8 votes

Bank of International Settlements, derivatives contracts contracts have an outstanding notional value of 707.57 trillion dollars

February 3, 2012 · 3:47 pm

Via ZeroHedge

According to the Bank of International Settlements, as of June 2011 total over-the-counter derivatives contracts have an outstanding notional value of 707.57 trillion dollars, ( 32.4 trillion dollars in CDS’s alone). Where does this kind of money come from, and what does it refer to? We don’t really know, because over-the-counter derivatives are not transparent or regulated.

With regulated economic markets, when an underlying real asset is impaired (i.e. the company in question is bankrupt, the mortgage has defaulted, etc.), market value is assessed, default insurance is paid up to replacement or full value, bond holders and stock holders make claims on remaining value and the account is closed. There is no need for bailouts because order and proportion of compensation has been established and everything is attached to the value of the underlying asset.

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The electronic digital age is here. ie. credits, such as those in video games


ConstitutionHugger's picture


How many $100 million pennies is that?

Just elect Ron Paul and he'll

Restore America Now!

"If we lose freedom here there's no place to escape to. This is the last stand on earth." -Ronald Reagan

When they took us off the Gold Standard they took away our money... in order to make it theirs. -OneTinSoldier

NWO is coming

Hardly anyone knows about this situation, maybe the Mayans were right after all.

That's 100 years of worldwide GDP, good GOD !

When that bubble pops, ducking will not help !

Drew, by the very grace of GOD through the blood of Christ Jesus.
"there shall come after us men whom shall garner great wealth using our system, and having done so shall seek to slam the door of prosperity behind them." George Washington

That's chilling, so if

If this house of cards gos down, what does the aftermath look like?

When they can no longer control the 'status',

when investors get too nervous, this will implode in such a horrible way. How much longer can they claim Greece is not in default? Greece, the birthplace of democracy, will be the one to bring down the elite banksters. The banksters, in turn, will bring down the world. Speculation is 6 months. That coincides with Israel's projected attack on Iran. Hmmm ...