It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Thank you.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Why Is The World Economy Doomed? The Global Financial Pyramid Scheme By The Numbers
Why is the global economy in so much trouble? How can so many people be so absolutely certain that the world financial system is going to crash? Well, the truth is that when you take a look at the cold, hard numbers it is not difficult to see why the global financial pyramid scheme is destined to fail. In the United States today, there is approximately 56 trillion dollars of total debt in our financial system, but there is only about 9 trillion dollars in our bank accounts. So you could take every single penny out of the banks, multiply it by six, and you still would not have enough money to pay off all of our debts. Overall, there is about 190 trillion dollars of total debt on the planet. But global GDP is only about 70 trillion dollars. And the total notional value of all derivatives around the globe is somewhere between 600 trillion and 1500 trillion dollars. So we have a gigantic problem on our hands. The global financial system is a very shaky house of cards that has been constructed on a foundation of debt, leverage and incredibly risky derivatives. We are living in the greatest financial bubble in world history, and it isn't going to take much to topple the entire thing. And when it falls, it is going to be the largest financial disaster in the history of the planet.
The global financial system is more interconnected today than ever before, and a crisis at one major bank or in one area of the world can spread at lightning speed. As I wrote about yesterday, the entire European banking system is leveraged 26 to 1 at this point. A decline in asset values of just 4 percent would totally wipe out the equity of many of those banks, and once a financial panic begins we could potentially see major financial institutions start to go down like dominoes.
Every single day, the total amount of debt will continue to grow faster than the total amount of money until the day that this bubble bursts.
Originally posted by MystikMushroom
I'm not sure who's more of an idiot, the people running the show -- or the masses who let them run the show?
Originally posted by redtic
What cracks me up (ie frustrates me to no end) is the fact that we created this system. We coddled it, fudged it, tweaked it, abused it, worshipped it and raped it to its max and in the end, it's just us. It's not like we are indebted to some overlords on another planet - this is the system we've imposed on ourselves as the human species, and it has the potential to do bring us down. It's like watching an ant colony and seeing them harvest a poison and distribute amongst themselves - you'd be watching this slowly progress and saying a serious "WFT?!?"...
Originally posted by ErgoTheConclusion
Not all of us. Many tried to speak up and even worked to try to prevent and then worked to try to stop it. But they were ignored or silenced.
Not everyone was oblivious or happily complicit. It goes back thousands of years when most people were illiterate... so yes it is a system thrust upon the many by a few via lies murder bribes and deception.