gensler. you've said that in 2008, the financial system failed and the financial regulatory system failed. in your view, you've said also that there have been failures with respect to the over the counter derivatives market. how did that market fail? >> well, i think that derivatives which were initially meant to lower and mitigate risk and are really a very important hedging tool for thousands of companies and municipalities also concentrated and heightened risk. they concentrated and heightened risk at aig for sure, but elsewhere as well. secondly, beyond concentrating and heightening that risk, there's that interconnectedness, that wonderful graphic that this commission has, on just one entity, limits the flexibility of the government to let something fail. so things not only became too big to fail, but too interconnected to fail. or to be allowed to fail. and thirdly, i think specifically to the crisis -- there's this wonderful graphic. >> and that, i might add, is only 49 of the counterpa

gensler. derivatives have $300 a , larger than the economy. does that represent risk? >> the derivatives market is about half of the world market. the underlying loans or underlying market value -- it is called notional amount. >> it is what you used to calculate with, right? you are calculating it on the basis of a notional value but you are not really spending that amount back and forth, right? >> you may or you may not depending on the derivatives. if you bite $50 of gas at a filling station, roughly speaking, there is $1,000 of derivatives associated with that. it means that of that $300 trillion of derivatives which are not currently regulated our risk at the back of the system. >> does it mean $300 trillion in risk is somehow 20 times the economy of the united states? is there that much risks somewhere? >> it is what the risk is calculated against. let's hope it is a lot smaller than that. >> how much time do you need? >> why don't we start with three and go from there. >> we have to cle

. >> general counsel, we talked about the incredible technology -- general gensler, we talked about the incredible technology here. kids are quick to adapt. the technology is moving really quickly. how do you keep up with the opportunities and threats that are faced by young people who you are charged to protect? >> you are right. the technology is literally and physically light years ahead of law enforcement, regulators, and investigators, in terms of what we can do in identifying the people who are causing threats to children on the internet. the whole idea of the internet, in terms of the insidious peter, is that it is shrouded in anonymity. -- in terms of the in seriousness -- insidious behavior, is that it is shrouded in anonymity. it is very difficult to find them. it makes it hard to pass laws that are relevant. the law can become obsolete over shorts period of time. a great example is sexting. a couple of years ago, no one even knew what it was. now, it is all the rage with children with cell phones. we have to keep up as best we can. we're doing a good job. the attorneys genera

whistleblower on the london billion market association testifying to gary gensler at the c f t c talking about leverage of one hundred to one on that market physical being collateralized or speculated upon with paper bets one hundred times greater than any possible so over in the vault and also you know going back a few years some would posit that gordon brown's sale of half of the u.k. gold supply at the absolute low price for decades had a lot to do with trying to meet short positions in this artificially goosed short precious metal market as a as again a way to support the fear of currency system which is a system that not only has brought us a bankrupt economy around the world but has also said the financing needs for the most ugly aspects of our society and i'm talking about the war machine in the u.k. in the us the ecological devastation we're saying but then of course we're getting more into a political arena and i want to keep this more on the economics now the biggest story the gold story the past week has been the news that european commercial banks are reportedly engaged in go