/biz/ - Business & Finance

>>8141863

The global financial system at the moment is a titanic, creaking-in-the-wind, inverted house of cards of leveraged debt, upon leveraged debt, upon leveraged debt. Everything's re-hypothecated, collateralised and beared down upon by insane quantities of derivatives - and it's all interconnected.

It's like one has been building a taller and taller structure by cannibalising the very building materials from the floors below to build ones on top. Deutsche Bank is struggling at the moment and the total quantity of potentially toxic derivatives it has on its books outsizes the annual GDP of the EU by a factor of 4.

The sheer amount of it represents the growth of a debt service parasite, which, like all good parasites - has captured and anaesthetised its host. It extracts in increasing taxes, the increasing amount of debt required to live, get access to work or to be able to afford shelter. The more it can siphon from the cycle of producers and consumers the better however at this point it has become so huge people can't afford household formation or children.

You need new tax payers and more growth to keep the ponzi going so cheaper labor is imported as "refugees". Culture corrodes and decays as the pool of the productive is sucked from and diminished by the ever-increasing demands of debt service. The populism you're seeing today is the convulsive shock of a host that is starting to die under the strain. People look for simple things to blame: White men, Jews, Muslims, Feminism, Foreigners - they vote against the status quo because they don't know what's wrong with it.

And in the process of the West dying the spinal column of the global financial system is placed under increasing strain from splintering loyalties and the pressure of pent-up social disenfranchisement. That's a slow, drawn out, messy process which will shatter this system.