Is the End Game Hyperinflation or Debt Implosion?
by W Lorimer Wilson
Mon, 2 Aug 2010
“The collapse of the U.S. economy is a certainty – only the manner in which it will happen has yet to be determined. It is just a matter of time before the global derivatives bubble will produce the same result that has occurred to every other currency not backed by gold throughout history – those currencies, our ‘money’, will become worthless.”
Those were the alarming words of Jeff Nielson of BullionBullsCanada.com in a recent speech* which has been edited and reformatted below (with his permission) for the sake of brevity and clarity.
Derivatives: An Unregulated One Quadrillion Dollar Market
“Warren Buffett once described derivatives as ‘financial weapons of mass destruction’ – and for a very good reason. While U.S. ‘unfunded liabilities’ are larger than the entire global economy, the derivatives market is 20 times larger than the entire global economy – at an astonishing $1 quadrillion. Yes, you heard me correctly – $1 quadrillion!And get this – this derivative market is totally unregulated. It is totally lacking in transparency, meaning that all we know about this $1 quadrillion mountain of banker-paper is what the bankers tell us.”