Financial N-Option will Settle Trump’s Oil War

If Tehran ever decided to shut down the Strait of Hormuz – call it the nuclear option – that would trigger a world depression as trillions of dollars of derivatives imploded. The Bank for International Settlements (BIS) counts about $600 billion in total derivatives. Not really. Swiss sources say there are at least 1.2 quadrillion with some placing it at 2.5 quadrillion. That would imply a derivatives market 28 times the world’s GDP. On Hormuz, the shortage of 22% of the world oil supply simply could not be papered over. It would detonate a collapse and cause a market crash infinitely worse than 1933 Weimar Germany.