Global Currency Reset Happening Now as Bitcoin Price Explodes

A major risk to the solvency of the banking industry is the notional amount of financial instruments such as interest rate swaps known as derivatives.

A recent report stated that US banks have over $200 trillion of derivatives exposure:

Financial Weapons Of Mass Destruction: The Top 25 U.S. Banks Have 222 Trillion Dollars Of Exposure To Derivatives - The Economic Collapse Blog, May 15th, 2017 

This shouldn't be anything new as Forbes covered global derivatives exposure over four years ago: 

Big Banks and Derivatives: Why Another Financial Crisis Is Inevitable - Forbes, January 8, 2013

the risk that is still staring us in the face: the lack of transparency in derivative trading that now totals in notional amount more than $700 trillion. That is more than ten times the size of the entire world economy. Yet incredibly, we have little information about it or its implications for the financial strength of any of the big banks.

Moreover the derivatives market is steadily growing. “The total notional value, or face value, of the global derivatives market when the housing bubble popped in 2007 stood at around $500 trillion... The Over-The-Counter derivatives market alone had grown to a notional value of at least $648 trillion as of the end of 2011… the market is likely worth closer to $707 trillion and perhaps more,” writes analyst Jenny Walsh in The Paper Boat.

"The market has grown so unfathomably vast, the global economy is at risk of massive damage should even a small percentage of contracts go sour.  Its size and potential influence are difficult just to comprehend, let alone assess.”

To understand the risk of derivatives to the global economy, one should understand the history of fiat currencies and how money is created by central banks. Mike Maloney has a great series that I recommend:
Mike Maloney's Hidden Secrets of Money

While there are real industries that make real products, one can nevertheless sense that global markets are rigged and current economic wealth is really an allusion created by the central banks.

Recently, there has been a parabolic price move in Bitcoin (along with several other cryptocurrencies) recently! As of this writing, Bitcoin is trading at over $2600!

China's instability is one of the main drivers of this spike.
Gundlach: "Bitcoin Up 100%, China Down 10%, Coincidence?" - Zerohedge, May 23, 2017

Bitcoin up 100% in under 2 months. Shanghai down almost 10% same timeframe, compared to most global stocks up. Probably not a coincidence!
— Jeffrey Gundlach (@TruthGundlach) May 23, 2017

Moody's downgrades China for first time since 1989 as it warns financial strength will erode as debt mounts - The Telegraph, May 24, 2017
China's Downgrade Could Lead to a Mountain of Debt - Bloomberg, May 24, 2017

Who's Behind The Spike In Bitcoin? - Forbes, May 24, 2017

..it looks like Chinese money is going into bitcoin, global stocks and bonds. But not gold. Remember, the story of the latter 2016 and early 2017 period, out of China, has been the Chinese government's efforts to restrict domestic capital from leaving China. It doesn't appear that they are winning.

In addition, there is increasing implementation of Bitcoin this month on a global scale. Here are some examples:
The Japanese are Using Bitcoin More than Expected - Bitcoin.com, May 8, 2017
Australia Will Recognize Bitcoin as Money and Protect Bitcoin Businesses, No Taxes - Cointelegraph, May 11, 2017
Bitcoin Coming To Russian E-Commerce Giant Ulmart Starting September 1 - Cointelegraph, May 11, 2017
India's Zebpay Has More Mobile Users Than All Korean Bitcoin Apps Combined - Cointelegraph, May 17, 2017
You Can Now Pay Bitcoin for Parking at 27 UK Airports - Cryptocoins News, May 19, 2017

Even Fidelity Investments is acknowledging the increased demand:
Fidelity to allow clients to see digital currencies on website - Reuters, May 23, 2017

I suggested in a prior post that Bitcoin would be the best alternative for the US to counter the economic alliance between China and Russia:
As China and Russia Move Toward a Gold Standard, US Must Join Them or Counter with Bitcoin - April 4, 2017

There are small hints that the Trump administration is pro-Bitcoin:

Bitcoin prices are soaring under Trump - CNNMoney, May 22, 2017

His budget director, former US House member Mick Mulvaney, had been dubbed the "Bitcoin Congressman" by some of the currency's backers.

And vice president Mike Pence's chief economist Mark Calabria has given speeches in support of bitcoin as well. Calabria was formerly the director of financial regulation studies at the libertarian-leaning Cato Institute before joining the administration.

Did Sean Spicer actually tweet a Bitcoin transaction? - Raw Story, May 3, 2017

But, there have been some like blogger Michael Krieger who think that President Trump is completely controlled by Wall Street:

Wall Street Completely Owns the Trump Administration - Liberty Blitzkrieg, March 17, 2017

Maybe he has a point. Just look at the number of Goldman Sachs alumni in his administration. Also, the manipulation of markets (stock, commodities, bond, etc.) continues unabated.

Others, like Brandon Smith, are adamant in spreading a completely bogus theory that President Trump has been selected by the central bankers to be a scapegoat for future economic calamity:

The Trump Collapse Scapegoat Narrative Has Now Been Launched - Alt-Market, May 24, 2017

Trump’s presidency would be the perfect vehicle for central banks and international financiers to divert blame for the economic crisis that would inevitably explode once the Fed moved firmly into interest rate hikes

No one with even a primitive understanding of economics can possibly blame President Trump for some future economic collapse. In that case, blame will be placed squarely on the FED. I easily refute Mr. Smith's assertion in my prior post:

Donald Trump Will End The FED And Move US Toward The Gold Standard - January 2, 2017

So, what is the solution? One approach, suggested by Dr. Ron Paul (back in 2011) would be to declare bankruptcy and return to a gold standard. The market manipulation could end with a new system in place.

Ron Paul: U.S. should declare 'bankruptcy' - CNN Money, June 28, 2011

That would be an incredibly dangerous approach in my opinion. Imagine the 10-year bond moving up 300 basis points (i.e. from 3% to 6%) over a short period of time. With banks completely leveraged and holding trillions in derivatives, they would become effectively insolvent. The whole economy would then implode.

I think a better approach, which is maybe what the Trump administration has settled on, is to try to stave off bankruptcy (via Plunge Protection Team) until an alternate system (like Bitcoin) is in place. Ultimately, Bitcoin is an enemy to all central banks including the FED. As individuals opt to use cryptocurrencies (i.e. wire transfers, payments) and move away from using fiat currencies, the central banks lose their control over people. The central bank will effectively be irrelevant. This alternate system which is being implemented right now is part of the global currency reset that has been discussed for years.

The president of the Federal Reserve of Minneapolis, Neel Kashkari, made some interesting comments about Bitcoin a few weeks ago:

Fed's Kashkari Says Blockchain 'Has More Potential' Than Bitcoin - Coindesk, May 9, 2017

"This is a topic a lot of people across the Fed are paying attention to and watching how it evolves."

"The problem I have [with bitcoin] is while it says, by design, you're limiting the number of bitcoins that can be created, it doesn’t stop me from creating NeelCoin or somebody from creating Bobcoin or Marycoin or Susiecoin."

Perhaps Mr. Kashkari didn't realize he was actually making an endorsement for Bitcoin with his statements. Central bankers shouldn't be the only ones allowed to create money.

In fact, anyone can should be able to create their own cryptocurrency. While over two years old, you can get essential instructions from these articles:

How To Create Your Own Cryptocurrency - Fast Company, January 29, 2014
How Anyone Can Make Their Own Digital Currency - Cryptorials, June 12, 2015

(Wow, maybe this can convince some unfortunate, misguided individuals that the Jews really don't run the world and control all the banks.)

Back in 1980, as the price of gold and silver exploded higher, the FED raised interest rates several times. They also stopped the Hunt brothers from cornering the silver market. Today, a similar interest rate increase is not possible as the national debt (as % of GDP) is much higher than it was back then.

Although the precious metals markets are rigged, as evidenced by the recent Deutsche Bank settlement,
Deutsche Bank Settles Silver, Gold Price-Manipulation Suits - Bloomberg,  April 13, 2016

Wall Street has limited resources for manipulating cryptocurrencies. There are no ETFs (Exchange Traded Funds) approved by the SEC that directly track cryptocurrencies like Bitcoin. So, there is limited potential of selling short Bitcoins. There could be future raids on one of the exchanges (i.e. Mt. Gox) but this will only be temporary setback and not stop the momentum of cryptocurrencies.

We can only hope that the transition is smooth. I wouldn't count on it.