John Embry: we will now see historic and catastrophic wealth destruction.

In today's edition of King World News, John Embry worries about how interest rate based derivatives are going to collapse the US and global economy.  This is not as crazy as it might sound.  Do not forget what Warren Buffet himself said about derivatives: they are weapons of mass financial destruction.  There are 1.14 quadrillion USD worth of these economic time bombs deployed globally right now.  The chance of them going off at some point are 100% even if nobody knows exactly when that will happen.

I see what John Embry sees except I explain it more fully and thus better.  Embry stated "we will now see historic and catastrophic wealth destruction.".  I think that is misleading and therefore wrong.  What we have now is a debt Ponzi where everyone invested in it thinks they are wealthy.  They all look at their account balances, which in many cases represent significantly more wealth than they put into the system, and they actually believe they are ever going to see all that money.  Think about it for a second: everyone has been led to believe they will receive more than they put into the system.  Some of the people might, but certainly most will not.

In truth, those who are wise to the con (bankers) will get out in fine style but most people will get creamed having never seen it coming.  The herd will get taken to the slaughter house.  The herd members will cry and whine about how someone stole their grand retirements but the truth is that these retirement dreams were never anything more than Wimpy promises.  The herd never had grand retirements coming to it.  The herd members were simply foolish enough to believe that they had those pie in the sky retirements waiting for them based on someone's Madoffian promises that they would receive them.  "Trust me", they heard and so the herd trusted.  Herd members are overly impressed with their printed account statements which show categorically how rich they are.  These fools will argue until the end that everything is OK just like Madoff victims did.

In truth, the valuation numbers in all of those accounts are in fact fraudulent.  Not everyone can receive the payouts being promised and in fact precious few will.  JUST LIKE THE MADOFF PONZI, the trap door will fall out suddenly as everyone rushes for the door at once.  When they try to leave the con, they will find that the government is colluding with corporations to keep them in the Ponzi while any remaining value is spirited out the back door via inflation.  The historical tool of choice for this is generally referred to as "capital controls".  Using this concept, the con men will not allow you access to your money and then they will haircut you "for the good of the nation".   It will happen with the stroke of a pen and only then will the sheeple understand why I keep saying that, in a crisis, possession is 9/10ths of the law.   The con men are liars and thieves but today few can suspend disbelief long enough to understand this.  It is like everyone is spell bound and has lost the ability to do simple math or to remember the lessons of history.

When the collapse comes, and it will come, there will be excuses galore but that will just be covering fire so that the criminals running the show can escape without getting lynched in the streets.  Yeah, I know, it all sounds like crazy talk right now.  I've heard that assessment from the herd before.  We live in a society where the opinions of fools and ignorant people are valued more highly than those who have done their homework.  They cram this fake reality down our throats in the name of political correctness and "valuing diversity".  As a result of never considering the negative potential of things, the herd is supremely confident that everything is as it appears.  As for me, I'm supremely confident that these people will be the loudest to squeal when the hammer comes down.  They will probably even be stupid enough to ask the government to "do something" about it when in fact the government is the driving force that is causing it.

It's a Ponzi folks.  A global debt Ponzi.  Period. No Ponzi ever lasted forever and this one is waaaay long in the tooth.  And no it will not be different this time.  It has to collapse before the boomer retirees get any significant value out of the system because the value is not really there and it never was.  It's all just made up numbers on account sheets and in computer hard drives.  The work that is required to actually have earned that level of wealth never actually occurred and so the wealth is just an illusion.  It has all just been a confidence game run on the back of a fraudulent money supply whose main components are fiat currency and much more importantly fractional reserve banking.  Note: A gold standard which still allows fractional reserve banking is still a con job.