NEW YORK (PNN) - December 4, 2012 - When financial markets in the Fascist Police States of Amerika crash, so does the FPSA economy. Just remember what happened back in 2008. There are very few things that could cause the financial markets to crash harder or farther than a derivatives panic.

Most Amerikans don't even understand what derivatives are. Unlike stocks and bonds, a derivative is not an investment in anything real. Rather, a derivative is a legal bet on the future value or performance of something else. Just like you can go to Las Vegas and bet on who will win the football games this weekend, bankers on Wall Street make trillions of dollars on bets about how interest rates will perform in the future and about what credit instruments are likely to default. Wall Street has been transformed into a gigantic casino where people are betting on just about anything that you can imagine.

Examples of companies decimated by gambling on derivatives include AIG, MF Global, and the $6 billion loss that JPMorgan Chase recently suffered.

These examples are just warm-up acts for the coming derivatives panic that will destroy global financial markets. The largest casino in the history of the world is going to go bust and the economic fallout from the financial crash that will happen as a result will be absolutely horrific.

According to the FPSA federal government, four very large FPSA banks (JPMorgan Chase, Citibank, Bank of America, Goldman Sachs) "represent 93% of the total banking industry notional amounts and 81% of industry net current credit exposure."

It would be hard to overstate the recklessness of these banks. According to the Comptroller of the Currency, these four largest FPSA banks are walking a tightrope of risk, leverage and debt when it comes to derivatives. Their total exposure to derivatives is $41,580,395,000,000. The total exposure that Goldman Sachs alone has to derivatives contracts is more than 362 times greater than its total assets.

Without a doubt, a derivatives panic is coming and when it does, it will cause the financial markets to crash. One bad bet and it all comes crashing down like the house of cards it is.