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“The original purpose of derivatives was to help farmers and other producers manage the risks of dramatic changes in the markets for raw materials. But in recent times they have exploded into powerful vehicles for (borrowing to gamble). In their basic form, derivatives are just bets – a giant casino in which players hedge against a variety of changes in market conditions (interest rates, exchange rates, defaults, etc.). They are sold as insurance against risk, which is passed off to the counterparty to the bet. But the risk is still there, and if the counterparty can’t pay, both parties lose”.

We now have $455.8 trillion owned by JP Morgan alone. Derivatives are a global casino, an interconnected house of cards.

Read in Global Research

The post The Quadrillion Dollars Derivative Tsunami Coming Right Up! appeared first on Socialist Planning Beyond Capitalism.




Source: Socialistplanningbeyondcapitalism.org