{"id":16745,"date":"2016-01-20T20:51:02","date_gmt":"2016-01-21T01:51:02","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16745"},"modified":"2016-01-20T20:51:02","modified_gmt":"2016-01-21T01:51:02","slug":"david-morgan-we-are-on-the-precipice","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16745","title":{"rendered":"David Morgan: We Are On The Precipice"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.peakprosperity.com\/podcast\/96330\/david-morgan-we-precipice\" target=\"_blank\">David Morgan: We Are On The Precipice<\/a><\/h3>\n<div class=\"article-lede\">\n<div class=\"field field-type-text field-field-lede\">\n<div class=\"field-items\">\n<div class=\"field-item odd\"><strong>Derivatives threaten to topple the global financial system<\/strong><\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Precious metals guru David Morgan returns to address the great threat to the global financial\/monetary system from derivative risk. He sees the world at an unprecedented moment in history where the interconnected nature of the global economy makes all players vulnerable to the mind-boggling volume of outstanding derivatives, which makes the sum of all world equity + debt look tiny in comparison (if you haven&#8217;t seen it yet, look at this visual from\u00a0<a href=\"http:\/\/money.visualcapitalist.com\/all-of-the-worlds-money-and-markets-in-one-visualization\/\" target=\"_blank\">The Money Project<\/a>):<\/p>\n<blockquote><p>I want to give a very clear example that comes from gaming theory and I think this is a very concise and easy way for most people to understand our derivative risk exposure .<\/p>\n<p>There are all kinds of gambling programs out there but one of the simplest ones before any computers was: you are at the roulette table (or you could be wherever, but roulette serves as the best analogy), and you bet a dollar on black and you lose. Then the next bet, you bet $2.00 and you lose. And then the next bet, you bet $4 and you lose. And the next bet, you bet $8 and you lose. The idea is that you keep betting on black, and eventually that&#8217;s going to come up and you&#8217;re going to win on the roulette table. The problem with that is this. You start to bet 2 4 8 16 32 64 128 256 and on and on, and what you are doing is you are betting $256. For what? To win a dollar. That is what you are doing. And that, Chris, I think is the best example I can give to the listeners about what we are doing in these derivatives.<\/p><\/blockquote>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>David Morgan: We Are On The Precipice Derivatives threaten to topple the global financial system Precious metals guru David Morgan returns to address the great threat to the global financial\/monetary system from derivative risk. He sees the world at an unprecedented moment in history where the interconnected nature of the global economy makes all players [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[11862,1668,317,2218,9923,730],"class_list":["post-16745","post","type-post","status-publish","format-standard","hentry","category-economics","tag-david-morgan","tag-derivatives","tag-financial-system","tag-peak-prosperity","tag-podcast","tag-silver"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16745","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16745"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16745\/revisions"}],"predecessor-version":[{"id":16746,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16745\/revisions\/16746"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16745"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16745"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}