Rothschild Doubles Down On Gold As Banking Collapse Begins German Told To Stockpile Food/Water
A collapse is threatening the most prominent bank in Germany, which will greatly affect EU, USA and the rest of the word. The last time that the world saw such a cataclysmic global banking collapse was the implosion of Lehman Brothers in 2008 which brought subsequent fallout in the global banking world.
Earlier this year, at the semi-annual address to RIT Capital Partners, investor Lord Jacob Rothschild announced that they are reducing the stock market and currency exposure and increasing their gold holdings. He warned that the world is now in “uncharted waters” with unpredictable consequences.
Rothschild stated the following:
“The six months under review have seen central bankers continuing what is surely the greatest experiment in monetary policy in the history of the world. We are therefore in uncharted waters and it is impossible to predict the unintended consequences of very low interest rates, with some 30% of global government debt at negative yields, combined with quantitative easing on a massive scale.”
The shares of Deutsche Bank have crashed when the German Chancellor Angela Merkel refused to bail out the struggling bank, with shares falling up to 6% in early week trading. This is their worst performance since 1992. The bank’s shares have lost 52% of their value, and this is only since January.
Focus magazine reported that State financial assistance to the bank was also denied by Merkel. She made it clear during a conversation with Deutsche CEO John Cryan. The German-based lender could be fined up to $14 billion over its mortgage-backed securities business before the 2008 global crisis.
Merkel also noted that Deutsche Bank won’t get a bailout from the European Central Bank, which is the lender of last resort for European banks.
Given this threat that lurks over the International banking system, it was implied by the International Monetary Fund that Deutsche Bank was a systematic risk to the global financial system.
The I.M.F stated that “Deutsche Bank appears to be the most important net contributor to systemic risks.”
According to Investopedia:
A bail-in is rescuing a financial institution on the brink of failure by making its creditors and depositors take a loss on their holdings. A bail-in is the opposite of a bail-out, which involves the rescue of a financial institution by external parties, typically governments using taxpayers money. Typically, bail-outs have been far more common than bail-ins, but in recent years after massive bail-outs some governments now require the investors and depositors in the bank to take a loss before taxpayers.
This is not so improbable that this will happen as it has happened before in very recent history when the Bank of Cyprus took almost 40 percent of depositor’s funds – leaving customers with essentially nothing they could do about having their money stolen. Assets were frozen and ATM machines were not refilled.
Maybe this is the reason why Germans were told by their government in mid-August to stockpile 10 days worth of water, and five days worth of food in case of a “national emergency” hitting the country. The Czech Republic made a similar announcement few days after the German warning.
It is estimated that Deutsche Bank’s collapse will cost over $40 trillion dollars, which is way more than the Lehman Brothers collapse did back in 2008, which precipitated the Great Recession of 2008.
Bloomberg reports that after the announcement about Deutsche Bank’s situation, number of funds that clear derivatives trades with Deutsche Bank AG have withdrawn excess cash and positions held at the lender.
While the vast majority of the bank’s more than 200 derivatives-clearing clients have made no changes, the hedge funds run on cash highlights serious concern. The imminent collapse worried the US as well. 10 hedge funds that are Deutsche Bank clients have decided to withdraw cash and listed derivatives positions from the bank.
Millennium Partners, Capula Investment Management and Rokos Capital Management are among about 10 hedge funds that have cut their exposure, said a person familiar with the situation who declined to be identified talking about confidential client matters.
The hedge funds use Deutsche Bank to clear their listed derivatives transactions because they are not members of clearinghouses. Millennium, Capula and Rokos declined to comment when contacted by phone or e-mail.
Just as Lehman Brothers disingenuously claimed they were financially solvent as the upcoming financial storm brewed in 2008, only to file for bankruptcy, Deutsche Bank has attempted to allay investor concerns by claiming that their financial fundamentals are sound.
Know that it is too late when government warnings start, because the number of supplies in emergency cases would be severely constrained after a warning due to the large number of people attempting to procure an extremely limited amount of supplies.
Only time will tell whether Germany will be responsible for the next global economy crisis. If that happens, it will be quite similar to the situation from 2008, only this time central banks won’t have much resource as negative interest rates and quantitative easing were some of the last arrows in the quiver being used to prop up the global economy.
One thing is for sure – the most viable solution for those looking to safeguard themselves and their families is an ounce of prevention, ahead of any potential collapse. Stocking up on food, water and other necessities before anything happens.