$1 Quadrillion Global Derivative Market Means Deflation – Rick Ackerman

$1 Quadrillion Global Derivative Market Means Deflation – Rick Ackerman By Greg Hunter for USA Watchdog

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Financial writer and professional trader Rick Ackerman says get ready for extreme deflation, not inflation. In his mind, the deflation scenario is building. Ackerman says, “Yes, it is. When you talk about $22 trillion in federal debt, that is really a drop in the bucket because the bigger piece of it is in the global financial markets, mainly in the derivative instruments. The notional value of that totals a quadrillion dollars, and all of that is what I call ‘unactualized deflation.’ Each transaction in that quadrillion dollar market has a dollar debtor in it. At some point, people are going to be stretched to pay those dollar debts and short term loans or short term paper is not going to settle up the way it usually does, and you will not be able to roll that short term debt. People will be forced to pay and settle up in cash, and I think that is when you will see a short squeeze on the dollar. That will push the dollar’s value up enormously compared to all other currencies.”

When could this extreme deflation start? Ackerman says, “It could start in three hours, overnight, it could start in a month or a year. I think the key piece of it is really the stock market. . . . The psychological support of a bull market is crucial to the illusion that somehow we are going to muddle through it. I think the collapse of the pension system is really just as close when this market collapses, turns down and turns down with a vengeance and keeps going down. . . . I really feel we are in a bear rally right now.”

Ackerman asks some simple questions about what is going on in the economy. Ackerman says, “If everything is so good, why is the middle class in America dying? Everybody is in hock up to their ears. Nobody can afford to put a kid through college without borrowing. The Baby Boomer retirement is going to be problematic. . . . Do you honestly believe millennials living with their parents . . . do you really think they are going to be able to foot the bills for the Baby Boomers’ Medicare and Social Security? . . . .The question I ask is as simple as I can frame it.”

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Greg Hunter

Greg is the producer and creator of Greg Hunter’s USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. Greg Hunter’s USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.