Weapons of Mass Destruction.

Kia Ora,

Warren Buffett once called derivatives used in trading "Weapons of Mass Destruction".


It is now becoming more apparent why.

The US is now officially allowed to have US$14 trillion dollars of debt, but off book it already has US$120 Trillion.

What is a trillion? Well someone put it like this to count a million dollars at one dollar a second would take 12 days, a billion 32 years & a trillion 32,000 years.

So I would hate to think what a quadrillion would take. But the derivatives market is now trading in a shadowy banking world to the tune of quadrillions & things are not looking good.

A well informed source tells me that recently ETF's (Electronically Traded funds) that have until now allowed to be redeemed in what commodity you were trading in have recently be quietly changed to say they can not now be redeemed for gold or silver.

That sort of thing usually happens when someone is expecting things to change.

One of those reasons is likley the exposeure that is sure to come from the court case to expose the fact that there never has being the gold or silver available to cover those ETF's.

The same with the claim that the US holds the most gold in the world. it does but it doesn't. The IMF holds a caveat or lien over that gold for debt owed.

Apparently this was only discovered when Gold hit its highs in 1980 & Ronald Reagan looked to go back on the Gold standard.  Encouraged by his wife Nancy because of rumours they were hearing he instigated a report to be done on the state of the US Gold reserves.

There weren't any so to speak as it really now belongs to the IMF.

Meanwhile in the land of smoke & mirrors does anyone know why they pay tax?

Essentially it is to pay off the interest to the central banks on the money governments have borrowed to run the government.

Most  developed countries are now in the region where the interest payments are now greater than their GDP (what the country makes in a year from exports & the like).

Much of it until now has being in the private sector or personal debt (which is still extremely high in Aussie & NZ, but the local banks have loaned heavily offshore so they are about to be hit with rises in interest rates from offshore), but has being replaced a lot by the government bail outs, so public or government debt. Therefore more money has had to be borrowed (printed) & therefore the interest bill is rising.

That is going to result in tax rises everywhere & then you have the US increasing its healthcare bill. Good reasons but it will raise the countries debt.

So what does all this mean? Just look at Greece. demonstrations, riots & now bombings aimed at immigrants as they might be seen to be taking locals jobs.

In the US the vote over health care has become very emotional. The secret service reports even before that the amount of anti government turned anti Obama plots has risen dramatically.
It will only get worse as the depression we are now in gets worse.