The Coming Global Markets Collapse

Not a Crash! But a Total Financial System failure of Epic Proportion

is coming possibly by Year 2013 end. Posted July 21 2013 - Lharmen

By the Numbers:

 
  Derivatives / Credit Market stands at approximately 615 trillion dollars. This Market has nowhere but down from here to go = Derivatives/Debt Market crash. In all other crash's in our modern, past 100 years, history we saw the stocks markets crash but never ever have we had a market like the Derivatives/Credit market crash right along with the Global Stock markets crash. PIIGS Nations are failing and the E.U. As a whole is a risk if they go a Market 4 time that of the U.S. banking system Fails and it could start to fail any day!. We Just saw Detroit fail to the tune of 18 billion with 100 creditors out this money. California is on the brink of Financial disaster. Add it up their is no repair by New World Orders design. The fed did all this by design to bring in a New World Mafia order. Ben Bernanke Just said he was cutting the market funding by year end to a tune of 80 billion a months can you see or are you the walking dead we are headed for the Global Market Collapse before this year end.

http://www.guardian.co.uk/business/2013/may/22/federal-reserve-ben-bernanke-stimulus-bubbles "All things considered, we still think that the Fed will begin to curb its asset purchases before the end of the year, with a complete halt sometime in the first half of next year," said Paul Ashworth, chief US economist at Capital Economics.

The Global GDS is 84.97 trillion as of 2012.

That is why we are looking at an unprecedented economic crisis unfolding before the end of this year 2013. Not a crash but an end of the Global financial system. The Federal Reserve has stated they will stop Monetary easing by the end of 2013 then this, created out of thin air print the money system, collapses by the end of 2013 by FEDERAL RESERVES design = New World Order ECommerce Bar code "tattoo" for all purchases Globally = "Mark" of the Beast . The Fed just warned they are about to cut off the fund of this market to the tune of 80 billion a month by end of this 2013 year. That is all that is holding up both the stock market and the credit markets today so if you stop funding the markets then you are left with a Global financial collapse that has never been seen in our history and I doubt will ever be repeated because of the disastrous fall out that is to come possibly and very possibly before this year 2013 end.

Notice that by 2011 the derivatives market was about 47 times the size of the US GDP! One thing to note with derivatives: it is a market without oversight. In other words, just because we can track dollars in the market, we don’t know the terms of the derivatives contract. Take a look at the Frontline documentary: “Money, Power, and Wall street”. It is a great look at the recession and contributing factors. Check the references.

**References**

http://www.bis.org/index.htm

http://www.imf.org/external/data.htm

http://www.pbs.org/wgbh/pages/frontline/money-power-wall-street/

Capital Market vs. Derivatives Market

Financial markets, including capital and derivatives markets, are worldwide exchanges for small and large businesses to raise capital and hedge against different types of risks. Capital markets include stock and bond markets, and derivatives markets include futures and options markets. Investors may invest in these markets directly through banks and online stockbrokers and indirectly through mutual funds and pension funds. http://en.wikipedia.org/wiki/Derivatives_market

Derivatives market

The derivatives market is the financial market for derivatives, financial instruments like futures contracts or options, which are derived from other forms of assets.

The market can be divided into two, that for exchange-traded derivatives and that for over-the-counter derivatives. The legal nature of these products is very different as well as the way they are traded, though many market participants are active in both.

http://en.wikipedia.org/wiki/Derivatives_market

Futures markets

Futures exchanges, such as Euronext.liffe and the Chicago Mercantile Exchange, trade in standardized derivative contracts. These are options contracts and futures contracts on a whole range of underlying products. The members of the exchange hold positions in these contracts with the exchange, who acts as central counterparty. When one party goes long (buys a futures contract), another goes short (sells). When a new contract is introduced, the total position in the contract is zero. Therefore, the sum of all the long positions must be equal to the sum of all the short positions. In other words, risk is transferred from one party to another. The total notional amount of all the outstanding positions at the end of June 2004 stood at $53 trillion. (source: Bank for International Settlements (BIS): [1]). That figure grew to $81 trillion by the end of March 2008

Over-the-counter markets

Tailor-made derivatives, not traded on a futures exchange are traded on over-the-counter markets, also known as the OTC market. These consist of investment banks who have traders who make markets in these derivatives, and clients such as hedge funds, commercial banks, government sponsored enterprises, etc. Products that are always traded over-the-counter are swaps, forward rate agreements, forward contracts, credit derivatives, accumulators etc. The total notional amount of all the outstanding positions at the end of June 2004 stood at $220 trillion. (source: BIS: [3]). By the end of 2007 this figure had risen to $596 trillion and in 2009 it stood at $615 trillion.

http://www.bis.org/publ/qtrpdf/r_qt0712.pdf

Crunch the numbers pegs 2012 at approximately $615 trillion dollars.

http://www.crunchthenumbers.net/crunch-the-numbers/2012/6/22/how-big-is-the-derivatives-market.html

in comparison the entire

Worlds Gross Domestic product  July 2013

The gross world product (GWP) is the combined gross national product of all the countries in the world. Because imports and exports balance exactly when considering the whole world, this also equals the total global gross domestic product (GDP).[nb 1] In 2012, the GWP totaled approximately US$84.97 trillion in terms of purchasing power parity (PPP), while the per capita GWP was approximately US$12,400.[2] In nominal terms, the total 2012 GWP was around US$71.83 trillion.[2]

http://en.wikipedia.org/wiki/Gross_world_product

Size of Derivatives markets July 2013 No one knows ??????

Again this Explains Derivatives

Derivatives are a form of investment that depend on changes in a particular financial instrument. They are typically characterized by contractual obligations between two parties with opposing ideas of market conditions. Additionally, most derivatives are highly leveraged, which means that the risk-to-reward ratio is high. There are many kinds of derivatives available to market participants.

Stock Options

Stock options are among the most popular yet risky derivatives available to investors and traders. A stock option is a contract to either buy or sell a specific stock at a set price at any time before the contract expiration. A option provides the option buyer the right to buy stock at the specified price while a option offers the right to sell stock at a pre-determined price. In the United States, a single contract controls 100 shares of stock. For example, if a stock with ticker ABC is trading at $100 per share, a call option may provide the buyer the right to purchase shares of ABC at $110 per share at any time between the contract purchase and its expiration date. The contract may expire within the month or years from now. The contract has little value to the option holder unless ABC rises in price. But if ABC eventually trades for $120 per share, the call holder can purchase shares at a discount to the market rate. Alternatively, the option-holder can simply sell the contract on the open market for a profit, as the contract is now more valuable.

Futures

Futures are speculative derivatives where the underlying entity is a stock market index, a commodity such as beef or corn or other economic vehicles. The two parties in a futures contract are simply speculating on the future value of the underlying entity and making a wager of sorts based on this opinion. Futures are "cash-settled" derivatives that trade on the open market. While stock options settle in actual shares should the option holder choose to execute the contract, futures do not provide a contractual item or entity as part of the derivative's terms. Instead, if the holder of a future contract chooses to execute its terms, she simply receives cash if her speculation was correct. Most often, futures traders simply sell the contract itself later for a profit or loss caused by changes in the underlying's value.

Forwards

A forward contract is drawn up between two parties who agree to transfer cash between each other based on the outcome of market conditions. Each party has an opposing opinion of how the underlying entity is likely to change in value. The underlying entity can be anything as the contract is entirely customizable. For example, the two parties may structure the forwards contract around the prediction of a price change in a single stock or an entire stock market index. When the stock moves, one of the contract's members was correct in their prediction while the other was wrong. Thus, the loser pays the winner the cash specified by the contract. But these contracts can be much more complex than this as there is no limit to the creativity the contract's participants may use when drafting the agreement. Futures are one form of a forward, but they are standardized to facilitate easy trading by the masses. Non-futures forwards are not traded on any exchange.

Expected Global growth is at around 4 percent as per the chart below:

The table below gives recent percentage values for overall GWP growth through 2011, and estimates for 2012 and 2013, according to the International Monetary Fund (IMF)'s 2011 World Economic Outlook database. Data is given in terms of constant year-on-year prices, based on purchasing power parity.[3][4][5][6]

Economic growth rates (%)

Region                        2006 2007 2008 2009 2010 2011 2012 (est.) 2013 (est.)

World                          5.1    5.2   3.0  -0.5   5.3   3.9    3.5            3.9

Advanced economies    3.0    2.7   0.6   -3.4  3.2    1.6   1.4            1.9

Eurozone                     2.9    2.7   0.7  -4.0   1.9    1.5   -0.3           0.7

USA                            2.7     2.1  0.4  -2.6   3.0     1.7   2.0            2.3

Developing countries   7.9     8.3  6.0   2.8    7.5     6.2   5.6            5.9

 

Names for Large numbers:

http://www.unc.edu/~rowlett/units/large.html

What number comes after trillion the answer is

Million/Billion/Trillion/Quadrillion.....