    How will it start?

  • frankfan42

    All the derivatives will not be payable n any one event, correct? So why are these derivatives such a sword of Damocles hanging over our heads? Can anyone explain this to me?

    • Isthmus B.

      There are many scenarios, but the simplest answer is that a bank run (for whatever reason, but all it takes is one nervous institutional investor) could take down any of the 25 highly levered banks. If depositors want more “cash” than the bank has on hand – the bank must default. Then the chain reaction begins. It can happen overnight.

  • apeiron

    I’ve told many people that in a really hard, swift collapse, the only thing having gold will do is get you killed.

  • arizonadiane

    The plan is kill all the people who are not ultra rich. Then they have everything and start their own utopia.

  • GSOB

    The wise man accepts God as He says in the Bible that He is: the supreme agent of judgment.

    The fool does not.

    The God of the Bible should be feared.

    Wisdom and instruction refer to the Bible’s
    theory of causation.

    • DJohn1

      I agree. But these people do not understand.

      In the eyes of God, we are but children and sometimes those children need gentle correction.
      When one of mine did something wrong, I did not give them forty lashes with a whip. I gave them as gentle a correction as I could and make them see the consequences of their behavior.
      It might be as simple as putting their nose on a refrigerator for a minute or five.
      I must have had a load of angels on my side helping me, because I am certainly not a wise man.
      All three of my boys grew up to love God with all their hearts. One is a music minister. Another services the computers at his church along with his wife. The third attends church regularly and is raising a son and a stepson with his wife.
      I do not agree with the idea of an ultimate punishment at the end of life. But I am not wise enough to tell God different. He is much smarter than me. After all, he created us. WE did not create God. But many feel we did.

      If a child does something wrong and needs correction, it should happen fairly soon after he needs correction.

      Most people are not even aware of the afterlife and what happens after one dies. Very few come back to tell us what happens to us in the afterlife beyond the body dying.

      I think we are dealing with a contest between immortals. I don’t even know the rules of the contest.

      This is apparent in many texts of the old testament of the bible. One king was granted extra life in an attempt to bring his son back to God. Conditions were given. Some of you out there could give me chapter and verse on that one. I recall it because I found the conditions rather strange.
      I do not fear my maker. I give my maker respect, honor and love. I obey my God in all things. Yet I recognize how little control I have over things.

      When it is my time to die, I can only hope that God will love me back. I do not assume that everything I think I know is true.
      The most difficult thing we all must do is not to assume anything regarding our God. The only real guide we have is the BIble.

  • http://www.mindbodygreen.com Kim

    at this point, these numbers are so large that they only represent concepts. for example, the incredible misallocation of earth’s vast resources that lead to this debt. also for example, the incredible immorality associated with the world’s prevailing culture and its greed and everything associated with placing luxury and material things as evidence of status or position. so much is permanently sunk into this unsustainable system, it’s impossible to pull out. these numbers will only inflate until they don’t.

  • frankfan42

    Thank you. I appreciate the link.

  • http://www.ryanridgway.com/ Ryan Ridgway

    Michael, is there any way you could send me your sources / calculations? I’d love to share this article but cannot do so without validation :/

  • spin43

    If you ran your household like Obama runs the country, you would be homeless.

  • Django

    This done intentionally ever since The U.S. passed The Federal reserve Act! We no longer control our currency! We BORROW our money with INTEREST (Income Taxes) to a private and global banking cartel!
    The more money we borrow = more debt, more debt = more interest,more interest = more power! It is a debt machine by design! How much interest is gained by the central banks on $59.4 TRILLION dollars? The funny thing is most of the debt the U.S. has is NOT ours,it’s the FEDERAL RESERVE’S! They dump their debt onto us and make money off it (bailouts, spending) and than make interest off of it!

    IT IS ALL A HUSTLE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • Jean-Francois Morf

    Steal the 500 trillion $ of Rothschild, and all debt are payed…

  • Rene Trentin

    thyme for general bancrupcy let them all fall ,wee will feel better after

  • Rene Trentin

    once the Canadian government said , to go bankrupt, is a step for a better future,stil aplys today

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