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Let’s ‘Assume’ a Market Crash TODAY! Then What?

September 27, 2013

At some point down the road we WILL experience a stock market, bond market, and derivative market crash. This will happen (in my opinion) at some point in the near future (most likely in 2013). If our Congress does NOT increase the Debt Ceiling later in October 2013, then the beginning of a global market crash could develop in realtime (within our computer screen markets). As the momentum continues and increases from this type of event, we could witness a global ‘flash’ crash within our computer screens. Keep in mind that our markets are now mostly (96%) digital/electronic/virtual markets. Cyberspace is where all our imaginary funny money resides. Our Debt (trillions of digital units) are in cyberspace. All global currencies (96%) are in cyberspace. All index ETFs, bonds, futures contracts, mutual funds, government securities, etc., are now in cyberspace. Most all lending (loans) are now created within cyberspace. What is Cyberspace and why will a market crash occur within our computer screens, smart phone screens, and TV screens.

The next market crash will be ‘within’ our computer screens (and within cyberspace)! This is a new phenomena for everyone on our planet. Think cyberspace…going forward!

Cyberspace is not observable space (that which we observe when we look outside at our Sun, Moon, and Stars). Cyberspace is not ‘real’ Spacetime. Cyberspace is within our computer screens and virtual. This means that cyberspace is within what we call ‘virtual reality’. The digits and images within our computer screens are examples of virtual reality. We can not ‘fetch’ a dollar(s) from this virtual space. Try reach into your computer screen (right now) and see if you can access your MONEY stored within your screen. Our IRA funds are now within cyberspace. Our Social Security Funds are within cyberspace. Most of our banking accounts and savings accounts are now in cyberspace. If you go to your local bank you will witness all the computers (lined-up behind the counters) which store your funny money (digits). This is cyberspace and it CAN NOT be accessed directly!

Our funny money digits (called ‘dollars’) are now within the computer screen. Can you break-in and hold these digits? I don’t think so! We need to understand virtual reality and cyberspace to understand today’s markets!

Cyberspace is a CLOSED system which was created with the advance of computer technology. The money units which travel at the speed of light within cyberspace (our fiber optic cables and such) are derived from ‘bits’ and ‘bytes’ and then appear as ‘images’ within our closed computer screens. We can not access these virtual units within this ‘closed’ electronic environment.  Our dollar (96% of all dollar transactions are now virtual units) is created from the consciousness of bankers (commercial bankers and also our Central banks) and then ‘typed’ into a computer screen to represent our legal tender money. These ‘typed in’ units we call digital currency units. All the currency units on our planet are now mostly ‘typed in’ virtual currency units. Look at your computer screen for evidence!

Pulses of light (photons) travel through fiber optic cables and then create our funny money digits (which we call ‘dollars’). Photons have zero rest mass (they do not exist as physical matter). They do create our virtual dollar and cyberspace, however!

Today’s Wall Street Journal states that the amount of dollar ‘credit default swaps’ in total (within our computer screens) is now about $633 trillion (this is according to the Bank for International Settlements, Basel, Switzerland). This notional amount of $633 trillion can NOT be honored if we experience a real global market crash. What happens with these derivatives contracts is that a bank such as J. P. Morgan will collect a nominal fee for writing a CDS contract (say $20 – $50 thousand for a $10 million contract on Spanish government securities for one year). These fees accumulate as immediate earnings for the bank, but there is no ‘reserve’ set aside for the $10 million CDS contract in the event of default. A market crash would (most likely) set off a domino effect within these derivative markets which could not be reversed once a major crash developed. The entire derivative market is a potential house of cards that would collapse if a serious market crash ensued.

The total world derivatives are now approximately $633 trillion (2013) according to the BIS. A crash of our markets means that these financial instruments can not be honored. There are insufficient reserves to pay-off these imaginary virtual contracts. 

The reality of our markets today is that all our markets are mostly VIRTUAL markets which we experience within our computer screens. We call these markets ‘electronic’ markets. Our funny money markets are now mostly (some 96%) within the global computer screens of traders, investors, bankers, speculators, hedge funds, and the retail investors. You and I are now trading and investing within virtual markets and within cyberspace. Cyberspace is really an ‘extension’ of our metaphysical Consciousness (our imagination). Cyberspace does NOT ‘exist’ within observable Spacetime. Most of us are trading funny money digits (dollars and such) within our imaginary/metaphysical Consciousness. Who is aware of what is occurring in today’s funny money markets? Think about a potential market crash as a result of a Black Swan event (such as our Debt Ceiling not being increased) within the near future. Enjoy this day and keep watching our funny money markets for signs of the coming market crash! I am:

8 Comments leave one →
  1. September 28, 2013 4:02 am

    You´re right! But what could be done to prevent a market crash, any ideas? I Believe the “invisible hand” needs some guiding rules.


  2. September 30, 2013 5:45 am

    The same thing is true of the music I compose and save into my computer. It comes from my imagination and when I click ‘play’ it sounds. True, it’s not real, in a sense, when not being played, but if I go to the bank they will give me as many dollars as the computer indicates that I own. So in that sense it is very real. Therefore the distinction needs to be made that virtual space is in some ways identical to physical space.


    • February 17, 2014 8:07 pm

      I would not view ‘virtual’ space as ‘physical’ space. Physical denotes that the item is a ‘thing’. Virtual denotes ‘no’ thing. D


  3. September 30, 2013 8:05 am

    Wouldn’t you say that electromagnetic fields occur in physical space? That is what computer bits are made of. That, and microscopic configurations in silicon.


    • February 17, 2014 8:06 pm

      Bits and bytes are units of information which are then carried via the electromagnetic spectrum. D


  4. brian permalink
    September 30, 2013 1:41 pm

    One way to preserve your money is to have it in “REAL” money that is accepted anywhere in the world. I am talking about silver and gold.


  5. Rusty Brown in Canada permalink
    September 30, 2013 10:45 pm

    “…This is a new phenomena…”
    No it’s not. It’s a new phenomenon.


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