Monday, November 9, 2009

The Numbers

It seems that the problem in Scottish politics is that no-one seems to understand numbers.

To understand the reality of Britain's economy you have to understand that The City is liable for about 25% of all the derivative's debt in the world.

Let's look at the world's derivative's debt then.

The Exter Pyramid. Courtesy of ZeroHedge.

The ticking timebomb is that $2 quadrillion of liquidity will collapse into whatever truly tangible assets exist. And you thought gold was already overpriced?

Yes, the Bank of England prints the money to prop up the derivatives markets. It can't work. At some point a lot of that money will find its way into consumer prices, gold and commodities.

This pyramid shows many things such as why the UK's financial sector is insolvent, why the £ is history, why hyper-inflation is a real possibility and why Britain is bankrupt.

Another thing it shows is that Scotland needs to escape from Bankrupt Britain.

1 comment:

cynicalHighlander said...

This might be of interest.

Bleak times ahead.