ThaBigFella LSU Fan baton rouge Member since Apr 2006 2043 posts
Can Someone explain the 1.5 Quadrillion derivative bubble?Posted by ThaBigFella on 2/19/13 at 10:45 am
I was just watching a small piece on one of the news channels and an analyst was mentioning this gigantic 1.5 quadrillion(never heard the number) bubble that will burst soon and all currencies will be worthless he said. Then we'll all be wearing tin foil hats and trading silver coins for snickers bars.....I know its probably just nonsense....but can anyone explain the gigantic derivative bubble he mentions
Central bankers can keep the balls in the air a lot longer than you think. Look at Japan. They have been doing QE for almost 15 years, have a debt to GDP ratio more than triple the US and they still haven't collapsed.
Obama and the Sec. of the Treasury Printing paper money to cover the 1.2 Trillion in deficit spending,instead of modest cuts, combined with very low interest rates is causing this. The borrowing is cheap, practically no interest costs, produces a lot of derivatives that are cheap, that Wall Street uses for investments. It's getting bigger and bigger and could collapse in a few years. If Obama continues this for 4 more years, I predict colapse in about 5 or 6 years. It'll be just like Greece and Western Europe.