nuclear bombA global banking CONTAGION looms as Deutsche Bank nears the End Game…

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ast year, Jim Willie warned when Deutsche Bank collapses, it will be Lehman Brothers TIMES FIVE.
That point may be coming sooner than later…

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  1. Just write em a check, the check is in the mail  for 72 Trillion. Please hold, till we get confirmation. This should push gold up to $100,000 and Silver to $5,000. Everybody be happy. Party likes there’s no tomorrow . 

    Prince rip

    • @CentralTexan

      Well stated my friend!

      And while I am here, let me ask, is there anyone left out there that has not yet told us that “Deutsche Bank is Broke, Derivatives Collapse Coming!”??  I can’t think of anyone, can you?

    • There is a tendency in your comments and others to want something to happen at the click of ones fingers, however in the real world , anybody in the civilized world who has mounting debt never goes broke immediately , there is always a process by which debt dealt with and that takes a period of time to conclude , whether your a business , a mortgage owner or  you just owe money to a bank or some institution.

      Deutsche Bank is precisely in that same situation, it takes time for debt ridden private companies like the Deutsche Band to unfold. You cant expect these matters to happen immediately , so please be patient until such time as they do! A good Investor invests and stays patient, that is the hallmark of  good investors, and the failure of bad ones, so, to answer your question! How long is a piece of string ? Its as long as it takes to get a proper return on your investment, patience being the common denominator.

    • Deutsche bank is broke!!!!!    Deutsche bank is broke!!!!!     Deutsche bank is broke!!!!!!!!

      I think that is what is really is happening!!!!!  Killroy

      Can you hear me now!!!!!

  2. Deutsche Bank is broke

    I am broke…

    Deutsche bank execs and co are still livin it up at the Hilton, spending other peoples money

    I am broke…

    Deutsche Bank is broke

    I have a lot of physical Silver.

    I am still broke..

    I bet the dealers aren’t broke..

    It’s all a show..

     

    • @silverscam

      You are only ‘broke’ until fiat currency is widely recognized for the fraud that it is. When that happens the paradigm shift from accepting fiat currency as money to accepting silver as money will occur almost overnight. If you have any significant quantity of physical silver (or other PMs) when that transition occurs you most assuredly will not feel ‘broke’ any longer. In my opinion (for the little that it is worth) that day of reckoning may be postponed for a few more months and possibly even a few short years at most.

  3. Deutsche Bank will not go under since the 2008/9 crisis banks have not adhered to GAAP. Deutsche will simply not pay if their derivative book collapses and banks at the other end will not mark to market and refuse to write down the loss. Trillions in derivatives is meaningless if you don’t pay and mark to market. We saw this with the collapse of mortgage backed securities in 2008/9 and the collapse of oil and gas loans this year.

    • @jj

      Technically speaking no bank will ‘go under’ as long as a ‘white knight’ shows up with the requisite digits required to shore up the balance sheet of said bank. This did not happen with Lehman and so it ‘failed’ and closed its doors. Believe me when I tell you that if Deutche Bank is perceived as insolvent and if no white knight (which would have to be a Central Bank at this point) ‘rescues’ them with a bail out to change that perception, Deutsche Bank will absolutely go under (as in they will cease to have employees, cease to have depositors, cease to exist).

      Whether or not Deutsche Bank ‘fails’ or not is largely irrelevant though because under the current worldwide debt based monetary system all banks will fail sooner or later, and more likely sooner than later.

  4. Living on pennies! Living On Pennies! I’m Not Going To Be Broke…Waiting! Waiting! Foreknowledge is key to success. The bankers want to break our resolve , but they wont succeed, our moment will arrive, then this blog will be alive with the wealth of those who persevered in thought, encouragement and investment opportunity.

  5. Dad and Kev:
     
    I am receiving reports from other people that there has been a noticeable uptick in harassment against foreigners in China.  I have also had some harassment during the past few days as I was walking back to my apartment at night.  Someone stole my bike the other day ago too.  I will be pretty well set for cash if there is a reason for me to get out of here.  I am watching the situation very closely and carefully.   
     
    China has experienced periods of time in its history in which it has not been safe for foreigners to be here, such as, at the end of the Qing Dynasty, prior to the Communist Revolution, during most of the Maoist times and also long ago as well.  What has them presently upset is the fact that The Hague voted against China in the recent South China Sea ruling.  China, it was found, has illegally occupied some coral reefs, which the communist regime seized, and upon which various military infrastructures were built.  I personally think that the country is in serious trouble as it has been spending its cash reserves on paying its workers.  A lot of foreign reserves are pouring out and the Chinese Yuan is noticeably depreciating in value.   They have been building all sorts of buildings and infrastructure in a bid to keep people working.  They borrowed huge money to do this in 2009, however, what I see are empty factories and lots of people driving BMWs and Mercedes.  What is happening?   
     
    Meanwhile, China’s stock market keeps dropping and to me, looks like it is going into a depression.  I have some Chinese contacts who are involved in selling manufactured goods abroad, and I was told that they have not been selling anything.  This has been ongoing for a long time.  Hardships are mounting.    
     
    I read in the news today and yesterday that China is talking about flying aircraft over the Philippines which are to carry nuclear weapons.  They are doing this in order to coerce (and blackmail) the Philippines into giving them a vast stretch of the South “China” Sea (which does not belong to China).  I also sense that the communist party is desperate to show the masses here that it is strong and worthy of being followed, however, what I see here does not impress me at all.  Bullying usually fails.  
     
    There are a lot of social problems, crime and decay happening.  Nobody really cares and nobody wants to do what is right.  This is dangerous on a very large scale.  Furthermore, many people don’t use garbage cans.  Everything, including air, water, land and foodstuffs are needlessly and carelessly polluted.  There is little representation in the government and people are not allowed to question the “authority of the state”.  Everybody blindly acts like this is the norm.  They are highly negative about anybody who is, in any way different from the paradigm of “the norm”.  In general, it appears to me that China is a failed state and that “the nation” could be headed toward a prolonged period of upheaval in the not too distant future.  The mentality here is that people need to be controlled and forced to do whatever they are told.  This is what they have been brainwashed into abiding by from a very young age.  In the past, when there were periods of time in which foreigners have been targeted, revolutions and rebellions also came to pass at about the same time.
     
    There are a few other things I want to mention.  First, the banks over here were told in 2014 to loan out as much money as they possibly could in order to drive up consumption, to keep people working and to keep the economy (prices) propped up, but I have read that about 20 percent of the loans are presently outstanding.  So the result is that the banks here are not adequately capitalized.  Due to the capitalization shortfall and the outstanding loan situation of the Chinese banks what has resulted is that the banks cannot or will not lend out much more money hence causing loan sharks to have become prevalent all over the place. These loan sharks are private loan entities.  These entities are (I think) illegal and many are housed in tea shops all over where I am staying.  What happens is that the common citizens, looking for interest, bring their money to the loan sharks and deposit it with them.  The loan sharks then loan out the money at higher interest rates than the banks offer and then make profits on it and pay back the depositors with high interest.  The loan sharks are making high risk loans to people who probably cannot afford to be borrowing anything in the first place.
     
    Also, people/entities operating within the stock market have borrowed sizable amounts of money (known as margin) from their trading accounts and loaned it out at higher than normal interest rates.  The amount of money borrowed from from margin in the stock market and then re-loaned is quite substantial and IT has been the money used by many to fund the purchase of the apartments which are ridiculously over-priced.  The people who are involved in these borrowing practices simply think it is normal and cannot fathom the possibility of another paradigm and not being able to re-pay their borrowed money at abnormally high interest rates.  It seems like the place has been built out of cards.  
     
    In other instances, families and friends of families have loaned out large sums of money to other family members.  Some of this money could have its origins from loan sharks.  All of these things collectively mentioned are what is termed shadow banking.  I know that the shadow banking industry here has other elements, such as the short selling gold and other commodities.  All of these elements combined together, the banks and shadow banks are what is keeping the economy and asset prices propped up.  However, what I am concerned about is the possibility that the banks and shadow banks here will also fail and that China could end up in a depression as well.  This could easily happen if the Chinese companies are not able to earn profits, if the debts become too high or if the currency becomes too de-valued too quickly.    What will happen when a strong gust of wind blows?  The stock market will be in jeopardy and so will the banks and shadow banking sector(s).  
     
    What I personally believe and feel is that something is not right here.  There is a lot of prostitution and thievery of all kinds.  Today, for instance, I saw some people selling stolen rice cookers in my building.  Many of the students I teach come from highly dysfunctional families and I was told that more than 50% of the students at the high school in which I work come from Zero or one parent “families”.  Where are the parents?  Some have permanently disappeared and others have left to other distant parts to look for work or to be employed.  There are big social problems here which are boiling away just beneath the surface.  In China, where it is normal to save face, that means that you do whatever you can do to get by, including doing all sorts of bad things and then you make everything seem like it is all happy, sweet, wonderful and legitimate.  But what they are doing isn’t right or natural or normal whatsoever.  Their face saving has gone way too far.
     
    While all of these things are happening over here, there is a big crisis looming in the international banking industry.  A lot of banks in Europe are insolvent, most notably, Deutsche Bank, Credit Suisse and the Royal Bank of Scotland.  If one of these big banks goes down, this could cause an international meltdown of many/most banks elsewhere.  House prices all over the world could tumble if banks cannot lend money to keep the real-estate market propped up and that could also cause other asset classes to fall as well, adding fuel to a negatively re-enforcing downward spiral.  I have read that the big banks have a huge derivatives overhang, which, if popped could also cause major bankruptcies all over the world.  Furthermore, the central banks have been printing up new money to pay for the losses of the banks and shortfalls of governments.  The amount of money in the debt base is now so great that natural markets have not been allowed properly price the debt as a result of intervention by the central banks.  As the debt rises, the possibility of negative amortization rises due to an inability to pay the smallest interest on the debt base thereby requiring more and more borrowing.  More debt and exceedingly low and extremely un-natural interest rates are abnormal because the proper pricing of debts has been prevented.  This is very dangerous. 
     
    In Europe, many people from the south of Europe have deposited their money into German banks due to fears that Southern European banks will collapse.  However the German banks which have been the receivers of this extra cash have loaned that extra money back out to the struggling Southern European nations in the bond market at low interest rates.  So, Germany, a country which has “safe” banks and “safe” industries could also be in serious trouble.  This is the situation.  It is very serious.
     
    I suggest that you guys try to watch the news quite carefully and if possible convert some of your cash into precious metals and store it outside of the banks.  Nobody knows exactly what will happen to precious metals prices, though I suppose that their prices will surge greatly in the face of another banking crisis/collapse.  
     
    This is a brief summary of what is happening.
     
    More later.
     
    Love,
     
     
    Scott

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