The $555 Trillion Derivatives Debt Implosion Is About to Begin

Phoenix Capital Research's picture

The next crisis is here.

The BREXIT or British exit from the EU is this crisis’ Bear Stearns: an unexpected situation that Central Banks will go all out to sweep under the rug.

Whether or not they will succeed remains to be seen. But what has started cannot be undone.

For seven years, the Central Banks have maintained the illusion that all is well. Meanwhile, global leverage has exploded to record highs, with the bond bubble now a staggering $100 trillion in size.

To top it off, over $10 trillion of this is sporting negative yields in nominal terms. Indeed, globally bond yields are at levels not seen since the BRONZE AGE.

The Brexit is just the first jolt to this house of cards. It won’t be the last. Spain, Italy and other EU problem countries will soon be lining up to renegotiate their debt levels with the EU.

At that point it’s GAME OVER.

Globally over $500 trillion in derivatives trade based on bond yields.

This is why EVERY move the Central Banks have made post-2009 has been aimed at avoiding debt restructuring or defaults in the bond markets. Why does Greece, a country that represents less than 2% of EU GDP, continue to receive bailouts instead of just defaulting?


Now that the BREXIT has happened, the restructurings will begin. Previously, the EU could always threaten the perceived financial Armageddon of leaving the EU to problem countries that wanted debt forgiveness.

Not anymore. Britain left the EU and Armageddon didn’t hit. So Spain, Italy and other nations will start threatening to leave if they don’t get debt forgiveness or a restructuring.

The derivatives markets smell this. This is why Deutsche Bank (DB) which sits on the largest derivatives book in the world, is on the verge of taking out a 20 year Head and Shoulders pattern.

This is also why financials in general (the firms sitting on large derivatives books), have taken out their post-2009 bull market trendline.

Again, the next crisis is here. The time to start preparing is now. The BREXIT was this crisis’ Bear Stearns. You don’t want to wit until the “Lehman” moment to prepare.

If you’ve yet to take action to prepare yourself and your portfolio for the next round of the Crisis, we just published a 21-page investment report titled Stock Market Crash Survival Guide.

In it, we outline precisely how the crash will unfold as well as which investments will perform best during a stock market crash.

We are giving away just 1,000 copies for FREE to the public.

To pick up yours, swing by:

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research




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undilutedopinion's picture

Phoenix Capital is an advertisement, why is there an ad within it?

Gold Dog's picture

Bronze age data;

- I borrow 27 dead rabbits from a bankster to buy an ax head.

-The bankster comes over to my cave to collect the 28 rabbits I owe him.

-I kill him with my new ax.

- Racheal Welch running around in a furry bikini was the best part.


Edit- I sure do miss the Stone Age before we invented Multi-Culturism!

FearLess_FLY's picture

globally bond yields are at levels not seen since the BRONZE AGE."


   I would like to see the data from the BRONZE AGE before I comment further.

Ocean22's picture

"Why does Greece, a country that represents less than 2% of EU GDP, continue to receive bailouts instead of just defaulting?"

Because the globalists are not yet reay to pull the plug, but its coming soon.  They are going to kill democracy with its birth place.  Rather fitting.

atthelake's picture

If globalists did not want Brexit, it would not have happened.

Fisherman Blue's picture

Don't be so sure Skippy not everyone prefers slavery.

SMC's picture

It's all good.

Our chickens, goats, sheep, etc... could care less. When the banksters use their government cronies to "legally" steal the few unencumbered assets each member of the productive class has left (debt free real estate, 401Ks, pensions, physical gold and silver, etc...), the fireworks will begin.

In the meantime, stay in shape, hone skills, and occasionally sit back, relax, and enjoy the spectacle.

Ugly is just beginning.

FredFlintstone's picture

Did anyone get the FREE 21 page report? If so, can you supply the Cliffs Notes? Thanks

Shahna's picture

I downloaded the report. It's 18 pages and ... what are Cliff's notes?

HRH of Aquitaine's picture
HRH of Aquitaine (not verified) Jun 26, 2016 2:01 AM

I have been hearing about the implosion of the derivatives market for at least a year. Deutsche Bank is said to be the largest holder in Europe. I don't know what will be the last snowflake that falls and causes an avalanche but I am guessing it will be the result of derivatives or the bond market. Those markets are not widely known, or understood, by the public at large but when attempting to locate a black swan event my guess is it will begin in either of those markets. Both are difficult to comprehend and the MSM and MS financial news does not usually discuss them in depth, nor on a a daily basis. I hope I am wrong. It will be interesting watching the MS financial news attempt to explain a derivative-caused collapse. Or, even worse, a collapse that is the result of the bond market imploding.

Loved the charts!

Scuba Steve's picture

2 words Brooksley Born.

If a derivatives implosion happens ... the gentlemen that were involved in shutting her down on this topic need to be strung up in DC on govt grounds, left to hang for days and televised for all Americans to see. All the men are still alive to day and spreading their BS to this day.

You want t get confidence back as a nation ... you do this.

yellensNIRPles's picture

If the derivatives bubble is truly about to burst (I'm not convinced - not enough information at this time) then this will make 2008 look and feel like hitting the lottery, while a popped derivatives bubble has the potential to look more like this.

The result of our recent monetary orgy will eventually be another World War, and that war will be the orgy's fractional reserve orgasm. I fully expect a third world war to directly coincide with or perhaps even be the result of a global monetary default. There is simply no way that hundreds of millions of people can get shafted that hard without shit burning down, and we know mathematically if this keeps going we end up with worthless currencies. 

But I'm a glass-half-full kind of guy, so what do I know?

KingTut's picture

The EU is a coal mine in search of a dead canary.

CurrencyCrash's picture

Greece is the proverbial canary. 

847328_3527's picture

Would you care for some kidney pudding with your BREXIT?

lakecity55's picture

There is gonna be a real Beef over this!

FedFunnyMoney's picture

Italy will be the "Lehman Brothers" moment.

Your article is incorrect, though.

It was a non-binding referendum in Britain. It takes an act of Parliament, triggering Article 50 of the EU's Lisbon Treaty to start the withdrawal. That has not happened yet and I seriously doubt if it ever will.

So for now, Britain is still in the EU.

KingTut's picture

For the moment it appears that the British elite are following the people's lead.

Cameron is out, which makes any attempt to reverse this or simply avoid dealing with it untenable.

I suspect there was a lot of basic sympathy for "Leave" at the highest levels, even though they supported "Remain" in public.

After all, it was only a matter of time before the EU forced Britain to adopt the Euro and dump the Queen.

So the highest levels have a personal interest in just getting on with "Leaving".

thebigunit's picture





847328_3527's picture

I'd hate to see those banks lose any money. However, they deserve the same bailout I get when I make a bad bet.