➡ The financial system is in danger due to risky practices by large banks and an unstable derivatives market. The government has been supporting these banks, leading to a bubble that could burst and cause a major economic crash. This crash could wipe out savings, retirement funds, and pensions, leading to a financial crisis. The derivatives market, where bets are placed on the future value of assets, is a major contributor to this potential crisis.
➡ The U.S. dollar is declining due to political decisions and civil unrest, causing a drop in stock markets and a rise in gold prices. The Federal Reserve’s attempts to stabilize the markets are causing more fear. This has led to a massive sell-off in Asian markets and a halt in gold and silver sales worldwide. The situation is causing panic, but the advice is to secure real assets and prepare for the future.

Ladies and gentlemen, the financial system is on life support, and the cracks are turning into full-blown fractures. Markets are tanking, inflation is squeezing the middle class, and the same too-big-to-fail banks that triggered past crises are now bigger, riskier, and more reckless than ever. The so-called experts tell us to stay calm, but we’ve seen this before. Bubbles don’t pop slowly. They explode, and when they do, retirement savings, pensions, and the entire economy go up in flames. This isn’t just another downturn. This is the engineered collapse they’ve been planning, a reset designed to strip wealth from everyday Americans while the elites consolidate power.

The Federal Reserve will step in with their usual tricks, printing more money, bailing out their corporate cronies. But that won’t stop what’s coming. The debt is unsustainable, the derivatives market is a ticking time bomb, and when it all comes crashing down, they’ll tell you it was an accident. But we know better. This coming crash will wipe out the entire U.S. financial sector and take with it savings, deposits, retirement funds, pensions. It’ll be nothing short of a financial bloodbath. How can this be possible? Well, remember how bubbles are created when something seems to grow indefinitely? The delusion is that something is too big to fail.

But the bigger the bubble becomes, the faster it fails. Right now, people think big banks can’t fail because of their size and importance in the world economy. It is as blatant as their name suggests. How did we get here? On September 18th, 2008, Hank Paulson, the U.S. Secretary of the Treasury, told members of Congress that $5.5 trillion in wealth would disappear by 2 p.m. that day, unless the government took immediate action. What took place next was undoubtedly the biggest blackmail in history. The threat, keep the big banks alive, or else the economy implodes and depositors lose their money.

In December 2008, the first of many financial stability measures was put into place. The Fed’s mission from now on was to keep the big banks alive no matter what. Economists calculated that the total cost of the various measures put into place to accommodate big banks was in excess of $20 trillion up to this year. The too big to fail banks now had a taxpayer-sponsored safety net. The message was clear. Do whatever risky business you want. We’ve got your back. And this is how Congress and the Federal Reserve created the ultimate bubble. The too big to fail bubble.

The idea that the too big to fails were going to get cut down to size after the financial crisis has turned into a giant myth. In fact, they’ve become even bigger. JPMorgan Chase, number one among banks and total assets, has seen its base swell to more than $2.5 trillion. The company’s deposit base alone has grown by 29% since the end of 2008. The so-called big four institutions, J.P. Morgan, Bank of America, Citigroup, and Wells Fargo continue to distance themselves from the pack with some $8.2 trillion in total assets. That’s 154% more than the rest of the top 50 banks combined.

Unfortunately, the old saying, the bigger they are, the harder they fall, will prove correct. And when they collapse, the result will be nothing short of catastrophic for the world economy. But for a bubble to inflate, you also need an asset on which speculation, or rather gambling, has become so rampant and so over-the-top that a disaster is just waiting to happen. We introduce you to the world’s biggest and most dangerous casino. It’s called the derivatives market. And right now, the total net worth of all outstanding derivatives contracts is a staggering $552.9 trillion, according to the Bank for International Settlements.

$552.9 trillion. Let that number sink in for a moment. Total U.S. debt right now stands close to $19 trillion, and most Americans find that shocking. But very few have any idea of how big this financial market is. The entire economy of the world, in real goods and services, is evaluated at around $78 trillion annually. The derivative market is seven times the value of every good and every service provided around the world in an entire year. At first, I thought this number was too big to be real. But the Office of the Comptroller of the Currency, Independent Bureau of the U.S.

Department of the Treasury, confirms it. Make no mistake, you are looking at the biggest bubble in the history of mankind. Something seven times greater than the entire economy of the world. So what exactly is a derivative? A derivative is a speculative contract. A bet placed on stocks, mortgages, interest rates, the price of commodities like gold, silver, coffee, oil, or the possibility of a company or even a nation to default. Basically, right now, there is nothing of economic worth that does not have some sort of derivative attached to it. All derivatives are bets. This is not a metaphor, an analogy, or a generalization.

The players on the derivative market gamble trillions on the future price of the asset to which the derivative is attached. These are the speculative contracts that will eventually pop the current gigantic bubble. Warren Buffett once referred to derivatives as financial weapons of mass destruction, and he was proven right. The CDOs that led to the crash of 2008 were derivatives, as they drew their value from interest payments on mortgages and housing prices. They were traded on this market just like all the other derivatives, and they were just a tiny part of the market. In 2008, there were about $500 billion worth of CDOs.

That was only a very tiny fraction of the derivatives market, yet it was enough to almost collapse the economy of the world. Remember how I said that this is the world’s largest casino? In a nutshell, the derivatives market, or more correctly put, the derivatives casino, is where big banks and other financial institutions place their bets on every aspect of the world economy. Yet with these bets, everybody loses. So how did this bubble inflate to more than $550 trillion? Say Jack controls the derivative department of one of the too big to fail banks. He knows that the riskier the bet, the higher the profit he gets, and the bigger his bonus.

And he thinks, just like everyone else, that if he loses, the Federal Reserve will bail him out just like in 2008. What do you think Jack would do? How much do you think Jack would bet on derivatives? Well, the Office of the Comptroller of the Currency has the exact numbers. Overall, the biggest U.S. banks collectively have more than $51 trillion. More than $247 trillion of exposure to derivatives contracts. This is an amount of money that is more than 13 times the size of the U.S. national debt. And it’s a ticking time bomb that could set off financial Armageddon at any moment.

This is gambling on the future of the world economy on an unprecedented scale. And just like every other bubble before it, the too big to fail derivatives bubble will burst. The bubble to end all bubbles, because of its sheer size. It’s inflated to a size far greater than the dot-com bubble and the mortgage CDO bubble combined. This is the final piece of the puzzle. The Fed interest rate hike, the experts claiming everything is okay, the real economy slowing down, and the bubble that is inflated to an unsustainable size. This will make the Great Depression of the 30s and the Great Recession of 2008 feel like a picnic.

So what would a crash look like? 951 a.m. New York. Dow futures fall 850 points in the first 20 minutes of trading. Markets are halted for one hour by the authorities. 10 a.m. Main Street, America. The news about the stock market now spread. A panic begins to sit in as unprepared Americans rush to the grocery store. In an attempt to purchase food and water, Americans that didn’t know what was going on are alerted by all of the news stories and panic buying. Within 50 minutes, there’s a nationwide rush to the stores. Empty store shelves in America become a reality.

1052 a.m. New York points reopen and the Dow Jones resumes its collapse. Investors around the world join the sell-off in bonds and stocks and begin to purchase commodities. Unlike the panic of 2008, this time commodities are seen as the only safe haven from a dollar crisis. 1130 a.m. New York. The Dow falls 1,700 points since reopening. Trading is halted for at least two hours. The Fed Reserve injects $200 billion into the markets and announces the QE for will be delayed until further notice. Congress has called back to D.C. for an emergency joint session. Some members of Congress are saying that they consider China’s statement a financial attack.

12 p.m. Main Street, America. Several cities begin to see civil unrest after grocery stores are forced to close. Traffic in the streets and violence break out. The president puts the National Guard on alert for a possible deployment on the U.S. streets if things don’t get under control soon. Several news agencies are reporting injuries at grocery chains and call for the authorities to do something. It’s worse. 1215 p.m. Toronto, Canada. George Soros tells CNBC that a run on Treasuries is imminent and that there is nothing the government can do to stop it. He says it is unfortunate that a controlled decline of the dollar was not coordinated better over the years.

Today really could have been avoided if not for the Tea Party politicians who demanded fiscal responsibility and a constitutional government. At 3 p.m. gold closes at $11.53 for the day at $4,053 per ounce. Silver closes at $173 per ounce. The president announces that due to civil unrest in some areas of the country, U.S. stock markets will remain closed for the rest of the day with the exception of mining and other inflation related stocks. The majority of U.S. stocks are down significantly due to the sell-off in flight to safety and commodities. The Federal Reserve announces that it will begin to purchase U.S.

Treasuries and stocks in order to stabilize the markets. But this only feeds investors fears of a full-blown treasury run and collapse of the dollar. 6 p.m. Asia. Asian markets begin a massive sell-off. Dollar collapse rumors begin to take hold of the markets. CNBC Asia looks into a possible comics default and complete breakdown in the U.S. economy. Gold spikes in Asia. Up 1715, the first complete hour of trading, gold is now at $5,803. 7 p.m. gold and silver bullion dealers across the world have suspended all sales due to no inventory. In comics, default is now expected.

Several central bank representatives propose a freeze on currency markets and a fixed evaluation of the U.S. dollar in order to calm investors. 730 p.m. the United States. The sun sets on America. In the last 12 hours, the world has changed. Americans are glued to their televisions, taking a crash course on a debauched currency. People from fires in the cities have put a dark cloud on the nation. The writing is on the wall, folks. The system isn’t just breaking, it’s being dismantled on purpose. The same bankers and bureaucrats who caused this disaster will pretend to be the heroes, offering solutions that only tighten their grip on power.

But we don’t have to play their game. Get your money out of their failing system, secure real assets, and prepare for what’s coming. Because when the dust settles, only those who saw through the lies will be standing. Stay sharp, stay free, and as always, God bless you all. [tr:trw].