Sunday, November 27, 2011

Dinar Guru ScottiG Intel Update for 11-27-11

 We have heard it a million times before. Poofness and dozens of Dinar Gurus saying the currency revaluations are imminent. Is it really here? Remember this is not about the Dinar Revaluing, it is about the collapse of the Illuminati Financial Empire and the implementation of a fair financial system. The whole world economic system is about to be rebooted.  This new financial system will then be online for a few years at best and be slowly phased out.  New energy, medical, transportation, food, communication technologies introduced by the Galactic Federation of Light will eliminate all corporate entities and financial transactions.  Technologies are still 4th dimensional constructs.  If you are a soul ascending to the higher dimensions or 5D Earth then you will surpass the use of all technologies that are introduced on 4D earth. Stay Tuned to Find out! e~


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[DebTarHeelGirl] REVISED - ScottiG had a 30 min call on intel and finances!!! EVENSTAR - Scotti just got a call from his contact JUST NOW at the end of his call that exchanges foreign currencies for the last 30 years and he says he would bet all his money. that we would see this RV tomorrow = this contact is at this moment expecting the screens to go nuts!!!!

Greg Giles - The Newly Unveiled Comalcalco Brick Supports Mayan Calendar Prophecy

The Newly Unveiled Comalcalco Brick Supports Mayan Calendar Prophecy

Ancient Pyramids at Comalcalco, Mexico 

Another prophetic Mayan artifact fights its way through the ordered blackout of such discoveries, finally making its way into the mainstream news. (Countless artifacts discovered throughout Mexico and Central America that have the ability to reveal the true history of our planet have been ordered 'buried' by the world controllers as soon as they have been unburied by archaeologists.) Concealed within a wooden box and hidden away within a storeroom most of the time since its discovery (a date no one seems to be sure of or willing to say), at the National Institute of Anthropology & History in Mexico City, Mexico, rests a piece of Mayan artwork that has the potential to be among the most significant archaeological discoveries of all time. 

Corroborating the Mayan Calendar artifact that stands as prophecy that December the 21st, 2012, will mark the beginning of a new age in humanity’s journey is the Comalcalco Brick, which was discovered within the Comalcalco ruins of Southern Mexico. Arturo Mendez, spokesperson for the institute, states that the Comalcalco Brick was one of thousands of bricks used in a rare construction method of an ancient Mayan Temple, and has been carefully studied, although (for undisclosed reasons) has never been displayed publicly. The Comalcalco Brick had also been mysteriously covered with stucco - like material while it was mounted within the Temple wall or turned inward towards the wall to conceal its prophetic message. 

The Comalcalco Brick contains an inscription carved or molded on the face of the brick which marks the end of the 13th Baktun, which is also the period the Mayan Long Count calendar ends, and which will be completed on December the 21st, of 2012, a day which many believe will signify humanity’s birth into a new age of our collective experience.  

Poofness Update for November 27th , 2011

-----Original Message-----
From: 2goforth@Safe-mail.net [mailto:2goforth@Safe-mail.net]
Sent: Sunday, November 27, 2011 12:08 PM
To: 2goforth@Safe-mail.net
Subject: What Happens Now?


http://www.youtube.com/watch?v=xWU8DqrmIrY

The Fall

Artist: Joe Cocker

Strange how this world works
I don't care about your place
You better believe you're gonna get her
You gotta let go, it's out of your hands

One day you're gonna look back
See the reason that you got back

It's all in the fall
That's when you find out what you're all about
We've all been hurt, we've all been burnt
You get knocked down, kicked around, then you get back up
It's all in the fall, starting over again, starting over again.

Somebody once told me
Trouble is, trouble's gonna be coming your way
When the world gets dark and lonely
You might stumble and fall but you get thru it all
It's gonna be okay

One day you're gonna look back
And see it all happen so damn fast, so fast.

It's all in the fall
That's when you find out what you're all about
We've all been hurt, we've all been burnt
You get knocked down, kicked around and then you get back up
It's all in the fall

You don't know who you are til it all come tumbling down
Next thing you know you've found

That it's all in the fall,
That's when you find out what you're all about
Yes, it's all in the fall
That's when you find out what you're all about

We've all been hurt, we've all been burnt
You get knocked down, kicked around
and then you get back up

It's all in the fall, it's all in the fall,
Starting over again, starting over again

Greetings and Salutations;

For all these years, I've been hinting at the real history of banking and finally it has gone public, which I view as a pre announcement thing so the public won't be fully stunned and they'll be more open to hear what they have been conditioned not to believe. As we have all heard, 'they who have the gold rule'.


November 24th, 201

A lawsuit was filed today (November 23rd US time) that could end the secret government that has ruled Western civilization for at least the past 300 years. The lawsuit claims that close to $1 trillion was stolen by, among others, UN Secretary General Ban Ki Moon and the UN, former Italian Prime Minister Silvio Berlusconi and the Italian government, Giancarlo Bruno and the Davos World Economic forum and others believed to include many of the owners of the US Federal Reserve Board. The lawsuit was filed in New York by Neil Keenan, acting as representative of the Dragon family, a reclusive group of wealthy Asian families. This filing is the result of extensive evidence gathering by international police and law-enforcement agencies including Interpol, the CIA, the Japanese Security Police, Eastern European secret services and has the backing of the Pentagon as well as the armed forces of Russia and China.

The ultimate defendants in this legal action are believed to be the same cabal behind the assassination of US President John F. Kennedy and many other major international crimes.

This particular lawsuit was triggered by the illegal detainment of two Japanese citizens, Akihiko Yamaguchi and Mitsuyoshi Watanabe, as well as the seizure of $134.5 billion in bonds they were holding in Italy on June 3, 2009. After the bonds were stolen, self-described 33rd degree Freemason Leo Zagami contacted this writer and said the Montecarlo P2 masonic lodge could cash the bonds with the help of Vatican banker Daniel Dal Bosco. This writer forwarded the information, via a member of the UK Royal family, to the dragon family who entrusted a further $1 trillion worth of similar bonds to the plaintiff Neil Keenan. Keenan then, after much negotiation, entrusted the bonds to Dal Bosco.

Dal Bosco subsequently absconded with the bonds and was followed 24-hours a day by various intelligence service agents to see what he would do with them. The Dal Bosco trail led to the Davos World forum, the UN, the Italian government and the Vatican, among other places. Following this, Keenan was approached by a who’s who of powerful figures including top Vatican officials, Wall Street bankers, European nobles and former US presidents, most offering him astronomical bribes to go away. He was also poisoned with ricin and nearly killed.

According to Keenan “The roots of this case go back to between 1927 and 1938, when, under arrangements made between T.V. Soong (Finance Minister of China) and Henry Morgethau, Secretary of the Treasury, The United States Government purchased some 50 million ounces of silver and leased vast amounts of gold from the Nationalist Chinese Government, known as Kuomintang. For all the treasure handed in, certificates were given to those who surrendered their precious metals.”

Many of the bonds seized by Dal Bosco are backed with the Chinese gold taken by the Federal Reserve Board during those years and never returned to its legal owners.

Other bonds seized were Kennedy bonds. These bonds were backed by gold held in trust for the people of the planet and were supposed to be used to finance the economic development of the world. Instead they have mostly been stolen and misused by members of the cabal that has seized control of the Western financial system on behalf of private interests.

The original signatory to the Kennedy bonds was former Indonesian President Soekarno. Soekarno’s heir Dr. Seno Edy Soekanto has given Keenan power of attorney to return their rightful owners the Kennedy bonds and other property allocated to the people of the world via something known as the global collateral accounts.

The lawsuit is only the first salvo in a legal battle to restore control of the global financial system to the people and governments of the world as well as the rightful owners of historical assets that have been seized by members of the banking cartel.

The lawsuit has been filed as Civil Action #8500 at the United States District Court for the Southern District of New York on November 23, 2011.

Background information on the problems with the global financial system

The entire cause of the problem.
The United States is a private corporation owned by the British Crown (Rothchilds), the Bank of England (Rothchilds) and the Vatican (Rothchilds again). It was previously called the Virginia Company until 3/9/33 when it was dissolved by Roosevelt under the Emergency Banking Act. On 5/5/33 Congress elected to dissolve the Gold Standard and Sovereign Authority of the U.S. and all of its official capacities including government offices, departments and officers. The U.S. is a corporation, not a nation. The Federal Reserve is neither Federal, nor a Reserve. It is a private counterfeiting organization run by Jewish bankers who lend the money they print out of thin air at interest while we keep on paying these criminals to fleece the People.


That technology of theft and deception that has been exported from the United States through their promotion of this fraud as the paradigm of global finance is an obscenity that has set the seeds of its own destruction.

This has been compounded by the refusal of ordinary people to realize, know and understand that it is the duplicity of Governments and the deceit and endless greed of bankers that combined to simply fleece them like the apathetic sheep they are. Apathy and ignorance of the truth, creates belief in the lie. The truth is self-evident, but most people choose to neither hear it nor understand it. The debts of the Federal Reserve are the debts of a private corporation that is robbing the people of the United States.

The United States Dollar is a Federal Reserve Note and the obligations against the currency are the obligations of the Federal Reserve, not the people of the United States.
Understanding the History

1. Between 1927 and 1938, under arrangements made between T.V.Soong (Finance Minister of China) and Henry Morgethau, Secretary of the Treasury, The United States Government purchased some 50 million ounces of silver and leased vast amounts of gold from the Nationalist Chinese Government, known as Kuomintang. During this period China was partly occupied by Japanese troops and there was the fear of China being overrun by the Japanese.

2. For all the treasure handed in, certificates were given to those who surrendered their precious metals. The surrendered precious metals and gemstones were sent to the United States under a lease agreement made between T.V. Soong and Henry Morgenthau. The Certificates became the underlying funds of the Kuomintang and were good and accepted securities.

3. In 1934 a new Securities Act was promulgated in the United States, together with the Gold Act, which required all bullion gold and gold coin to be surrendered to the Federal Reserve, a private corporation chartered to operate as the Central Bank of the United States and to be the issuer of the currency known as the United States Dollar.

4. Domestically owned gold was purchased. Foreign Gold held by the Treasury was also surrendered to the Federal Reserve, so, was leased to the Federal Reserve. This began the series 1934 Notes issued by the Federal Reserve. These have never been redeemed and the interest cost was met by further issuances of the 1934 series FRN’s.

5. These 1934 FRN’s guarantee the lease payments and to allow the Chinese Government to continue financially. These came under the control of the Kuomintang, the Nationalist Government in China from whom the Gold had been received. Many were left in China when the Kuomintang had to flee to Taiwan. The Gold had been nationalized by the Kuomintang who moved much of the FRN’s (but not all) to Taiwan which was built on these notes. These Notes were the underlying wealth of Taiwan and they were good for value as they were backed by gold.

6. During the war in China, most owners of the depository notes issued by Chinese Banks were killed by the Japanese, others later being killed by both the Kuomintang and the Chinese Communists, thus the Gold became property of the Nation, especially so, the Kuomintang. In Europe, Jews who had owned wealth were stripped of that wealth through various means and were then eliminated. The gold was taken either by stealth or by force, that is a reality of history.

7. The Kuomintang appointed guardians of this Gold and the securities issued by the United States; they are euphemistically known as the Dragon Family. The Dragon Family is in fact an organization that operates between old families within China and Taiwan, and as such is above the political divide of the two independent Chinese Governments. Chinese are remarkable in this regard, that old family ties and functions supercede political arrangements which, though they might last for generations, are regarded as inconsequential over the passage of time to most Chinese. Attached to this is the wealth of several nations. The United States in support of the Kuomintang and resistance groups actually printed more of these FRN notes inside China itself. These operations were run by the CIA to buy loyalty of various factions in the fight against the communists, eventually being driven out into Burma around 1960. Largely due to the additional printing of these notes, the additional Notes were given in lieu of interest, but directed to specific persons and parties.

8 At the end of the World War II, with Communist and Kuomintang factions at war in China, the International Community and the Chinese assented to the Gold being placed under the overt control of Indonesian President Soekarno. Soekarno then, on August 17, 1945, came to be known as M1 under United Nations Approval No. MISA 81704 “Operation Heavy Freedom. This was because much of the world’s gold had been delivered into Indonesia and the Philippines. Canada, Australia, Great Britain, India and other British Colonies sent their gold to the so called “impregnable Singapore” The Japanese, as per the arrangements agreed to by Hirohito in the 1921 Pact Between Nations made in London, delivered much of this gold to Indonesia (Then a Dutch Colony) and to Philippines (Then a US Colony) into secret bunkers that had been mostly constructed by the Japanese between 1924 and 1945. This is why the Allied troops in Malaya had no air cover or sufficient supplies to that would have allowed them to resist the Japanese. Singapore had to fall so most of the global wealth could be “lost” into a secret system that made the gold standard redundant and fiat currencies a reality.

This gold was documented into accounts through the Swiss Commercial Bank Union Bank of Switzerland, placed under protection of the Swiss Attorney General, registered through the Swiss National Bank into the Bank for International Settlements International Collateral Combined accounts and then from within the BIS, blocked to form the Institutional Parent Registration Accounts of the Federal Reserve System.

Later President Marcos of the Philippines was appointed and held the position of M1 until 1987 and then the position was transferred to Dr. Ray C. Dam, in October of 1987, under Legal Decadency to Heir RCD1087 Far East Entire with formal Power of Attorney and Assignment of Indonesian Assets signed by Sarinah Soetiwi (holder of the assets on behalf of the Nation of Indonesia as assigned by President Soekarno) in 1992, Dam’s authority later promulgated January 20, 1995. Dam proved to be impossible for the entire system to work with, (either because he refused to allow those who placed him in authority to steal, or because of his personal arrogance…. Difficult to know which is correct) and his authority over the Institutional parent registration Accounts set aside and the system reverted to the three Nations who had controlled these accounts since World war II, United States, Great Britain and France, who systematically and illegally subverted the established system since 1996.

9. From this we can see that there are two functional operations. One was ownership and Depository control by the owners of the Gold and the other a control system set in place to administer and control the Collateral Combined Accounts as an independent Arbiter. Ownership rights are held by the signatory to the Depository Accounts in Commercial Banks and Control Rights have been held by M1.

10. So it was, that the entire world supply of bullion and coinage gold was withdrawn and fiat currencies became the order of the day. However, underneath the notes and money issued by the Federal Reserve was the underlying wealth within a centralized system that Nations was intended to be used equitably, but Bankers determined they would use to raid national economies.

11. In 1963, President John F. Kennedy entered into an Agreement with President Soekarno to provide the funds to allow the United States Treasury to print its own currency, thus subverting the “right” to print the currency held by the Federal Reserve. The Agreement would have transferred some 59,000 tons of gold to underpin this currency. The problem with this was that the US domestic currency would have then been backed by gold which would have been a violation of international agreements meant to stabilize currencies. 11 days after signing this agreement, President Kennedy was assassinated. President Johnson the suspended EO11110 as issued by Kennedy and transferred the bullion to the Federal Reserve. The Green Hilton Agreement was not implemented until 1968 when Soekarno fell from office and when Global Trade made it imperative that the world have a Global Currency. As the Gold had been transferred to the US Treasury in 1968, a series of Bonds known as Kennedy Bonds were issued in order to honor the terms of the Green Hilton Agreement made between Kennedy and Soekarno, the 1968 terms of the gold delivery to the United States being different than made in 1934. When after 30 years, interest had not been paid as promised, a reissue of the bonds in an increased number were issued as commemorative notes and were accepted by the owners of the Gold, the Dragon Family.

12. From copies of Bank documents received by Neil Keenan, within the Green Hilton Memorial Agreement, the funds the amounts of gold and platinum are specified. These amounts of gold are certificated and the certificates and ledger copies with full and exact identification and recognition codes are available. These certificates are further proven by the bank reports, copies of which are now held by Neil Keenan. The truth of these instruments can be vigorously defended through documentation in our hands and further through interrogation of the Black Screens where the off ledger collateral is held, together with an interrogation of the grey and blue screens where we will find enormous fraud from the illegal use of these assets.

13. In the few documents we present with this complaint we can see that the assets have been deposited, the counter-assets created and presented to the depositors, the depositors have been cheated for over 70 years through the intentional and fraudulent failure of the Obligor to honor the Agreements.

14. In recent weeks we have come into possession of the books and records of the late President Soekarno, and all the codes and ledgers of the Global Accounts. The size of these accounts can be seen by reviewing the Collective Agreement between the Garuda Memorial Hilton Indonesia and the Green Memorial Hilton Geneva, established, structured and made operational between 1961 and final signature in 1972. Under this Agreement the assets of the international collateral combined were established and brought forward, then, within a short period of time misused to change the operating systems of banks.

15. Reviewing these books, we can now see that Banks set aside the notion of operating under the Charters they hold as banks, instead of being Banks they became like very poor casino operators and traders, selling what they do not own. The records in our possession, signed and registered by the receiving and managing commercial bank, show the underlying funds in numbers and amounts that stagger the imagination. The Green Hilton and Garuda Memorial Agreements demonstrate clearly the value of the global account system.

a) Gold and Platinum Deposits ran into millions of tons.

b) 1934 series Federal Reserve System Bonds, Notes issued in 1928 , Kennedy Bonds ran into Quadrillions of US Dollars, Dragon Bonds are all recorded and acknowledged within the Green Hilton and Memorial Hilton Collective Agreements. Both Assets in the form of Bullion surrendered to the Global Accounts through the United States Government and then entrusted to a private corporation, the Federal Reserve System.

The hard doc is here;

http://www.rumormillnews.com/pdfs/11%20 ... plaint.pdf

I have been told this man is not a white knight or anything but, many of the less than nice guys are doing 'good faith' work, to clean up for past deeds.

Last week ended up being a sting operation and it was sold well, the info on delivery starting caused the cockroaches to come out of their holes preparing to make a huge haul on the unsuspecting public. Thus they found themselves in a trick bag and being dragged away to undisclosed locations, some getting 'dirty rice' for turkey day and funny colored water. There is a huge 'perp walk' in the offing, which I suspect will be like the nuremberg trials after ww2. From the activities this past week, there are many in america trying to get into a deep hole right now, before the wholesale arrests begin over here. I'm seeing now how they are making that promise fulfilled, 'the bad guys would not even sniff this money'. This is how you perform the 'Art of War'. Your future is not being determined by politrix. The widows and orphans will not be compromised by plutocrats and they who work for them.

This planet is much more advanced technologically then the populace has been allowed to know. We will now enter the Jetson's world and leave the stone age behind. They have been able to clone humans since 1947, think about that one and it's implications.The trouble with that is they have a short shelf life. The drug companies have been dispensing poisons to people and have been willfully doing it because it fits the agenda of the elite, 'thin the population', that ends too. As smart a these guys have been, they don't grasp their own limits and have pushed an agenda that was always doomed to fail. They can't control nature, there's always a snap back effect, if you try.

There's much more coming but I'm leaving that up to the official folks whose job it is to announce it, in both east and west. Word from the rafters says this is it...finally, and the countries, like 133 of them having their currencies revalued, will engage this week coming. Despite info out here to the contrary, the Rothschild were the first to deal with money they borrowed from the dragons, the cockroaches that didn't, oh well, Bye see ya have nice life eating crackers and government cheese. Should have followed the big r familiy's lead.

Love and Kisses,

'Poofness'

Wes Annac Channels The Pleiadian High Council : You are the Prime Creators of what you Feel and Experience

The Pleiadian High Council: You are the Prime Creators of what you Feel and Experience

-Channeled through Wes Annac-

I will probably not do all of my PHC channelings in audio format, but I figured I would try it out this time and see how it went. I think it went pretty well. Take it away friends! 

We understand fully and respect that many of you wish to know more third dimensional updates concerning disclosure and the resumed contact on your world, but dear souls we feel the immense need to let you know that disclosure and ‘First’ Contact can only be brought about if you bring it about. Indeed, while these are very important events, (what) will lead to these events are much more important dear souls, and these events that we speak of are you all taking your world back and you all taking your body and spirit complexes back. For you see dear souls, before you can begin to take your own world back, you must first take your own personal temples back. You must first take your own bodies, minds and hearts back. For, your minds and hearts have been under the influence of darker entities for so very long dear souls.

Indeed, as the dear soul SanJAsKa informed you of in her previous message, your bodies and your minds and hearts are receptors for whichever energies that you flirt with dear souls. So do you see that whichever energies you wish to bring through will manifest your reality. For this is how it works dear souls. You are all the prime Creators of what you see in this reality, you are all the prime Creators of what you feel and experience, and what you experience is based on what you allow yourselves to bring through, is based on which entities you allow yourselves to be in communication (with), which entities you allow yourselves to (meld) your energy with.



For so very long, many of you have (melded) you energy with darker beings who have overseen the lower habits and patterns of Living that you hath entrenched yourselves in. As you flirt with the lower dimensions, you also flirt with the darker beings overseeing such lower dimensions, and these darker beings have for so very long been in control of your world, but it is now not so. You are all embracing the Light now, you are all letting the purer-by-the-day increases of energy through you and this is good dear souls, this is what is needed now at this time. You are all, instead of flirting with the lower beings that have constructed the veil of illusion over your eyes, now you are all instead coming back to the realization of us, to your Loving, Divine brothers and sisters who only wish for the best for you dear souls, who only wish to see your evolution granted as you need it to be.

We wish you to know now that as you begin not to let yourselves flirt with illusion any longer, you will find that illusion dissipates away from you for dear souls this is the natural process. This is how things naturally come about. You have heard the term ‘what you see is what you get’. We guide that this term is only partially correct dear souls, for you decide what it is you see. You throw the labels upon what it is you experience and while these labels are illusory, they have helped you to manifest that which you have desired, but only if you are actually thinking of what you desire dear souls, only if you are attempting to bring through that which you desire.

Many of you will bring through thoughts and words that are of quite a lower nature and we guide that this is illusion at work. Do not let yourselves feel and experience and talk about and think about that which you do not want. Let yourselves now experience what you do want, and to experience this you must first think about what you want, you must first feel what you want dear souls, for (doing) this will bring that about. As you feel what you want, so it is manifested in your reality. Many of you are beginning to notice and realize that your thoughts are coming back to you at an ever-increasing speed and this is because of your ascension process speeding up on your world dear souls.

You are also noticing that as the Divine energies are encompassing your world, what you know as the illusion of time is also seeming to speed up. This is because you are interacting with the higher dimensions dear souls and this is because, as you interact with the higher dimensions, the illusion of time begins to fade away, and this fading is increasing and accelerating on your world. As the illusion of time fades away, you begin to perceive the all-knowing and all-encompassing NOW. As you perceive the NOW, time fades away more and more and thus your time seems to speed up. We guide to you now that time has always been an illusion, and while you continue to fixate yourselves on the clock, and on the calendars and on certain times and dates, we guide to you that you are flirting with illusion and that you must let this not be anymore!

Thank you to the Pleiadian High Council.

$707,568,901,000,000: How (And Why) Banks Increased Total Outstanding Derivatives By A Record $107 Trillion In 6 Months

$707,568,901,000,000: How (And Why) Banks Increased Total Outstanding Derivatives By A Record $107 Trillion In 6 Months

Tyler Durden's picture


While everyone was focused on the impending European collapse, the latest soon to be refuted rumors of a quick fix from the Welt am Sonntag notwithstanding, the Bank of International

Settlements reported a number that quietly slipped through the cracks of the broader media. Which is paradoxical because it is the biggest ever reported in the financial world: the number in question is $707,568,901,000,000 and represents the latest total amount of all notional Over The Counter (read unregulated) outstanding derivatives reported by the world's financial institutions to the BIS for its semi-annual OTC derivatives report titled "OTC derivatives market activity in the first half of 2011." Indicatively, global GDP is about $63 trillion if one can trust any numbers released by modern governments. Said otherwise, for the six month period ended June 30, 2011, the total number of outstanding derivatives surged past the previous all time high of $673 trillion from June 2008, and is now firmly in 7-handle territory: the synthetic credit bubble has now been blown to a new all time high. Another way of looking at the data is that one of the key contributors to global growth and prosperity in the past 10 years was an increase in total derivatives from just under $100 trillion to $708 trillion in exactly one decade. And soon we have to pay the mean reversion price.

What is probably just as disturbing is that in the first 6 months of 2011, the total outstanding notional of all derivatives rose from $601 trillion at December 31, 2010 to $708 trillion at June 30, 2011. A $107 trillion increase in notional in half a year. Needless to say this is the biggest increase in history. So why did the notional increase by such an incomprehensible amount? Simple: based on some widely accepted (and very much wrong) definitions of gross market value (not to be confused with gross notional), the value of outstanding derivatives actually declined in the first half of the year from $21.3 trillion to $19.5 trillion (a number still 33% greater than US GDP). Which means that in order to satisfy what likely threatened to become a self-feeding margin call as the (previously) $600 trillion derivatives market collapsed on itself, banks had to sell more, more, more derivatives in order to collect recurring and/or upfront premia and to pad their books with GAAP-endorsed delusions of future derivative based cash flows. Because derivatives in addition to a core source of trading desk P&L courtesy of wide bid/ask spreads (there is a reason banks want to keep them OTC and thus off standardization and margin-destroying exchanges) are also terrific annuities for the status quo. Just ask Buffett why he sold a multi-billion index put on the US stock market. The answer is simple - if he ever has to make good on it, it is too late.

Which brings us to the the chart showing total outstanding notional derivatives by 6 month period below. The shaded area is what that the BIS, the bank regulators, and the OCC urgently hope that the general public promptly forgets about and brushes under the carpet.

Try not to laugh. Or cry. Or gloss over, because when it comes to visualizing $708 trillion most really are incapable of doing so.


Total outstanding gross market value by 6 month period:

There is much more than can be said on this topic, and has to be said, because an increase of that magnitude is simply impossible to perceive without alarm bells going off everywhere, especially when one considers the pervasive deleveraging occurring at every sector but the government. All else equal, this move may well explain the massive surge in bank profitability in the first half of the year. It also means that with banks suffering massive losses, and rumors of bank runs and collateral calls, not to mention the aftermath of the MF Global insolvency, the world financial syndicate will have no choice but to increase gross notional even more, even as the market value continues to get ever lower, thus sparking the risk of the mother of all margin calls: a veritable credit fission reaction.
But no matter what: the important thing to remember is that "they are all hedged" - or so they say, a claim we made a completely mockery of a few weeks back. So ex-sarcasm, the now parabolic increase in derivatives means that when the bilateral netting chain is once again broken, and it will be (because AIG was not a one off event), there will simply be trillions more in derivatives that no longer generate a booked cash flow stream for the remaining counterparty, until at the very end, the whole inverted credit0money pyramid collapses in on itself.
And for those wondering what the distinction is between notional and
Notional amounts outstanding: Nominal or notional amounts outstanding are defined as the gross nominal or notional value of all deals concluded and not yet settled on the reporting date. For contracts with variable nominal or notional principal amounts, the basis for reporting is the nominal or notional principal amounts at the time of reporting.

Nominal or notional amounts outstanding provide a measure of market size and a reference from which contractual payments are determined in derivatives markets. However, such amounts are generally not those truly at risk. The amounts at risk in derivatives contracts are a function of the price level and/or volatility of the financial reference index used in the determination of contract payments, the duration and liquidity of contracts, and the creditworthiness of counterparties. They are also a function of whether an exchange of notional principal takes place between counterparties. Gross market values provide a more accurate measure of the scale of financial risk transfer taking place in derivatives markets.
Well, no. It is logical that the BIS will advise everyone to ignore the bigger number and focus on the small one: just like everyone was told to ignore gross exposure and focus on net... until Jefferies had to dump all of its gross PIIGS exposure or stare bankruptcy in the face; so no - the correct thing to say is "gross market values provide a more accurate measure of the scale of financial risk transfer" if one assumes there is no counterparty risk. Because once the whole bilateral netting chain is broken, net becomes gross. And gross market value becomes total notional outstanding. And, to quote Hudson, it's game over.
As for the largely irrelevant gross market value, which is only relevant in as much as it will be the catalyst which will precipitate margin calls on the underlying notionals, all $700+ trillion of them:
Gross positive and negative market values: Gross market values are defined as the sums of the absolute values of all open contracts with either positive or negative replacement values evaluated at market prices prevailing on the reporting date. Thus, the gross positive market value of a dealer’s outstanding contracts is the sum of the replacement values of all contracts that are in a current gain position to the reporter at current market prices (and therefore, if they were settled immediately, would represent claims on counterparties). The gross negative market value is the sum of the values of all contracts that have a negative value on the reporting date (ie those that are in a current loss position and therefore, if they were settled immediately, would represent liabilities of the dealer to its counterparties).

The term “gross” indicates that contracts with positive and negative replacement values with the same counterparty are not netted. Nor are the sums of positive and negative contract values within a market risk category such as foreign exchange contracts, interest rate contracts, equities and commodities set off against one another.

As stated above, gross market values supply information about the potential scale of market risk in derivatives transactions. Furthermore, gross market value at current market prices provides a measure of economic significance that is readily comparable across markets and products.
And here again, what they ignore to add is that the measure of economic significance is only relevant in as much as the world's banks don't begin a Lehman-MF Global tango of mutual margin call annihilation. In that case, no. They are not measures of anything except for what some banks plug into some models to spit out a favorable EPS treatment at the end of the quarter.
Expect to see gross market value declines persisting even as the now parabolic increase in total notional persists. At this rate we would not be surprised to see one quadrillion in OTC derivatives by the middle of next year.
And, once again for those confused, the fact that notional had to increase so epically as market value tumbled most likely means that the global derivative pyramid scheme (no pun intended) is almost over.
Source: OTC derivatives market activity in the first half of 2011 and Semiannual OTC derivatives statistics at end-June 2011