Man Asked To Speak To Chinese Officials Warns Of Cascading Series Of Global Defaults

"Today a legend who was recently asked by the Chinese government to give a speech to government officials in China warned King World News that the Chinese are preparing for a disastrous series of global derivatives defaults.  John Ing, who has been in the business for 43 years, also discussed how China is preparing ahead of the coming disastrous chain reaction, panic and worldwide financial destruction.

John Ing:  “Gold is up almost $50 in the last week.  This has been accompanied by an increase in volatility everywhere.  We also have the geopolitical instability that is causing increased volatility and dramatic swings in the market….

Continue reading the John Ing interview below…

“In one week in December the Chinese withdrew 57 tons of gold from the Shanghai Gold Exchange.  So the Chinese bought more than 2,000 tons of gold, which is a staggering amount for 2014.  The Chinese central bank continues quietly accumulating its gold hoard.  In the same week it was also announced that Russia bought gold.  So not only did this squash the rumors that the Russians were selling gold, instead they were accumulating.

Credit Default Swap Troubles

We are also seeing more attention being paid to credit default swaps troubles in countries like Venezuela, Argentina, and even Russia itself.  Of course credit default swaps were one of the primary reasons for the big financial collapse in 2008.  It’s ironic that today the exposure of derivatives is even larger, and therefore the exposure now greater than it was in 2007 and 2008. 

Citibank reported more than $70 trillion worth of derivative exposure, surpassing JP Morgan, which has something like $65 trillion of derivative exposure.  The biggest beneficiaries of the Fed’s QE were the big banks.  The problem is that the big banks are now more heavily leveraged than they were in 2007, before the collapse.

World Facing Cascading Series Of Defaults

So what the world is facing in 2015 is a very potent mixture, one that is even greater than the combination that caused the explosive events which led to the disastrous 2008 – 2009 markets.  There is the potential for a cascading series of defaults in key derivatives markets.  The larger the balloon gets, the greater the risk to the world’s financial system.  The Chinese are keenly aware of this danger, which is why they continue to be such prolific accumulators of physical gold at these levels.”

at http://kingworldnews.com/man-asked-speak-chinese-officials-warns-disastrous-series-defaults/