The Looming $600 Trillion Derivative Crisis! Banks Have Been Trading Gold That Doesn’t Exist


The current situation has been taking a toll on financial institutions the world over. As the economy grounds to a halt, so do many of the daily transactions that keep money moving and ensure the balance of financial markets. As companies start massive layoff programs and furlough their employees, liquidity demand is rising to levels similar to those of long-forgotten bank rushes. In a bid to prevent widespread commercial bank failures and worldwide financial collapse, Central Banks are extending their liquidity facilities and slashing official interest rates. While this does help commercial banks with meeting their immediate needs for cash, it is nothing short of financial Armageddon for investment banks. However, because so many commercial and investment banks are intertwined, policy makers are faced with a situation where, no matter their decision, it will have a negative impact across the board. Whatever Central Banks do, or even if they do nothing at all, dire consequences will follow. In this scenario, their priority becomes damage control, as they try to choose the least harmful options in search of an appropriate balance. What would you do if you were a decision maker? Would you provide cash to hold off the collapse of commercial banks, or would you try to constrain money supply to save investment banks and financial markets?

Read MoreThe Looming $600 Trillion Derivative Crisis! Banks Have Been Trading Gold That Doesn’t Exist

Alert They Are Weaponize Gold For Dollar Collapse 2020 Economic Collapse Video

Will Gold And Silver Replace The Dollar After The Economic Collapse?

The dollar based system had dominated the global trade for decades but with the current economic condition and the instability in the global financial system, questions are arising on whether the dollar will support this very changing monetary system. Many people feel insecure with the current system and in this video, we will look at some of the reasons why the dollar will collapse and a gold based system will take over the global trade and the whole monetary system. Before diving into this, lets first understand what is the collapse of the dollar means.

The collapse of the dollar will happen if the value of the US dollar plummets and those who will be holding dollar-based assets will have to sell them at a very low price. This includes foreign government and investors who own the U.S treasuries. Such a crash can happen if everyone is simultaneously selling dollar based assets and when no one is willing to buy, the price will fall further causing the whole market to panic. If such a crash occurs, the world will shift to assets that are dominated by anything else other than the dollar. Most likely, gold and silver will be the best alternative and this will usher in a new payment system that will be based on gold. This might not happen any time soon but based on the current trend, at one moment it will have to take place.

Read MoreAlert They Are Weaponize Gold For Dollar Collapse 2020 Economic Collapse Video

Alert 200% Proof They Will Start Global Currency Reset 2020 Economic Collapse Video

The Devaluation of the dollar has been happening for the last 70 years or so, especially after 1971. The devaluation of the dollar is a monetary phenomenon and typically driven by lowering interest rates by the federal reserve to increase credit and liquidity. From the moment of the launch of quantitative easing (QE), worried investors have asked, will the U.S. dollar collapse? There are some probable scenarios that might cause a precipitous crisis for the dollar. The most authentic is the dual-threat of high inflation and high debt, a scenario in which increasing consumer prices force the Fed to raise interest rates sharply. Much of the national debt is made up of relatively short-term instruments, so a spike in rates would act like an adjustable-rate mortgage after the teaser period ends. If the U.S. government struggled to afford its interest payments, foreign creditors could dump the dollar and trigger a collapse. A reset means the banksters will have to increase the price of the gold. They own tons of it so that they can cover their derivative positions … This reset is needed to hinder the most significant and fastest increase in global debt in half a century from exploding … But for the average middle-class family or pensioner on Social Security, it will mean “huge inflation”… As the reset will imply “an exponential increase in the quantity of money” by the Fed (meaning high inflation in the prices of everything) … Excluding for maybe “some food items” that are subsidized by the government to impede people “with pensions linked to the chained CPI” from literally starving!!

Read MoreAlert 200% Proof They Will Start Global Currency Reset 2020 Economic Collapse Video