SUB-CAPITALISM AND THE NEXT FINANCIAL CRISIS

In December 2008 margin debt was $186,710 000 000, but increases to $461,200 000 000 in December 2015(nyxdata.com). This is a growth of 247%. Our debt is bigger today than during the world financial of 2007-2008. In December 1990, margin debt was $28,320 000. Sub-capitalism is a degradation of capitalism transforms into financial-capitalism. Sub-capitalism is characterized by an exponential increase of debt. Global debt was $142 trillion (269% of GDP) in 2007, but represent $199 (286% of GDP) in 2014 (mckinsey.com).  Global derivative market is more than $1.2 quadrillion but during the last financial crisis, this unregulated market was evaluated at $ 587 trillion. According to the International Swaps and Derivative Association (ISDA), average daily notional volume of interest rate derivative was $ 421 trillion in Q42015, but the world GDP is 78 trillion. Global derivative market is 15 times biggest than the world GDP, this is why deleveraging is not for tomorrow. US debt to GDP ratio is now 103%, but it is 282% for China. The conditions for a new financial crisis are here. Capitalism is based on predictable activities, but sub-capitalism is based on unpredictable activities this is why financial crisis will be more frequent.