derivatives and Currency

Supose I sell you 10 dollars for 11 dollars, and charge you a fee for the service, and you charge me a fee for taking the risk on buying 10 dollars for 11 dollars because 10 dollars might only be worth 9 dollars tomorrow, then You sell me 10 dollars for 11 dollars and we both get the fees and then we ramp this up really really big and trade back and forth millions of times a day and now we are making millions of dollars a day right???

And then one day we get everyone on the planet to buy in to this scheme and they all dump large sums of money into the scheme.  Yeah!  Good times.

A recent article in the New York Times estimated that the trade in Derivatives last year was on the order of 600 Trillion dollars.  Ho Hum.  Boring.   Global Domestic Product depending on the source was something like 60 Trillion Dollars.   Currency Trading was on the order of 3.98 Trillion per day, or over 1,000 trillion per year. 

So rationally every dollar of product or service produced gets traded by the bankers more than 25 times.  Is that not a comforting thought?

This stuff is not capitalism it is anti-capitalism. 

The same holds true for the stock markets of today.  It is absurd that a large percentage of any companies stock changes hands daily and the so called value of companies goes up and down by a large amount daily while at the same time nothing has changed at all. 

Allowing absurd trading schemes and rapid trading back and forth by computers and mathematical formula is not capitalism, it is a parasitic plague of anti capitalism. 

The process of which leads to the destruction of the real wealth that has  been produced. 
A. Siphon off huge percentages of all the wealth produced into the marketplace.
B. Trade stuff back and forth in a frenzy of insanity producing huge rises in values of stuff on paper
C. Get the population to keep pouring capital into the ponzi scheme instead of investing in real things.
D. Since nothing is being produced but a lot of BS. eventually everthing caves in and the artifificial wealth is evaporated along with a whole lot of what could have been real wealth invested in real initiatives.
E. Announce huge crises and make more rules to funnel more wealth to the process next time around.
F. Have the media clowns  announce how free markets will surely be a success but that we must buck up now and suck it in and get through these bad times. 
G. Find a new angle and get the process rolling again.

The process destroys real wealth and forces the economy into ever more and more convoluted ways of creating artificial wealth and ever less efficient use of resources and into a system where destruction of and waste of all things is the highest and best use and any good and sustainable practice is shunned as non productive and stupid.