[Daniel_Plainview]

I'd like to know what percentage of that $1.28 quadrillion will become a "problem" in the future.

If it's more than a few percent, we're f__ked.

[bencole]

$this->bbcode_second_pass_quote('cbxer55', 'W')hile we were all getting glazed eyes talking about billions, along came trillions. Trying to wrap your mind around that is bad enough, see What a trillion dollars looks like.
Now today I find a site talking quadrillions!?!?!?!?
Is anybody pulling their hair out yet? If this is true, we are only just now beginning to realize how f--ked we are! Its way worse that I thought!

[bencole]

$this->bbcode_second_pass_quote('', 'T')hat has got to be “one of the scariest phenomena in economic history,” he says.

In case you are wondering, 95 percent margin means that for every dollar speculators have spent betting on derivatives, approximately 95 cents of that money was borrowed. For $5,000, a hedge fund speculator can control $100,000 worth of credit derivatives.

All this leverage is great if you are on the winning side of the bet—but if you are not, your principal can be quickly destroyed. Borrowed money works both ways.

[gnm]

$this->bbcode_second_pass_quote('bencole', 'A')nd I guess this scheme works perfectly as long as there is continued positive growth in the overall economy, fueled by cheap abundant energy.

[bencole]

$this->bbcode_second_pass_quote('gnm', '
')Fortunately my sarcasm detector has gone off.... You do know what site you are on yes?

[Daniel_Plainview]

$this->bbcode_second_pass_quote('cbxer55', '')$this->bbcode_second_pass_quote('DoomWarrior', 'I')'d like to know what percentage of that $1.28 quadrillion will become a "problem" in the future.

If it's more than a few percent, we're f__ked.

[Jotapay]

Yes, quadrillions.

[ReverseEngineer]

$this->bbcode_second_pass_quote('cbxer55', '
')
The economy resembles a financial tower of Babel!

[bencole]

$this->bbcode_second_pass_quote('ReverseEngineer', '<')/div>

Good post, you seem to understand this cds stuff better than most economists on tv.


$this->bbcode_second_pass_quote('', 'A')nybody who thinks the economic collapse isn't a direct consequence of the Peak Oil problem and decreasing amounts of available energy relative to the population who reads this site regularly clearly has mush for brains.

[ReverseEngineer]

$this->bbcode_second_pass_quote('bencole', '')$this->bbcode_second_pass_quote('ReverseEngineer', '<')/div>

Good post, you seem to understand this cds stuff better than most economists on tv.

[seldom_seen]

$this->bbcode_second_pass_quote('ReverseEngineer', 'I') think first off many of the TV pundits don't understand it

[shady28]

$this->bbcode_second_pass_quote('cbxer55', 'W')hile we were all getting glazed eyes talking about billions, along came trillions. Trying to wrap your mind around that is bad enough, see What a trillion dollars looks like.
Now today I find a site talking quadrillions!?!?!?!?
Is anybody pulling their hair out yet? If this is true, we are only just now beginning to realize how f--ked we are! Its way worse that I thought!

[RonMN]

I'm trying to wrap my head around this number.
1.28 Quadrillion = 1,280 Trillion.
10% of that would be 128 Trillion.
1% of that would be 12.8 Trillion (which is about the GDP of the United States).

So what we're talking about here is 100 years worth of current GDP

[Revi]

We are going to have to move on to the next number pretty soon. Billions are so 20th century, time for trillions and quadrillions now.

When is this death star going to take down all fiat currencies anyway? Is it just a slow motion thing, like the end of the Roman Empire, or is there going to be some big moment when we all lose faith in paper and electronic currency?

The average guy will start to garden and trade things with their neighbor if the regular money system doesn't work any more. It will be like roubles in the FSU. Dollars will buy things, but just things you don't really need any more like SUV's, Mc Mansions and old game systems.

[jupiters_release]

$this->bbcode_second_pass_quote('ReverseEngineer', '
')
Anyhow, yes the contractual obligations are in the Quadrillions, which is why the term "Black Hole" is used, along with the WMD metaphor dropped on by Warren Buffett.

Reverse Engineer

[jupiters_release]

$this->bbcode_second_pass_quote('ReverseEngineer', '
')The only way to put any brakes on this is to abrogate the CDS contracts, but that has its own downside, the solvency of the banking institutions running the system fails if you do that.
Reverse Engineer