Banks Commodity Derivative Exposure

[Taco]

A derivative is basically a bet that is massively leveraged. The gains and loses can also be massive, occur at an exponential rate and only the banks know if money is being made or lost since that information is not made public. Unregulated over the counter derivatives traded between the big banks & corporations is north of $220 trillion. Some people might argue that since the derivatives crash of 2008, most of the world has continued to walk on air and there is little for us to worry about. For more info. you can click on the link below.

Why Financial Derivatives Are So Dangerous
https://www.youtube.com/watch?v=IyQTsx9D2UE

I couldn't help but notice JP Morgan and Citibank stocking up on commodity and metal derivatives back in March of this year.





And then a few months later in July the Bloomberg Commodity Index hits a 13 year low. What a surprise!

Commodities Are Crashing Like It's 2008 All Over Again
http://www.bloomberg.com/news/articles/ ... earishness



It got me thinking. If your trying to destroy the global finance system this would be a creative way to do it. JP Morgan CEO, Jamie Dimon, seems to know that because a few weeks after buying all the derivatives in March 2015 he comes out with his own prophetic warning in April.

JP Morgan CEO Warns Of Treasury Shortage
http://www.usatoday.com/story/money/201 ... /25512091/

So my message to all optimists is this... If you think the global financial system is not in big trouble your wrong. Derivatives are financial weapons of mass destruction. You need to start preparing now because there's not much time left. You'll wake up one morning and find out you can't access your bank account or your account was stolen.

"Literally, Your ATM Won’t Work…"
http://www.zerohedge.com/news/2015-06-0 ... k%E2%80%A6

Your Bank Account Was Stolen This Morning
viewtopic.php?f=41&t=25255

[Moretorque]

It just gives them more leverage and control over the system, they decide what and when to pay out and they have unlimited #'s to do so but they do have to be careful not to go to far in the manipulations.

Thanks Taco.