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RE: How much Inflation is there Really? [100% SP]
First thanks for the great post!
So the derivative market is about 50 times bigger than M1. This means that if this bubble bursts, investors will try to liquidate their investments for 50 times more then the available money on earth. This will be a HUGE crisis.
Yep, one thing about hiding the M3 numbers (and the derivatives are impossible to quantify since they are traded on secret chinese banks and black box trading systems) is that, although they are not the spendable supply, but if these derivatives implode, the M1 will increase massively.
I mean 2 things could happen, either the CB lets all banks fail with their crappy derivatives, or they print up the necessary money from them, via liquidity injections, which would create a hyperinflation. It's really in the hands of the central banks now.
More like 483x bigger, the M1 is roughly 3.3 trillion, the derivatives are 1.5 quadrillion, but nobody really knows, it could be even bigger. That is 483x bigger, so just imagine the magnitude of inflation that would come down, if that baloon would pop.