Credit Default Swaps are not worth the paper they are written on.

"A 70% haircut in the value of the Greek sovereign debt does not constitute a credit event defined as a credit default according to the most powerful financial entity on the planet, the ISDA. This group is more financially influential than governments today. This decision by the revered members of the Association’s Determinations Committee has acted to prevent the notional value of all the credit default swaps, an OTC derivative, from becoming real value as would occur if the CDSs were called upon to function.

The ISDA has, according to MSM, taken offense to being described as secretive in its proceedings. The ISDA said minutes of the meeting of the committee would not be publicly distributed as the decision was unanimous.

What has occurred in what is now described as “the successful handling of the Greek problem” by the ECB is in fact a total disaster for mankind in its introduction of QE to Infinity as the blessed settlement to a problem that now is more severe than it was prior to the Lehman event. That problem is that the mountain of OTC derivative has not been attended to, but rather has grown to include the size of all Western world sovereign debt as it is all western sovereign debt that is now threatened by an event of default on a national level. That will simply occur regardless of whatever the ISDA says. Much of it will not be paid, period...."

Read more:

http://www.jsmineset.com...-events-of-this-period/

Since ECB has decided to surordinate all greek bondholders and ISDA goes along with the rigging to declare Sparta has not defaulted, one wonders who will buy the CDS for the other PIIGS from the main sellers - US banks. EU's LTRO cannot provide that liquidity, it's just a short term stop-gap measure. So when push comes to shove ECB, IMF & US Fed will be forced to QE and that will send commodities flying in one direction - up esp oil, gold, silver & food contracts. Then inflation follows suit. Then Iran or some nation will take the blame as well as oil speculators. This is the likely script for 2012. If the opposite path is taken, many banksters & gubberments will see endless revolts. Either way the outcome in future still points to a massive deleveraging period to reset everything, be it debt forgiveness or outright currency devaluations.
A very interesting decade full of reward for those nations at the bottom of debt bomb tank. 3rd world nations will definitely benefit the most during tbat capital flight period aka wealth transfer. And with the current EA oily moves, it will start here
2014 - 2015 should be the mother of the boom start. I'm most bullish from this period onwards...

Goldman Secret Greece Loan Reveals Two Sinners
“The Goldman Sachs deal is a very sexy story between two sinners....,”
http://www.bloomberg.com...as-client-unravels.html

Strange, but the payout is very small $3bn on effectively $100bn write off

Dollar trading volume vs US GDP. Ridiculous market casino this...

http://www.cross-currents.net/charts.htm

[quote=hisah]Debtmocracy and How it works - https://www.youtube.com/...mp;lf=player_detailpage[/quote]

could not have been put better...

Sparta's biggest bond ripoff and yet another bailout is sure to come...

http://www.theglobeandma...d-ripoff/article2366567/