Deutsche Bank: A SD Exclusive Crash Course On What Could Blow Up The Global Financial System

DB is back in the news, and it’s not playing a game of global hot potato but a game of global nuclear ticking time bomb. Here’s why…

First, the super simple question: Who is Deutsche Bank?

Deutsche Bank, Ticker Symbol DB on the New York Stock Exchange (also traded in Germany on the Frankfurt Stock Exchange), is (straight from the horse’s mouth):

Germany’s leading bank, with a strong position in Europe and a significant presence in the Americas and Asia Pacific.

Sounds big and by definition, seemingly innocent, but when we look under the surface, what we see is a corrupt, immoral nuclear ticking time-bomb of a financial institution that will likely blow up the entire global financial system when it goes off.

As in the economic collapse.

The black swan that has been circling above for years and is now coming back into view.

DB has been out of the news for a while, but it’s back, and in a big way, so a crash course may be helpful to those who know nothing about DB, and for those who know something about DB, a conveniently packaged review and refresher is always helpful in understanding the true state of the global financial system.

(Spoiler Alert: It’s a mess)

Besides, any Goldbug, Silverbug, or basically anybody who has worked hard enough that they have some funds to save and invest with, needs to know about DB, because they are one of the core institutions at the center of not just precious metals price suppression but the global financial system itself.

They have a huge amount of derivatives on their books. Said differently, DB has made a bunch of bets on bets on bets on bets on bets on bets.

Yeah, I get it with the overkill on the repetition, but it is that important because daisy chains are serious.

Deutsche Bank has an OTC Swaps and a derivatives book that could set off a counter-party chain reaction, a thermo-nuclear meltdown of the financial type that affects every corner of the entire globe.

We’ll get to that, but first, let’s look at DB’s chart.

DB survived the 2008 Global Financial Crisis, barely, and no doubt it seems as if somebody stepped in and came to DB’s rescue in September of 2016:

Or was it a dead-cat bounce that’s taken a year-and-a-half?

I’d go with the former.

Either way, DB is now right back down to testing those lows of September 2016. You could say they are on the brink of collapse.

But Germany’s leading bank can’t collapse?

Hmmm. Not so sure.

Perhaps the global elite want the bank to collapse? We’re not privy to their plans. Well, I’m not anyway.

Furthermore, just because you are a prestigious bank doesn’t mean your immune from collapse.

Case in point: Banca Monte di Paschi, Italy’s oldest bank.

BMPS was not immune:

At one point the bank was selling for over $10,000 Euros a share, and even in just the last few years the shares cost over $800 Euros.

Where does the bank stand now? Think Sears but the banking system, only worse than Sears.

BMPS is essentially in zombie bank, and their shares can be bought and sold for less than $3 Euros each – essentially penny stocks.

So big banks collapse, none are immune, so there’s no reason to assume that Deutsche Bank can’t suffer the same fate.

Let’s look into Deutsche Bank and see why they are a corrupt and immoral banking institution that could be responsible for the next global financial crisis.

After all, that’s not me saying those things, but the facts speaking for themselves.

One of the first articles we presented on DB, at least when we got the spelling right, dates back to 2012. What was DB up to back then?

They were fulfilling gold repatriation requests with tungsten bars.

From that article we first started reporting that DB has been pulling off elaborate scams in the gold market for years (if not decades):

We are talking about an Establishment Eurobank alleged to have been caught short on a fulfilment order, and using the tungsten scam to fill the gap.

This is an entirely different criminal intent (from the Manhattan jewelry district discovery): not the somewhat crude attempt to con a retail greenhorn, but rather an well-planned and sophisticated ‘salting’ of the gold bars by a major bank….designed to fool even an expert engaged in approving the purchase for a large sovereign client.

We’ll get to more gold & silver market manipulation in a minute, but first, let’s appreciate the size of the problem we’re talking about – the enormity and the implications a DB collapse could have on the entire global financial system.

In an article which has been viewed more than 250,000 times since October 2016, Jim Willie sounded the alarm for years on DB. He actually sounded the alarm many times and still does.

Something they say about markets can stay irrational longer than you can stay solvent?

Well, in Jim Willie’s case, it would be DB can last long enough that everyone will say you’re a broken record.

But the problem is in fact serious, some just catch on to the size and scope of the problem before others.

In fact, with all due respect for alarms, the problem is much bigger than merely sounding the alarm: The failure of Deutsche Bank could trigger a systemic banking contagion the likes of which the West has never seen, many times more systemic than Lehman Brothers.

Here’s just one of the nuggets Jim Willie shared with us in that interview:

Deutsche Bank owns $25 trillion in OTC swaps with the Central banks and other major banks, so expect a daisy chain of derivative failures for the $1.6 quadrillion derivative market if it were to fail!  

Deutsche Bank cannot break down by itself.  It would result in the complete breakdown of the European Monetary Union!

There are many times Jim Willie spoke of Deutsche Bank, and in even more dire terms than that, but that was right at the time the bank was reaching those lows in the Fall of 2016 as shown in the chart above.

The point is, as I alluded to earlier, in looking back with hindsight, it’s obvious somebody came in and stopped Deutsche Bank from collapsing.

That’s how serious of a problem DB’s failure would have on the entire global financial system.

But it’s not just Jim Willie who has sounded the alarm on DB:

I could go on and on and on and on but if I just gave you everything you need to know, how could I stimulate additional research on your part?

The point is that it’s not just Half Dollar saying it, and it’s not just one or two experts in the gold & silver space saying it.

Experts involved in all different aspects of finance and investing have been sounding the alarm on Deutsche Bank for years.

And if you really want to go down the rabbit hole far beyond their massive nuclear ticking time bomb of a derivatives book, or their systemic involvement in precious metals price suppression, market manipulation, rigging and outright fraud, well, there’s also stuff like Deutsche Bank funding ISIS, or if you really, really want to go down the rabbit hole, there’s the connection of Deutsche Bank with the whole [email protected]/child trafficking/murder/sacrafice  practices.

We’re talking really sick stuff.

For now, however, let’s just stay on the topic of blatant banking abuses.

After all, there’s plenty to talk about when it comes to Deutsche Bank’s systemic involvement in all types of financial corruption and frauds.

Over the years we have reported news such as:

There are plenty more examples, but you get the point – If it looks like a duck, swims like a duck, and quacks like a duck, it’s probably just example after example of DB’s outright frauds and manipulations in the gold, silver, and financial markets.


Fast forward in to the Spring of 2018, and we see that in general, Deutsche Bank is still in serious trouble, but it’s not just with gold and silver, or terrorist funding, or child who-knows-what, which we could liken to DB’s extremities, but now the banking aspect of the bank is in trouble, so this time, it’s the core, which we can liken to DB’s vital organs.

For example, there has been recent news that DB fired 400 U.S. bankers:

As part of its latest disastrous earnings, which saw trading revenues tumble by 17% as new CEO Christian Sewing took over, we reported that Deutsche Bank announced a sweeping restructuring plan, abandoning its long-running ambitions to be a top global securities firm, scaling back U.S. rates sales and trading, reducing the corporate finance business in the U.S. and Asia, and reviewing its global equities business with a view toward cutting it back, the bank said in a statement. The measures will lead to a “significant reduction” in the 97,130-person workforce this year, Deutsche Bank said. We translated it more simply: massive layoffs.

Predictably, the German bank wasted no time, and according to Reuters and Bloomberg, the purge began overnight when Deutsche fired 300 U.S.-based investment bankers on Wednesday with another 100 pink slips expected over the next 24 hours.

In total, the biggest German bank plans to cut more than 1,000 jobs, or over 10%, of total US jobs in its initial restructuring phase. According to Bloomberg, the US hosts about 10,300 Deutsche Bank employees, or about a tenth of the firm’s global workforce.

As you can see, the fall of Deutsche Bank is clearly front and center once again.

This time DB’s very survival as a banking institution is at stake, which not only includes layoffs in the short term as a “quick-fix”, but closures of offices have also begun.

Here’s more on the rapidly deteriorating conditions at Deutsche Bank:

Just a week after ‘the purge’ beganDeutsche Bank is closing its office in Houston as part of a strategy to pare its U.S. operations, according to an internal memo seen by Bloomberg.


… while CFO James von Moltke also gave few clues as to how much of its massive 1.4 trillion euro ($1.7 trillion) balance sheet would be shed in the process. Von Moltke estimated restructuring costs for 2018 would rise to 800 million euros, up from an earlier estimate of 500 million euros, according to Bloomberg.

“These cutbacks will be painful, but they are unfortunately unavoidable if we want to be sustainably profitable in the best interests of our bank, our clients and our investors,” Sewing said.

And now, as Bloomberg reports, the bank will now shutter its Houston office, which has over 50 staff…

“We will continue to serve our Oil and Gas clients through our debt and corporate banking treasury products,” Mark Fedorcik, co-head of the U.S. investment bank, said in the memo to staff.

“We remain committed to the U.S. Power and Utilities sector which will be re-aligned under the Industrials coverage vertical in New York.”

A spokeswoman for the company confirmed the contents of the memo.

So where do things stand today in this second week of May?

Well, we can look to the daily chart for clues:

That’s one sickly looking chart.

That chart shows what the collapse of a company looks like, a textbook case, and in DB’s case, that chart is full of gaps-down, four lower-highs, four lower-lows, and that’s all in just the last five months.

Who will step in to save Deutsche Bank this time?

Or is the plan to let Deutsche Bank implode?

Either way, DB is not a game of hot-potato, it’s a game of hot time bomb, only it’s a nuclear ticking time bomb and it has the ability to blow up the entire global financial system.

Stack accordingly…

– Half Dollar


About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at Paul’s Twitter is @Paul_Eberhart.