- Derivatives = Bets
- Credit Default Swaps = Insurance on bets
- Hedge Funds = Borrowing of money to gamble with (unregulated and secret also used to manipulate markets)
- Taxpayer Bailout = Taxpayers covering the gambling losses for gamblers?
- Reality = Insurance (e.g. AIG) cannot cover failed bets which amount to: USD 206k per person-on-planet. The number it is based on has grown from USD 1.144 Quadrillion last year to USD 1.405 Quadrillion, ie, +22% worldwide. The GDP of the entire world is only USD 50 trillion.
A few accounting entries is all it takes to fix this problem, literally
erasing the bogus value much to the dismay of a few but not the many. An entirely new system is required to eliminate
the core flaws and a global currency will not work properly for the common
economic system participant because of the disparity between the economies of
various countries. What has been suggested is localized regional value exchange
systems that would interface with other regional systems in a totally
transparent and "natural" market manner.
I will leave you with this thought, if you went to a bank and asked to borrow money to go to the casino what do you think they would tell you? The banks did not need to ask anyone. They should have asked the US citizens because they are the ones backing the banks with a portion of their future labor potential. Sure the odds would usually be better than a casino, but in review of some of the financial instruments the actual odds were worse than the casino.