Japan

[cottonpicken]

Total global credit market debt is around the 240 trillion dollar mark,total equity market cap is 70 trillion(not 100% sure on that) and total world gdp is 70 trillion.

There is no way out for some,so the real questions are how does this effect all of us.

A big question to me is the credit default swap market.

There is NO way in hell these insurance contracts could ever be paid-its like a 600 trillion dollar market.

The isda will have to rule no default every time.

So when bond investors come to the realization,their insurance hedges are worthless which in its self is not bad,zero sum game,but how do they view the investment of the bond itself?My guess is they would want a **** of a higher yield,i've never read this discussed anywhere so i'm probably missing something.

A credible rumour i have heard is that as this all unravels the imf is going to step in and do all sorts of crazy shit like freeze the bond market and take even the shortest maturities and extend them out into 30 year,and anchor the currencies to itself ,then use the sdr's(special drawing rights),in some sort of stabilization scheme,who the hell knows at this point.

[farmaholic]

Not me...

But I read with interest.

[malleefarmer]

didn't realize japan was third largest economy in the world presumed top 10 but not 3 its all over the news and business papers here as well

and cotton as usual is on the money one paper over the weekend here says IMF will not let japan lead the world into economic apocolypse

[cottonpicken]

The imf was established to help smaller economies that where faltering,mainly stabilize their balance of payments when they over extended,makes sense when you think about it,put the fire out before it spreads,it takes very little to topple our massively leveraged financial institutions.

It was not designed to help out the elephants,but when you listen to lagarde talk,you get the sense she is turning the institution into something alot different,for people following this stuff it maybe shouldnt have suprised us so much when you look at its gold reserves.

Just speculating but the western world could easily check mate the east in the currency war.