Dr. Mercola's Comments:
The derivatives market is worth more than $516 trillion, roughly 10 times the value of the entire world's output: it's been called the "ticking time-bomb." Unsurprisingly, this news comes to us from Britain; the U.S. media is not going to mention it.
The complex and opaque derivatives markets -- land of hedge funds and complex financial instruments -- has been dubbed the world's biggest black hole.
It operates outside of the grasp of governments, tax inspectors and regulators, in a parallel, shadow world to the rest of the banking system. They are private contracts between two companies or institutions, which can't be controlled or properly assessed. In themselves derivative contracts are not dangerous, but they can have an enormous domino effect on the rest of the financial world.
Most markets have something backing them up. But derivatives don't have anything, because they are not real money, but paper money. It is also impossible to establish their worth; the $516 trillion number is actually only a notional one, and some estimates say there is a mind-boggling $1 quadrillion (1,000,000,000,000,000) held globally in derivatives.
Anything that carries a price can spawn a derivatives market. They are financial contracts sold to pass on risk to others. At the core of this market is the credit derivative swap, effectively an insurance policy against the default in the interest payment on a corporate bond -- although you don’t even need to own the bond itself. It’s like buying an insurance policy on someone else's house and pocketing the full value if it burns down.
Many experts that I personally respect, and that have studied this issue for decades, believe that the U.S. financial crisis is an intentionally designed scenario of a Problem-Reaction-Solution:
1. Create a problem covertly and blame someone or something else for what you have secretly done.
2. Tell the people through an unquestioning mainstream media the version of the problem you want the masses to believe.
3. Then openly offer, through changes in society, the 'solution' to the problem you have yourself created. This 'solution' is always the installation of more centralized control.
Take these simple coordinates and apply them to the events of the last few days and weeks and everything morphs into focus.
The banking 'crash' has been coldly designed to create the 'problem' that can lead to the 'solution' -- a massive centralization of power in the 'private' and 'government' banking systems, both of which are owned and controlled by the same network of families.
The 'World Central Bank' plays a major role in this area and wants to impose and control the entire global financial system. As a result of the economic turmoil, we are now seeing this being proposed to 'solve the problem' of the banking chaos and to 'make sure it never happens again.'
You can see the very clear direction in this area, as the U.S. government just bought $250 billion in shares of the nine largest banks in the United States.
The Overall Plot
It is very clear that the intention here is to keep people hopeless and pessimistic. These individuals realize that choice is a very powerful element of capitalism, but choice depends on the freedom to choose.
They understand that when you are shackled with debt you don’t have the freedom to choose. People in debt become hopeless, and hopeless people don’t vote. There are two ways people are controlled. First of all frighten people, and then demoralize them.
Poor, demoralized and frightened people think that the safest thing to do is take orders and hope for the best.
An educated, healthy and confident nation is harder to govern. There is an element of many in control in the government that does not want people to be educated, healthy and confident because they would be out of control.
As I said in my commentary on this last month, the REAL danger here, and believe you me it is a danger, is to become afraid. Once you step into the powerful emotion of fear and you put your intention on what you don't want the consequence is you activate powerful natural forces that tend to provide you with whatever thoughts you are attaching strong emotions to. This is clearly something you want to avoid doing, so stop being afraid of the economy.
reap the benefits of positive focus and intention.
CONTINUE TO FOCUS ON WHAT YOU WANT, and the real key is to attach as much emotion to what you want.
Who Predicted U.S. Economic Collapse Years Ago?
What You Don't Know About the U.S. Bailout
Why the U.S. Has Gone Broke
Trading in derivatves is also good. But here it requires a lot of money to trade. Because it requires a lot of margin as compared to shares.
That's a good article, sparkling jewel, If you are really able to recognize for what the investors will fear, with some good basic knowledge about the market and trading techniques you are a successful trader. That's the basic point. Good successful traders always focus mainly on the panic situation and the fear factor of those low self confidence investors.
I have found this article very useful for investors trading in derivatives. It is a very risky trading in derivatives it is also called as Margin market to. This trading requires lots of money.
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