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Equity market derivatives grew by 23 percent in the first half to $9 trillion. Takings were highest in Latin America, equity derivatives at 43 percent. Derivatives takings were lowest in Japan at only 6 percent. Japan's Nikkei 225 index rose 4.8 percent during the period while the MSCI Latin America index increased 25 percent.

Equity derivatives are the special 'province' of 'insider' ('privileged' ) trader JP Morgan Chase.

"Credit-default swaps, contracts designed to protect investors against default and used to speculate on credit quality" -- (steal people's homes and property) -- led the increase in the Total Derivatives market, "expanding 49 percent to cover a notional $43 trillion of debt in the six months ended June 30" a BIS report said.

Federal Reserve Chairman Ben Bernanke has been urging mortgage lenders and 'servicers' to step up the pace of foreclosures and refinancings, sending Christmas retailers into downward spins at the prospects of a consumer spending crunch. Stores like Limited Brands and department stores like Macy's, even upscale Nordstroms posted sales declines. The discount giant Wal-Mart itself reported 'bad news'.

Derivatives of debt, currencies, commodities, stocks and interest rates rose 25 percent from the previous six months, the biggest jump since the Basel, Switzerland- based bank began compiling the data. "Investors have been turning to credit derivatives as a way to speculate on a growing risk of defaults amid record U.S. mortgage foreclosures. " [The sharks are raking in properties from working families worth hundreds of trillions, as the collapse of the dollar sends them towards bankruptcy.]

"The pace of increase in the credit segment outstripped the rises in other risk categories," Christian Upper, a BIS analyst in Basel, wrote in the report. Credit-default swaps are "the dominant instrument," accounting for 88 percent of credit derivatives, the BIS said.

Consumer savings targeted by the "credit-default swaps" increased 145 percent from last year to $721 billion, the report said. The amount at stake in the entire derivatives market is $11.1 trillion, according to the BIS, which was formed in 1930 to manage the world's financial markets and control the banks. The BIS is part of the international security-state banking cartel which is above the law, by law, giving them the privilege of being both the managers of and profit-takers from the collapse of the world economy. Other members include the Federal Reserve, Goldman Sachs, Deutsche Bank and Citigroup.

Derivatives are legal planetary-scale gambling for the world's aristocracy and insider traders, "leveraged financial instruments" allowing market pirates to steal billions with millions, or trillions with billions. They plunder stocks, bonds, loans, currencies, and commodities linked to specific events like changes in interest rates, the winds of war, or the 9/11 flag operation. The BIS report is based on contracts traded outside of exchanges in over-the-counter market.

The world's largest derivatives profiteer is JP Morgan Chase, orchestrating 80 percent of the worldwide contracts. JP Morgan Chase's international 'advisory committee' chairman is trillionaire David Rockefeller. [Surprise ...] The JP Morgan's of the marketplace are referred to as 'Bears' -- Wall Street manipulators who predict, foresee & create market crashes, like 1929, managed by the original JP Morgan! In the leveraged derivatives- based market crashes, using the put and call options, the racketeers can STEAL banks, corporations, real estate, any property or assets, for much less than their value. Equivalently they may force their victims to PURCHASE same for much MORE than their value, sending them into bankruptcy and causing them to lose whatever property, assets or pensions they might have held safely until then. Either way, the JP Morgan's walk away with all the chips, the entire marketplace.

In comparison, Nathaniel Rothschild 'manages' the Atticus Capital derivatives 'ship' -- and a private loan collection enterprise covering the whole of Eastern Europe. Whereas Rockefeller is centered on Wall Street, the Rothschilds manage their world dominion from Switzerland vis-a-vis the London family bank, NM Rothschild and Sons, in close cooperation with the Crown and the Bank of England.

The other name for there derivatives scams is Hedge Fund. These 20th century holdover pirate 'Bears' are also named 'Short Sellers' -- and they don't necessarily even leave your shorts!

Increased trading pushed ICAP Plc to a record this week, as the world's largest broker of transactions between banks reported a 34 percent increase in net income to 80.1 million pounds ($164.4 million). "The London-based company, which profits when prices fluctuate, handled a record amount of transactions as financial institutions bet on or hedged against losses linked to home loans." Small banks which do NOT "clean up" on the financial mishaps of their consumer borrowers find THEMSELVES handed over to the big banks.

Buyers of credit-default swaps receive the face value of underlying debt in the event of nonpayment, in return for the defaulted securities or cash equivalent. A basis point increase in the cost of a contract covering $10 billion of debt is equivalent to $1 million a year. The Markit CDX North American Index of credit-default swaps on 125 investment- grade rated companies has almost tripled since February to 90 basis points from 33. Consumer loan defaults have gone up 300 percent, and economic forecasts predict much worse to come.

Interest-rate derivatives remained the largest part of the market, gaining 19 percent to $347 trillion outstanding by June, the report said. Single currency interest-rate swaps made up 79 percent of the market. The US dollar is in "freefall", reaching an all-time low against the euro, and dropping to equality with the Canadian dollar for the first time in more than thirty years.

Foreign exchange derivatives grew by 21 percent to $49 trillion as the Dollar declined 2.5 percent against the Euro in the first half. Contracts on the Swiss franc increased 32 percent, trailed by 27 percent increases in both the U.K. pound and the Canadian dollar contracts, the BIS said. Earlier this month, Cheng Siwei, the Vice Chairman of the Parliament of the Peoples Republic of China announced China would indeed be "diversifying" its currency reserves AWAY from the US dollar into the euro and gold dinars, accelerating the already runaway fall of the dollar. China holds $1.5 trillion in international currencies.

Unlike both the European Central Bank, which sets the interest rate for the euro, and the Bank of England, which does the same for the sterling, the US Fed is churning out increasing volumes of phony money at lowered interest rates, accelerating the decline of the US dollar and "the numerical meeting of the East and West".

In news this week, French President Nicholas Sarkozy and Chinese Premier Wen Jiabao added fuel to the inflagration of the US dollar. In New Deli, India, Surjit Bhalla, said the Indian government should manipulate the rupee the way that China manipulates the Yuan, and the the US stages the dollar.

http://www.rgemonitor.com/blog/setser

In Brazil, the real has risen 21 percent against the dollar. Supermodel Gisele Bundchen said she preferred the real or the euro over the dollar.

http://www.rgemonitor.com/blog/setser/226050

Like Alan Greenspan before him, at the direction of David Rockefeller, the JP Morgan of the new global marketplace, Benjamin Bernanke will also do as he is told.

In the realm of the corporate security state, above the governments, above the judiciaries -- "He can't be convicted, he's earned his degree."

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