Economic pressures

[wayne.ct]

What do I have that is worth anything?

I think this is a question people should ask. If you want any personal power or freedom you need to have some resources. As Mr. Wemmick in Great Expectations might say, everyone should have some portable property. (That is a good book, by the way. I recently read it for the first time.)

You should have portable assets, including tools of your trade, if you have valuable skills. With these portable items of value you can, perhaps, survive in difficult times.

I bring this up to answer a question from several days ago. The question has to do with government assets and government financial assets in particular.

As long as people attribute value to paper currency and there is "enough" paper currency to transact business, they will transact business and the government will be able to pay its enforcers and the enforcers will enforce the decrees of the government figureheads.

Look at what has happened in Zimbabwe in the recent weeks or days. The common citizen has been stripped of cash (the ATMs are empty) but the soldiers and police are paid in US dollars, aka "hard" currency. Never mind the fact that the only real hard currency is gold and silver.

Note the evil behavior on the part of the powers that run the Zimbabwe state government. They are corrupt and can't hide their unethical behavior.

OK. Here is what I am getting at. The electronic dollars and the contracts and agreements at the government and CB level are pretty much irrelevant when ethics breaks down at those higher levels. It does not really matter what the Consolidated Statements of Assets of the various States and Agencies say or don't say. The decision makers will do whatever they think is necessary to protect their position or reputation and the accountants and auditors will make whatever bookkeeping entries are called for to cover their tracks. The bankers will move money around, create loans, etc. so things look "reasonable" on the surface. People, by and large, will accept anything as long as they have something to eat and something to entertain them.

Analysts and commentators will make both reasonable and outlandish statements and a few people will adjust their behavior to protect what they can. The majority of people will "suddenly" wake up and find they are not prepared.

So, do what you can to prepare.

I expect the situation to evolve into some sort of police state. Perhaps some public entities will set aside real assets beside guns and ammo. They have land and buildings, but can they act independent of the higher levels of gov? The Federal, State and County levels with their agencies and police are pretty much locked together in one vast interlocking bureaucratic monolith.

Here and there, there may be a few ethical politicians, but they are rare. Where is the critical mass that can effectively move the needle?

[Danny B]

Consider the Amish

Originally, all wealth came from Mother Earth. Some people produced surpluses. Barter was invented. Excess wealth allowed some people to live in towns. Later, priests and kings appeared to steal wealth rather than directly producing it. Hunting and gathering gave way to agriculture and animal domestication. The agrarian lifestyle produced enough excess wealth to support cities. More and more people became distanced from Mother Earth.

We progressed to an industrial economy. In the early '40s, 44% of Americans worked on the farm. Farming was mechanized and people moved to manufacturing. Post WW II, America had 3% of the population and 50% of the "free" world's manufacturing capacity. Manufacturing has been mechanized and many people have tried to move to the service economy. BUT, our trade deficit is $1.5 billion a day. This slowly bleeds out the money needed to continue the service economy. We start numerous wars to keep our arms exports selling.

Our basic economy is the "Amish" economy. Everything else has been glued on by the great wealth brought us by plunder and brains. That wealth is slipping away as we send jobs and money out of the country. The lower loop is shrinking considerably. The upper loop is printing to keep from shrinking. That can only go on for so long. Globalization has brought everything down to a common LOW level.
Backlash to World Economic Order Clouds Outlook at IMF Talks - Bloomberg

[Danny B]

Useless battle plan against deflation

"The International Monetary Fund has urged governments to take action to tackle a record $152tn debt mountain before it triggers a fresh global financial and economic crisis." https://www.theguardian.com/business...152tn-says-imf
No kidding. Just what do they mean by tackle. They've tried everything that they can think of and failed every time.Fed for Hillary
THAT has never worked so, it was tried over and over.

"Reducing interest rates to 0% again benefited those with the most debt: Wall Street banks, mega-corporations, and the U.S. government. It destroyed the finances of senior citizens living off their savings, penalized people for saving, and incentivised heavily indebted consumers to borrow more. >How did allowing Wall Street banks to borrow at 0% so they could charge consumers 15% on credit card balances and 6% on auto loans benefit consumers? Dohmen Capital Research, Inc. Is the Inevitable Debt Collapse Predictable? - Dohmen Capital Research, Inc.

This is a graph of Deutsche Bank compared to Lehman; https://plnami.blob.core.windows.net...anDeutsche.jpg
"It is interesting to note in particular that the mainstream media tends to become more over-the-top in its certainty of economic stability the closer the system comes to collapse. That is to say, the nearer we edge towards financial calamity, the more violently the mainstream media attacks people who suggest that danger is on the horizon."
The Noose Is Tightening Quickly On The Global Economy | Zero Hedge

Japan, "Lower interest rates were deemed the harbinger of aggregate demand" The feces-for-brains make no mention of wages nor crashing population.
http://www.financialsense.com/contri...cy-rabbit-hole As long as they can't see past the veranda of their ivory tower, everything that they do will be wrong.

http://www.zerohedge.com/news/2016-10-06/what-bridgewaters-ray-dalio-told-new-york-fed

About that reversal,,,

So, what does this portend for the FED et al who hold all this debt?

"it appears to me that there will have to be greater purchases of riskier assets and more direct placements of purchasing power in the hands of spenders, especially as the previously described squeeze intensifies. " warm up the helicopters.
Most of the holders of debt are going to get screwed badly, https://media.licdn.com/mpr/mpr/AAEA...MmM0YWZjNQ.jpg

That's fascism for you.
The spectre of this super-bail-in is causing everybody to flee the banks. http://www.zerohedge.com/news/2016-1...system-bailout

Shoot, make it $ 200 trillion.

Poorer than their parents; http://www.salon.com/2016/10/04/elec...-we-feel-fine/
If a State has a strong currency, it loses market share. When one State devalues it's currency to maintain market share and JOBS, everybody else has to follow. Japan sets the standard for devaluing it's currency to maintain market share. As every State devalues it's currency, it diminishes the purchasing power of it's people. The interest rate at the FED is higher than the BOJ and ECB.
FED GOV pumps more and more into the economy as legitimate commerce slows down. When GOV prints money, it adds this amount to the GDP. When FED GOV spends money it adds this sum (again) to the GDP. Our GDP is shrinking by about 5%. Almost ALL of the holders of debt instruments believe that they are going to be paid back. This just isn't so. GOV lies about all the figures just to keep these people from trying to dump all that debt.

The CBs are already buying big gobs of stocks, bonds and miscellaneous debt. BUT, the debt is growing FASTER than exponentially.
When this all blows, just hope that GOV has enough money to put a jacuzzi in your favorite FEMA camp.

[Danny B]

Peak bad models, peak credit, peak BS

Banks have created great monetary inflation. Stocks have no earnings and the money bleed into other areas. Here are real estate prices. http://d1w116sruyx1mf.cloudfront.net...tatePrices.png
Monetary inflation from the upper loop creates price inflation in the lower loop. Since the lower loop depends on wages rather than the printing press, we can't absorb higher prices. We just cut back on purchases. One of the World’s Most Respected Investors Predicts 2016 Stock Crash | Casey Research

Italy is set to crash the Eurozone. The technocrats tried to do away with all voting in the EU. Brexit shows what a disaster democracy is for fascism. Italy is next. The Coming Collapse of the World’s Biggest Economy | Casey ResearchHomeland Security Chairman McCaul: Venezuela?s life threatening ?Maduro diet? is no joke | Fox NewsGreenspan's Advice to Yellen on Political Bias Accusations: 'Grin and Bear It'

B of A on "peak everything" http://finance.yahoo.com/news/bank-a...161247044.html
Yep, America hit peak wages in the early '70s. Credit was increased to paper-over wage stagnation. Now, we have reached "Peak Credit" and "peak jobs". Not to mention "peak BS" from GOV. Actually, we haven't yet reached peak BS. Kuroda is trying to prove that BS is in endless supply.
The IMF called for GOV to "tackle" the debt problems. I was thinking of a rolling-block
Now, "BOJ Kuroda calls for quick solution to Europe's banking woes
[Reuters] http://finance.yahoo.com/news/boj-ku...214602792.html

[Danny B]

Statistics vs fractals...default risk moves up the chain

The FED and other central banks made it clear that they were going to do away with the business cycle by backstopping all markets. Effectively, this transferred risk from the investors to the central bank. The risk didn't just go away. The central banks bet the farm that, with enough support, the good times would eventually return and they could sell all of their GOV bonds into the open market. They fired up the pixel-presses and waited for the free money to the upper loop to work it's magic.
They ignored wages and, the corporatocracy actively tried to diminish wages in the lower loop. Things didn't work out because China is exporting massive deflation in manufactured goods and wages. CAPEX investment crashed, profit margins crashed, credit demand from solvent consumers crashed.

All the risk has been transferred up the chain to the central bank.
" Unfortunately for the credulous investors who believe this, risk cannot be extinguished, it can only be transferred to others or to the system itself. "
"In a nutshell: while modern portfolio management is statistically based (all those "standard deviations" you always see referenced in quantitative analyses), the markets behave fractally. Fractals are known as the geometry of chaos, for they describe how seemingly stable systems can quickly, and unpredictably, degrade into chaos. "

"This is how you get a total systemic collapse of the entire choice architecture. And by this I mean not just the financial markets, but the backstop provided by central banks. " "Central bank market intervention doesn't extinguish risk--it simply transfers it to the system itself."
Of Two Minds - Sorry, Central Banks: Risk and Volatility Cannot be Extinguished

The FED is just starting to get an inkling about the importance of consumers; https://www.washingtonpost.com/news/...economic-mess/




Good on ya mate.
They're all "Greek" now.

[Danny B]

Credit Bubble Bulletin: Weekly Commentary: Matthew, Near Misses and Flash CrashesAt the same time; "EU imposes import duties of up to 73.7% on cheap Chinese steel " https://www.theguardian.com/business...rt-talbot-tata

Back to TAE, https://www.theautomaticearth.com/20...-other-losers/

[Danny B]

https://fee.org/articles/the-smoot-hawley-tariff-and-the-great-depression/

"The Smoot-Hawley Tariff Act is a U.S. law enacted in June 1930 which caused an increase in import duties by as much as 50%
In a sign of disapproval towards this act, other countries retaliated and also increased their tariffs. As a result, banks in foreign countries began to fail and international trade declined drastically, resulting in a world trade decline of 66% between 1929 and 1934."
Smoot-Hawley Tariff Act Definition | Investopedia

We're probably looking at new rounds of protectionist measures;
Beginning of a Breakdown in International Trade-Hugo Salinas Price | Greg Hunter’s USAWatchdog

"EU imposes import duties of up to 73.7% on cheap Chinese steel " https://www.theguardian.com/business...rt-talbot-tata
Currency wars often degenerate into tariff wars. This would, predictably, cut way back on international trade. NAFTA is being violated to protect Canadian real estate. There are a few other examples.
The excess steel capacity in China is equal to the total steel capacity in Europe and America combined. They keep producing to avoid layoffs and shutdowns.... JOBS

The West gave China Most favored nation trading status. WTF did they think would be the eventual outcome? Because of our belligerent actions towards Russia and China, the trade wars should come pretty fast. What will the fallout be?
In new oil world, Russians win role as ‘honest broker’ | The National
Will Russia End Up Controlling 73% of Global Oil Supply? http://oilprice.com/Energy/Energy-Ge...il-Supply.html
The world respects Putin as being a "straight shooter" I can't think of ANYONE in the West who is regarded as honest.

The EU fired the first major shot in the trade wars. The GIGANTIC bureaucratic overlay of the Brussels / European Union reduced the GDP of it's members by 20%,,, to support the enormous cadre of parasitic bureaucrats. A trade war WILL bring the end of both NATO and the EU.

[Danny B]

Fallout from the rising dollar

It seemed like a quiet Sunday until I checked Martin Armstrong. I have a lot of excerpts. One thing to focus on now is the rise of the dollar. China moved 300 million+ peasants to the cities,,, the jobs ran out when they impoverished their main best clients. They have to print like mad to keep the peasants from revolution. Europe is sucked dry supporting enormous hordes of bureaucrats and socialists. America is still coasting along on the "fat" of the reserve currency. This has facilitated a flight to the dollar from the Euro and the Yuan.

The Russian stock market is the strongest but, most people aren't aware of this. The flight to the dollar is working the opposite of the desired result from the currency war. Also, dollar-bonds are the only ones that aren't yet negative.
As the U.S. dollar rises, it is more difficult to sell our exports. Our trade deficit grows faster.
Another item; We have a global price for commodities and labor. The Japanese CB ZIRP and NIRP has caused a global price for GOV bonds. Any State that has a higher interest rate than the Japanese attracts hot money,,, the currency rises and exports become too expensive. Any labor market that tries to pay higher wages sees the jobs outsourced to low-wage competitors. The same is true for taxes.; If Trump cut corporate taxes to 15%, then companies would bring their cash home. I testified on that before Congress and explained they had to match the best tax rates of 15% as in Hong Kong and the corporations would all return.
We are getting that pop in the dollar now against the Euro, Yen, and Sterling. This has been what the Fed is frightened about.

https://www.armstrongeconomics.com/international-news/britain/pound-sterling-collapses/

"The central banks have been trying to keep the dollar down because a rising dollar will undermine Europe exposing the ECB total failure, and then there is the risk of major sovereign defaults among emerging markets who issued their debt in dollars. The IMF has lobbied hard with the Fed pleading not to raise rates for this fear of capital pouring into the dollar. They do not appear to be able to sustain this policy beyond January."
"Gold is not something to avoid. True, institutions cannot buy gold for they earn no income. Gold is really for the individual and it will eventually be the hedge against government and the change in the monetary system which could come as early as 2018 but by 2020 if on schedule."

https://www.armstrongeconomics.com/markets-by-sector/precious-metals/gold/gold-dollar-bonds/

"The hunt for taxes is destroying the world economy and on January 1, 2017, all governments will begin sharing info on foreigners. The assumption is that anyone doing anything outside the USA is hiding money from taxes. With this attitude, world trade will continue to collapse into 2020."

https://www.armstrongeconomics.com/world-news/taxes/world-trade-collapsing-on-schedule/

Is that, "coil",, like a cobra?

https://www.armstrongeconomics.com/markets-by-sector/foreign-exchange/usd/does-the-fed-fear-a-dollar-rally-bond-crash/

Lowering corporate taxes is a "fascist" move in an economy where GOV is pushing socialist schemes to try to forestall revolution. The corporations pass on taxes to the consumer so, nothing is really improved. EVERYBODY is trying to stash their cash and now, there just isn't enough in circulation.
Finance just keeps creating more debt-bonds when there is nobody that can ever pay off a fraction of them.
All tangible wealth comes from Mother Earth. As the lower loop creates ever-less tangible wealth, the upper loop creates ever-more debt-wealth. We will come to a point where the upper loop realizes that they can't sell their paper to anybody.
Most of the paper-wealth is dependent on profits and taxes from the lower loop. China exported wage & price deflation that wiped out profit margins and the discretionary spending from wage earners.
Armstrong writes about a new monetary system. If it does not include debt-free money, it will fail very rapidly. GOV currently has $ 212 trillion in unfunded liabilities. No debt-money monetary system can absorb such a large shock. The alternative is to let many millions of baby-boom pensioners die.

We don't have a lot of time left; Stock & Bond Bubbles Much Worse Than 1929-David Stockman | Greg Hunter’s USAWatchdog

http://usawatchdog.com/apocalypse-and-enormous-disorder-coming-hugo-salinas-price/

Things are slipping away fast and it is doubtful that our cretins in the district of Corruption will do anything in a timely manner. " in August, new vehicle sales (in units) fell 7.2% year-over-year, having plunged 20% year-to-date, with new car sales down a spine-chilling 28.6% year-to-date, and even truck and SUV sales down 13.9%. It takes a lot of headwinds for a Texan to give up on buying a new truck."

http://wolfstreet.com/2016/10/08/texas-sales-tax-collections-fall-consumers-cut-back-houston-economy-drops/

[Danny B]

Sizing Up the Endgame - KUNSTLER

" He says that, Forex markets (and many other markets - too) are going to be volatile until a "New World Order" is implemented. Or to quote him
verbatim "Price discovery will be an issue as we move to a New World Order." The "NWO" he is referring to, is some sort of market panacea, where price discovery is so efficient, well - that's not a market! "
"Fast forward, it's 10-8-2016, and leading FX strategists are telling us that markets are waiting for a "New World Order"
" It seems that over the past 100 years really, not much has really changed, it is the same group of banks pulling our nose (historically speaking), whether they're funding Hitler or Clinton, whoever wins, nothing seems to change. In war there are no winners, only victims. "
Hitler's New World Order alive in the markets - FX History Lesson 28 | Zero Hedge

"Well, let's say by a staggering $31 trillion in the past six years. According to the wonderful folks at the Federal Reserve, U.S. net worth increased from $57.9 trillion Q2 2010, to a stunning $89 trillion Q2 2016:"
"I would imagine a lot of wealthy Americans believe they are living life "High On The Hog" today. However, that $31 trillion in additional wealth is a nothing more than a "Digital Mirage." For wealth to grow, more energy must be burned and positive economic activity must be generated. This is the foundation of all economic principles.

Unfortunately, Americans did not burn more energy to create this additional $31 trillion in U.S. net worth. Matter-a-fact, total U.S. energy consumption in 2016 will likely turn out to be less than it was in 2010:"
"Moreover, total U.S. energy consumption will likely be lower in 2016 (96.5 quad Btu's) compared to 2010 (97.4 quad Btu's). On the other hand, total U.S. net worth has climbed to $89 trillion versus $57.9 trillion in 2010. So, the real question is... where did this extra $31 trillion in U.S. net worth come from if total energy consumption was flat?"

"Last week, I spoke with Bedford Hill of the Hills Group about their "Thermodynamic Oil Collapse" model. What an interesting conversation it was. Bedford Hill was the project manager of a group of engineers that put over 10,000 hours in designing their Thermodynamic Oil Collapse model.

Bedford told me that after they ran the model, the results were so shocking, they sat on the damn thing for two years before publishing. I asked him did any of the engineers that worked on the model disagree with the results? His answer was, "Not a single one disagreed."
The Coming Collapse Of U.S. Net Worth Will Wipe Out Millions Of Americans | Zero Hedge

[Danny B]

Doug Casey on “Quitaly” and the Collapse of the EU | Casey ResearchA Mile-High House of Cards | International Man
Bureaucracies and the giant sucking sound.

Here's Where The Next Bank Deposit "Bail-In" Will Strike... | Zero Hedge

[Danny B]

The coming political gridlock and your survival

Deutsche bank claims that we "are past the point of no return." I saw the crash coming in 2005. There are a LOT of people waking up to the coming disaster. What does Mother Nature hold in store for a species that doesn't pay attention to self-survival? Several elements of the PTB are pushing for population reduction and the coming crash may have been orchestrated for that purpose.
From 7 Billion People To 500 Million People – The Sick Population Control Agenda Of The Global Elite » Alex Jones' Infowars: There's a war on for your mind!oftwominds-Charles Hugh Smith: USA 2017-2020: An Ungovernable Nation?The little people have had enough - not just here, but in America too

Wages crashed and the 95% had no money. The banks used regulatory capture to pass all the losses and default risk up the financial chain to the GOV and central banks. BUT, the GOV and central banks are financed by our wages. The risk has come full circle.

[Danny B]

No rudder on the Titannic

Stumbled on; " A $7 Trillion Moment of Truth in Markets is Just Three Days Away. What will Libor do once the dust settles?" Oct 11
"Now, analysts are debating whether the looming Oct. 14 deadline will mark a turning point for the interbank borrowing rate, as money markets acclimatize to a new reality. " A $7 Trillion Moment of Truth in Markets is Just Three Days Away - Bloomberg

Margin debt has turned; Is this ‘bone-chilling’ indicator really saying ‘sell’ stocks? - MarketWatch
Investors have woken up to the fact that earnings just don't happen if you depend on a very poor middle class for sales; https://cdn0.vox-cdn.com/thumbor/BVD...ensation.0.png

" In fact, a paper written by San Francisco economist Vasco Curdia last year argues that the natural interest rate has been so low, the Fed's policies were contractionary rather than stimulative even with the federal funds rate at the zero lower bound.

While Curdia's focus was on the level of the equilibrium interest rate, Gagnon and his colleagues attempt to determine why it has fallen.

To do so, they cleverly contrasted the modeled equilibrium interest rate that would have resulted from fertility, mortality and employment rates remaining at their 1960 values to the modeled equilibrium rate that results from the shift in these trends.

They found that "the entirety of the decline in the equilibrium real [or inflation-adjusted] interest rate that our model finds for the recent decades is a direct consequence of the demographic changes that happened from 1960 onward."
The biggest economic horror story is real, according to a new Fed paper

The Glass-Steagal act was slowly gutted by the banks and Greenspan until regulation was gone, especially in the case of derivatives. "The day after the Supreme Court effectively decided the fate of the 2000 Presidential election, the Commodity Futures Modernization Act of 2000 passed in Congress, attached as a rider to an 11,000-page spending bill. The legislation, passed without debate or review, exempted derivatives from regulation"

http://cepr.net/documents/publications/dereg-timeline-2009-07.pdf

http://www.theburningplatform.com/2016/10/10/hillary-deceit-debt-delusions-part-one/

Jim Rogers and Deutsche bank; https://www.rt.com/op-edge/362254-us...deutsche-bank/
GO Aussie
No kidding. This is after they already printed up an extra $ 150 trillion.
http://www.thenational.ae/business/m...ut-its-welcome
The debts are bad but, they just haven't been recognised as such.

[Danny B]

Tug-o-war between Marx and the bankers

Barclays says that the party is soon to end; Barclays Warns The Party Is Almost Over As Payouts Exceed Cash Flow By $115 Billion | Zero Hedge I guess that earnings DO matter.
Apparently, collateral matter also; Collapsing Collateral, Derivatives, And Systemic Risks | Zero HedgeHILLARY: DECEIT, DEBT, DELUSIONS (PART TWO) – The Burning Platform

The ruling class, especially the Anglo-American ruling class has consistently worked to destroy collective bargaining and unions. Bringing in immigrant workers and outsourcing jobs to low-wage competitors has driven wages way down for the Western worker. As our wages stagnated and dropped, credit terms were stretched out to keep us buying. The price deflation that was promised by automation was sucked up and handed out as stock dividends.
ALL of that floated on the credit bubble because we couldn't afford to keep the consumer economy growing on just our wages.

As Payouts Exceed Cash Flow By $115 Billion The PTB can block the price deflation that we so desperately need but, if they also block wage increases, we can't buy stuff. They loaned us LOTS of money but, we can't pay it back. They pump $trillions into the upper loop to make up the difference. Some of this bleeds over into the lower loop as price inflation.
We are constantly losing ground on wages and they are constantly losing ground on dividends.
The upper loop of the economy (banks) are non-producers. They put the squeeze on the lower loop until we can't consume. Consequently, we have no particular reason to produce. This downward spiral threatened to take down the banks. They print mountains of debt to compensate. Every human on earth owes $ 20,000. These debts are viewed as assets for future collection.
BUT, they have starved the goose that lays the golden eggs.

They are going to squeeze even more. The End of Social Security (Leaked Evidence Stumps Obama, Stuns Retirees.) - The Sovereign Investor

The corporatocracy is looking to take over governments so that they can drive wages even further down. BUT, at the same time, they would like to keep the consumer economy humming along. They can't have it both ways.
The corporatocracy would like to get all the deadwood out of productivity and GOV. This is stupid and unrealistic considering the rise of automation.

The Marxists are at the other end of the rope in this tug-o-war. They focus on consumption with little thought for productivity. The rope is going to break and both parties are going to go spinning off into oblivion.

[aljhoa]

The corporatocracy would like to get all the deadwood out of productivity and GOV.

Giggling FEMALE Reporters

Women Are Defeating Donald Trump


Al

[Danny B]

Shifting risk up the chain. The currency markets

The bankers would like it very much if there was NOT a connection between employment in the lower loop and the fortunes of the upper loop. But, that isn't the case.
Layoffs; US layoffs jump in September by 38% – WEALTHY DEBATES
Stocks; HSBC: There's Now a Very High Chance of a 'Severe Fall' In U.S. Stocks - Bloomberg
Exports; China's exports drop sharply in September - MarketWatch
Resulting in; One Measure of Investor Worry Just Hit Its Highest Level Ever - Bloomberg
More worry; Why Europe’s Biggest Bank Is on “RED ALERT” | Casey Research

The bond market is easily manipulated by the FED interest rate. The stock market is a different story. It depends on earnings. Earnings have been flat for about 6 quarters. GOV minimises the rate of inflation to make investors believe that they are actually gaining by speculating. If investors paid attention to the real rate of inflation as reported by Shadowstats, they would leave the markets and go to cash and/or gold. The stock and bond markets are what many people pay attention to. There is a FAR bigger market that many do not look at.


1. Globally, the stock market is roughly $69 trillion in size and trades about $191 billion in volume per day.
2. The bond market (including corporates) is a little over $199 trillion and trades about $700 billion in volume per day,
3. The currency markets are unmeasured in size as every currency trade is ultimately a pairs trade (meaning to buy one currency you have to sell another). However, we do know that the currency markets trade $5.3 trillion in volume per day.

http://www.zerohedge.com/news/2016-10-12/problem-so-massive-even-central-banks-cannot-contain-it

The default risk has been moved up the chain of finance until it arrived at the Central Banks.