MS: Could 65 Trillion Dollars In “Hidden” Derivatives Cause The Entire Global Financial System To Crash?


Notice the following:

December 6, 2022

Government officials have been attempting to stimulate the world economy for 15 years using measures like money creation, zero interest rate policies, and more recently, strong COVID fiscal stimulus. … Money inexorably sought increasingly risky assets …

In the meantime, the total amount of debt in the world has increased by $85 trillion over the last five years.

Michael Snyder posted the following:

Could 65 Trillion Dollars In “Hidden” Derivatives Cause The Entire Global Financial System To Crash?

December 5, 2022

If you thought that the collapse of FTX was something, just wait until the entire global financial system comes crashing down all around us.  Most people just assume that the system is being managed by rational people that behave in rational ways, but of course countless investors assumed the same things about FTX.  Sadly, the global financial system has slowly but surely been transformed into the largest casino in the history of the world.  It is a colossal Ponzi scheme, and once in a while authorities give us a little peek into what is really going on behind the curtain.

For example, this week the Bank for International Settlements released a report that warned that 65 trillion dollars in “hidden” currency derivatives could potentially be a major threat to the stability of the entire system

Last year, the total value of all goods and services produced in the entire world was just 96 trillion dollars.

So we are talking about an amount of money that is almost unimaginable.

Everything will be okay as long as financial conditions remain relatively stable.

But BIS analysts warn that “the next time dollar funding liquidity is squeezed” we could have an enormous crisis on our hands…

According to the BIS report, banks outside the U.S. are particularly vulnerable

For researchers at the BIS, it’s the sheer scale of the swaps that’s worrying. They estimate that banks headquartered outside the US carry $39 trillion of this debt — more than double their on-balance sheet obligations and ten times their capital. …

In all my years of writing, I have never been more concerned about the short-term economic outlook them I am right now.

It is very likely that 2023 will be a really hard year for the U.S. economy, and of course this comes at a time when the entire globe is being hit by crisis after crisis.

Yes, US and foreign (European) banks are highly involved with dangerous financial items like derivatives. The Biden-Harris Administration, like the Trump-Pence and Obama-Biden Administrations before it, has been recklessly increasing debt.

In many ways the “house of cards”, that the financial systems in the Western nations are linked to, will collapse.

As far as risks associated with derivatives go, notice the following:

The world’s scariest story: trading in derivatives

Bad as these scandals are and vast as the money involved in them is by any normal standard, they are mere blips on the screen, compared to the risk that is still staring us in the face: the lack of transparency in derivative trading that now totals in notional amount more than $700 trillion. That is more than ten times the size of the entire world economy. Yet incredibly, we have little information about it or its implications for the financial strength of any of the big banks.

Moreover the derivatives market is steadily growing. “The total notional value, or face value, of the global derivatives market when the housing bubble popped in 2007 stood at around $500 trillion… The Over-The-Counter derivatives market alone had grown to a notional value of at least $648 trillion as of the end of 2011… the market is likely worth closer to $707 trillion and perhaps more,” writes analyst Jenny Walsh in The Paper Boat.

The market has grown so unfathomably vast, the global economy is at risk of massive damage should even a small percentage of contracts go sour.  Its size and potential influence are difficult just to comprehend, let alone assess.”

The bulk of this derivative trading is conducted by the big banks. Bankers generally assume that the likely risk of gain or loss on derivatives is much smaller than their “notional amount.” Wells Fargo for instance says the concept “is not, when viewed in isolation, a meaningful measure of the risk profile of the instruments” and “many of its derivatives offset each other”.

However as we learned in 2008, it is possible to lose a large portion of the “notional amount” of a derivatives trade if the bet goes terribly wrong, particularly if the bet is linked to other bets, resulting in losses by other organizations occurring at the same time. The ripple effects can be massive and unpredictable.

Banks don’t tell investors how much of the “notional amount” that they could lose in a worst-case scenario, nor are they required to.

There are many types of financial transactions that have little, if any, true value and are putting the markets and the world economy at risk.

Now consider the following report from Switzerland this past Spring:


May 5, 2022

As the West is standing on the edge of the precipice, there are only unpalatable outcomes.

At best the world is facing a hyperinflationary depression later followed by deflationary depression. …


Politics and money cannot be separated and the geopolitical situation that has now arisen  will act as a perfect catalyst to the end of the monetary era since the creation of the Fed in 1913.

But what we must remember is that it is primarily the Western controlled monetary system  (including Japan) which will come to an end.

America’s and the EU’s final desperate attempt to save their broken system by sanctions on world trade will eventually fail as the Western economies gradually decay in an economic and social breakdown brought about by a quagmire of currency collapse, deficits, debts and history’s most epic of asset bubbles.

The Phoenix emerging will clearly be the East, led by China with Russia as an important partner. …

Since gold is the ultimate money and the only money that has survived in history, it will have a very important role in coming years as the fiat currency system collapses. …

The current fake monetary system based on $300 trillion of global debt, plus worthless paper assets in the form of derivatives to the extent of around $2 quadrillion, will over coming years collapse under its own worthless weight.

Actually, I would argue that food is “the ultimate money” (since you cannot survive without it, but you can survive without gold).

However, gold has long been recognized as valuable and is more durable than paper/fiat currencies (though it will one day be discarded per Ezekiel 7:19).

As far as the West goes, I believe biblical prophecy supports Europe having at least an implied gold backing of its currency–that is not currently, not really the case, but will change.

Economists, who more and more are mainly political appointees or advocating economic policies to promote certain political agendas, are not, in the main, warning enough about the consequences of debt and derivatives.  It is not that there are no warnings, but they are rarely heeded by political leaders, who often get questionable counsel from the economic advisors.

Where might this lead?

As far as economic concerns go, consider that in a sermon on July 7, 1984, the late Herbert W. Armstrong wrote:

And I can see now, the event that is going to trigger the formation of the reunification in Europe; the resurrection of the medieval Holy Roman Empire that we’ve been looking forward to that is prophesied to come…

But I believe that some event is going to happen suddenly just like out a blue sky that is going to shock the whole world and is going to cause the nations in Europe to realize they must unite! … Well now I think I can see what may be the very event that is going to trigger…that is the economic situation in the world

The whole banking structure in the United States is a network all jointed together. But not only that, one nation has to deal with other nations and imports and exports. And so they have to have a means of transforming money from one nation to another. And so the banking structure is international and interwoven…

Now when the financial structure breaks down, all civilization is going to break down…

The combination of economic issues, civil unrest, immigration matters, Islamic concerns, and signs and wonders apparently will result in a fully unified Europe.

Europe will reorganize (Revelation 17:12-13) and take steps to increase its gold (cf. Daniel 11;40-43).

This will also coincide with increases in the debt of the USA–which will not end well for the USA (Habakkuk 2:6-8) nor its Anglo-Saxon descended allies (cf. Daniel 8:24-25; Jeremiah 30:7).

The USA dollar will end up being worth only its scrap value as the USA itself will fall.

Yes, there are dangers with debt and derivatives.

Some items of possibly related interest may include:

The End of US Dollar Dominance Is the USA losing its economic status? What about the petro-gold-yuan? A related video is also available: US Dollar being challenged by Gold-Petro-Yuan.
The Plain Truth About Gold in Prophecy. How Should a Christian View Gold? What do economists and the Bible teach about gold? Gold and silver may drop in value. Inflation/deflation? What do Christians need to know about gold? A video of related interest may be: Germany, Gold, and the US Dollar.
USA in Prophecy: The Strongest Fortresses Can you point to scriptures, like Daniel 11:39, that point to the USA in the 21st century? This article does. Two related sermon are available: Identifying the USA and its Destruction in Prophecy and Do these 7 prophesies point to the end of the USA?
Who is the King of the West? Why is there no Final End-Time King of the West in Bible Prophecy? Is the United States the King of the West? Here is a version in the Spanish language: ¿Quién es el Rey del Occidente? ¿Por qué no hay un Rey del Occidente en la profecía del tiempo del fin? A related sermon is also available: The Bible, the USA, and the King of the West.
Lost Tribes and Prophecies: What will happen to Australia, the British Isles, Canada, Europe, New Zealand and the United States of America? Where did those people come from? Can you totally rely on DNA? What about other peoples? Do you really know what will happen to Europe and the English-speaking peoples? What about Africa, Asia, South America, and the Islands? This free online book provides scriptural, scientific, historical references, and commentary to address those matters. Here are links to related sermons: Lost tribes, the Bible, and DNA; Lost tribes, prophecies, and identifications; 11 Tribes, 144,000, and Multitudes; Israel, Jeremiah, Tea Tephi, and British Royalty; Gentile European Beast; and Royal Succession, Samaria, and Prophecies.
Europa, the Beast, and the Book of Revelation discusses the largest church since the second/third century, which in a real sense is the eighth church mentioned in the Book of Revelation (it also endorses “eighth day” worship). What church would support the Beast? Here is a link to a video titled: Europe and the ‘Holy Roman Empire’.
The Times of the Gentiles Has there been more than one time of the Gentiles? Are we in it now or in the time of Anglo-America? What will the final time of the Gentiles be like? A related sermon is available and is titled: The Times of the Gentiles.
Biden-Harris: Prophecies and Destruction Can the USA survive two full presidential terms? In what ways are Joe Biden and Kamala Harris apocalyptic? This book has hundreds of prophecies and scriptures to provide details. A Kindle version is also available and you do not need an actual Kindle device to read it. Why? Amazon will allow you to download it to almost any device: Please click HERE to download one of Amazon s Free Reader Apps. After you go to your free Kindle reader app (or if you already have one or a Kindle), you can go to: Biden-Harris: Prophecies and Destruction (Kindle) to get the book in seconds.

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