This page has been archived and commenting is disabled.
The Doomsday Klein Bottle: Charting Who Owes What To Whom (Hint: Lots And Everyone)
Some version of the following BIS-sourced chart from the BBC appears every week somewhere, and by now the default Pavlovian reaction to seeing it should be to think of the Klein bottle. Yet this one may be the prettiest so far. In case anyone was still wondering what happens in a world in which every financial asset is someone else's liability, and that same liability is a third bank's asset (and so on), and where the amounts involved are in the tens of trillions, and when even the smallest debt haircut starts an avalanche of remarking to market, here is the explanation. Oh, and whatever you do, don't click on the US. Because the "US is fine."
Full interactive chart after the jump
Another version:
»
- 24798 reads
- Printer-friendly version
- Send to friend
- advertisements -
Klein Bottle= Circle jerk
+1 except each member(pun not intended) has had a vasectomy and isn't allowed to leave.
Will ya look at UK? And they don't even make anything!
Gee willious, it's all financial services ova thare - 50% of GDP.
God bless the Queen. She's gonna need it.
Oh, but wait, US will buy GBP - like UK buys USD - that'll work - that's what conspiracies, ehh I mean friendship, is for.
Anglos rule the world - first in BS, first in debt, and first in bamboozlement. Cheers, Ole Boy. Chin Chin. Bottoms Up.
Shhh! Blasphemy sir! For shame!
I'll walk you through this OK? First of all, UK is AAA. Dagong downgraded them last year but who pays attention to those crazy people, right?
They also have North Sea oil, HSBC, Barclays, Premier league soccer(football, I believe) and an incredible pub culture.
Bless the Queen indeed.
TS Eliot:
That corpse you planted last year in your garden,
Has it begun to sprout? Will it bloom this year?
Or has the sudden frost disturbed its bed?
http://azizonomics.com/2011/11/18/the-wasteland/
This is easy, France is toast, UK is solvent and the US is a darned good bet!
At one point there I thought everyone was solvent. Let's just hope none of it gets written down or anything eh...
Brilliant! Lovely day for a Guinness!
Why don't we just merge all the banks into one. Done...
and now that we've just solved all the world's banking problems, a Guiness sounds just fine...
Cheers, the world could use a few cold pints at this point.
They have Gordon Browwn who sold 400 tons of gold between $256 and $276 an ounce, culinary delights like haggis, football hooligans, and a future queen who looks more like a horse than most horses.
Indeed
http://www.flickr.com/photos/dullhunk/419081724/
What does a Klein Bottle look like as it begins to implode and ultimately collapse?
I give up? Maybeeeee... war.
A molotov cocktail?
An arsehole
That's easy! It becomes a Black Hole.
You should buy one and find out for yourself!
I am extremely happy with mine, it sits on the shelf in my cube and confounds passers-by.
Need a zero-volume bottle?
Searching for a one-sided surface?
Want the ultimate in non-orientability?
Get an ACME KLEIN BOTTLE!
http://www.kleinbottle.com
Goes great with a tall, frosty Klein's Beer!
It doesn't sound absurd to net it all out. Just nationalize de banks that are bankrupt if they mark to market and write off the asset and the liability.
Jews own Anglos.
you mean jesuits own the vatican, the queen and masonic luciferians... and masonic luciferians own zionists, who own finance, who own anglos... right?
At least that's the best a lowly serf can figure out
Probably closer to the truth, but most don't want to dig that deep.
There fixed it for you. That doesn't mean the Rothschilds et al don't share responsibility, but that's like blaming JUST goebbels and letting hitler off the hook.
We manufacture high end military tech.
Always a growth industry.
And if growth is slow, we fertilize it.
And where is China .. You can't have a Circus ring and not have an Elephant.
When this whole thing comes down, the Queen will be hawking her castles in order to get money. The whole Western banking system is almost done and many know it.
HUMANCENTIPEDE?
All the banks are eating each other's s**t and passing it along to the next sucker...
Actually if you stick it in that thing it looks like you could end up fucking yourself...
Hooray!
Mercury gets it.
It's sort of like an earthworm that eats and shits out of the same orifice.
killing... killing yourself.
No it's sex. "takes two" and not a "self."
imagine Sir John Gielgud - in good Shakespearean diction:
... "something of a petty "orgy" I dare say, as new "Rome" burns - "Bitchez", I suppose is the word. Alas, it isn't quite like real Rome, now is it...? Rather more like a whimper than a... I suppose "bang" is the word..."
http://vimeo.com/20390916 It can be done........
Tyler
Are you saying that we are "Caught like Mars Flys in a Klein Bottle" ???
It's like hooking your anus back up to your colon.
MBS CDO CDS ETC CONSTIPATION - count down to big...
is that why Washington is so backed up?
Naw. The "Klein Bottle" is the cosmic equivalent of the cranial recitosis (head stuck in colon) that has infected global ruling class. They're terminal...
then, this shit never stops?
Looks like a sex toy.
Sort that forks itself??
Hmm....
That's actually my new design for the "Shake weight" for (wankin' fuckin' bankarz) Bankers.
I don't know how it got leaked.
Um...the second version makes me...um, never mind.
Similar to the snake eating its own tail. I get it. One intellectual level above the Keynesian: The Moebius econometric model.
A penn state football program
http://www.infowars.com/russian-warships-enter-syrian-waters-to-prevent-nato-attack/
Just kick the can down the mobius band. . .sigh
And in the second picture you will see a 3-D rendering of the anus/taint/chodal region.
+1 Hansel.... My first thought was some poopmouth invertebrate like, I don't know, the VampSquid.
Doomsday machine.. "Secret agent? on whose side?"
http://www.youtube.com/watch?v=t2GVOe_eNf4
CB
You folks rearly need to go and read about the concept of a "null hypothesis" as it relates to finance. You'd then understand how much more actual "value" exists out there than you claim.
I have some tulips to sell you. Each are unique and will be beautiful...you will be the envy of all.
Value - Money is what money does, and it's only worth what the two parties are willing to pay/accept. What you value may be different than many others, and you can ask for whatever form of money it is you want for it, but if someone isn't willing to pay/trade for what you want . . . then what is the value? The value to you still hasn't changed, so does that make it any less or more? No. It is simply your "claim" to that object/thing/idea/etc that you may not be able to "sell" because of the "value" you place on it.
Again, I have some tulips to sell you that have great value. And I will only accept payment in PM, as I have no value placed on the paper.
Hope is the denial of reality. It is the carrot dangled before the draft horse to keep him plodding along in a vain attempt to reach it.
I'm just curious: are you guys taking about notional value, face value, market value personal value, cultural value, etichal value, anthropological value, extrinsic value, intrinsic value, semiotic value, or perhaps sentimental value?
Care to elaborate?
Hey wait a sceond, where is Japan?
Just a bit off the East coast of Asia.
East coast of Asia?
Where's that then?
Just West of Japan?
I think you can see it from Alaska
You know, I knew someone would come back with that. Still made me laugh though...
Tyler needs to get the short video clip from The Beatles "Yellow Submarine" movie.
Where that Animal with the vacuum mouth sucks up everything and then (like the Klein bottle) sucks up himself and nothing is left.
A little less conversation is in order... http://www.youtube.com/watch?v=ZomwVcGt0LE&feature=related
talk about making a full circle with one's head so far up their ass they resemble a klein bottle.
Contagion bitchez!
So by these metrics UK and Ireland are screwed worse than the PGS?
IIRC the BIS numbers for Ireland include banks in the Irish Financial Services Centre, and so are misleading. Not that I'd try to tell you that Ireland isn't screwed.
i think either i broke the interactive website, or it is down for the doomsday
maybe they are just up-dating it~~with red ink!
I had to allow scripts from bbcimg.co.uk to get it to work for me.
So the EU counterparty chain looks like they've become their own grandpa:
http://www.youtube.com/watch?v=eYlJH81dSiw
WTF with the U.K. !
Low risk ?!!!
Check out Ireland.
€390,000 foreign debt per person.
Greece is only €38,000.
Waiting for Dick Bove report explaining "the country's fine".
I'm waiting for the paper entitled "Financial Stability in Ireland" by Frederick (Iceman) Mishkin.
That's because Ireland allowed the IMF to get ahold of them.
Doctor my eyes!
"is this the price for having learned how not to cry." and "you bet it is" is my answer.
Agree. I've had that song in my head a lot lately.
And Runnin' on Empty.
And "Rosie". Especially "Rosie".
This one seems appropriate for the times...
http://www.youtube.com/watch?v=d3XSI_xwvss
What does Iceland look like? I bet they didn't want to let it out that defaulting is the cleanest option.
Does it really matter who blows up first?
In the end the whole financial system will implode and the USD will have to reinvent itself as the "new" gold backed dollar.
http://real-economik.blogspot.com/2011/11/jim-rickards-four-horsemen-of-...
All is well. The news just announced the Greek PM said everything will be fine with the next bailout and the bond hair cuts. Phew! I'm glad the crisis is over.
my dad always said 'there is nothing wrong with Jerkins off, your just fucking yourself"
Or in the words of Woody Allen:
"Don't knock masterbation , it's sex with someone you love"
off topic but since there is not much going on right now I figured I would throw this out there-
Haaretz and Al Jeezera are reporting that Russia is moving more warships into Syrian waters, not sure how solid this is but if it is true than it is a clear challenge by Russia to UN NATO regarding plans for regime change Syria and/or Iran. I guess this could explain why Assad hasn't appeared to be all that concerned about the possibility of NATO intervention via Turkey. If he knows the Bear will support him both indirectly and now possibly outright with military aid that puts him in a fairly strong position to retain his rule even if the globalists would like to use another "humanitarian kinetic" military action to replace him with somebody more bankster cooperative.
It will also be interesting to see if Israel backs off talk of a preemptive strike of Iran, not being sure whether the Sufa's they send will wind up being shot down by Russian guided missile cruisers, thereby losing equipment and face because they are not about to take on the RF navy without major support from NATO.
things in the ME appear to be about to get very tense indeed.
How credible are souces like Haaretz and Al Jazeera?
how credible is any media source these days? that's why I said I have no idea how solid this is...just thought it was interesting...
Both about an order of magnitude better than the US "MSM."
You'll meet lots of israelis who'll tell you Haaretz is anti-israel... yet by any reasonable standards is insanely nationalistic. So... Zionist controlled opposition.
Al Jazeera is based in Qatar (home of the US 5th fleet IIRC), under the thumb of the royal family. Make the math...
Doom doom doom. Meanwhile, Obama signed an emergency law so that the US gov does not run out of money TOMORROW and can borrow and spend money up and till December 16. Solved. That's the way it always goes: lots of panic and noise and then a pretty cool solution. No crisis, collapse, meltdown, Armageddon. You know.
Read back and smile:
"Global systemic crisis Alert - Summer 2009: The US government defaults on its debt"
http://www.leap2020.eu/Global-systemic-crisis-Alert-Summer-2009-The-US-government-defaults-on-its-debt_a2250.html
Gerald Celente: collapse 2010
http://www.youtube.com/watch?v=IQNtxh1gHg0
Gerald Celente: Apokalyps 2011 (German)
http://bit.ly/rr5m60
Well, Nov 2011 and here we are still. Keynesian Obama will be re-elected with a landslide. Dollar and US bonds will be run into and the US economy will grow. What collapse?
I wish you a merry Christmas and a happy "collapsing" 2012.
'Dollar and US bonds will be run into and the US economy will grow.'
Like, as in forever? All good points, you're a quality nonsense merchant.
2009: default
2010: collapse
2011: Apocalypse
2012: (fill in)
2012: Continued Debt Destruction.
Ah, that's all. No crisis.
Do you have to hold your breath when you type?
No, just smiling.
Obama signed a law declaring that we're not out of money? WHOA! Thats a unicorn fart right in my FACE!
It's a fact, not a fart. No panic, solved apparently.
Did that fart smell like skittles?
yes we are still here-
with 25 million people who can't find full time work that pays a living wage
with 46 million people who need govt assistance to put food on the table
with 15 trillion in public debt that the govt obviously can't pay back
with a country that no longer produces much in the way of real world middle class wealth which is key to real economic growth
with a president that has to sing a new emergency borrow and spend bill every few months in order to keep the whole bloated, failing bureaucracy afloat, this is not a sing of recovery or growth. If we were really growing and recovering they wouldn't have to borrow as much would they?
sure they can still sell a few bonds, but for how much longer? everybody's broke and borrowing from everybody else, do you believe there will always be somebody else there to fund these massive deficits DC is running up? how long before lenders see our debt as junk, or are you one of those "that can't happen people"? then what, we print the dollar into oblivion...deficits and debt do matter after all.
when a crash or collapse will happen is foolish to try and predict...but to see that the fiat paper system is FUBAR and on it's last legs being destroyed by the systemic cancer that is debt, well that just takes a little common sense and some basic math skills.
psst: you're being trolled
I don't junk you, as your message is consistent and you appear to believe your own book. i.e. You have faith that the amount of effort and skill put into adverting crisis works.
The problem is, you're thinking like a 1%er - you're aware of the game, and you're aware of the way in which it is played.
99% aren't.
They start to get that panicked glazed look when you replace 'democratically' elected governments with 'technocrats' and have news coverage that explains to them how fucked they are.
http://www.youtube.com/watch?v=6f4C30XY2jk&feature=fvst
I heard that it´s not zero sum and Earth actually has five trillion dollars outstanding with the Galactic Empire. That´s about fifteen years worth of exports to the empire.
Poor Irish. No wonder they are making up obscene words like 'foookshite'.
This description of the UK's debt was interesting, particularly since the article was by the BBC. I doubt their assets are growing in value, so maybe if they just "moved" more capital . . .
"The high debt to GDP ratio is explained by the UK's active financial sector, where there is a great deal of capital movement. This level of overall external debt is generally not seen as a problem because the UK also holds high-value assets."
Looks like the mutated 'seed' of Goldman Sachs.
The net of all this debt is an increasing amount of our past and current productivity, much of it created by productive people, having been being stored in non-productive investments and expended on non-productive activities, and those people expecting a return from those non-productive assets, many believing (incorrectly) that this will relieve them of the need to be productive in the future (retirement). So, as an increasing number of previously or currently productive people sit back to collect a return that can not be forthcoming, a collapse will ensue one way (deflation) or another (hyper-inflation). Some of these people will become productive again, but there will be an increase in destitute people consistent with the mis-allocation of investments.
All is well just as long as no one actually wants their 'assets' cashed out and we can go on living day after day in Fantasyland complete with pink unicorns using farts to jump over glitter rainbows.
Hey ! All you "Gherkin (a small, warty pickle) Circle Jerkin" Eurotwats ! How's all that Eurozone "Nation Building" goin' down ? How many Eurotwats do you need to change a light bulb ? None, they're illegal ! Monedas 2011 Comedy Jihad Euro Watch
So US owns $835bil to Japan and Japan own $244bil to US, Why not just do a simple math a call it US owns $589bil to Japan and Japan owns nothing?
If only your English was as good as your Avatar ! LOL ! Well, they're both funny ? Jes fuckin' wit ya ! Don't git morose !
The MF Global story of fraud and corruption has disturbed the delicate confidence of professional money managers and traders. The bastardization of the haloed ’segregated’ account has rocked market professionals to the core. The COMMON SENSE reaction to this disturbance in the force is to withdraw liquidity.
http://rosenthalcapital.com/blog/2011/11/precious-metals-update-germanys-gold-hoard-and-the-mark-up-epiphany/
The music has stopped already, now everyones just eyeing each other to see who will be the one to bolt to the rickety termite infested chair.
I thought 3 weeks ago the deal was if Europe didnt come out of that meeting with a pink unicorn total solution, that the Eurozone would then implode in spectacular domino fashion. So what now...theyre just pretending it doesnt exist?
The Fed... "US is fine."
://news.yahoo.com/next-financial-crisis-hellish-way-204303737.html
A Forbes article originally penned by Addison Wiggin back in May of this year interviewing Mark Mobius. Mobius of Franklin Templeton fame oversees $50 Billion under management and along with the late John Templeton pioneered global investing what seems a lifetime ago. The piece is short, sweet an right on target.
The one quote that truly stands out is this...
"Prior to the bursting of the credit bubble, the public was shocked to learn that our biggest investment banks were levered 30-to-1. When asset values fell, those banks were quickly wiped out. But now the Fed is holding many of the same types of assets and is levered 51-to-1! If the value of their portfolio were to fall by just 2%, the Fed itself would be wiped out."
Read the quote one more time!
Mr. Mobius said?
He is saying that The Fed is already broke !
He has done the math, knows the answer but is in too high profile a position to put it in their face publicly. So The Fed is levered 51-1 and a 2% drop in asset values will wipe out their capital and The Fed had $53 Billion of capital backing $2.7 Trillion in assets.
First off, some $1.5+++ Trillion of these assets are the absolute "dregs of the spittoon" that banks needed to get off of their balance sheets back in 2008-09. The Fed took many of these onto their books and paid PAR!
When The Fed first took these assets on, they bankrupted themselves because fair values were 50-60 cents on the Dollar or less. Their $53 Billion of capital was in reality was probably wiped out in just one day. It could have even been just one single trade!
What was the leverage during the time they extended $16 Trillion credit far and wide to "save the system"?
A pretty comical thought ?
Now, let's take the blasphemy one more step to the next level.
The Dollar is the base or conerstone to the world's economic and financial system, central banks everywhere use and have Dollar credits as their collateral or reseves (in the neighborhood of 60%) to back their own currencies. The whole thing is an inverted pyramid teetering on the head of $53 Billion needle which only has value because of CONfidence anyway.
Get the picture? The Fed is in reality an undercapitalized, overleveraged entity that "prints money" that has "value"...well...because it does...for now.
Do you now fully see WHY they must at all costs ingrain into the sheeple's minds that "Gold is bad"?
If the public were to rush into Gold (which they are already doing in the physical markets), "paper" would then be seen to be "bad". It is a fine line and thin margin of error The Fed has and a true rush into Gold blows up everything, everywhere!
All stops will be pulled, any and all lies will be spread, and any and all fraudulent and illegal actions will be taken to keep this from happening. Period!
"They", the mafia of "money" will lose their power over everything when this happens ... "they" will do ANYTHING!
Which leads to today's extremely comical action in Gold. Please remember that Gold has a Dec. option expiration next Tues., standard and par for the course action ahead of time is to make as many call options as worthless as possible by then. Even commentators on the financial spin channels cannot fathom why Gold is going down today. Even THEY believe Gold should be going up as government dominoes waver in the breeze and are a 3rd grade mathematical certainty to fail either by default or the printing press.
No one can explain the action because it is not explainable even by the mentally challenged! If you understand that this is just a paper game being played to brainwash you into fear, then sit back, relax and enjoy the show because that is all this is.
It does not matter what the paper price of Gold or Silver do leading up to the final crack up, what does matter is that you have your positions fully locked, loaded and guarded when it does. You will either arrive into the next currency system very wealthy or you won't, only you can decide.
What "they" are doing now and have been at least since at least as far back as 1996 is try to "help you" decide incorrectly. DON'T let it happen. This will pass as has every other failed attempt since 1999. Stand firm and tall in your own knowledge and common sense instincts!
.......................................................
This is a big deal. The GATA gang get it.
If you don’t, you are clueless and baffled.
Café members should alert their friends about where we are. Have them sign up for a two week free trial, so they can understand what is going on … and not be blindsided by THE Mafia/MUPPET gang.
www.lemetropolecafe.com
Yeah, it´s up to 60-1 byy now.
However, they won´t be wiped out because last January they adopted an accounting change which allows them to book any trading losses as liabilities to the Treasury. Clever, huh? That´s being ahead of the curve.
Tylers covered it at the time
"Creative Accounting" Makes Fed Insolvency Impossiblehttp://www.zerohedge.com/article/accounting-gimmick-makes-fed-insolvency...
+1 for jumping to Mobius.
"Money Mafia" Nice coining of a phrase. ; > )
Both Mobius and Moebius mentioned in the same thread? What's are the chances?
It's an European Cornucopia that's designed to recycle Bullshit?
Yes, don't click on US.
It can't happen here ......" and the rest of that happy horse hockey. Since the currency itself is borrowed debt, before consumers get there hands on it, people really don't have a pot or a window. Look out, below.
http://georgesblogforum.wordpress.com/2011/11/02/the-daily-climb-2/
In the words of the famous rock band REM, "it's the end of the wrold as we know it", has been the cry for quite some time. While I do think things have changed dramatically in the last three years, today was the first time i realized that the world's economy is not going to crash and burn. Why? Well after watching all the bad news and bullshit and worrying about black swans the news came out this morning that Greece would be able to meet its austerity plan next year and ths no new plans would be neccesary. I don't know if this is true or not, and, it doesn't really matter! What matters is the perception of those that control the flow of money....and that ain't the little guy. I don't think the little guy can take down the world anymore. The big guys are in it for self preservation and whle they understand that they are all going to have to take their hits, they know that if they do it in an orderly way then deleverageing will happen gradually over time and everyone of these senior bankers in charge will keep their jobs. All that the politicians and bankers are doing is positioning themselves to minimize damage to themselves...and they all know it. We hear every day that Greece is going to take down the world because of the effect of contagion. Italy and Spain are too big and will decimate the world financial system if they fail. I don't buy it anymore. Right nw TPTB are figuring out whose turn it is to take a haircut so that the rest of the world can keep running. MFG failed, $600 million into a black hole, they broke all the rules of segrgated accounts, but nothing happened!!! Why, becuse TPTB are running amok, rules mean nothing to them anymore and the little people don't care enough or can't get organized. Simply, there is not yet enough discomfort in the western world for massive rebellion, and there probably won't ever be (enough discomfort for massive rebellion). There is one takeaway for me in this whole mess, the golden rule does not apply; everyone is in it for themselves. POWER: MONEY AND GUNS are the only things that will get you what you want. I'm sorry to say this but now I know it to be true. No more Mr. Nice Guy...
Not me! I own physical!
The graph is good and illustrates the problem and the likely solution. Printing is probably the only political solution since Eurozone, like our our Super Committee, are scared to cut spending/entitlements.
European Debt Crisis – Status Update (ECB Interventions Seems As Ineffective as Super Committee)
http://confoundedinterest.wordpress.com
Remember when Greenspan was extolling all those wonderful and creative financial instruments, based on creative accounting and creative economic statistics and trading on very creative and totally unregulated markets ?
to me a Klein bottle seems much emptier than an empty standard bottle. But amazing nevertheless. I try to get one on eBay.
You can't get a real Klein bottle, because the "neck" has to go through the "base" without making a hole.
But you can get a model.
Or better yet, try this: glue two Moebius strips together edge-to-edge and you'll have a real Klein bottle.
Operation 1/2 twist, bitchez.
its like some kind of modern art, and it is
All the way with Gauss-Bonnet!
http://en.wikipedia.org/wiki/Systoles_of_surfaces
What happens to the Klein bottle if the US defaults on the Federal Reserve? If we just simply stop the sucking sound of money to and from the Fed.
I really want to know. Does anyone know?
The banking industry collapses and every major bank needs restructuring.
If we had an honest Congress could we create a Federal Banking Agency to act in place of the Federal Reserve....and then default on all Federal Reserve payments due and leave the FED holding all the bogus bad debt they helped create?
You know...like how the big corps transfer all the bad debts into a subsidiary company and then take that one company bankrupt...leaving the main corp holding company super fine. Like Campbell Soup & Vlassic Pickles, Enron et al.
Very handy chart, although the colour scheme/risk status is a bit misleading. If they were all Ferrari red then it would be more accurate (and indeed symbolic of the fickle, materialistic lunacy that got us here)
Get your klien bottle here (I'm not affiliated, but have ordered a couple form this guy)
http://www.kleinbottle.com/
The notes which come with the glassware are a hoot.
I like mine better... a little more old school.
was almost out of the three ply Lehman's I picked up at a fire sale a couple of years back. I'll need something with the extra comfort a discerning gentleman like myself requires soonChristian Louboutin Heels Alexander Wang Shoes Christian Louboutin Sale Discount Christian Louboutin Shoes Womens UGG Boots
Alexander Wang Bag | Alexander Wang Shoes | Alexander Wang Rocco Alexander Wang Frankie Creeper Short crude oil. The world is swiming in oil as everything else. Its elevated price is just a scam. The probability of war is zero. Uncle Sam can´t go to war against Iran because both its flanks are insecure. The left flank goes to the Straits of Hormuz and if that is closed this means crude price $300 and Stalingrad for US forces in Iraq and other US vassal states in the gulf. As for the right flank that supply line goes through Pakistan. It´s shaky enough as it is.
Slap in the face for all the smack talkers here but crunch these numbers for net and it’s a different story. With the US in the hole a trillion without counting the 800-950 bn to China, I would say the US is forcing along with Greece, Italy, and the UK/Ireland for the rest of the nations to roll thier debt @ higher interest rates to profit from these negative balances. For God's sakes France with a +526.8 bn net, Japan with a +276.2 bn net and Spain with a +152.3 bn net, seems the media has been delivering some wader deep BS to us about the European contagion. The US, Greece, Italy and the UK/Ireland are causing the rest of them to go down by not paying, it’s like withholding payment on your mortgage waiting for your bank to go bankrupt so you don’t have to pay them back all while you are critical publically and blame their balance sheet for the problem.
Japan looks like a wet dream, but then you have to account for China and its debt in house to get that shitty picture. Portugal is the first to bust the ponzi with owing everyone and the last thing I remember exporting from Portugal was an STD, thank God for that American penicillin. Germany and Ireland seem screwed in the long run since they are waiting on the US/UK as the only positive on the net balance. The big question is how much everyone owes China then the rose color glasses come off and you look for a cave like mine.
If the problem is to be solved it’s getting the US, Greece, Italy and the UK to pay off its debt and the rest of the world would be functioning. For Greece to be 832.3 bn net negative with dismal GDP only a jubilee would have to occur for that to go away. That puts everyone else in need of funds and Benny & the inkJETS to the rescue, print the trillion the US owes and then the clearing banks force all imbalances over 200 bn to be cleared and wallah, none issue, going back to eating raw meat and mining my cave for silver and gold.
Great example and illustration.
Jeremy
Common Sense Capitalism