if even 25% of these contracts go bad, you are talking about $250 or so trillion needed to be covered. (if the total is $1 quadrillion, which I doubt, I really think it is at least $1.5 quadrillion) The global GDP is only 55 to 60 trillion a year. The definition of economic depression is 5% drop in GDP over 2 consecutive years.
so, adding in the rest of all public debt you come up with this scenario (and this again is based on the $1 quadrillion derivative total):
The USA is actually around $ 350 trillion in debt (14 trillion in official debt, 111 trillion in unfunded mandates, plus 75 trillion in OLD derivative debt, plus 150 trillion in NEW derivative losses that the Fed will monetize)
the EU and rest of world will have new derivative losses of 100 trillion, on top of old losses of 50 trillion, plus they have around $300 trillion in unfunded mandates, plus another 50 trillion in collective sovereign debt for a total of 500 TRILLION in total debt for rest of world
this means that the total debt of the world's nations, when you factor in official government debt, unfunded mandates ( ie. the social security, medicaid, medicare of the USA and then the EU's and all other country's safety nets and pension funds), plus the global derivative losses (given the historical 25 percent loss rates for derivatives) that will be tossed from the banks unto us all via the Central banks of the world is around, to my best dead reckoning,
$ 850 TRILLION dollars total global PUBLIC debt owed by nations to the private central banking cartel
to pay this off, at a Central Bank bank global interest rate of just 3 percent, would take 100 years of payments at 27 trillion a YEAR, or 50% of the entire WEALTH of the world's complete output for the next 100 years
the USA alone has around $10 trillion each year in wages and profits paid out to all its 310 million citizens, but its share of the global debt of 850 trillion (around 41 percent or 350 trillion) means that is yearly payment for the next 100 years would be $11 trillion a year, so you tell me how even a 100 percent tax rate will cover the payment
bear in mind, taking just 5% (or ten time LESS than the 50 percent required to pay off this REAL debt over the next 100 years) of global GDP causes a global DEPRESSION, and taking just 10 percent (or 5 times LESS than is needed) causes global financial systemic collapse
this also assumes all sovereign debt borrowing STOPS now, which, of course, it will not, in fact it is increasing at an exponential rate
this also DOES NOT take into account the PRIVATE debts owed by the global population for mortgages, student loans, cars, credit cards, etc etc, nor does it take into account state, city, provincial public debts at sub-national levels
If you take the derivative total of $1.6 quadrillion (at a 25% loss rate, and add in total global private debt and subnational public debt) the global all-inclusive debt total is $1.3 QUADRILLION dollars US, and the USA share is $550 trillion US. At a 50% derivative fail rate, the USA is $690 trillion in debt, and the global total debt (all inclusive of all forms public and private), is $1.7 quadrillion.
BOTTOM LINE
1 these derivative losses have and will continue
2 the sovereign nations have and will dump these losses onto their citizens through the central private run banks
3 the nations have and will keep spending and borrowing more, further racking up debt to these very same private run central banks
4 the world's nations have over $400 trillion dollars U.S. in unfunded mandates that they have promised the 6.8 billion people on the planet in terms of all social safety nets and pension funds
5 the world cannot, I repeat, cannot GROW its way out of the following total debts, and they will have to literally enslave the entire planet into working as a slave, (ie, for no wages, 100 percent global tax rate), just to come close to keeping the current global cumulative debt payments going over the next 200 years
The system will either collapse in its entirety, and all debts, especially all debts owed to private central banks by nations (as well as all, and I mean all,derivative debt) will be forgiven, or else we all will literally have to be enslaved and all our wages confiscated at gunpoint simply in order to keep the debt service scheme payments flowing.
It is mathematically impossible for there to be any other choice, the numbers speak for themselves.
This crisis point will occur in the next 5 to 10 years max, it even may cause a new world war, as many industrialized countries (not just 3rd world periphery states) will simply be unable to continue to operate at a level that will prevent their own citizens from outright civil wars and coup d' etats (much like we see now in the 'arc of crisis' ie. Morocco to the Chinese border).
This concept was laid out over 30 years ago by Zbigniew Brzezinski (chief geo-political strategist for Carter, now for Obama) in his books, speeches and CFR articles. His goal is to use this arc to force a China vs. Russia war by 2020. This will complete the elimination (in his mind) of the last threat to the Anglo/American banking cartel for true, lasting technotronic global hegemony.
http://www.time.com/time/magazine/article/0,9171,921766,00.htmlhttp://www.foreignaffairs.com/articles/32309/george-lenczowski/the-arc-of-crisis-its-central-sectorhttp://www.bibliotecapleyades.net/sociopolitica/sociopol_chessboard.htmhttp://www.globalresearch.ca/index.php?context=va&aid=11313 2 key books by Zbigniew Brzezinski
http://www.amazon.co.uk/Grand-Chessboard-American-Geostrategic-Imperatives/dp/0465027261/ref=sr_1_1?ie=UTF8&qid=1299979870&sr=8-1http://www.amazon.co.uk/Between-Two-Ages-Americas-Technetronic/dp/0313234981/ref=ntt_at_ep_dpt_5 ----------------------------------------------------------
edited to add links