$80 Trillion…That We Know Of

The Bank of International Settlement (BIS) has finally admitted/warned that there are $80 Trillion in off-balance sheet dollar debts.

And they’re mostly in the form of Foreign Exchange (FX) Swaps.

Wait!

Hold on a second.

What does that mean?

Does the term “Credit Derivative Swaps” sound familiar?

If not, then think 2008 meltdown…where NOTHING got fixed.

Only this time it’s an $80 Trillion in Foreign Exchange alone.

Still confused?

This debt behemoth also involves pension funds and other ‘non-bank’ financial firms who are scared spitless of what could happen if this thing blows up.

And what they’re not telling you is that each ‘debt’ supposedly has a counter-party that has an asset behind it.

So, in theory, it should work out to be net zero.

But…and this is a Very Big Butt…

The $80 Tril is NOT ON the balance sheets of these banks.

So, the BIS decides that it’s time to raise concerns about something that they can’t even explain how it works, let alone find on the major banks balance sheets?

But don’t worry.

The BIS will eventually put their equivalent to Maxine Waters in charge of investigating this problem long after most of the damage is done.

And by damage we mean major defaults across the board for most of the largest financial institutions in the world.

$80 Trillion or possibly Quadrillion?

Keep in mind that the $80 Trillion is what they’ve admitted to knowing about.

But they won’t acknowledge that there are estimates out there that the derivative exposure may be in the Quadrillions.

Some perspective is in order here:

1. One Billion is One Thousand Million
2. One Trillion is One Thousand Billion
3. And One Quadrillion is One thousand Trillion…15 zeros after the 1.
4. The entire World’s GDP is $96 Trillion

Translation:  the numbers involved in the derivatives market are mind boggling.

And they are mathematically impossible to reconcile on anyone’s balance sheet.

Conservatively the $80 Trillion FX swaps are almost as large as the world’s economy.

Read that line again.

So, you shouldn’t be surprised when we constantly remind you why these Boyz want to collapse the world economy.

It’s the perfect set up for the over-indebted nations (Including the USA) to:

1. Default on their debt
2. Usher in Digital Currencies so they can track EVERY TRANSACTION YOU MAKE

Is your head spinning yet?

Again, the question remains: How are you prepared to deal with this?

Learn what moves you should be making before the Political Chaos of 2023 strikes by reading our December issue of “…In Plain English” (HERE).

Share this with a friend…even if they don’t know anything about derivatives or FX Swaps.

They’ll thank YOU later.

Remember: We’re Not Just About Finance.

But we use finance to give you hope.

FYI

************************************