The Largest Default Derivative Swap in History Happened Today

The largest default derivative swap in history of all loans for cars, homes, businesses etc is happening in 2 days, apparently. I’ve explained derivatives before but I’ll explain it again. The 2008 market crash was because of derivatives. Banks will bundle a bunch of loans together for cars, homes, business and the like and create a bond. They trade that bond on the stock market. Banks can have thousands of bonds which are hundreds of loans wrapped into bonds. This means your title to your home or land or car gets traded by investors. The odds are, the car loan and home loan you have has been traded by many investors so the bank that issued the bond actually gave your loan out to investors first then to trade and you have had many owners. In finance, a swap is a derivative contract in which one party exchanges or swaps the values or cash flows of one asset for another. Of the two cash flows, one value is fixed and one is variable and based on an index price, interest rate, or currency exchange rate. 159 trillion and some estimate it’s in the quadrillions worldwide. The worldwide gross domestic product in which all of the world makes via its goods and services is 100 trillion. Like the United States currently, the system is operating over its fiscal cliff and that creates an unsustainable market. 

In September, the exchange announced agreements with AllianceBernstein, BlackRock, BlueMountain Capital Management, DE Shaw and Allianz Pimco, in addition to Chicago-based Citadel Investment Group. CME, the world's biggest futures exchange by volume, has been planning its entry into the credit derivatives clearing business for more than a year.
The effort has seen multiple delays as regulators debated how the swaps market would be overseen and banks baulked at a trading platform developed between CME and Citadel.

What does clearing mean? A derivatives clearing organization (DCO) is an entity that enables each party to an agreement, contract, or transaction to substitute, through novation or otherwise, the credit of the DCO for the credit of the parties; arranges or provides, on a multilateral basis, for the settlement or netting of obligations; or otherwise provides clearing services or arrangements that mutualize or transfer credit risk among participants. In simple terms, the moderator examines the real value and gets both parties to agree to a settlement. This could mean a default on many loans including yours. If a default occurs on your mortgage, that means the bank will sell your loan to another lender. You don’t get a free house or a deal either. This does not mean your house goes into foreclosure. Most likely, another lender will pick up your loan for cheaper and will profit off your loan if you pay it all off.

You still are obligated to pay and if you don’t you will lose your house so if your mortgage lender goes belly up, continue sending payments regardless and take note of proof that you did. This can provide a wide range of scams for the lender to take advantage of. They can say they never received your payments and place your house in foreclosure. December 15th is the day you need to contact your bank and ask them if they are going through any derivatives process and if they are, how and where do you send payment without losing it in the mail. There are many videos going around stating you will lose your home due to this epic deriving swap. The answer is, no you will not but could if you’re not paying attention and get it in writing that the bank has a game plan for you in the coming months. Banks can be slimy and try and pull a fast one in you, but if you’re paying attention and know where to send the payment, you should be fine.

Who will take over the loan? Since America, is in default status being 6 trillion over the fiscal edge of operation, it is currently in fire sale mode. I believe America is selling resources at bargain prices. Remember the Afghanistan pullout was a payment to China for interest owed on 850 billion we borrowed from them. The military wasn’t happy about that one. However, there are many videos of nukes being transported. Way more than usual. I believe those are being sold. Most likely, other countries or international investors will buy these loans for pennies on the dollar. But here’s the question. Will they? It’s a bad investment as America is falling apart. The economy is in even worse shape since Obama left it. Trump gave it a kickstart again but Biden followed with pouring sugar in the gas tank. Since congress and the senate both have sold out decades ago and just play the game of control through a two side political system of lies, they have no desire to change the status quo as any change will ruin the scam. They know America is broke and quite frankly don’t care. This is why most have dual citizenship with other countries. The bubble has the needle on it and it’s pushed beyond its threshold. 

The only countries without major debt whom could use this opportunity for control is the Middle East. They’ve been stockpiling money and gold for years. If they own American loans, they could use that as leverage for all kinds of things. Saudi Arabia only owes 264 billion. Iran owes less than a trillion. Egypt owes only 164 billion. These countries could team up with BRICS and get a loan to buy out American corporations and banks as they default on the trillions and trillions of bad loans. What once was a steal, oil being cheap through the Middle East, could bite us back in the ass. Imagine cutting monthly checks to Iran for your mortgage.