Ed Steer, who is called "correspondent-at-large" at
Casey Research, says, "I see that the derivatives market expanded 44%
last year (according to the BIS) and now sits at $596 Trillion
dollars…that's spelled with a 'T'. If this pace keeps up, by this time
next year, total derivatives will exceed one Quadrillion dollars…that's
spelled with a 'Q'!!!"
............................
Trying heroically to calm down, I take another
look at the sentence, and I can't help but note that global GDP is only
about $50 trillion or so, while the Bank of International Settlements
says that derivatives alone total $596 trillion, which is staggering
enough, but then one's brain is overloaded with the concept of a
quadrillion dollars! $1,000,000,000,000,000.00!
When you divide one quadrillion dollars by the
measly 100 million workers in the USA who have a non-government job
(and thus are the only ones capable of turning a profit through high
value-added work), this comes to the amazing sum of $10,000,000.00 for
each American worker! Bets are made that total 10 million bucks per
private sector worker! How the hell can such bets pay off?
Hell, for the derivatives market to make a profit
of 1% is equivalent to $1 million per worker! Hahahaha! It's so insane
that it doesn't make any sense, and that is why you soon find your
brain whirling, whirling, whirling and you whimper and cry in terror of
the unknown and the terrifying unknowable. ............................ And since we are already talking about derivatives
and how I am such a wimp, David Morgan of silver-investor.com boldly
says that he can "prove perhaps ONE HUNDRED TIMES the amount of silver
exists on paper than exists in the physical world." |
