Derivative Bubble has a fuze!! 4 days left!!

Wait until you see what the DreamBot brought you this time…potential fireworks on the global economic landscape. Can they contain this one? Our Project August dream predictions say, “Maybe not.”

Project August brought us some incredible revelations from some of the world’s most talented dreamers. One of them included a very strange and cryptic ice cream cone dream that unfolded like a Da Vinci Code movie.

But it was this precognitive dream that gave us months’ worth of notice on this potential disaster that no one else saw, including the slave masters at the top (and even including “The Mother of all Ice Cream Cones!”) She was firey from the beginning, as she was one of the few players on the global scene who was and still is saying “no” to the patriarchal oligarchs the world over.

Fireworks have already sparked, but it could get a lot worse…

And here we are…three months later this dream is actually coming true, and this Economic Ice Cream Cone is about to melt. Strangely, no one saw this coming except for Proj Aug participants, but now we have Foxnews, Reuters, and Chicago Times reporting it, probably because there’s only a few days left. Amazing!

Will this be enough to rattle the shaky CDS house of cards? I don’t know, but it is the 3rd largest economy in South America. Might as well get caught up in case this fuse is big enough…

This is how we found the news to begin with, and this is what we saw coming: 4 days left!!

The big question is…can the elite keep this one under wraps?

Updated July 29, 2014

Even though it looks like Argentina will in fact default tomorrow, it does appear as if the CDS market (derivatives) can absorb the loss. The “experts” estimate only a $120B total in CDS claims post-default…

Default Swaps

In a meeting last week with Pollack, Argentina called on the judge to create a safeguard against risks related to the RUFO clause, which the country has said may trigger claims of more than $120 billion. Griesa has rejected Argentina’s repeated pleas for a delay.

Credit-default swaps that protect against losses from an Argentine default over the next three months imply a 43 percent chance of non-payment, according to data compiled by CMA. The South American nation’s debt is the most expensive in the world to protect with the swaps.

“If payments are missed for a few days, or even a couple of weeks, acceleration is unlikely to happen,” Citigroup analysts Guillermo Mondino and Jeff Williams wrote in a July 25 report. If bonds subject to cross-default are accelerated, Argentina would still have 60 days to pay the original bonds and decelerate the notes, they said.

All said and done, though, the results are the same for the power of dreams. In other words, the dream predicted this Argentine default, despite no cataclysmic event aftward. Of course, time will tell whether $120B will be the limit of the total derivatives attached to this default. There is still a fair chance that we may see a surprise on center stage.