Op-Ed: The Quadrillion Dollar Derivatives Dilemma, And How A Harder Currency Can Save UsA financial derivative is a contract which derives its value from an underlying asset, and almost every asset in the world now has some form of one attached to it. They are purportedly used for hedging risk, and do perform this function in a small number of instances, but the majority of them increase the risk exponentially in search of greater reward. The riskier the bet, the larger the potential payoff. Quite often when the casino (bank) loses on these risky bets, the working class taxpayers end up footing the bill, as we witnessed in the 2008 derivative-driven financial crisis.
There is no money for a bailout when the derivative market unravels again, it's time we explore new options.
http://dcebrief.com/the-quadrillion-dollar-derivatives-dilemma-and-how-a-harder-currency-can-save-us/
