Let’s talk derivatives. Taylor Kenney is sounding the alarm, warning that US banks are currently holding onto a staggering quarter of a quadrillion dollars in derivative exposure, which are essentially financial instruments that nearly toppled the global economy in 2008. According to Kenney’s analysis of official Federal Deposit Insurance Corporation data, the derivatives market wasn’t reined in after the Great Recession, but instead, it has grown into a more complex and massive entity, buried under layers of financialization designed to conceal its true risk. This complex web consists of interconnected bets built on debt, speculation, and extreme leverage, making it a ticking time bomb. The catalyst for the collapse of this new derivative pyramid may have already been triggered, with the recent consecutive collapse of three major sub-prime auto lenders potentially signalling the imminent arrival of a new Credit Crunch. However, this time around, the consequences would be far more severe. The FDIC insurance fund, which is supposed to protect savings, only has sufficient funds to cover a mere 1.3% of all insured deposits, which is barely enough to bail out one ‘too-big-to-fail’ bank or a few mid-sized ones. The alternative is a draconian FDIC ‘bail-in’, which would involve confiscating “your cash, your savings, and your deposits” to recapitalize the bank and save the system, effectively punishing innocent savers while letting the reckless gamblers who inflated the bubble off the hook.

The Powder Keg – Understanding the Derivatives Disaster

At its heart, this staggering $223.5 trillion crisis is a massive threat that overshadows the entire US economy, which is valued at around $28 trillion. So, what exactly are derivatives? Essentially, they’re high-stakes side bets that banks make on assets like interest rates, currencies, commodities, and stocks. While banks claim they’re a way to “hedge” against risks, the truth is that they’re incredibly risky gambles that have been fuelled by the Federal Reserve’s policies of near-zero interest rates and quantitative easing over the past decade. The notional value of these bets is the total amount that could be lost if everything goes wrong, and while the “net” exposure might seem lower, around $15-20 trillion, this is just an illusion – when panic sets in, these offsets can quickly disappear, as we saw in 2008 when credit default swaps led to a $10 trillion loss in wealth.

Today, four massive banks – JPMorgan, Citibank, Bank of America, and Goldman Sachs – hold over 90% of these derivatives, creating a too-big-to-fail cartel that’s on steroids. The risk of one of these banks defaulting is very real, and it could trigger a chain reaction of failures, much like a row of dominoes. The reforms introduced by the Dodd-Frank Act have done little to address this issue, instead centralizing the risk in clearinghouses and relying on stress tests that assume everything will always go smoothly. Meanwhile, geopolitical tensions, such as the conflicts in Ukraine and the Middle East, are driving up energy derivatives and inflation, eroding the savings of ordinary people. The Federal Reserve’s recent $29.4 billion injection of liquidity is just a temporary fix, a Band-Aid on a much deeper wound. The fact that precious metals bets have surpassed $5 trillion is a sign that investors are seeking safe havens, but this is just propping up an illusion – the value of physical gold and silver is screaming “safe haven” to those who will listen.

The trading revenue may be up, but so is the fragility of the system, with the Dallas Fed warning that “ample liquidity” is needed to prevent a meltdown – code for “we’re one mistake away from disaster.” This is eerily reminiscent of the 2008 subprime crisis, which sparked a derivatives inferno, but this time the stakes are three times higher. The pursuit of profit has punished prudence, and the threat of bail-ins, where depositors’ savings are used as collateral, is a very real one. The bottom line is that America’s banks are overextended empires, not invincible fortresses – they’re vulnerable to collapse, and it’s time we faced up to this reality.

The Dollar Crash Cascade: How Bank Bets Can Spark a Currency Cataclysm

We’re on the cusp of a derivatives explosion that could potentially incinerate the dollar, making the 2008 financial crisis look like a minor setback. The United States is sitting on a $223.5 trillion debt bomb, tied to a massive $740 trillion global derivatives pile, with interest-rate swaps totalling $579 trillion. US national debt stands at $33 trillion, with a staggering 97% debt-to-GDP ratio that’s projected to balloon to 118% by 2035. The dollar has already taken a hit, plunging 11% against major currencies in the first half of 2025, the steepest drop in 50 years. Foreigners hold 30% of US Treasuries, and if they sense trouble, they’ll hedge their bets through swaps, flooding the market with dollar sales and spiking the cross-currency basis.

The Treasury Department is facing a refinancing crisis, with $9 trillion in debt coming due next year amidst weak demand, which could lead to yields jumping by 0.2 points or more, and interest payments skyrocketing to $1 trillion annually. This could crowd out defense and entitlement spending, triggering a catastrophic chain reaction.

As the dollar’s reserve share craters by 2 points or more, investors are flocking to alternative assets, with emerging markets experiencing significant outflows. The BRICS nations are eyeing the yuan and gold as potential alternatives to the dollar.

Inflation is also on the horizon, with the Fed printing trillions of dollars, which could push net interest payments to over 5% of GDP by 2030 and debt-to-GDP ratios past 200% by 2047. This could lead to a doubling of grocery prices and a decimation of retirement savings.

Higher interest rates, slashed growth forecasts, and the tariffs are all contributing to the perfect storm. The $73 trillion in unfunded liabilities, including Social Security and Medicare, is a ticking time bomb. Experts are warning of a “coming US financial crisis” and a “financial tsunami” caused by policy mistakes. The rise of crypto derivatives, with $18 trillion in gross value, is adding fuel to the fire. A potential downgrade of US debt, with 50% odds at 120% debt-to-GDP, could shatter the “safe haven” myth, leading to a 9% plunge in the dollar.

The Puppet Masters: Unmasking the Globalist Cabal

This is not just a case of faceless greed; it’s a syndicate of central bankers, supranational institutions, and Wall Street power players hell-bent on borderless control. The Bank for International Settlements (BIS) is the apex predator, born from Nazi gold laundering and now scripting liquidity traps through “innovation hubs” that standardize cross-border derivatives. The BIS is mapping FX/OTC bets to weaponize volatility, not fix it. Jerome Powell is merely an errand boy, executing the BIS’s plans, including slinging $29 billion in swaps last month.

The IMF and World Bank are tag-teaming with the BIS, saddling 190 nations with debt and pushing for a global currency to “stabilize” the chaos. Their 2025 Global Financial Stability Report admits that derivatives amplify shocks but demands more coordination, effectively surrendering national sovereignty to the globalist throne. The Big Four banks, with $60 trillion in notional value, are the street-level enforcers, suppressing gold and silver prices to the tune of $5 trillion. The “Big Three” asset managers – BlackRock, Vanguard, and State Street – own 20-30% of banks and dictate risk models for synchronized blowups, perpetuating elite capture and ignoring net-zero swaps that inflate bubbles.

The grand design is to overload the system, crash it, and then “build back” with Basel IV, crushing small banks, and de-dollarization through tariffs and sanctions. The globalist fingerprints are all over the FDIC’s 2025 Risk Review, which nods to commercial real estate cracks caused by green deals. Soros and Rothschild are thriving on chaos, shorting from offshore while the average person foots the bill.

A Crisis by Design: Uncovering the Orchestrated Blueprint and Timeline

We’re witnessing a deliberate crisis, orchestrated by a blueprint that’s been set in motion. The International Monetary Fund (IMF) is openly confessing to this controlled demolition in their 2025 manifestos. In their October Global Financial Stability Report (GFSR), titled “Shifting Ground,” the IMF is flagging “elevated risks” stemming from overstretched valuations, sovereign bonds, and nonbank leverage – the very bubbles they’ve inflated through quantitative easing and interconnectedness.

The Bank for International Settlements (BIS) is also sounding the alarm in their June Annual Report, warning of “policy crossroads” as they work to consolidate cartel power through the harmonization of Basel IV. Meanwhile, the World Economic Forum (WEF) is proposing elite “frameworks” to govern the impending fragmentation of systems, which they claim will come at a cost of 5-10% of global GDP.

Let’s take a closer look at the timeline of events: In the aftermath of the 2008 financial crisis, the Dodd-Frank Act was introduced as a mere fig leaf to hide the rot. Fast forward to 2025, and the IMF is warning of slashed growth forecasts, while the World Bank is nodding to emerging market debt traps that will require rescues. The swaps and foreign exchange markets are on the verge of explosion, with the BIS echoing the staggering $579 trillion notional value, which is eroding the dollar. The gold market is also showing signs of cracking, with COMEX records revealing the paper facade.

The globalist playbook is clear: they’re engineering a crisis to fragment the system and then govern the pieces. The real agenda is to implement SDR bailouts and Central Bank Digital Currencies (CBDCs), consolidate power through Basel centralization, and suppress gold. The WEF’s “Fragmentation” white paper is a blueprint for this plan, which will come at a significant cost to the global economy.

Written By Tatenda Belle Panashe

Watch the video below as Yvonne reports live from the summit venue, capturing the atmosphere, the key discussions underway, and what to expect in the days ahead.

From talks on a new global financial system to questions surrounding leadership absences, this year’s BRICS summit is set to reshape the global conversation and LN24 International is here to cover every moment.

Stay tuned to our website and social platforms for continuous updates, live interviews, and behind-the-scenes insights from one of the most pivotal geopolitical events of the year.

Rio de Janeiro — Chinese President Xi Jinping will not attend the 2025 BRICS summit in person, marking his first absence from the influential global bloc’s top-level gathering in over a decade. The summit opens tomorrow in Rio de Janeiro and will run through Monday, July 7.

Xi’s decision, though not officially explained, comes at a sensitive time for the BRICS alliance, which is under increasing scrutiny as it pushes for a more multipolar global order. The absence is being viewed by analysts as more than symbolic, especially as Russian President Vladimir Putin is also not attending in person and will participate remotely due to international legal and diplomatic pressures stemming from the ongoing war in Ukraine.

Leadership Gaps Stir Internal Speculation

While no formal reasons were given for Xi’s absence, some diplomats cite a shift in China’s international engagement strategy and growing domestic priorities as possible causes. Others point to quiet tensions within the bloc itself especially over disagreements about BRICS expansion, a common currency proposal, and influence over the New Development Bank.

With China and Russia’s top leaders absent, the stage is wide open for Brazilian President Luiz Inácio Lula da Silva to assert a leading role at this year’s summit. Lula has repeatedly emphasized the need for global financial reform, de-dollarization, and strengthening South-South cooperation.

Hosting the summit in Rio de Janeiro, Lula aims to position Brazil as a bridge between the Global South and the rest of the world, potentially using the platform to champion Latin American interests in global trade and development.

Modi’s High-Profile Attendance

In contrast to the high-level absences, India’s Prime Minister Narendra Modi is expected to attend in person and has been invited as the guest of honor, underscoring India’s strategic positioning within BRICS and on the global stage.

Modi’s agenda is likely to include deeper cooperation in digital infrastructure, global south partnerships, and new trade frameworks that reduce dependence on Western financial systems.

“India views this summit as a moment to assert leadership in shaping the BRICS agenda for the next decade,” said a senior Indian diplomat.

What’s at Stake for BRICS

The summit comes at a pivotal moment for the BRICS alliance, which recently expanded to include new members and is exploring major institutional reforms. But diverging national priorities, and now high-profile absences, have sparked fresh debates over whether the group can act cohesively as a counterweight to Western institutions like the G7, IMF, and World Bank.

Despite these challenges, the summit will move forward with a packed agenda focused on:

• Trade in local currencies

• Reform of global financial institutions

• Expansion of the New Development Bank

• Joint development projects in Africa and Latin America

As cameras and global attention turn to Rio, the question remains: Can BRICS move from vision to execution without the full presence of its most powerful members?

Rio de Janeiro – At the 10th Annual Meeting of the New Development Bank (NDB), global leaders called for a radical transformation of the international financial system, urging BRICS nations and the broader Global South to distance themselves from Western-dominated development models.

NDB President Dilma Rousseff, the former Brazilian head of state, delivered a powerful address emphasizing the urgent need for alternative growth strategies. “We must no longer be passive recipients of imposed financial architecture,” Rousseff said. “It’s time for BRICS nations to become active architects of their own development pathways.”

Her remarks come ahead of the upcoming BRICS leaders’ summit, also set to take place in Rio de Janeiro, where geopolitical and economic autonomy is expected to dominate the agenda.

Lula: “The Global South Needs a New Currency”

Backing Rousseff’s sentiments, Brazilian President Luiz Inácio Lula da Silva intensified calls for a shift away from global dependency on the U.S. dollar and other Western financial instruments. “It is time for a new trade currency among BRICS nations,” Lula said. “We must break the chains of financial dependency that have kept the Global South subordinate for decades.”

In a pointed rebuke of the international community, Lula also criticized the United Nations, calling it “insignificant” in the face of ongoing humanitarian crises. “Where is the UN in Gaza? Where is the global leadership in solving Palestine? We cannot wait for an institution that has repeatedly failed us.”

NDB: Shifting Focus to Infrastructure and Sovereignty

Founded in 2015 by Brazil, Russia, India, China, and South Africa, the New Development Bank was envisioned as a financial alternative to institutions like the World Bank and the International Monetary Fund (IMF). With a growing list of member countries and partners, the bank has increasingly positioned itself as a key driver of infrastructure and sustainable development across emerging economies.

In 2025, the NDB has already approved over $1.1 billion in loans for Brazil alone, earmarked for energy projects, green transport, and digital infrastructure. The bank has also expressed interest in expanding partnerships with other countries in Latin America, Africa, and Asia.

A Wider Challenge to the Global Order

This year’s summit reflects growing frustration among emerging economies over unequal access to global capital and decision-making power in traditional institutions. The broader BRICS coalition which may soon expand to include nations like Argentina, Egypt, and Saudi Arabia is signaling a clear intent to challenge the Western-led status quo.

Analysts say the rhetoric is not merely symbolic. “The Global South is no longer content being a footnote in the global economy,” said Dr. Maria Estevez, an economist at the University of São Paulo. “The NDB’s increased activity is one part of a much larger push for a multipolar financial world.”

As the world watches the BRICS summit unfold in Rio, the message from the New Development Bank is unmistakable: a new financial era may be on the horizon—one that redefines the rules of global development, power, and equity.