$80 Trillion of off the books debt is being held around the world, exceeds all US dollar assets.

Here is some Thursday doom porn for ya. MAybe some more astute financial peeps can chime in and help my pea brain out on this.

Soooo, it seems that the BAnk of International Settlements has discovered a staggering sum of off the books debt with complicated financial tools similar to those pesky credit default swaps back in 2008.


The sum exceeds every dollar on earth.

The US is the lender and much of the debt is owed b foreign banks.

“It is not even clear how many analysts are aware of the existence of the large off-balance sheet obligations,” the BIS wrote in its report. “In times of crises, policies to restore the smooth flow of short-term dollars in the financial system (e.g., central bank swap lines) are set in a fog.”

www.investopedia.com...

So it look like those setting monetary policy don't even know what others are doing.

www.marketwatch.com...

Most articles so far dont go into the consequences or processes if this thing goes all 2008, but this vid goes into good detail...

a reply to: lakenheath24

I think it’s likely clickbait. That’s not to say there isn’t terrifying debt out there, but I’m wondering how they’re coming to this figure.

My guess is that they’re counting every derivative, which is one of the areas that constantly leads to economic turmoil.

But there’s something grouped into this that’s inflating the number IMO, but they’re not clear on the data set.

If they’re including clearinghouse balances, it’s definitely misleading.

For instance, you sell $10,000 worth of stocks and your broker posts the balance in your account. Technically that transaction takes days to settle, but your broker knows your account history, and the broker the other client purchased under and deems it a low risk to post your balance now. Technically that is done under short term credit or margin.

FX trades are typically futures, and in many cases involve leverage. If you’re on a margin account, typically you have the collateral to back it or will be margin called if your assets drop below the liability threshold.

This isn’t to say we should trust the very institutions that led to many of the economic crisis in recent history. But much of these outstanding debts are going to automatically reconcile or would if needed.

But again, they’re not providing very detailed data points on where they got that figure from.

The American empire is officially done. Our normalcy bias just prevents us from seeing it.

The further you can distance yourself from the federal government the safer you will be. History has shown how this unfolds.

Grow food
Build communities
Trade/barter
Become un-governable

Forget about it and print more ?

a reply to: lakenheath24

Over in the US the formation of the Federal Reserve a private banking corporation that would really rule your nation in all but name and eventually have it's own secret police the CIA as they are called was actually an act of treason against your Constitution.

By the 1950's it was getting out of control and out of hand so the then president Eisenhauer tried to warn the US though he knew he was too late as by that time it was 1961.


It was supposed to be your state legislatures and your federal government that set the value of your money, that printed it and by that it was supposed to be YOU that had power over your own wealth.

Your nations is not the only one that has been usurped, so has ours and so have many others.

Do not hate the CIA most of it's agents are honest, decent men and woman whom would give there lives and HAVE given there lives many times for your nation, however there organisation is not as clean as they may have wanted it to be and it really works for the FED not the government but by this point in time the Fed and the federal government are really the same thing, the federal government are puppets for the private corporation known as the Fed.

No real problem if they had not destroyed our world and pitched us into a new financial dark ages that will see China and even Russia leap frog above us if our own economy's can no longer pay the bill's because more than 65 trillion dollars in the us is missing and even more over here in other western nations, where did it go secret underground city's for the elite, secret space races or grand villas in third world country's for retired and corrupt agent's or all of the above.

(one again I am not singling our your MAIN intelligence agency's our own is every bit as Bad with the MI Agency's having more than there own fair share of corruption though we have no oversight of them while you at least do so in that respect yours is better?)

Or was it just bad book keeping and incompetence.

Only God and God Fearing men can save us now.

The POISON that has driven this hidden destruction has a name, it is called Neo Liberalism, it is not left, it is not right it is the removal of power from the people, the abolishment of borders and the control of the planet by a tiny elite minority whom own the corporations and by that the MIC though to be fair they stole the MIC and have there roots at the start of the twentieth century or even earlier, they tries socialism it did not work for them and was a bucking donkey they could not ride, they tried it in Ecuador then in Portugal and then in Russia and lost control of it, they also tried it with the NAZI's but lost control of them too so they went the whole hog with the Neo Liberal ideology keeping there wealth and control of the bank's and moving to consolidate that wealth and control those bank's which they definitely now do including the FED and the other international and national institutions of money, power and wealth and they would happily slaughter every single one of us to achieve there aim's.

If I remember correctly the Fed was created illegally while most of your Senators were on a break as it's formation (Something previous presidents who had been assassinated for trying to prevent) was legally AGAINST the rules of your constitution as it took control of the money away from your democracy and so away from your people and put it into the hands of a private corporation a banking institution.

a reply to: lakenheath24
Sounds….
Too big to fail.
Remember that term?
It will just cost us more this time.

originally posted by: CriticalStinker
a reply to: lakenheath24

I think it’s likely clickbait. That’s not to say there isn’t terrifying debt out there, but I’m wondering how they’re coming to this figure.

I didn't read this specific article, but others quoting the same number were talking about FX swaps for mostly non-US pensions and it's just the hidden swaps. It was marketed as inflation hedging, borrowing in US$ and loaning in another currency at the going rate with a middleman sucking up a few points in between. Like everything there is a scheming middleman selling pipe dreams while taking a fee for facilitating risky services and who will not be left holding the bag when it all crashes down. It's not like they're ever terribly transparent and that they're hidden swaps means they have to derive the figure.

Part of the rising dollar was likely based on liquidity crunches as debtors try to meet their obligations. Look no further than the US overnight repos at their staggering levels. They're going to have to come up with something because they're still years away from scheduled instant CBDC settlement. How is it we still have liquidity issues when the retail and commercial sector has died? Debt has far outstripped our ability to pay it.

The total US derivitive debt is around 2 quadrillion and no amount of lies about the economy and inflation reduction is going to pay it off. When the economy was still running full steam ahead we'd already had a liquidity crisis a couple years ago that required rapid changes to allocated amounts available to banks. They've been slowly enabling more and more cards to be stacked on less and less stable foundations for several years. The lockdowns and intentional destructions of small businesses only made it worse.

It's only clickbait for those that don't understand how bad the bigger picture is. This is just one more in a series of shockingly bad situations that have been allowed to happen. This irresponsible spending into a hole is likely going to result in the most deadly intersection of poverty and starvation in history as the WEF ideology causes food prices to skyrocket and US$ dependent nations struggle to meet their needs.

a reply to: Ksihkehe

Yea, I don’t want to downplay it, it’s just tricky since the topic is vague.

In 08’ the issue was junk mortgages being rated as A investments and bundled with other products and sold to pensions, retirement plans, or other retail assets. Banks and hedge funds also held a bunch and many fell as a result.

If this is just risky traders who only lose their bag, it’s not the end of the world.

I’ve looked into ETF holdings though and rarely see FX products, at least the good ones. FX is typically reserved for day traders.

All I can say is prepare for war to come to our shores.

So for the past 80 years the dollar has been the world’s reserve currency and oil has traded in dollars. There are trillions of US dollars circulating the planet. If you travel to a 3rd world country you would know that the locals always prefer green backs to their local currency.

But this also has meant that the USA has exported inflation all around the world as well. Well those dollars are coming back to the USA in the form of a stronger dollar. Also many countries are dumping US treasury notes for Gold.

The chickens are coming home to roost and the dollars days are numbered. This debt load this thread talks about is going to implode. Soon our money will be worthless.

a reply to: lakenheath24

Set up to introduce CBDC on a large scale.

originally posted by: butcherguy
a reply to: lakenheath24
Sounds….
Too big to fail.
Remember that term?
It will just cost us more this time.

It will cost us everything.

Sh!t is getting real.

a reply to: CriticalStinker

In 08’ the issue was junk mortgages being rated as A investments and bundled with other products and sold to pensions, retirement plans, or other retail assets. Banks and hedge funds also held a bunch and many fell as a result.

And they were doing just fine running that until they couldn't. Fed the lies, until they couldn't. Swore people were going to jail and no one did.

Before the dust even settled, they were back at it.

We are in a slightly different time, for now. Unemployment is rising, and will continue to rise and this time too, it will break. The devistation will be larger this time because the dollar and asset pool is larger.

The argument can still work without the exact numbers being correct.

originally posted by: Wide-Eyes

originally posted by: butcherguy
a reply to: lakenheath24
Sounds….
Too big to fail.
Remember that term?
It will just cost us more this time.

It will cost us everything.

Sh!t is getting real.

Us...lol.

Yep, us, but certainly not them and that's the issue.

a reply to: CriticalStinker


That's the point, there is no discernable leverage here. And this is from the Central Bank of Central Banks, so I doubt its clickbait, especially as the MSM hasn't really gotten hold og it.

a reply to: Spacespider


Debt ceiling? Whats that? Wish I could raise mine, but then again, I don't have 400 years to pay off debts like gubments do.

a reply to: butcherguy


As the vid said, each new catastrophe breeds new regs, and new support.


Now the fed has direct line to pump dollars to other countries as it deems fit.

How is it we have money for that, but cant pave the damn roads???

a reply to: Ksihkehe

It makes zero sense to me that a Japanese insurance company buys dollars to buy Euros which need to be repaid in 24 hours. What kinda voodoo is that????

a reply to: CriticalStinker


Its 5 trillion in trades per DAY. And off the books, so maybe thats why you dont see anything.

a reply to: Brassmonkey

But its the world that owes dollars to the US. So you got that bass ackwards.