SOS Disaster is Looming

Have we forgotten the world GDP of USD60 trillion and derivatives of USD800 trillion?

Disaster is looming soon, read this by Prechter:

Everybody always talks about the federal government spending more money as “stimuli.” It's ridiculous. Every dollar the government spends is a drag on the economy. It has to come out of someone else's hide: either by direct payment from the taxpayer or by borrowing the money, which means it can't be lent to a private business. The more the government spends and the more the government borrows, the weaker the economy gets. The weaker the economy is, the less chance it has to pay off the principal and interest that the debtors owe. If public servants’ behavior were any different, then the outcome may be different. But studying world history tells you that governments always take from the economy until it's completely destroyed. It's sad, but it's pretty predictable. You don't see someone coming into California and saying, “Let's clean all this up. Let's cut the budget by 60 or 70 percent and start paying our bonds off so we're completely out of debt in 15 years.” It's easy to do, anybody could do it. But they won't.

MyView What will happen when the debt impode i.e. trillions of IOUs that cannot be paid back? How did this IOUs or debt comes about, the conventional sub prime mortgage/credit cards/car loans/ educational loans & the innovative financial instruments call "derivatives". Anyone know how much is it? Are they between USD20-30 trillion? Well, it does pay to find out, first, is this figure is a fact or myth. If it is a fact, what is the consequences?