- The Chinese government has told Chinese companies they
do not have to honor derivates and commodity futures contracts made with
Western financial institutions.
- Reuters - http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/
- This is one of the most important of many nails in the
coffin for the soon to implode Federal Reserve Board. The Chinese have
every right to renege on those contracts because they were fraudulent.
First of all the Feds manipulated the commodities markets to their benefit
and to the detriment of the Chinese. They also allowed 100 times leverage
thus allowing for astronomical ponzi schemes to be set up.
- Furthermore, they almost certainly did not properly explain
the risks when they made their deals with the Chinese. Now that their attempt
to rip off the Chinese is blowing up in their faces, these financial institutions
will implode. This will set off a chain of events that will make the Lehman
Brothers implosion seem like a storm in a tea cup. The total amount of
derivates contracts outstanding is now over $5000 trillion or 100 times
world GDP. In other words it is just a giant illusion waiting to vanish
along with the institutions that peddled it