62 individuals – 388 in 2010 – now own more wealth than 50% of the world’s population. More shockingly, this share of wealth by half of the world’s people has collapsed by over 40% in the last five years.
Behind the extreme highs of the stock market and the official government unemployment data, the US economy is primed for a financial Tsunami that is more influenced by independent Fed actions than by anything that the White House has done since January 2017.
The U.S. dollar is tied up with the market for interest rate derivatives, currently valued at over $500 trillion. As analyst Rob Kirby explains, the economy would crash if interest rates went negative. The derivatives market would go down like a stack of dominoes and take the U.S. economy with it.
This all began with the subprime financial crisis in summer of 2007, when some US mega-banks were teetering on the edge of bankruptcy. Indeed, they had created a new type of financial products, the so-called mortgage-and debt-backed securities (MBS) and other asset-backed paper (ABCP), which were bundles of risky debt and were sold as new esoteric securities.
