…of bank$ter$, government$, fine$ and the mulberry bush.


Here we go round the mulberry bush, the mulberry bush, the mulberry bush…

The bank$ loan money to governments so that the governments can govern.

If the governments default they’d be bankrupt.

The bank$ play dirty game$ and get caught with their finger$ in the jar.

The mother bank$, or the governments will punish and fine the naughty bank$

When the bank$ got into trouble the governments bail them out with the money the bank$ loaned them so that the bank$ could remain giving them loan$.

Can somebody tell me who created the mulberry bush??


ST

US Fed fines Deutsche Bank US$156.6m for forex violations

Deutsche Bank US


CNBC

7 years on from crisis, $150 billion in bank fines and penalties

cnbc

…and the list goes on round the mulberry bush.

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Universal debt forgiveness and the imminent global debt jubilee


Alcuin And Flutterby

You don’t need a slide rule, a set of log tables or a high frequency trading algorithm to see the light. Everyone on Main Street now knows that the Western banking cartel’s fixation with debt colonisation is a busted flush. Debt does not work as the basis of a global financial system.

Behind the scenes, all the indications are that universal debt forgiveness is set to be announced. A global debt jubilee is waiting in the wings. The Doctrine of Odious Debts has been spectacularly revisited. The default position of the global financial system is to be permanently reset. The vaults are stocked. The precious metals are audited. The new gold-backed regional currencies are printed, minted and ready.

The most recent catalyst for change has been Iraq. Before the Western cabal’s US-UK war of occupation and plunder began in Iraq in March 2003, Iraqi exiles expressed the hope that in a post-Saddam democratic Iraq, there would be a fair and equitable disposition of Saddam’s debts.

These Iraqis wanted the future administration of Iraq and the international community to review the debts accumulated under Saddam’s régime. Those loans which had been used for benign purposes should be restructured and paid back by Iraq over a prudent time period. Those loans which were used for objectionable purposes and which did nothing to enhance the well-being or prosperity of the Iraqi population at large, should be struck off the record immediately and completely.

This illustrates one of the core principles of debt forgiveness. Why should Iraqis be forced to repay the US, the British, the French, the Germans, the Russians, and all the others who had financially supported Saddam’s oppression of them?

The Iraqi argument for debt forgiveness had a sound basis in law. It reflects the century-old legal principle of the Doctrine of Odious Debts.

The Doctrine of Odious Debts was created to further international finance by limiting the ability of governments to repudiate debts. Three conditions had to apply before a sovereign state could repudiate a debt:

(1) The debt must have been incurred without the informed consent of the citizenry of the state.

(2) The debt must not have benefitted the citizenry of the state.

(3) The lender must have been aware of conditions (1) and (2) at the time that the loan papers were signed.

The United States employed these principles after the Spanish-American War to repudiate the Cuban debts.

If a despotic power incurs a debt which is manifestly not for the needs of the State, or not in the plain interest of the State, but is a debt incurred solely to strengthen the position of the despotic cabal as a self-serving faction within that State, the debt is odious. The debt is not an obligation for the nation; it is a cabal debt, a personal debt of the cabal which incurred it. And the debt falls with the fall of the cabal.

The Doctrine of Odious Debts not only promotes accountability, it promotes democracy in the debtor state as, one by one, the nature of the inherited debts are articulated in a public legislature.

The Doctrine of Odious Debts also promotes democracy in creditor states. In Canada and most European nations, the lending of state enterprises is generally hidden from taxpayers. Canada’s export credit agency, Export Development Canada, for example, is exempt from Canada’s Access to Information law.

In the case of Iraq, state agencies from France, Germany and Russia may have made questionable loans. Under an odious debt process, they would need to establish that they acted with due diligence to be entitled to repayment. Knowing this, they would be less likely to make questionable loans in the future.

Debt forgiveness and the Doctrine of Odious Debts also applies to individuals. The same principles have legal traction on loans or structured financial inducements made by financial institutions such as banks, mortgage lenders, insurance companies, stock-trading entities, energy conglomerates and pharmaceutical firms.

If the intention of the financial transaction tied to the loan, or tied to the financial inducement, is extortion, if it is, in effect, an élite scheme to bamboozle the borrower with small print or to blind him with science, that loan or inducement, should be struck off the record immediately and completely. The debt was not incurred with the informed consent of the borrower. The debt did not benefit the borrower. And the lender was well aware of these facts when the loan papers were signed.

Universal debt forgiveness is on the way as an essential precursor to the planet’s new gold-backed financial system. It has deep historical roots and powerful support in natural law. This imminent global debt jubilee is organically related to the disbursement of The World Global Settlement Funds, to the long-planned public NESARA announcements, and to the opening of Pandora’s Suitcase.

More background about the concept of the Odious Debt can be found here (pdf – 11 pages – Jayachandran and Kremer) and, in the specific context of Greece in 2011, here. Murray Rothbard’s original 2004 piece on Repudiating the US National Debt can be found here. And The Center for Global Development’s 2010 review entitled: “Whatever Happened to the Jubilee? A 10th Anniversary Assessment of the Debt Relief Movement” is linked here.

But other economists have been vocal on the debt forgiveness issue as well. In particular, Zeus Yiamouyiannis (plus here, here and here), Steve Keen (plus here) and Michael Hudson (plus here).

Citing both Keen and Hudson, Yiamouyiannis is persuasive. When debt is fraudulent, debt forgiveness is both the logical and the only remedy for the situation. Whatever the name you give to the process – erasure, repudiation, abolishment, cancellation, jubilee – debt forgiveness will eventually have to emerge at the forefront of global efforts to solve the ongoing systemic financial crisis.

The only way to erase counterfeit money and counterfeit assets amounting to hundreds of trillions of dollars is to erase the debts associated with these fake assets. They are not toxic assets. They are fake assets.

Debt forgiveness accomplishes two important things. First, it eliminates the increasing and outsized portion of productive enterprise which is being employed to pay off unproductive obligations. Second, it clears the ground for new opportunities, new thinking, creative invention and positive entrepreneurialism.

Stentorian calls for austerity are nothing more than the delusional efforts of a fraudulent bankster status quo to avoid the consequences of its own error and fraud. The élite demands for austerity are a self-serving effort to kick the profit-can down the road in perpetuity. So bedazzled by the false wealth created by debt multiplication and its concomitant fantasy of ever-higher returns, the fraudulent bankster status quo continues to be stupidly amazed that ordinary people in the street are not spending money, and that the national economy is not picking up.

Productive human wealth has been trapped by establishment banksters in a web of parasitic theft, counterfeiting, liability evasion, non-regulation, and prosecutorial non-accountability. All the fundamental attributes of a functioning exchange economy have been warped to reward creative criminals.

Fabricated or parasitic so-called “wealth” destroys value by diluting the value of real productive wealth. Debt or credit which cannot be paid back is never an asset; it is always a liability. That some people in the market can be fooled into buying such liabilities and thus generate sale profits and transaction fees is risible.

The operating models upon which the modern debt nexus is historically based have no organic contact with reality. They assume unlimited growth and an unlimited ability to pay. When matched against the reality of real people paying ten times their salary for mortgages, which actually add more money owed to their principal (with negative amortization), require no money down, and set up balloon payments – large step-ups in payments after a few years – there is no possible way such people could not default within a predictable timespan.

Systemically, all debt which charges a percentage originates in delusion. Debt grows exponentially indefinitely; income and other growth cannot do this. This leads to a widening condition where the fruits of productive growth devoted to interest payments increase until those fruits are entirely consumed. Once this happens, stores of wealth (hard assets) begin to be cannibalised to make up the difference. You can see this now in Middle America where, absurdly, people are having to liquidate their retirement accounts to pay for their current cost of living.

The problem is compounded by a privately owned Federal Reserve syndicate which lends money into circulation at interest, and then allows the multiplication of this consumer debt-money liability through fractional reserve banking.

The total amount of money in circulation today can pay for only a tiny fraction of the total private and public debt. This fact alone is evidence of a kind of systemic fraud. This is why debt forgiveness makes not only moral, but also rational and mathematical sense. Finances require balancing to be coherent. There has to be some way to redress the systemic imbalance in Western macrofinance. There has to be some way to zero the scales in order to get an accurate weight of value, and to re-establish healthy value creation.

The problem with debt is that it creates scarcity. Scarcity stimulates fear. Fear drives manic competition. And manic competition favors opportunism, collusion, and concentrations of power. These élite concentrations of power translate into establishment abuse. The inevitable result is a visible collapse of legitimacy within the economic system. This is what is being seen now, all over the Western World, by Joe Public and his missus.

Debt forgiveness recognises the inherent, systemic, mathematical inability to make good on debts, and (or) the naked fact that the debt itself was manufactured through fraudulent means.

The foregoing twelve paragraphs précis some of the ideas which Zeus Yiamouyiannis has suggested in his writing on debt forgiveness. The best brief summary of his thoughts is probably here (01.09.11).

The situation is plain. You cannot solve the debt problem by issuing more debt. You solve the debt problem by cancelling, completely, all national, corporate and personal debt. You do this simultaneously across the planet, and you do it permanently. And then you recapitalise the whole bangshoot using an established resource base such as The World Global Settlement Funds and the associated US Dollar Refunding Project.

This next bit sounds exotic. But in future years it may well sound like a blinding glimpse of the obvious. You don’t establish the value of something by sticking it in a market. You establish the value of something by giving it away free and seeing what social value accrues as that something is used locally to energise cooperative livelihoods and free barter.

Interestingly, the core idea of global debt forgiveness is not restricted to the benevolent ivory towers of economic utopians. It is beginning to be talked about, in public, by national parliamentarians.

At the end of August 2011, in Ireland, the Irish Finance Minister, Michael Noonan, had to respond to organised calls for debt forgiveness in connection with his EuroZone nation’s struggling mortgage borrowers. The story was run prominently in the Business section of the Irish Times on Friday 2nd September 2011. Its headline was: “Minister rules out ‘free-for-all’ debt forgiveness. Noonan insists there is no magic bullet.” The article, by Simon Carswell and Colm Keena, can be found here.

Read further….

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What Would Actually Happen If All Debt Was Erased?


TheEventChronicle

 

The Invention of Debt

What you may not know is that debt arose recently on the human stage. Throughout more than 99% of our history we have not even had a concept for debt. (The interested reader can pick up David Graeber’s excellent book Debt: The First 5000 Years for full story.)

Anthropological studies of hunter-gatherer societies reveal that there were no barter systems, no currencies to use for money, and — in the absence of these cultural artifacts — there was no debt. With all the great variation cross cultures one might expect from ethnographic research, the anthropologists found that some tribal communities engaged in “gift economies” where status arises from how generous a person is who has acquired wealth, while others have remained egalitarian and non-hierarchical for thousands of years by sharing their food and materials based on the principles of “from each as they are able, to each as they need.”

This belies the great misunderstanding about communism that treats it as a state-centric governing system, when in truth it is the foundational sentiment of any community that builds upon the trust and good will of social relations between people who know and depend upon one another — a condition that has held for all hunter-gatherer societies throughout our long 200,000 year history as a species.

Pick up an economics textbook at random and you will find a classic (and false) “just so” story about the need for barter systems to have money. They all go something like this: Steve has potatoes and needs some shoes. Bob has shoes but does not need any potatoes. They are unable to directly exchange goods due to this mismatch of need, and so must introduce a money system to preserve the value of currency across multiple exchanges that enable Steve to sell his potatoes to Sue and acquire money that he can then use to pay Bob for a pair of shoes. What this simple narrative conceals is the broad evidence from ancient cultures studied by anthropologists that no such problem arises in this way.

What really happens is that a warring society has arisen somewhere (to get a sense of how this happens, read my article about psychopaths and agrarian city states) and is in a mode of conquest. When this burgeoning empire conquers new land, the ruler imposes a system of taxation on the local populace to pay for the costs of war. This imposition of scarcity, by extracting resources from the local population to be hoarded by the warrior chieftain, is what leads to the emergence of barter systems and — in some instances — the introduction of a money system by the ruler.

In the absence of war and conquest, hunter-gatherer societies do not spontaneously create barter systems. Instead they share more or less equally within their tribe and only trade with other tribes through highly ritualized and often conflict-ridden exchanges that take place when two tribes come together for a brief interaction. The pathway that does lead to the emergence of barter systems takes place in agrarian societies where some kind of accounting system has been created to track debts. And from these accounting systems we do find that debt is present.

So where does debt come from if it isn’t naturally a part of human societies? Again it is the imposition of scarcity by the ruling class — designed to extract and hoard wealth in the hands of a powerful elite — that creates the notion of debt. Does this sound familiar in today’s context? Many countries were “modernized” throughout the 20th Century by introducing market systems that structure debt into the economies of newly founded nations. These nations now must pay tributes — in the form of interest payments — to external banks that extract wealth from the poor countries and hoard it in the coffers of wealthy countries.

Stated plainly, debt is created when a powerful group of people impose scarcity upon another group of people who have been conquered. This is the root cause of poverty. It is the destabilizing force of unequal societies that breeds civil unrest and revolution. Thus the need for Hebrew kings to introduce Jubilee. They knew that a revolution might cause the people to rise up and clear their own debts, while also uprooting the monarchy from power. In order to preserve their power base, they would routinely erase the debt and start again.

A Note About Debt and Moral Accounting

The astute reader may already be asking, “What does this story about the creation of debt say about the religious use of moral accounting?” You may have noticed that all the world religions have at their core a transactional relationship between God and humans — where each person owes a debt to their creator and must pay it either by relinquishing sin from their lives or by returning to their maker upon death.

This economic transaction frame for moral accounting is not present in all human societies. Those hunter-gatherer tribes practicing the ethic of distribution based on need have no concept for trading an eye-for-an-eye. Nor do they see a gift as something to be repaid, expressing disgust at the insult of treating their generosity in such a transactional manner.

Instead what anthropologists have found is that debt-based morality is only present in societies that already have accounting systems and also engage routinely in barter and monetary exchange. In other words, this moral accounting system is a product of war and conquest and not a natural part of human society. So the next time you feel a debt to one of your friends, society, or your maker it may help to keep this in mind.

What Would It Mean to Erase All Debt?

We are living in a time when too many of our financial resources are allocated to non-productive activities — principally the accumulation of wealth by “making money with money” and a myopic focus on economic activities that service our massive debts. This is why people work at jobs they hate. It is why investments are not being made in renewable energy, public education, the arts, health care, or the eradication of poverty. We have built a massive financial house of cards on debt — with money itself coming into being when loans are taken out, a pool that grows exponentially due to the interest that accompanies it — and so we are not able to bring consumer culture to an end or focus our creative talents on planetary sustainability.

By the way, this is exactly what my friends at /The Rules are trying to address in their global mobilization effort.

So if we were to erase all debt, the 7 billion people alive today could focus on their passions. We could all come together to address global threats — be they resource-based like the scarcity of fresh water or peaking of global oil production; or cultural like the loss of spiritual meaning in the secularization of society or the soullessness of employment drudgery that comes from working long hours at a mind-numbing job.

What comes to my mind is the way cities try to implement broad solutions to address economic development, transportation, resource management, social justice, and environmental concerns. They must operate within constrained budgets that keep draining further without a clear end in sight. I imagine what would be possible if everyone was able to set out on their own intellectual and experiential journeys without the fear of a debt-collector coming to their door. How then would the peoples of this world choose to live out their lives?

Perhaps you have your own dreams of a better world for you and your loved ones. What comes to mind for you? This is not merely an academic question, by the way, because we each participate in the social realities that are lent our beliefs, our actions, and our obligations. If we were to collectively decide that our debts are no more, they would cease to exist.

This is because what we take to be real in many respects becomes so as a self-fulfilling prophesy. We each have the power to be accountants — defining “the real” by choosing what to measure and imbuing it with significance. In this way, the Gross Domestic Product was claimed as an economic alter for measuring the progress of civilization in the 20th Century. Perhaps in the 21st we will replace it with Gross National Happiness or some other novel metric for capturing the essence of our values and purpose as a civilization on this Earth.

Watch the video below:


Joe Brewer is co-founder and research director of Culture2 Inc., a culture design lab for social good. He is a former fellow of the Rockridge Institute, a think tank founded by George Lakoff to analyze political discourse for the progressive movement.

Source: Common Dreams
Via: Conscious Life News

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The Fake News About Central Banking


TheDailyBell

Trump Shouldn’t Bully the Fed … U.S. President-elect Donald Trump repeatedly criticized Federal Reserve Chair Janet Yellen during his campaign. British Prime Minister Theresa May has questioned the Bank of England’s recent actions, for a while putting Governor Mark Carney’s tenure in doubt. The long-cherished principle of central-bank independence seems to be under attack.  – Bloomberg

The mainstream media is up in arms over “fake news” but the reality is that almost everything the mainstream reports is in a sense fake. Global warming is fake. Vaccines do not work as advertised. Central banking is fake too.

On and on. Truth has been overtaken by propaganda. We call these fake notions “dominant social themes.” They are inevitably intended to reinforce the idea that a very few must have control over the many.

Central banks fix the volume and value of “money” – and price fixing inevitably creates disasters. But you will never find this simple fact stated in almost any mainstream media article about central banking.

This Bloomberg article is no exception. Seldom do we see all the fallacious reasons for a central bank gathered together in one short editorial, but Bloomberg has done us this favor.

In this case, Bloomberg is trying to justify why central banks should be “independent.”

More:

 The standard case for leaving central banks alone to conduct monetary policy rests on three points.

First, a government that controls the central bank might be tempted to finance unaffordable budget deficits by printing money. (See Zimbabwe.) Second, to provide economic stability, a steady hand on the monetary controls is required, which demands some insulation from day-to-day politics. (Would anybody want to put Congress in charge of interest rates?) Third, monetary policy done right is a technical thing, like running a utility. It’s basically apolitical.

All three of these points are fallacious. First, central banks, independent or not, over-print money on a regular basis. Western central banks have a goal of creating price inflation, which institutionalizes this overprinting, usually via too-low interest rates.

Second, the idea that an independent central bank can provide “a steady hand on monetary controls” is laughable. Central banks the world over are cartelized via the Bank for International Settlements in Switzerland. Central bank policy is created via a secret monopoly and anyone looking over the past 20 years of central bank existence can easily see that the current “steady hand” has yielded up a series of global monetary disasters.

Even Bloomberg has trouble with the third reason being cited, that central banking is “apolitical.”

The editorial admits that “Changes in interest rates hurt some and help others,” and thus central bank policy-making is innately political. But because it is political, the predictable argument is made by Bloomberg that central banking ought to be “independent.”

Bloomberg states, “Disagreement is OK. Intimidation is not.”

The argument here is that statements by Donald Trump regarding the endless and ruinous low-rate regime of the Federal Reserve are “worrying” because Trump is bullying the Fed rather than criticizing it.

The larger argument, and it’s one that Trump is surely familiar with, is that central banking cannot be justified at any level. As soon as individuals or groups attempt to manipulate the money supply, prosperity is inevitably affected and wealth is endlessly consolidated.

This is just what’s happened around the world and especially in the West. Wealth has been gathered into fewer hands and the financial industry itself has grown without stopping until it has virtually taken over the larger economy.

Conclusion: Money needs to be regulated by markets, not by a handful of individuals. There is plenty of free-market economic theory that illustrates logically why this should be so. Bloomberg’s argument is wrong, but at a more fundamental level, Bloomberg is addressing the wrong issue. The problem with central banking is not whether it should be independent, but whether it should exist at all.

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Russia Issues Full-Scale War Alert As West Faces Financial Armageddon


whatdoesitmean

By: Sorcha Faal, and as reported to her Western Subscribers

A new Ministry of Defense (MoD) report circulating in the Kremlin today states that the first squadrons of Sukhoi Su-24, Sukhoi Su-34 and Sukhoi Su-25 ground support fighter aircraft ordered to Syria by President Putin to take part in the freeing of Aleppo from Obama regime backed Islamic terrorists have begun to arrive in the Levant War Zone at the same time that the Ministery of Foreign Affairs (MoFA) is warning that “full-scale war may be imminent” and as the West “is nearing financial Armageddon”. [Note: Some words and/or phrases appearing in quotes in this report are English language approximations of Russian words/phrases having no exact counterpart.]

According to this report, President Putin’s ordering these fighter aircraft to support the freeing of Aleppo from the grip of “Obama’s terrorists” is in “direct retaliation” to these “modern day barbarians” ceaseless attacks upon the innocent civilians of this city—and that the US shockingly this week stated they were preparing for nuclear war with Russia in order to let this “senseless slaughter of innocents” continue.

To how grave the situation in Aleppo has become, this report continues, Syrian supreme commander Major-General Zaid Saleh outlined this week by stating: “The terrorist groups are using civilians as human shields to prevent the Army from targeting them. They heavily depend on US and Turkey to supply them with weapons. But we won’t allow this to happen”.

With Syrian troops, under the protective cover of Russian aircraft, now penetrating more deeply into Aleppo against “Obama’s terrorists, this report notes, this proxy war where the Gulf States, the US and until recently, Turkey have poured billions-of-dollars and hundreds of tons of equipment into while using tens-of-thousands of foreign fighters to kill hundreds-of-thousands is nearing its end.

 

As all hope is now lost for the Obama regime to protect its Islamic terrorists, this report says, the Americans and its allies have gone into “hyperbolic mode” accusing Russia of “savagery” and are not only threatening to “send Russian’s home in body bags”, they are, also, now saying that they are going to give these terrorists portable ground to air missiles—which if happens, most assuredly, will soon after be used to shoot down planes over Europe and the United States.

Particularly angering the Obama regime about Russia’s impending total victory in Syria over these Islamic terrorists, this report explains, is President Putin’s playing by what the American’s call the “Grozny Rules”—which is a reference to Russia’s total war against Chechen Islamic terrorists where the entire city of Grozny was destroyed in order to eliminate these terrorists forever.

Angering the Obama regime even worse, this report continues, is their “losing the information war” over this conflict to Russia—but that Federation experts more rightly state is people simply knowing what the truth is, and who have bluntly stated about Western media hypocrisy:

The Western media have become so embedded in the ideological matrix of the ruling Western class that they no longer know what the meaning or purpose of genuine journalism is. Just this week, American forces and their various allies killed civilians in Syria, Afghanistan and Yemen. Bloodied children’s bodies were pulled like lifeless rag dolls from rubble in Yemen after US-supported Saudi air strikes continued their week-after-week slaughter of civilians there. No coverage of these crimes in Western media. No emotive denunciations from UN officials. No calls for sanctions, prosecutions or editorial condemnations of Washington and its allies as “outlaw states”.

 

With Russia, however, knowing what an “outlaw state” looks like, this report says, the Ministry of Affairs this morning bluntly told the Obama regime about their continued support of Islamic terrorists by warning that unless stopped it will result in a full-scale war that will lead to “tectonic shifts” in the whole region—if not the entire world.

With Brexit clearly showing these Western elites the limitations of their continuous fear-based campaigns against all who oppose them, MoD experts in this report point out, they still fail to see that the credibility of their “third-way politics” as championed by Bill Clinton, Tony Blair and other communist-like leftists ruling Europe and America, has been completely savaged by the very people they rule over—but who are now prepared to start World War II in their last gasp bid to continue their monstrous rule.

But to the latest tragedy to befall these Western peoples at the hands of their elite rulers, this report warns, is the financial Armageddon they are soon to face as one of their largest banks, Deutsche Bank, is nearing complete collapse due to its over $42 trillion in derivatives (bets) and whose failure will take down nearly every bank in the United States and Europe with it.

 

With German Chancellor Merkel already stating that her government will not bail out Deutsche Bank (as it would be political suicide to do so), this report continues, these German bankers are now rushing to the United States in hopes that the Obama regime will.

Grimly too, this report points out, is that aside from Deutsche Bank nearing collapse, according to the global banking body The Bank for International Settlements (BIS), both Canada and China are nearing a total banking collapse too.

This report concludes by noting that among the least prepared people in the world for total war and economic collapse are the Americans—who like in 2007 when they failed to heed the warnings that their entire economy was about to collapse (and we, likewise, reported on in our 28 June 2007 report US Banking Collapse ‘Imminent’ Warns French Banking Giant) and who are, once again, are listening to their propaganda media, instead of hearing the truth, while their life savings, pensions and stock holdings are about to disappear into the hands of their elite rulers—just like the last time.

 

Other reports in this series include:

“Level B” Russian Ministries Ordered To Bunkers After US Threat To Cut Off Diplomacy

Putin Convenes “Holy Council Of War” As Obama Regime Threats Intensify

Russia Collapses Entire US Intelligence System Using Microsoft, Facebook And Google

Russia Moves ICBM’s To EU Border After Recording Confirms Pentagon Coordinated ISIS Attack

World On Brink After Obama Activates Missile Shield, Prepares Weapons For Space

Top Russian Ministries Flee To Bunkers As “Hillary Clinton War” Warned May Be Unstoppable


October 2, 2016 © EU and US all rights reserved. Permission to use this report in its entirety is granted under the condition it is linked back to its original source at WhatDoesItMean.Com. Freebase content licensed under CC-BY and GFDL.

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Will #Deutsche’s Problem Ever End?


BANG! More Bad News For Deutsche and Friends as the Take Down Intensifies
Finance

There should be no doubt in anyone’s mind that the Official Take Down of the Global Monetary System has kicked into OVERDRIVE!!

Even the government and regulators are doing their part to destroy the system!!

Deutsche Bank, Paschi, Numora Staff Charged Over False Accounts
http://www.bloomberg.com/news/articles/2016-10-01/deutsche-bank-paschi-nomura-staff-charged-over-false-accounts-itr5z2ku

“Six current and former managers of Deutsche Bank AG — including Michele Faissola, Michele Foresti and Ivor Dunbar — along with two former executives at Nomura Holdings Inc. and five at Banca Monte dei Paschi di Siena SpA were charged in Milan for colluding to falsify the accounts of Italy’s third-biggest bank and manipulate the market.”


The charges deal another blow to Deutsche Bank, which is seeking to reassure investors and clients that it will be able to withstand pending U.S. penalties over the bank’s sale of mortgage-backed securities and its dealings with some Russian clients. Monte Paschi, the world’s oldest bank, restated its accounts and has been forced to tap investors twice to replenish capital amid a surge in bad loans and losses on derivatives. It’s now attempting to convince investors to buy billions of soured debt before a fresh stock sale. – Bloomberg


END

This couldn’t happen at a WORSE time for the world’s largest derivative holder.

And there will be more “bad news” soon.

PS – At this end of this Road is a Silver Moonshot that will be for the record books!!

May the Road you choose be the Right Road.

Bix Weir
http://www.RoadtoRoota.com

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EU Banking Mayhem: One Bank at a Time – Then All at Once


 

by Wolf Richter

Investors are not amused.

The European banking crisis simply doesn’t let up. Currently, the big two German banks are grabbing the headlines away from the Italian banks, due to their size and the damage they could do to the global financial system. Other banks are in bigger trouble still, and some have already collapsed, with bailouts and bail-ins getting lined up.

Deutsche Bank had to endure a horrendous Monday after it was leaked on Friday that Merkel had refused to entertain bailing out the bank before the general elections a year from now. Merkel’s popularity has gotten broadsided recently, and bailing out bank bondholders with taxpayer money is just not popular at the moment.

Then Commerzbank, in which the government already owns a stake of 16% as a result of the bailout during the Financial Crisis, graced the headlines with leaks that it would lay off 9,000 employees, nearly one-fifth of its workforce. This will cost about €1 billion, according to the sources. To pay for it, the bank will scrap its dividend for 2016 to reduce the bleeding and preserve capital, in what is turning out to be the hellish environment of negative interest rates.

We’ve been writing about the European banking crisis for a long time, it seems, as it drags on, and meanders from one country to another, and sometimes we write about it in an amused fashion because we’ve got to keep our sense of humor in all this gloom.

But investors who believed in all the hype and in Draghi’s promises and in Merkel’s strength and in the willingness of all of them to do whatever it takes to protect bank bondholders and stockholders, and who believed in the miracle of Spain’s recovery, and in Italy’s new government and what not – well, they’re not amused.

For them, it has been bloody. The global financial crisis got swept under the rug. Then the euro debt crisis took down some banks at the periphery, and taxpayers stepped in to bail out the bondholders, mostly, and a lot more things got swept under the rug. But the problems weren’t solved. And as the decomposing assets under the rug kept exuding their pungent odor, investors held their nose and played along for a while.

But now it’s just getting worse. And investors are wondering what exactly is under these rugs – or maybe they’d rather not know for it’s too ugly to behold. And every time someone does look, for example at the Italian banks, they find even bigger problems that have started to metastasize.

This banking crisis has the potential to transmogrify into a financial crisis. All it takes is for one of the big ones to suddenly topple. The flow of credit would freeze up instantly. In an economic system that depends on credit, and whose lifeblood is credit, such an event is a financial crisis.

The problem isn’t restricted to a couple of Italian or German banks. It’s deep and wide.

Here are the 29 banks in the ESTX Banks Index of Eurozone banks (so Swiss and UK banks, for example are not included). It shows the percentage drop from their 52-week high. But for some of these banks, particularly for Italian and Portuguese banks, that 52-week high was just about last year’s 52-week low, so relentless has their decline been over the years. Some of them had already been reduced to penny stocks years ago, and for them, in euro terms, the biggest losses occurred back then. So these mayhem banks, color coded by country:

eurozone-bank-estx_from-52-week-high

If a bank stock plunges from €0.04 to €0.01 over the 52-week period, such as Banco Comercial Português in Portugal, it has been toast for longer than 52 weeks, and the percentage plunge is essentially meaningless because shares were worthless to begin with.

The shares of five of these banks trade under €1. Another 8 banks trade under €3. These 29 banks form a big part of the European financial system. It includes some of the world’s largest banks, such as Deutsche Bank, Societe Generale, and BNP Paribas. It includes a slew of other “systemically important financial institutions,” such as Unicredit, ING, and Santander.

They’re troubled at the same time. The can has been kicked down the road for years. Now negative interest rates appear to have inadvertently crushed the can.

So when will Merkel buckle? Read…  Deutsche Bank in Free Fall. Shares, CoCo Bonds Plunge. Merkel Gives Cold Shoulder on Bailout. Bank Denies Everything

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