>>5051746 pb

Econanons please comment. EU's commitment to bailout City of London seems completely assinine. If regulators were actually regulating for the good of the worldwide financial system there would not be $400 trillion in derivatives and no one would be guaranteeing payment on them. This is 2008 all over again, only worse by 20-100 times.

GLOBAL gross domestic product was about $75.4 trillion dollars in 2016. https://www.statista.com/statistics/268750/global-gross-domestic-product-gdp/

The 2016 GDP for EU was 14.91 trillion euros or approx. $17 trillion dollars. https://www.statista.com/statistics/279447/gross-domestic-product-gdp-in-the-european-union-eu/

https://www.xe.com/currencyconverter/convert/?Amount=1&From=EUR&To=USD

So EU is pledging the entire value of the world economy for 4 or 5 years or the entire value of the EU economy for more than 20 years to pay off big bank and big investor gambling debts which they disguise under the rubric derivatives.

Things to think about when you think of derivatives:

"A derivative is a financial security with a value that is reliant upon, or derived from, an underlying asset or group of assets. The derivative itself is a contract between two or more parties, and its price is determined by fluctuations in the underlying asset….

[O]ver-the-counter (OTC) derivatives constitute the greater proportion of derivatives and are not standardized. … OTC derivatives generally have greater counterparty risk than standardized derivatives.

…There are even derivatives based on weather data, such as the amount of rain or the number of sunny days in a region.

…There are many different types of derivatives that can be used for risk management or for speculation.

…A speculator who expects the euro to appreciate compared to the dollar could profit by using a derivative that rises in value with the euro. When using derivatives to speculate on the price movement of an underlying asset, the investor does not need to have an interest in the underlying asset.

Many derivative instruments are leveraged. That means a small amount of capital is required to have an interest in a large amount of value in the underlying asset." https://www.investopedia.com/terms/d/derivative.asp

Econ experts please correct me. Really please, I want to be wrong on this. But in my opinion EU is promising to take the entire wealth of every person, company and organization on the planet and concentrate it in the hands of the richest, greediest people and banks on earth. This is the debt slavery scam imposed by the Federal Reserve ramped up on amphetamines. Casinos have more appropriate regulation than the world financial system.

Nonsensically, Rolling Stone Magazine was one of the first national mags to publish clearly written articles about the derivative (and credit default option) scam. Matt Taibbi's articles and videos are a treasure trove of understandable information. For example, https://www.rollingstone.com/politics/politics-news/matt-taibbi-on-the-great-american-bubble-machine-187001/. (Print version of his article has been removed). He published a 10 year retrospective in 2018 that is well worth reading. https://www.rollingstone.com/politics/politics-features/financial-crisis-ten-year-anniversary-723798/

See also, https://www.democracynow.org/2009/3/25/aig_and_the_big_takeover_matt and subsequent interviews and articles he has done.