The Financial System is Crumbling… Again
By Graham Summers
GoldSeek.com
Wednesday, 5 February 2014
We find it truly extraordinary that anyone is surprised the financial system is under duress again.
After all, what have the Central Banks accomplished in the last five years?
1) Did they clear out the bad debts that caused the 2008 collapse? NOPE
2) Did they implement structural reforms to insure another 2008 didn’t happen? NOPE
3) Did they punish fraud or corruption in any way to insure that the system was clean? NOPE
So what did they do?
They cut interest rates over 500 times and funneled over $10 trillion into the financial system, over 98% of which went to the very players (key banks) who nearly blew up the world in 2008.
And people are actually surprised that the system is back in trouble again? Would you be surprised if giving another shot of heroin to a drug addict who was in a coma didn’t bring him to health?
Honestly, did anyone think this would really work? I know that the connected elites loved it because the whole process allowed them to hand off their garbage investments to the public while leveraging up to acquire more assets via the Fed’s cheap money… but what about those who DON’T work for a top 20 global financial institutions? Did anyone actually believe this would work?
So here we are today, Europe’s already insolvent banks are now potentially on the hook for $3 trillion in Emerging Market investments.
When your entire banking system is leveraged at 26-to-1 it really doesn’t matter who you lend to… you’re bust. But in this case, the bad emerging market investments are just the icing on the rotten cake that is Europe’s banking balance sheets.
The Rest…HERE
