Euro Bailout and USA Deriviatives

World Currencies

The stock market in Europe apparently likes the bailout package:

MAY 10, 2010, 9:44 A.M. ET

European Markets Surge

By MICHELE MAATOUK And ISHAQ SIDDIQI

European stocks surged Monday, as investors took heart from a €750 billion ($954.83 billion) rescue package intended to stabilize the single currency and prevent the Greek debt crisis from spreading to other member countries…

On top of this, the U.S. Federal Reserve said Sunday that it would revive an emergency lending program used during the financial crisis. The Fed will ship billions of dollars overseas through foreign central banks, including the ECB, so they can, in turn, lend the money out to banks in their home countries in need of dollar funding. http://online.wsj.com/article/SB10001424052748703880304575235462819341480.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

But all is not rosy. The USA is in debt itself, thus has to create more debt to support the Euro.

And there is another potential massive problem just under the surface of sovereign debt, and that is something called derivatives:

DEFINITION: “Although the term derivative encompasses a bewildering variety of contractual arrangements, derivatives are in essence agreements that do not involve any immediate payment or transfer of assets, but only the exchange of mutual promises to pay some amount of money determined by the performance of a currency, interest rate, commodities price, stock, or stock index. In other words, derivatives are bets on the future performance of some underlying rate or price.” by Lynn A. Stout, Brookings Review, Vol. 14, Winter 1996

Notice the following news item about them:

Stock market time bomb?

Derivatives crash could blow up the global economy

Washington Times – May 10, 2010

By Arnaud de Borchgrave, editor-at-large of The Washington Times and of United Press International.

Even the world’s most savvy stock-market giants (e.g., Warren E. Buffett) have warned over the past decade that derivatives are the fiscal equivalent of a weapon of mass destruction (WMD) – potentially lethal…

The derivatives market is now estimated at $700 trillion (notional, or face, value, not market value). The world’s gross domestic product in 2009: $69.8 trillion; America’s, $14.2 trillion. The total market cap of all major global stock markets? A mere $30 trillion. And the total amount of dollar bills in circulation, most of them abroad: $830 billion (not trillion)…

Today’s massive new derivatives bubble is driving the domestic and global economies, far outstripping the subprime-credit meltdown…

The now-bloody Greek tragedy over its debt crisis is echoing through the Federal Reserve and the halls of Congress. Greece’s public debt exceeds 100 percent of its economy versus 90 percent (at $13 trillion) for the United States. If you add unfunded U.S. liabilities for Social Security, Medicare and Medicaid, the long-term shortfall is $62 trillion, or about $200,000 for each American. http://www.washingtontimes.com/news/2010/may/10/stock-market-time-bomb/

Most everyone will be happy that the world economic crisis may appear to be fixed. But ultimately at least the USA and UK portions will collapse (there is also likely to be some future economic crisis in Europe, but it will not be as bad as what is expected to hit the USA and its Anglo-allies).

And while cooperation between the USA and EU is (generally speaking) a positive thing, because of debt, economic, and other policies, the EU will ultimately turn against the USA. It is the EU, and not Russia or the USA, that is expected to produce the final King of the North. And the USA having the most debt of any country, suggests, according to Bible prophecy, that ultimately it is going to be plundered.

Some articles of related interest may include:

Who is the King of the North? Is there one? Do biblical and Roman Catholic prophecies point to the same leader? Should he be followed? Who will be the King of the North discussed in Daniel 11? Is a nuclear attack prophesied to happen to the English-speaking peoples of the United States, Great Britain, Canada, Australia, and New Zealand? When do the 1335 days, 1290 days, and 1260 days (the time, times, and half a time) of Daniel 12 begin? When does the Bible show that economic collapse will affect the United States?
Is Russia the King of the North? Some claim it is. But what does the Bible teach?
Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, British, Scottish, Welsh, Australians, Anglo-Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo nations? Why might God allow them to be punished first?
Prophecies of Barack Obama? Eight reasons why Barack Obama is apocalyptic and eight reasons why Barack Obama is not the Antichrist. This article includes many biblical and non-biblical prophecies, from around the world, that seem to discuss Barack Obama. Did Nostradamus predict Barack Obama dealing with the Antichrist? Might Barack Obama set the stage for the kings of the North and South as at least one Shiite prophecy suggests? This is the longest and most complete article on this page on Barack Obama prophecies. Read it and decide for yourself if President Obama seems to be fulfilling various prophecies.
Barack Obama, Prophecy, and the Destruction of the United States Some claim that Barack Obama is the prophesied “son of Kenya”, based up an early 20th century writing.
Europa, the Beast, and Revelation Where did Europe get its name? What might Europe have to do with the Book of Revelation? What about “the Beast”? Is an emerging European power “the daughter of Babylon”? What is ahead for Europe?