The Mother Of All Infographics: Visualizing America's Derivatives Universe

Tyler Durden's picture

A month ago we presented the latest derivatives update from the OCC, according to which the Top 5 US banks held 95.7%, or $221 trillion of the entire US derivative universe (which in turn is just a modest portion of the entire $707 trillion in global derivatives as of June 30, 2011). And while the numbers of all this credit money, because that's what it is, and the variation margin associated with all these trillions in bets is all too real, appeared impressive on paper, they did not do this story enough service. So to present, visually this time, the US derivatives problem, we go to our friends from Demonocracy, who put the $229 trillion derivative 'issue' in its proper context. For those curious what a paper equivalent of bailing out the US derivatives market would look like, now you know.

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Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

Yes! I asked Demonocracy to do this one. You can thank me later...

Popo's picture

The implosion is going to be of cosmic proportions.

I keep coming back to the same conclusion:   War is coming.

I think I need to buy a gun's picture

well i don't know what all the fuss is about i sold some physical gold this morning and bought some tumi and splunk first thing this morning The VALUE is incredible. derivatives shmitivies....

nope-1004's picture

When I was a kid, 1 Trillion was a lot of money.

Today?  lol.  Been debauched so bad that "value" resides only with the fiat currency that has the strongest military.


Gully Foyle's picture


Dr. Evil: Mr. President, after I destroy Washington D.C... I will destroy another major city every hour on the hour. That is, unless, of course, you pay me...
Dr. Evil: one hundred billion dollars.
The President: [bursts with laughter] Dr. Evil, this is 1969! That amount of money doesn't even exist.
The President: That's like saying,
[with changed voice]
The President: "I want a kajillion bajillion dollars."

engineertheeconomy's picture


All others exit to the right, there's a soup kitchen down the street

GFKjunior's picture

Compare these skyscraper sized amounts of paper to all the gold ever mined being able to fit underneath the Eiffel Tower. I know what I like.

Pladizow's picture


1. One Million seconds ago = 12 days

2. One Billion seconds ago = 32 Years

3. One Trillion seconds ago = 32,000 Years

US National debt = 15.6 Trillion

World wide Derivatives exposure = 700 Trillion +

Ag Tex's picture

What about the $800 trillion in shadow derivatives?

Chupacabra-322's picture

Webster Tarpley quoted as saying it's more like  1.5 quadrillion. 

toady's picture

To paraphrase Darth Cheney;

Trillions? Your still talking about trillions?

Come back when your talkin quadrillions!

What does it all mean's picture

Best evidence that JPM (and other TBTF banks as well, but JPM in particular!) is a house full of cards:

From 1999 to now, JP Morgan has NOT had a single losing quarter in profits...  Yes, Dotcom bubble, Sep 11th, Financial Crisis, Bear, Lehman, AIG, MF Global...  NEVER A unprofitable quarter.

They can release some money from quantitative modelling reserve, credit loss reserves, money under the mattress, Ben's side pot, whatever.  Never a losing quarter...

What fundamentals?  What is value?  And what is the point of fighting for the truth?  

No body understands scale... when it comes to dollars, body count, or morality... It becomes a relative game.

Born-Again Bankster's picture

And to think I said to my high school math teacher, "Like I'll ever have to use the word, "googolplex' in real life".

Foot now in mouth, Mrs. Medeiros.  Touche'.

silver500's picture

The last graphic with the white house surrounded by towers of derivatives is a very good and scary image

Hobbleknee's picture

I think that gives way more perspective than pictures of stacked dollars actually.  Thanks!

jonan's picture

lol, the only thing in the universe faster than the speed of light is the rate at which the fed can print.


The Alarmist's picture

Damn, now I know why the Europeans sunk so much money into the Super-Collider.

engineertheeconomy's picture


I get a down arrow for saying " IN GOLD WE TRUST" ?

 you don't think that would be a troll now do you?

JonNadler's picture

that was me, what do you expect, this gold thing ruined my life!

insidious's picture

Why did it ruin your life?

CompassionateFascist's picture

(the actual) Nadler's offices were raided by RCMP awhile back. He's been very bad.

Bastiat's picture

Probably he said:   "I don't know anything" and was immediately released. 

The Alarmist's picture


smlbizman's picture

ass, gas, or grass...nobody rides for free...

spastic_colon's picture

indeed ironic that they used the world trade centers for the last graphic.

The Alarmist's picture

They're rubbing our faces in it, since the WTC was the last known whereabouts of most of the real gold in the US.

LawsofPhysics's picture

"War is coming."


Why?  What if all the CDS holders simply get together and say "call it even?"

What would be the outcome?  These same entities control everything, including the military of most countries.

Just saying, what would these entities actually do.  We are talking about paper-pushers who don't know how to do anything to begin with.

PartysOver's picture

Simple.  Put your counter party that you owe payment to out of business.  No need to pay off.  Next finance the war effort.  Hummmm.  Finally consolidate and control banking. 

Ghordius's picture

Or a quick Gx conference where the decision is to outlaw them.
Same as calling it even. It's not their money they are betting, it's yours.

blu's picture

What if all the CDS holders simply get together and say "call it even?"

I think one of the reasons they have all this paper piled up on their books is because they know perfectly well they have no intention of paying. They are selling "insurance" they can all agree not to pay. No government will ever call them on it, obviously, they can simply say that actually paying will destroy the world. In the meantime they enjoy the premium payments.

It's a scam to fleece the smaller financial parasites. A way of moving money up hill against the flow of gravity. Where it will remain, come hell or high water, forever. And if they want they can use a cooked up "credit event" to selectively nuke parts of the financial system they no longer have need for. Like they did with Lehman. All very sad of course, nobody could have seen this coming, etc.

I suspect we can safely ignore the entire affair.

NotApplicable's picture

I was going to upvote you, but you lead with a comment. Maybe someday that bug will get squished?

blunderdog's picture

That's it, all right.  The reason to create these deals in the first place was so that banks could extract fees (as percentage of total notional value) and bonuses for the dealmakers.

Everyone knows no one can pay anything off.  Not only does everyone KNOW THIS, but it's now been DEMONSTRATED.

And yet we're supposed to be all trembly scared of the "possible damage" to be done to the world when some given trigger is finally pulled.  It's absurd. 

There's no need to worry about it because they can all just exchange STOCK when it's time to settle up.  Ha.

Mach1513's picture

They don't give a Bernank's ass about this shit. Balanced positions. Created with faux money. Doesn't exist. None of it. All they care about is their fees. Fuck everything else - including the derivs. They got theirs already.

And of course none of them will ever really pay.

Complete bullshit.


Incubus's picture

Why?  What if all the CDS holders simply get together and say "call it even?"

What would be the outcome?  These same entities control everything, including the military of most countries.

Just saying, what would these entities actually do.  We are talking about paper-pushers who don't know how to do anything to begin with.


For chrissakes, debt and money is never about who owes what so much as it is about who gets you to do what.  Like I said: shoot for 100000 trillion--it doesn't matter.  This is about managing human livestock and right now the general consensus amongst our handlers is that our numbers need to be reduced to offset catastrophic resource conflicts.


War is coming because it must.  The world isn't about making things better for us common fucking losers--it's about what we're allowed to do in order to make the lives of our handlers better.  If it means knocking a few billion of us off the face of the planet, so be it.


And you thought your life ever meant something?  Boy, have they got all of you fooled.

i-dog's picture


"our numbers need to be reduced ... War is coming because it must."

War is for profit, not for population reduction. There have been far more people killed between wars---by starvation and ensuing disease---than in any wars.

Expect them to either unleash a more virulent virus or simply disrupt food supplies (possibly due to a convenient war, or threat of war).

The Alarmist's picture

"What if all the CDS holders simply get together and say "call it even?""

Reminds me of the scene in Holy Grail, where Arthur battles the Black Knight, cutting off his arms and legs, at which point the Black Knight declares, "Alright, we'll call it a draw."

Moon Pie's picture

"War is all hell....and the more of it there is, the sooner it will be over." - William Tecumseh Sherman

One of the truest words ever spoken about war in my view.   This as the man was subduing the South.

Here in this case, the war is not with cannon, rifle or cavalry.  It is with financial instruments and financial "might".  Used against people, against the government and against ANY entity that might rise against it.

War is not coming.  Its here.  It's been here and it is taking ground.

grid-b-gone's picture

It is essential that average people have zero debt on anything they don't want to lose.

When the implosion hits, institutions will call every callable loan in an effort to survive. 

Can you pay off all your callable loans today? Do you even know if your loans are callable?

If your local fiat currency devalues by 20% the day derivatives fail, can you still pay off all your debt upon demand?

If your bank invokes their new disaster rule and tells you funds will be available in 30-to-90 days, can you still pay off all your debt upon demand?

As long as the top five continue to insist that derivatives remain unregulated, I will continue to pay down debt.

ebworthen's picture

"I keep coming back to the same conclusion:   War is coming."

Exactly.  Sad, but true.

Eireann go Brach's picture

Post this on Facebook beside one of the Khardashian Sister Cunts who just had fat sucked out their fat ass, and guess which post 97% of Americans will have a thought on?

GOSPLAN HERO's picture

The sluts continue to defile themselves by sleeping with Aficanus Erectus.

SilverRhino's picture

MSM has to keep up the memetic programming that black men with white women is a good thing.  

Thank God I've sworn off american white women myself.   99% of them are overpriced bitches.

GOSPLAN HERO's picture

The fat-assed sluts are of questionable racial origin.  Do the qualify as being white?  Eurasian?



GOSPLAN HERO's picture

I stand corrected.

Since Armenia borders the Caucasus Mountains to the south, I would say that they are definitely Caucasoids.

... or Cockasoids?


Joeman34's picture

Do NOT even dignify their existence by referencing them on this site!!!!

CompassionateFascist's picture

Kosher MSM is more into White Mudsharks/Congoids - Heidi Klum + Seal, frinstance - who produce nonwhite offspring; in this case, orange brats with quills instead of hair. Whites should accept their extinction with good grace. After all, we don't want our Jewish masters to get "holocausted" again.