Japan’s New Framework of Hyperinflationary Failure…”Central bank balance sheets so bloated – and credibility so thin – there is no chance they could ‘bail out’ the world again, unless they resort to outright hyperinflation.”

Wednesday, September 21, 2016
By Paul Martin

Andrew Hoffman
September 21, 2016

Am I allowed to start with Deutsche Bank? Or do I have to defer to the Bank of Japan’s Keystone Kops; who once again laid a giant goose egg? Who, beyond a shadow of a doubt, proved they have not a clue what they are doing – in dramatically accelerating the pace at which the “Land of the Setting Sun” plunges to “second world” status, en route to becoming the first “Western Power” to experience 21st Century hyperinflation.

Hmmm, what to do? As sadly, I could easily write entire articles on countless other topics as well – such as the Bank of International Settlements issuing a dire warning about the massively over leveraged Chinese banking sector; Donald Trump’s surging popularity; Wells Fargo’s “crime of a lifetime”; the exploding worldwide pension crisis; OPEC’s Secretary General all but confirming “no deal” at next week’s “all-important” crude oil producers meeting; and the U.S. national debt – and budget deficit – expanding at the fastest rate since the 2008-09 financial crisis. And the answer is, I’m starting with Deutsche Bank – as unquestionably, it poses the greatest near-term risk to global political, economic, social, and monetary stability.

To that end, on June 13th article “the Lehman of Europe is on the verge of collapse,” I stated the following…

“In my view, the ‘powers that be’ are for some as yet unknown reason, distancing themselves from DB – just as was the case with Lehman in the States, as its competitors were serially deemed ‘too big to fail.’ I mean, the rapidly growing list of lawsuits and allegations against Deutsche Bank is utterly staggering – including its admission of manipulating Precious Metal markets for the past 15 years; to the point that clearly, this massive European crime center is not far from total, and irreversible, implosion. Only this time, the ramifications would be dozens of times uglier than Lehman, as its derivatives web is so large, it would likely entangle every financial institution in Europe – as well as countless non-European corporations, institutions, and sovereign governments. Not to mention, seven years after the Lehman crisis, the global banking sector is far less liquid, amidst the worst worldwide economic conditions since the Great Depression. Not to mention, an unprecedented, worldwide debt edifice nearly twice that of 2008’s level, with Central bank balance sheets so bloated – and credibility so thin – there is no chance they could ‘bail out’ the world again, unless they resort to outright hyperinflation. Which unfortunately, the sad, sordid history of all fiat Ponzi schemes guarantees.”

And that, two weeks before the IMF – incredulously, given the obviously horrific ramifications – labeled Deutsche Bank the “most important net contributor to (global) systemic risks!”

In other words, with each passing day it’s becoming more and more clear that for whatever reason, Deutsche Bank has been “marked for death” by “someone” or “someones” with the power and capital, to make it happen. Even I am clueless to guess why Deutsche Bank is being specifically targeted – which it most certainly is. Consequently, I am exploring all potentialities – including even a grand conspiracy, as discussed in last Friday’s must listen Emergency Podcast with Bix Weir; or perhaps, a geopolitical battle for Western domination, as suggested by Max Keiser. Whatever the reason, the fact remains that Deutsche Bank is unquestionably on the verge of collapse, as exemplified by exploding credit default swaps; and its stock closing yesterday at an all-time low, down 50% year-to-date, and 91% from its 2007 high.

At this point, I’m not sure there’s much more to add than the reams I’ve already published about my staunch belief that Deutsche Bank is not only going down, but going down soon. And that when it does, it will be the financial, political, and monetary equivalent of the 2004 Indian Ocean tsunami – which killed 230,000 people in 14 countries, the vast majority within a few minutes time.

The Rest…HERE

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