The Economy In The West Is Backed by Hot Air
Take a second to check out the below infographic…
This compares top US banks and Chinese banks and their assets and derivatives.
The assets that are represented by the green bars are actual things of value. In contrast, the derivatives represented by the pink bars are investment tools, financial vehicles, and other imaginary values created by showing the assets as collateral.
Basically, derivatives are imaginary assets that have value only because they are ‘backed’ by an actual asset.
They are financial ‘products’ created to be bought and sold for investment and profit — they have a scarce connection to the real world and the real economy other than being considered ‘backed’ by the actual assets.
They are bought, sold, invested in, and traded. Their values are inflated as the financial institutions that issued them, the investment institutions and banks that trade them, and the investors who buy and sell them make an enormous profit over their bloated valuations. Suddenly getting shaken and their values crash back down to earth if anything upsets the value of the assets that back their value many layers below them — dragging down the entire economy along. Like a tick that feeds on its host.
If you thought this was bad…
…you may be surprised to hear this:
(read the rest below)
