Don’t
blame Trump. He got in this job because he saw the mismanagement that got us in
this dilemma. We have big banks with bad
loans and bad derivative bets and they are leveraged out 30:1. We have so many credit bubbles, we are funding
today’s bills with borrowed dollars. It happened in government with large debts
and consumers and corporations with large debts. Cash is King and those who
have cash will have a better chance to weather the storm when these bubbles
break.
We will
see articles like the one below and some will be propaganda pieces from banks
who want to keep the status quo to keep their bail-out access, or want to save
the EU. But out-of-work and low paid
voters and refugee terrorized voters could change that by voting to fire the
EU. Don’t pay attention to the propaganda.
But do pay attention to the fact that past sins have created these
bubbles and they must be handled well, or they will cause more economic grief
and that means jobs and pay.
These
problems need to fall at the feet of those who created them. That would include
the government and the banks’ management.
They should be fired with no parachute. Banks who leveraged too far or
didn’t handle their loan business well should suffer. Their customers shouldn’t
suffer. Those customer deposits should be guaranteed and the banks should
transfer these funds to the next bank.
Major
Bank Official: Banks Are “Preparing for an Economic Nuclear Winter” , by Matt Agorist, 8/29/16
After years of giveaways to
megabanks, marketed to the taxpayers as ‘quantitative easing,’ the crutches
shoved under the banker-controlled global stock trade are about to snap.
Bankers now say they are preparing for the collapse.
In June of 2015, former Congressman
Ron Paul predicted that these crutches would
fail, and the financial bubbles created by them would send the stock market
into a free fall.
“The consequences will not be minor. Surprises will
be many, since we are in uncertain waters and the world has never faced the
gross misallocation of capital that exists today. The process is self-limiting.
It will come to an end, and it’s not going to be far into the future.”
Now, as chaos in the EU and weak
corporate earnings create a tornado of uncertainty, banks are preparing for the
worst.
According to CNBC quoting a major
lender, banks are “preparing for an economic nuclear winter situation.”
The chaos in the market has major
bank officials running for the hills. According to CNBC, European banks, in particular, have had a very tough six
months as the shock and volatility around Brexit sent banking stocks south.
Major European banks like Deutsche
Bank and Credit Suisse saw their shares in free-fall after the referendum’s
results were announced. In the U.K., RBS was the worst-hit, with its shares
plunging by more than 30 percent since June 24.
On Sunday, speaking on the condition
of anonymity due to the fact that revealing this information can
get bankers killed, a source from a major investment
bank told CNBC “that financial services firms have put together a strategy in
place that takes into account the
worst-case scenario that could happen by the end of this year.”
“This could mean triggering Article
50, referendum in other European nations leading to a break-up of the euro or
sterling hitting below $1.20 or lower. The
banks are ready for anything now,” the source said.
This grim warning comes
after the Royal Bank of Scotland has warned its investors of a
“cataclysmic year.” In an eerily
ominous note to its clients early this
year, the megabank predicted another worst-case scenario.
“Sell everything except high quality
bonds. This is about return of capital, not return on capital. In a crowded
hall, exit doors are small.”
In the note, RBS’s credit chief
Andrew Roberts told investors how Quantitative Easing has failed and was
expected to fail.
We have been told for 7 years now since the credit
crunch, under QE, to borrow money and invest it in one of 3 things: 1) EM 2)
credit 3) global equities. This is a big picture, multi-year bet that has been
taken, which has worked fine, and stopped
working 10 months ago, (this is NOT NEW).
As the Guardian’s Larry Elliott
points out: Markets have been
supported for some time by low-interest rates, stimulus measures from central
banks including quantitative easing, and hopes of economic recovery. But with
the Federal Reserve raising rates and the Bank of England expected to follow
suit, that prop is being removed.
Those who pay attention to the
effects of central bankers looting their respective countries have long pointed
out the mathematical certainty that is an economic collapse.
The collapse of global markets is
inevitable, as it is a natural correction to the wholesale fleecing of the
citizens through the unscrupulous actions of central banks.
Ron Paul sums up the situation
perfectly: The credit and new money,
when created by a central bank, is delivered to the market in a political
fashion for which the one percent receive special benefits. It allows the
pyramiding of debt to fractional reserve banking, which compounds the long-term
problems. It may be fun while
it lasts, but it always ends with a crash.
Matt Agorist is an honorably
discharged veteran of the USMC and former intelligence operator directly tasked
by the NSA. This prior experience gives him unique insight into the world of
government corruption and the American police state. Agorist has been an
independent journalist for over a decade and has been featured on mainstream
networks around the world.
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