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Coming Soon: The $600 Trillion Derivatives Emergency Meeting

by: The Prudent Investor October 13, 2008    
The Prudent Investor

The Prudent Investor

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Here is an update on the size of the derivatives market with the latest official figures (.pdf) from the Bank for International Settlements (BIS). Hold your breath, as we are not anymore talking paltry billions but TRILLIONS of whichever fiat currency.

Current emergency meetings on banks and markets are still only in the stage where politicians and central bankers are bickering over how to create a few more hundred billions Euros and FRNs. But toxic MBS pale in comparison to the mushrooming growth of the derivatives market. According to figures released in the quarterly review of the BIS (pp A103) in September the total notional amount of outstanding derivatives in all categories rose 15% to a mindboggling $596 TRILLION as of December 2007.

Two thirds of contracts by volume or $393 TRILLION fell into the category of interest rate derivatives. Credit Default Swaps had a notional volume of $58 TRILLION, seeing the sharpest relative increase after a volume of $43 TRILLION a year earlier.

Currency derivatives reached a volume of $56 TRILLION.

Oh, and every grand balance sheet comes with a trash can. Unallocated derivatives with a notional amount of $71 TRILLION are looming over the heads of the disintegrating investment community too.

However You Look At It, This Is an Accident Waiting To Happen

Don't lose your sleep because of these numbers that KO my desktop calculator. In an ideal world - in which we are not - long and short derivatives would net out each other, leaving only a fraction of risk. The BIS tries to assess this net risk with a total of $14.5 TRILLION (2006: 11.1 TRILLION) in gross market value for all contracts but comes up with a second figure.

The so called Gross Credit Exposure appears almost moderate at $3.256 TRILLION after $2.672 TRILLION a year earlier.

Even when taking the lowest of these figures shudders run down my spine. All emergency talks have so far focused on a few hundred billions in fiat currencies, but the current nervousness demonstrated by hectic talks of finance ministers and central bankers all over the globe should give everybody a vague idea that something here may blow up any day. This pool of so far silent derivatives without a major bust can come to life any day with the failure of a multinational financial firm.

The BIS review is a good way to grasp the dimensions long term monetary expansion has brought upon us. A net risk of $14 TRILLION compares with the annual GDP of the USA. Nobody, absolutely nobody can afford this tab in the case of an unorderly unwinding of this market that is roughly 12 times the size of the global economy. I conclude a lot more paper promises will be burnt in the coming derivatives tsunami. As a reminder, most of these contracts have been moved off balance sheets into under capitalized subsidiaries that profited from the good rating of the parent company. But in case of a default it is this nasty, nasty huge notional amount that becomes a liability.

As the vast majority of these contracts have no market, failure will come in the form of counterparty risk. This makes all the current emergency meeting a bit more understandable if politicians are already aware of the biggest bubble that may find no other way of deflation than a sudden burst. I base my sense of urgency on the rapid growth of the net risk in only one year, rising a stunning 30% at a time when the first signs of the credit crunch appeared.

German chancellor Angela Merkel said ahead of an emergency meeting with French president Nicolas Sarkozy in a TV interview that she would present a rescue package for German banks on Monday. This is also expected from several other European countries. Italian president Silvio Berlusconi went so far as to suggest a concerted stock exchange holiday. It would fit the other crooked nails in the coffin of free markets.

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This article has 75 comments:

  •  
    Oct 13 08:38 AM
    "We owe it to ourselves"
    Reply
  •  
    Oct 13 09:17 AM
    This is a totally intractable to policy issue at this point. CDS are here and if we are wise we will take the legal fix that these instruments are unenforceable as contracts against public policy - enforcement of gambling debts. This sounds drastic I know, but the facts are there for the argument to be made, and there is little question but what all parties were aware they were engaging in a side bet as pure speculation since they knew the counterparty had no security or reserves to measure his capacity to write the contracts. Will it hurt to do declare the contracts unenforceable? I would think just saying the swap might not be enforceable will be sufficient to collapse some parties to the contracts who will be exposed to market forces directrly. Drastic? absolutely. Needed absolutely. Besides these contracts are largely nugatory and would only clog bankruptcy proceeds (where they would not be assets in most cases)
    Reply
  •  
    Oct 13 11:08 AM
    (apologies to Don Ho)

    Giant bubbles,
    Given time,

    Giant bubbles,
    Blowin' my mind.

    Giant bubbles,
    Make me tremble all over,

    I've got a feelin' that I'm gonna,
    Owe ya 'til the end of time.
    Reply
  •  
    Oct 13 12:06 PM
    Whidbey,

    I'm sure you're not the first to think of that, but here's the rub: economic activity is completely based on trust, on faith that financial contracts will be upheld by courts and can be enforced. Which country wants to be the first to say "we're abrogating contract enforcement"? While I agree with you that we're headed there, the choruses of "what about me?" from Main Street will become a deafening roar when that happens.

    I'm still not seeing a way out of this.

    To the author: I'm now hearing that we are actually into the quadrillions of dollars in derivatives. It's just silly, it's not even scary anymore. Desensitization has set in. Antal Fekete wrote recently: "you cannot hedge debt risk by owning more debt." Of course he's right. I think Paulson and Bernanke know it too, I just wish they'd stop before they completely destroy the USD.
    Reply
  •  
    Oct 13 12:46 PM
    "faith that financial contracts will be upheld by courts and can be enforced"

    Too late. Just ask WaMu bondholders.
    Reply
  •  
    Oct 14 10:12 AM
    Does anyone watch Star Trek?

    There is a great Star Trek episode from the late 1960s entitled “Specter of the Gun”. Kirk, Spock, McCoy, Scotty and Chekhov are compelled to fight Wyatt Earp and his gang in a showdown at the O.K. Corral. Curious aliens have, of course, orchestrated the battle: some kind of a moral psychodrama. Anyway, in this episode Mr. Spock develops a “knock-out” gas from ingredients found in Doc Holiday’s office. The protagonists logically figure that if they can render the Earp Gang unconscious, then they won’t have to fight them at the O.K. Corral. (And as we know, the Earp’s defeat the Clanton’s at the gunfight at the O.K. Corral. And as Mr. Spock so aptly points out, “history cannot be changed.”)

    All are certain that the gas will work; but just to be sure, Scotty volunteers to be the test subject for the agent. Spock, for one, is spellbound, when the potion fails to work. “Fascinating” he quips. Spock goes on to explain the enormity of this paradox. “The potion” he explains, “must work. By all laws we know, it simply cannot fail. And yet it has failed”. Spock goes on to theorize that a massive manipulation of the crew’s brain patterns must be occurring. He also explains that this knowledge, if used correctly, can save the crew from certain demise at the O.K Corral.

    Back to 2008. At some point, the massive manipulation of our brains, orchestrated by Spanky Paulson and all of his uber-wealthy cronies, will end. Reality will intrude. The global economy MUST crash because there are simply too many dollars "worth" of worthless assets gathering dust in the safes and hard drives and account ledgers of the world's financial instutions. Tens of Trillions of dollars worth! And no amount of mass hypnosis (in the form of 'pundits optimism'), or empty words (in the form of government guarantees on EVERYTHING), or spin can change reality. Get that? Reality cannot be changed.
    Reply
  •  
    Oct 14 07:06 PM
    I doubt that the derivatives market is operating on trust - if it ever did. In cases where the claiming party to the contract also owns the instrument perhaps it could be enforced as a form of insurance. Otherwise it was just money on the gambling table anyway. My understanding is that the liabilities far outweigh the actual instruments ("references"... Since it is a logical impossibility that the contracts could be universally enforced the courts should not enforce the contracts. Courts are about real things and real damages - the real economy.
    Reply
  •  
    Oct 15 03:09 PM
    Ashizashiz:

    Very well said........period.

    Like the article states very trufhfully, "absolutely nobody can afford this tab"

    This thing is astronomical, I was recently talking with one of the best financial heads this world has ever seen. (my opionion)

    I made the statement that I feel this thing is going to come unwound and hard.

    He replied, "I agree, it is coming apart, and it is so much more serious than most realize,...........muc... more."
    Reply
  •  
    Oct 15 05:22 PM
    I know the Star Trek episode well, and I agree it's a good analogy for all these futile bailouts. I've also been sounding the alarm about the derivatives time bomb for a long time. If you like Star Trek, check out my web site at home.earthlink.net/~de_star_trek/ .

    Dave
    daveeriqat.wordpress.c.../
    Reply
  •  
    Oct 16 01:36 PM

    Where is the line between reasonable investing and manic gambling?

    Who has been risking what has not been produced by their sweat to play in an arena only they sort of understand?

    Is the driver greed, aka love of money for it's own sake, or is it insecurity, aka fear of lack of money?
    Reply
  •  
    Oct 16 01:55 PM
    Abrogating derivatives sounds good, but with what consequences?
    It is an idea worth pursuing. The alternative may be to see the banks that are counterparties come crashing down and the billions of public money that has been plowed into those banks lost to credit speculators.
    Reply
  •  
    Oct 16 02:26 PM
    Unfortunately TaxConsultant, your legal argument will have no basis and thus no legal standing because the unwinding had begun. Lehman is already on the hook for 300 billion of these financially deadly instruments. AIG's exposure still is unknown. That is why rthe gummint covered AIG and NOT Lehman. The die has been cast. The marks have been set. That's the reality.

    Also note that GM has 1 trillion against it for it's bonds on a derivative contract. GM doesn't even have that amount in bonds. It is a bet in GM's default. Why do think the auto industry asked for 25 billion in gummint gimme's ?
    Reply
  •  
    Oct 16 08:03 PM
    Jump, capitalist pig -- the party is over!

    Jump, because you do not deserve any bailout, especially with what remains of the taxpayers' money.

    Jump, it is only right, as you have looted and plundered the land of your birth without any regard of the consequences for your friends and neighbors or the future of our children.

    Jump, you rotten bastards in your three-piece suits, your wingtip shoes, your Rolex watches and your damned suspenders, you who threw good hard-working men with dirt under their fingernails out of work.

    Jump, you stinking rats who lied to the American worker, who bribed and corrupted the representatives of the people to send Americas good paying jobs to sweatshops in Mexico, China, to India, leaving in their wake minimum wage jobs while you stuffed your pockets at the expense of your fellow Americans.

    Jump, you bastards, who called it business when it was really treason when you sold out your Nation for profit.

    Jump, you miserable scum, as you have destroyed the American family, forcing mothers to leave their children with strangers to make ends meet.

    Jump, for having sold your fellow human beings into financial slavery, chained to a lifetime of debt without end.

    Jump, for making Americas currency all but worthless.

    Jump, for throwing families off their farms, for taking away peoples homes, for the stagnating wages.

    Jump, you bastards for influencing the foreign policy of America to make war in order for your corporations and banks to seize and control the resources of other nations.

    Jump, for you have the blood of the innocent on your hands, murdered in the name of corporate greed.

    Jump, you bastards, for helping to give us Bush and Cheney who would turn America into a corporate controlled fascist state.

    Jump, you capitalist exploiters of humanity, at least give us, your victims, the satisfaction of seeing you jump, along with all the other Wall St practitioners of soulless greed and exploitation.

    Jump!
    Reply
  •  
    Oct 16 11:15 PM
    I don't think anyone here made a single coherent point. Sorry. I keep trying to figure out who wins and who loses in these CDS situations, and from what I've seen post-Lehman, those most leveraged who got their margins called, had to liquidate. Over the past few weeks (maybe months), those with ties to the "bets" held, sold off into an unforgiving market. One day triple digit down, the next triple digit up. Sell, recover, sell, recover. Any unforeseen bad news about the economy, turbo-charges the sell-off for that day. The VIX reflects the potential range of the day.

    Just like a casino, some will win and some will lose and you're trying to convince us that we will all lose. Economies will de-leverage, that we've seen, but as everything becomes worth less, they also cost less. Sure, this will continue to tear apart people's retirement savings, IF you are expecting anything less than capital preservation in your elections.
    Reply
  •  
    Oct 17 02:18 AM
    I guess I'm a bit confused by this: "But in case of a default it is this nasty, nasty huge notional amount that becomes a liability." Since only the notional amount (not real dollars) is exchanged, then the only liability would appear to be the net accrued interest payment (if you are talking interest rate swaps only, since this is the vast amount of the issue). Currencies, on the other hand, generally will be exchanged as currencies rather than notional amounts. If your counterparty defaults, you just exchange the currency you have into the currency you need to unwind the transaction. Pray for currency stability! I think it's the credit default swaps that will cause the lion's share of the mess if a biggun goes under... and that's why ALL banks were encouraged to simultaneously belly up to the TARP bar; that is, so that there would be no "looks like they had to" going on among the big boys.
    Reply
  •  
    Oct 17 03:51 AM
    sorry, but this is just another example of getting hysteric about a threat of derivatives implosion. the danger is real, yes, but the probability as well as the true amounts involved are grossly overstated imho.
    the biggest danger is that the non-lending by banks leads to corporate defaults by otherwise sound companies which in turn would trigger CDS-events. The net-net amounts even in the case of LEH will be far, far less than the fear mongerers predict here. it may be anywhere bewteen 8 billion and 100 but that#s about it and even if a couple of counterparties were to default you may not even hear about it. restv assured, the BIS, the fed, ecb and the IMF are all in close contacts with the big players. the cds market may be absolutely intransparent and unregulated - but right here right now he powers that be will absolutely ensure that it will not go into a collapsing mode.
    1 week from now, when the LEH case has been finally settled and the derivatives world has not turned into a supernova people will slowly start to realize that the wordl is not coming to an end. and all of a sudden, bank lending will slowly start again . and stock markets will see some heavy upward spikes.
    too optimistic? maybe. but not unlikely. in any case, the staggering notional amounts involved seem to confuse people and lead them to underestimate the vast resources of the combined central banks
    Reply
  •  
    Oct 17 04:23 AM
    With commodity prices imploding...Does this mean inflation is over... is the bigger evil Deflation?? In the Depression of the 1930s this was one of the major problems...What is interesting is the Asian economies in 1998 experienced tremendous Deflation ( Debt Deflation) which lead to MASSIVE Inflation...More so with the printing presses running in the US and the rest of the world.what effect will that have?

    Where do you think we are headed?? As a member of Myinvestorsplace.com, we are seriously looking for solutions. Any ideas/
    Reply
  •  
    Oct 17 07:43 AM
    bosjun, aptly put. I second that emotion!
    Reply
  •  
    Oct 17 09:05 AM
    nobody talks about it - I mean nobody -is it denial that it exists ? does it exist ? the only people who talk about it seem like gold bugs or silver bugs-

    If this is the case why is there even a stock market trading - If these debt dollars or whatever debt currency come into existence are they blackholes which will suck every dollar printed or on a computer into it ?
    these derivatives sound stranger then quantum physics or string theory -

    when one explodes will the fed just state it doesnt matter the dollar is just a piece of paper - he will type the number in the computer (if it fits ) with a plus sign in front and press send - Then say see how easy that was to fix - because he presses send -your house will then be worth an easy 100 million dollars -

    so the way I see it is look on the bright side you will soon be as rich as warren buffet is today -

    the only way to deal with this at this point is with a sense of humor otherwise it hurts to much
    Reply
  •  
    Oct 17 09:11 AM
    after reading my comment I forgot to proofread, spellcheck, cross my t's and dot my i's - sorry to those who care
    Reply
  •  
    Oct 17 10:01 AM
    On one hand, don't forget that CDS are zero sum game. Which means although it's hundreds of trillion of dollars, in the end, it's just money flying around different parties and not end up destroyed.

    On the other hand, CDS resolution *ISN'T* instantaneous. In fact, in a bankruptcy proceeding (that is complex and takes a long time [READ: Almost all large ones] )and in a situation where pockets of it may resolve before the rest, money can absolutely be frozen away from segments of the "CDS web", creating cash vacuums that can destroy economies.

    The best way forward, without changing contract law, is to create a central clearinghouse and force all CDS to settle at market value at the same time, and outlaw new CDS from being generated for a while (CDS holiday), at least until regulation about it is created. Since CDS is a zero sum game, the instantaneous resolution should yield no net loss to the whole economy, although individual companies could go bankrupt. (But since their CDS is also simultaneously settled, their bankruptcy will not ripple anymore)
    Reply
  •  
    Oct 17 10:04 AM
    Also, now that I think about it, since it's a zero sum game, it's possible for world government to buy up of all CDS at market price and then instantly vaporize it between themselves. (All the while outlawing any new CDS generation or trading)

    Since it is zero sum, the actual exchange of money between countries may end up to be very little or manageable. It may even be less than all the bailouts the world have already done.

    This will instantly restore confidence!
    Reply
  •  
    Oct 17 10:53 AM
    I know a portfolio manager that had derivatives through Lehman. (Lehman was the broker in between the counter parties). After Lehman went under he was very concerned about his positions.

    However, he said that for any position where the gain was more than $400,000, the counter party had to put up T Bills as collateral, and those positions were 100% covered.

    That left the positions with less than $400,000 gain. Here, he collected 97% of the amount owed.

    I also know that one of the things that made the AIG default so immediate is that there were collateral calls on their CDS position as the positions deteriorated.

    So, I conclude that there is a need for more transparency here, but it is unlikely we are facing a systemic crisis because the contracts have collateral when the positions get too big.
    Reply
  •  
    Oct 17 10:58 AM
    "...and that's why ALL banks were encouraged to simultaneously belly up to the TARP bar; that is, so that there would be no "looks like they had to" going on among the big boys."

    You do realize what you just wrote (and what the Fed just did)?? Forced a transaction for the sake of appearances? What happened to transparency? Did the Fed not just violate SarBox, by obscuring from the market the condition of certain of those 9 banks, by forcing the other good ones to in effect camouflage them???

    This entire bailout is Unconstitutional, and this bank buy-in was the worst piece yet!!!

    P.S. -- I don't give a FLIPPIN' RIP if it ends up working, if it's illegal and also undermines the principles of free markets, which are economic expressions of personal liberty! This deal was WRONG. Period.
    Reply
  •  
    Oct 17 01:26 PM
    This is a great piece, thanks. Here's a question for the alpha community: what do you think is the ratio between the bailout size so far (say 700B+300B already spent = 1T) and the cumulative total of executive bonuses paid during the bubble at the major institutions, say since 2003?

    My rough guess is: bailout size = twice cumulative industry bonus payout 2003-2007.

    Wouldn't it be nice to know this number?
    Reply
  •  
    Oct 17 02:17 PM
    Didn't FASB just allow these gangsters to lie about these illiquid crap paper investments. The SEC is suspending FASB 157 rule that would of brought these worthless toxic paper onto there books. There is no accountability in this world any longer the Kingmakers now rule us all. I still think somehow there day of reckoning will come. FASB lost whatever accountability they might of had up to this point. Consequences will come from all this paper printing regardless of business conditions. Protect yourself. Weimer is upon us.
    Reply
  •  
    Oct 17 02:40 PM
    the article and brilliant comments/analysis were facinating: i read an article found on the rense site via,'lyndon la rouche' and a writer-analyist declare 'all derivitives need be neutralized-made-insta... illegal,therefore null-void,no legal actions taken,end of game' ....as roughly quoted.
    what Troubles me ,is the severe lack-of...programs on sunday morning,thuroughly discussing-educating (how about reading-aloud these comments and article?!!) the derivitave market and voicing comments like the above,which were the best yet,i have ever read,thank you comment experts! i will circulate this to my friends.
    IMHO....I'd agree,about rendering derivitives null and void,illegal for-ever!!
    Reply
  •  
    Oct 17 02:51 PM
    bosunj: Great poem. Needs a bit of work with the rhyming though.

    General:

    Not all derivatives are zero sum. The ones structured as insurance aren't. They are a stream of small payments for 'protection' against loss of a large sum. It is not a bet on the value of an item where one loses what another gains. It is an exchange of risk for cash.

    The insuring party can collect a small amount over time until the contract ends OR they wind up making a much larger payment to cover the loss in event of a default. It is unlikely that the two sums will match.

    While it might be possible for the government to buy everyone out and offset everything, it would be incredibly expensivee.

    For those 'zero sum' pairs, any party with a profitable position wouldn't sell for less than their current gain, and no party with a losing position would want anything less than break even. The government would pay one of the two more than the value of the contract and so costs would be total more than the figures you see from BIS.

    Hundreds of trillions of dollars would need to be created to cover everything. The dollar would soon rival the Zimbabwe dollar for purchasing power.
    Reply
  •  
    Oct 17 03:04 PM
    Please see the following link for the actual MO around this situation. Obviously greed and mismanagement played their part. But this level of analysis seems naive. The financial take-down is the second phase of the NWO roll out, and as long as its viewed as an isolated financial crisis, they will have fooled us twice.

    www.stevequayle.com/Ne...
    Reply
  •  
    Oct 17 03:20 PM
    These are HeisenSwaps - you can only know their value by destroying them.
    For this and one other reason there should be restrictions on the ownership of Credit Default Swaps. Once these appear on the balance sheet of a financial entity it is impossible to assess the entity's exposure to risk. Indeed, it could be said that that is their intended purpose. If the risk of loss from these swaps was limited, diffusion would not matter because the loss would be limited. It only takes one element of a swap to hold the risk of an unlimited loss and the entire system is put at risk.
    Think of infinity/n. However large n is, the risk remains infinite no matter how many hands it passes through. Try to offset it and you have infinity/n -infinity/n. There is no sane answer.
    Reply
  •  
    Oct 17 03:35 PM
    The only way to fix this problem is to take over all major banks, and most other financial institutions and cancel all the derivative contracts. In order to do this the property rights of the constitution has to be suspended so if shareholders lose their value they wont have a claim --- why Paulson didn't want court review of his decisions initially. This is such a mess that ownership of assets anyone holds is impossible to figure out. CDS are almost like insurance --- money to be paid off at default. The problem is when default is happening say on a mortgage batch several companies have to pay several other companies while the initial deed on a property could be owned by a bank that could be in bankruptcy or have no right under it because they will get paid off by institution that has no money. An impossible sitution for a judge to decide who owns the property and forclose it under the current law and even sold if a property is forclosed. To make a long story short almost every other debt has been insured like this so property doesnt end with mortgages but ownership of every collateralized commercial debt, so take your money buy gold coins and put them in a pillow case to ride this out. Kind of end of capitalism as we know it?
    Reply
  •  
    Oct 17 03:46 PM
    Next Tuesday, Oct. 21, we will find out who has to pay the piper on the Lehman debt. If AIG wrote its CDS's naked then we taxpayer are going to take the hit. We, I think, have a lot to worry on this score since AIG does not seem how to do anything right except to plan and execute toga parties.
    Reply
  •  
    Oct 17 03:57 PM

    Pant pant pant, hyperventilating commies spreading lies.

    The Lehman headline figure was $300 billion and the actual payouts when it went bankrupt to counterparties was $4 billion. And most are not going to go bankrupt. Practically none, really.

    The reason the figures pile up is there is no netting of trades. The solution is simple, clearing, as we use for futures contracts. The Chicaog Merc has already started the process of setting up a CDS centralized clearing system. As in all such systems, the banks participating are the underwriters for the whole exchange as counterparty to each, therefore they can't default, net (the winners on the trades are in the underwriting pool, it can't go bust on a payout since it is collecting said payout).

    This may take a few months to set up, that is all. And all the end of the world traders are going to find it is only their twisted world of hate that has ended.
    Reply
  •  
    Oct 17 05:09 PM
    I am glad someone besides me is finally talking about the "raging elephant" in the room.

    I did an audio update on this situation last week: www.rapidtrends.com/la...

    Great article. Much needed info right now.
    Reply
  •  
    Oct 17 06:50 PM
    Interesting and thought provoking article and commentary by all.
    My question is relative to the suggested banning of CDS instruments:
    Was/is the problem the outrageously unwise and profligate 40 to 1 leverage implemented in peddling them which was allowed by the discredited and criminally suspect officials and marketers, or was it the CDS instruments themselves ?
    Seems to me that the insurance instruments, if used appropriately, are basiclly not at fault.
    What am I missing?
    If this article's worst case possibility occurs, this problem appears to be bigger than we are.
    Three to five years of Emergency Funds to sustain your family's needs is not a bad idea right now, all theory aside.
    Reply
  •  
    Oct 17 09:09 PM
    <i>"Just like a casino, some will win and some will lose.."</i>

    Bx is right folks! What's the problem??
    Don't you know there are very wealthy..i mean powerful...i mean influential people handling the situation?
    They say so on CNN!

    Relax, go grab a cold one and sit back and watch tv.
    Everything will be alright.
    Reply
  •  
    Oct 17 10:03 PM
    Good article. Something the mainstream media whores speak little about.
    A ticking time bomb.

    This reminds me of an old saying told to me back in the seventies.

    "The English would expand themselves to death, the Germans would arm themselves to death, and the Americans would loan themselves to death." Author unknown...

    Is this crisis being manipulated to lead the world to the following which David Rockefeller stated in 1994 at a Bilderberger meeting in Germany.

    "We are on the verge of a global transformation. All we need is the right major crisis and the nations will accept the New World Order."

    Nicholas Sarkozy recently has spoken about a new single currency for the planet. Sarkozy is a stooge of the Rothschild clan.
    Reply