The Economy Comes Unglued - Paul Craig Roberts
Submitted by Calgary4Paul on Wed, 06/06/2012 - 11:22"Everyone wants a solution, so I will provide one. The US government should simply cancel the $230 trillion in derivative bets, declaring them null and void. As no real assets are involved, merely gambling on notional values, the only major effect of closing out or netting all the swaps (mostly over-the-counter contracts between counter-parties) would be to take $230 trillion of leveraged risk out of the financial system. The financial gangsters who want to continue enjoying betting gains while the public underwrites their losses would scream and yell about the sanctity of contracts. However, a government that can murder its own citizens or throw them into dungeons without due process can abolish all the contracts it wants in the name of national security. And most certainly, unlike the war on terror, purging the financial system of the gambling derivatives would vastly improve national security."
http://www.counterpunch.org/2012/06/06/the-economy-comes-ung...
Those are some huge numbers
"It is difficult to imagine a more reckless and unstable position for a bank to place itself in, but Goldman Sachs takes the cake. That bank’s $44 trillion in derivative bets is covered by only $19 billion in risk-based capital, resulting in bets 2,295 times larger than the capital that covers them".
Glass-Steagall was there for a reason! Unckle Ben, you are going to need a bigger helicopter!
I've been saying this
for about a year now, this so called debt is based on gambling, it's a fiat debt based on NOTHING.
The American Citizens did NOT sign an agreement with the Banksters, the Criminals in Washington did. Let them pay for it.
Just like the criminal thugs to gamble the wealth and expect the US Citizens to pay for their loss. Not going to happen.
They made the debt out of thin air, let them remove it out of thin air.
F em
BUT---
the people who caused this mess should be dealt with strongly.
INFLATION has resulted. MASSIVE MONEY PRINTING has occurred, and you want no one to pay for this??