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Is the Interest Rate Derivatives Bubble In Imminent Jeopardy?



All over the planet, large banks are massively overexposed to derivatives contracts.  Interest rate derivatives account for the biggest chunk of these derivatives contracts.  According to the Bank for International Settlements, the notional value of all interest rate derivatives contracts outstanding around the globe is a staggering 505 trillion dollars.  Considering the fact that the U.S. national debt is only 18 trillion dollars, that is an amount of money that is almost incomprehensible.  When this derivatives bubble finally bursts, there won’t be enough money in the entire world to bail everyone out.  The key to making sure that all of these interest rate bets do not start going bad is for interest rates to remain stable.  That is why what is going on in Greece right now is so important.  The Greek government has announced that it will default on a loan payment that it owes to the IMF on June 5th.  If that default does indeed happen, Greek bond yields will soar into the stratosphere as panicked investors flee for the exits.  But it won’t just be Greece.  If Greece defaults despite years of intervention by the EU and the IMF, that will be a clear signal to the financial world that no nation in Europe is truly safe.  Bond yields will start spiking in Italy, Spain, Portugal, Ireland and all over the rest of the continent.  By the end of it, we could be faced with the greatest interest rate derivatives crisis that any of us have ever seen. May 25 http://bit.ly/1Fg0T9S






The news comes to us on May 25 First Quarter Moon. A chart for the Moon phase at Athens will help to answer the question of whether there is  any possibility of a Greek default.  Notice that the chart is the same as the one presented in the previous post on Macedonia so that the following section applies here too.

Given below is a summary extract from Nick Fiorenza about the stars on the MC for Skopje and on the Ascendant for Washington and those conjunct the Moon. This area of late Leo is of foul breezes and smoke screens. It is also of those behind the scenes, of political-religious figureheads manipulating the affairs of the world for personal motive while offering salvation from the human struggle.  It is also of global-level grand spectacle, often time of a diversionary nature created by world powers with hidden agenda.

The Moon conjoins Alpha and Gamma Sextans. The sextant is a navigational instrument used to determine the vertical position (angular distance) of the sun, moon or stars from the horizon. The Sextant’s stars reveals our need to reassess our position or situation, to reorient ourselves, and to take a new tack toward our goals in life with conscious consideration for the changing evolutionary winds and currents upon which we must navigate. On a basic level this can be in regard to changing our fundamental approach or path in life. On a greater scale, this can be in regard to changing allegiance of our energies from the outer world, self-sacrificing to diversionary forces or currents in the world around us, to the vertical integrity of our inner soul / source directive and truth.

The stars of the sextant conjunct the Moon are encouraging Greece to take a new tack and change allegiance to the powerful institutions like the EU and the IMF which have been manipulating them. Let us remember that Neptune in the combination is about “bubbles” and when it contacts realistic Saturn bubbles usually break. This can come about through a default on the loan payment and a return to the drachma. But will the Greeks have the courage to do this? Only time will tell.


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