Banking System Has Huge Problem – Peter Schiff
By Greg Hunter’s USAWatchdog.com (Early Sunday Release)
Money manager Peter Schiff says even though Deutsche Bank is the most systemically dangerous bank in the world (according to the IMF), that is just the tip of severe global financial problems. Schiff explains, “I think it’s a problem, and it’s not just Deutsche Bank. Deutsche Bank could be the weak link of a chain. If you remember back to when we had the financial crisis (2008). First, you had the sub-prime mortgages blowing up, and everybody was like don’t worry about it. It’s contained. I said it’s not contained, it’s just showing up first in the sub-prime market because these are the weakest mortgages. The entire mortgage market has a problem. I think the banking system has a huge problem because it’s lived off of the life support of artificially low interest rates. As that is removed, it’s like pulling the plug off of someone who has lived off life support. The irony is you have so many analysts that think higher rates are good for the banks. . . . Low interest rates saved the banks. You can’t have it both ways. It can’t be low interest rates helped the banks, and high interest rates will help the banks. It’s one or the other. I think higher interest rates are going to crush the banks. I think it’s going to destroy the value of their loans and their collateral. It’s going to lead to defaults . . . All those banks that we’re too big to fail in 2008 are much bigger now, and it’s going to be a lot more difficult to bail them out.”
Schiff issues a stark warning, “This is not going to end well, and I don’t think the Fed is going to be able to save us again. If you get it wrong this time, you’re done. You are down for the count. You just can’t hold and hope. If the stock market gets cut in half again, the Fed is not going to bail you out with another round of quantitative easing. They’re not going to bail you out with rate cuts because the next time the Fed tries to do that, it will destroy the dollar. I am confident of that. The next time is the last time. We will have a dollar crisis and a sovereign debt crisis. Then the U.S. can’t bail anybody out because it’s the U.S. that is in trouble. It will be the U.S. debt that nobody will want to own. It’s the U.S. dollar that nobody wants to own. Whatever the paper profits that people have because they have been in this bull market the last number of years, none of it is going to matter. The profits are going to go up in smoke as the market implodes.”
What about gold in a rising rate environment? Schiff says, “Gold can go up when rates are rising. In fact, gold will go up when rates are rising. Rates are generally rising because you have more inflation. More inflation is good for gold.”
Join Greg Hunter as he goes One-on-One with Peter Schiff, founder of Euro Pacific Capital.
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About the Author
Greg Hunter
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.
Kaboom!
We the people are going to pay for it. They’ll want our blood too.
Mr. Hunter: Yup: SHTF (Sh– Hits The Fan); TEOTWAWKI (The End Of The World As We Know It); WROL (Without Rule Of Law); and gold and silver might help save us. But who cares, really? What’s Stormy Daniels up to?
Seriously, another great interview!
I believe Peter Schiff and Brandon Smith are correct that the Globalists have Trump exactly where they want him because when they choose to PULL IT they have Trump as their escape goat allowing the New World Order of Socialism to take hold.
http://alt-market.com/articles/3444-the-cognitive-dissonance-surrounding-donald-trump
FC,
My sources say otherwise. So does Trumps track record on Paris Climate accord, TPP and Iran fraud deal that Trump got the U.S. out of.
Greg
Let’s hope your right Greg, I can’t help but feel that these decisions and future ones that benefit the economy will be twisted as being the cause of the collapse because ultimately the Fed has total control on when and how they want these bubbles to deflate and under who’s watch.
A far more nefarious hand is pulling more things together than even the major actors think.
The one to watch is Italy. Will it follow it’s own will to a free, non-Euro country; or will it be made to heel, then succumb to greater powers?
OBOR will choke the remaining life out of America. Then the politicians will sell it down the river. The blowback for Trump to imprison all the criminals is either too great; or it will be reversed by the same mechanism – used unjustly. And unless we go back to paper ballots and fair counting – the future may not promise much – as the wrongdoers will double or triple down next time. It is Rule of Law: or nothing.
FC – You are correct that the system will collapse (though I am not sure if it is the globalist plan or just the crushing and overwhelming weight of socialism … i.e. running out of other people’s money to pay for everything. If the globalist win after the collapse, our children and grand children will get to live in a world similar to Venezuela and most of Africa … hunger, poverty, corruption, despair and hopelessness (except for the elites that that take all the fruits of society) … not a happy thought!
Greg this is urgent. A veteran group that helps homeless vets found a child trafficking camp in Tucson AZ. Craig Sawyer and his team are trying to hold the site but police won’t investigate.https://www.reddit.com/r/greatawakening/comments/8oao2o/huge_update_today_az_child_trafficking_camps/
WE need as many eyes on this as we can get as soon as possible.
I agree, FC.
Yes FC, ‘PULL IT’ just like Building 7 was taken down. And Trump (and nationalism) will get blamed just the Muslim hijackers did. And sadly folks will forget about the truth of the Deep State as did of the 9/11 controlled demolition.
“It will be the U.S. debt that nobody will want to own.”
How much US debt is really at risk of being sold into the market? Here’s an article worth reading:
https://www.thebalance.com/who-owns-the-u-s-national-debt-3306124
Here’s how the $21 trillion US government debt breaks down:
$5.6 trillion – Intragovernmental Holdings
$14.7 trillion – “Public” Debt
• $6.004 trillion – Foreign (Substantial Hidden Federal Reserve Holdings?)
• $2.465 trillion – Federal Reserve (Admitted Holdings).
• $1.671 trillion – Mutual funds
• $1.662 trillion – Other (Additional Hidden Federal reserve Holdings?)
• $0.905 trillion – State and local government, including their pension funds
• $0.663 trillion – Banks
• $0.553 trillion – Private pension funds
• $0.347 trillion – Insurance companies
• $0.264 trillion – ?
• $0.166 trillion – U.S. savings bonds
When one looks at these numbers, where can the big potential sellers come from? The reality is there doesn’t appear to be more than a few trillion worth of bonds in potentially weak hands, and should they decide to dump en-mass, then it should be easy for the Federal Reserve to buy it all up and keep the market from imploding. I seriously doubt that US debt is the worry – but European debt is because countries can leave the Euro and may be forced to do so. In which case no one – not Europeans, not sovereigns, not central banks, not anyone will want such paper. How can the ECB prop up say ECB denominated Italian bonds if the Italians default on them and then reissue some portion of the debt in Lira to just their pension funds? There is also the risk of a major war in the Middle East. Should such erupt and lead to significant oil production being taken out for an extended period of time (years?), then the price of oil will go through the roof, economies will collapse and hyper inflation will be forced on everyone.
Schiff says: “Gold can go up when rates are rising” … some may be confused by this statement … because they know raising interest rates will crash the economy and you can’t have inflation in a crashing economy … so gold should be going down as Harry Dent says right? … wrong! … as long as rates “are rising” and continues to rise it shows the economy is “in inflationary mode” … and the Fed must continue to raise and raise rates to cool the inflationary economy down … it is only after rates “peak” does gold finally go down … as happened when Volcker headed the Fed and raised rates to 20% years ago!!
Schiff also says: “it is ironical that you have so many analysts thinking higher rates are good for the banks” … well it could be good for the banks in one sense … because it gives people the incentive to begin rapidly paying down their credit cards … which helps to re-liquefy the banks … it may seem odd … but rising rates (as I explained above) will raise the price of gold (which is in effect “a devaluation of the dollar”) … so “fighting inflation” by raising rates … actually “causes inflation” … because the dollar is devalued relative to gold!! … hope I made things clearer? … remember … the Fed always tries to show us they are having a difficult time creating inflation (this is a ruse) so they can do unlimited QE … the Fed can create inflation in “one minute” but simply taking the controls off their manipulation of the gold price (and setting it’s price at $10,000 dollars per ounce ) and instantly create a devaluation of the dollar (inflation) … it is as easy as pie (once they are ready to devalue the dollar by inflating the gold price)!!
So to avoid having your dollar devalued … by gold … however don’t wait for the Fed to get rid of cash … buy your gold now with cash while cash is still legal … if you wait to buy gold when cash is declared “illegal” … and must do it with electronic money transfers (i.e. government crypto) … they will have you by the balls for no matter where you bury it to hide it from the government “they will know you own it” and can tax it … no longer will you be able pass wealth to the next generation “tax free” … inheritance taxes will be imposed on the “electronic record” they have of your purchase!! … you must buy your gold now “before” all money becomes digital and paper cash is declared illegal!!
You know … the elite who are trying to impose complete control of everyone’s life … don’t want you to to blame them … so they have set up the Muslims as their “straw-man” … they made it look like Muslims took down the WTC and did 9-11 … while all along “they” had the Patriot Act written up (years before 9-11) … then they put an “illegal Muslim into office as our President” … who really did a good job creating an Obama-Nation (i.e. Health Care was purposely designed to fail and the economy put into the tank) … and where future duly elected candidates for President would be destroyed by a Muslim foreigner (Obama) … with the help of his co-conspirator Hillary … who was instrumental in destroying Bernie (using fraudulent voting machines) and trying to destroy Trump … with a fake (Russian collusion) dossier … so … be prepared … when these “globalist elites” decide to start their WWIII … we should all know and expect them to blame it on the Muslims!!
Then what?… when the Muslims are blamed for attacking the US and starting WWIII (like Bush after 9-11) the US will probably take revenge against “the Muslim enemy” … by bombing them where they live … Europe!! … so nuking Europe will have immense benefit for the warmongering globalist neocons (not so much because it will kill all the Muslims living there) … but because it will destroy the Euro … and make the US dollar King!!
You know … before the globalists take the Samson Option away from Israel and all the Jews sent to China (of all places) … and before the Muslims are blamed for WWIII by the globalists … the Muslim and Jewish people better realize they “are both” being used by one world order globalists … and begin talking to each other on how to bring peace back to the world “without some alien oligarchs making all the rules”!!
If I was an alien looking down on this world … seeing corrupt governments “everywhere” … with some of them building hundreds or even thousands of nuclear weapons and threatening to launch them to kill the human race that took me thousands of years to mold into “almost decent” human beings with genetic engineering techniques and by sending down emissaries proclaiming that peace is better then war and just 10 commandments to live by … and seeing all my work go down the drain because some evil warmongering neocons have sided with the Devil … I would send a messenger down to meet with world leaders (preferably Antarctica where there are no fake news reporters) and give the world leaders an ultimatum “destroy your nuclear arsenals” and if not “I will destroy the third planet from the Sun the same way I destroyed the fifth planet from the Sun years ago” … Trump seems to have gotten the word and is shutting down N.Korea with likely Pakistan next … then comes Israel, India, all the European nations and then lastly the US and Russia … I don’t think we have a choice in the matter … God the Father is not going to allow all his work go down the drain!!
Then again … this alien may only be pretending to be God the Father … and really wants all Governments to disarm so his army can easily take this planet for himself … and “harvest humans” for their protein?? … so is Trump doing the wrong thing taking away nuclear weapons from other nations? … we may need every nuke we have to fight an alien invasion by a “false” God intent on taking this world for himself!!
The best strategy may be for Israel to keep its Samson Option and all the rest of the nuclear nations keeping theirs … the way US citizens have a right to own a gun … just “be responsible” with these weapons and not go around killing with them … but keep them “just in case” an alien “thief in the night” tries to enter your home and take not only your possessions but your very life!!
Your spot on paul
You have a website I sent my e mail
@ Paul, thank you very much for this comment it all make good sense
Rates could be rising to reflect just how much these bonds are junk or they could be rising to attract capital or they could be rising to prevent a pension fund collapse – the system has been so distorted over the past ten years that rising rates may not really reflect a play at controlling inflation.
Paul,
Really? Respectfully, if you continue to comment this much, you should start your own blog.
Frank … simply scroll right past my comments … no one is forcing you to read them all … but one “most important point” I want to make (out of all my comments) is … never buy electronic gold that can be easily traceable by government quantum computers … nor buy your physical gold with checks, credit cards or crypto … use only (non-traceable) cash while you still have the opportunity before the banksters eliminate cash!!
Oh! … and I forgot … don’t buy any gold stocks or gold mutual funds either as they are easily traceable!
And one other important thing to remember is …. never put the gold coins “you bought with cash” into a bank safety deposit box that the banksters give the IRS access to!!
I can go on … and on … but I won’t Frank … in consideration of your wishes that I don’t comment too much!!
Maybe you need to cut back on the caffeine…
Paul: When gold is outlawed, only outlaws will own gold. LOL
Frank, I agree. But based on Paul’s inability to write a complete, and coherent, sentence, who would read it other than himself? No one. He reminds me of those people that talk because they like hearing their own voice. They don’t want to have a conversation that goes back and forth. They just want you to listen to them talk. Most people understand this concept by the age of 11 or 12, if not earlier.
He even spells it out Trump will go down with a sinking ship. You pump him up to be God’s chosen one…. At least Peter talks with sense…. You talk crapola….
You comment crapola… to borrow a phrase. Why applaud the appearance of someone interviewed who you like; but distain the one who delivers him to you? Is credit due only when everything goes your way?
MARCUS: RE: “You talk crapola”
Is that another way of saying that you agree with some of Greg’s guests and disagree with other of his guests and him?
Since Mr. Hunter lets you voice your opinions here, my opinion is that you owe him an apology for your gratuitous rudeness.
These kind won’t apologize. They’re just here with a long pole, thinkin and stinkin to stir the outhouses in their own minds.
This may be helpful in understanding Deutsche bank’s dilemma- well written: https://www.silverdoctors.com/headlines/world-news/sprechen-sie-deutsche-bank-a-crash-course-on-the-bank-that-blow-up-the-global-financial-system/
I’m going with Kudlow and Martin Armstrong’s theory for now. But Peter will be correct on USA debt someday. His investing strategy in emerging markets is very smart too. FYI: everything is humming out here in Calitopia. Business is good, and debt and credit is hot. For now.
Comment by LDS Steadfast in Silver Doctors blog re Euro/USD: “Nothing to do with US policy. It is not something the US can prevent. It will be global starting in Europe. Loss of confidence in the European banking system and it’s currency is becoming apparent, as the ECB no longer has buyers for their bonds to cover Eurozone bank debts, ie, No Bids. Money will flow into US denominated assets for safety and the Euro will go down, the dollar will go up , forcing dollar buying by other nations also, to protect against their dropping currency values, leading to non stop buying, as their currencies continue to weaken. Metals will go down.”
Same scenario that Martin Armstrong painted.
Nobody sees the whole picture, 100% correctly. Dr. Jim Willie forecasts the Dollar to rise and rise then disappear. Perhaps this last rush to the dying dollar will be the disappearing act? Metals will be HELD DOWN until they can’t be held anymore. At some point they will go “no bid”; and Armstrong’s metal assessment will turn false.
so all this money flowing into the US bond market will then lower yields on bonds and make Gold look more attractive – the hit against gold being that it does not pay a dividend/yield in a rising rate environment. a rising dollar is going to kill those countries who have to convert their currencies to dollars in order to get energy on the open market. a rising dollar is going to kill our exports. so people/countries are going to rush to the “safety” of the US who is running huge deficits that are projected to increase into the near future in the standing of a debt load that is at least twenty trillion dollars and rising – “me thinks this time is different and a change is coming and it will not be pretty”. Raise rates and taxes will increase – bad for an economy that is addicted to low rates. Conversely, keep these rates below the true cost of inflation and nobody will park their money here. Russ, there is no way to ascertain what reality is anymore because of the distortions as to what rates should be. I have said this before, if our country were a business and that business had to go out into the debt markets to garner investment capital it would be paying double digit rates to reflect the risk of default – in other words our bonds would be junk status. You let a country like Russia and China back their currency with Gold and then we will see how safe the rest of the world perceives us.
Except Armstrong predicting bonds to crash (including US bonds).
Where is all this money going to go to from foreign countries? The US stock market when there are plenty of other exchanges that money can be parked across the globe? No money will go into the US bond market? Wouldn’t in flows of money going into the US bond market lower rates and increase bond prices – seems to me that low yields would be good for gold. My opinion is that we are not going to see this move in foreign money to US shores – it will seek safety in Asian markets instead. I think this will weaken the dollar and raise the value of gold in the short term. At the end of the day – our debt has never been reduced and servicing that debt with increasing rates is going to be painful. Increasing rates are going to be a drag on earnings and quite possibly cause a tax increase – another drag on the economy. Again, why would foreign money move to the US bond market at our current debt level? Why would foreign money move into the US equity markets when increasing rates will stall corporate earnings? Why would foreign money move into the US housing markets when rates are speculated to rise? I see massive debt destruction and deflation – including the gold price but it will not matter because it will be the last asset still standing when this madness ends.
John you may be right on that. Will all the countries the US has alienated trust America not to confiscate their US assets?
LDS Steadfast from Silver Doctors blog was explaining that even though the USA doesn’t want too strong a dollar- for trade export reasons; if the Euro implodes, all the money will rush into US treasury’s and every other asset here. Alas humans and therefore economies are impossible to control. That’s why they roll in cycles- like a heartbeat. Many get rich & many get poor, and quickly too!
I align my own thinking with Schiff. U.S. politicians have destroyed our economic foundation and they just keep digging. End of story.
Thanks for having Schiff on. Gordon T. Long would also be a great guest to have back, if possible. Thanks, Greg.
Greg,
Thank you for having Peter on. I really appreciate his analysis BUT I have to call B.S. on the idea that this is just going to be a financial reset and that those that have solid assets will come out on the other side untouched. There is SO much more than the debt bubble that’s going to burst. We have the largest welfare system that’s ever been created since the GREAT depression that’s going have to be dealt with. When government funds are cut off it’s going to turn urban areas into an episode of the walking dead. My advice? Get out now.
. Get out of urban areas.
. Get out of debt.
. Get out of your dependence on the government for your support.
. Get your money out of the bank.
. Get yourself to church and pray for our deliverance.
Jerry,
I wish I could put a check on all your points. Alas – the government is about 80% of our income; and there is no where for us to go. But pitch a battle – we will.
Charles,
I’m following my grandfathers playbook. It worked for him during the Great Depression in Oklahoma. The only difference is , there was no welfare state to deal with. Most of these so called “ experts” are working off of theory and have not even a clue of what may await us. My grandfather told me it took almost twelve years to recover. Those that were not prepared, either died, moved away, or wound up in labor camps. In realty it lead to WWII.
I agree. I think a number of valuable skills will serve me in Mexico: but labor – hard, physical, demanding labor will follow me into my Seventies. I know neither vacation or retirement. but when one sits down in old age: it is a death sentence.
Thanks, Jerry – you encourage me.
Jerry;
If we pray and ask our Father for help, the possibilities are endless for the US. He knows and He cares because He loves us.
Flattop,
The lord expects us to do something. Jesus instructed the blind man to go to the river and wash his eyes after he put clay in them. Noah was instructed to build an ark. Why? Why didn’t he just do it for them? True faith requires works. The atonement is a prime example of that. Do you think maybe the lord has been giving us warnings to prepare ourselves for a reason? Do you think maybe he has given us this extra time to prepare since 2008 for a reason? I do. What did the people do before the floods? Laughed at Noah. Got drunk and made merry. Nothing has changed. You still have a choice, and some time. But not much of it. God bless,
Gotta agree with you on the solid asset savior, Jerry. No one knows. But we try to prepare for all scenarios.
“Get your money out of the bank.”
Good advice Jerry especially if over the insured amount. And also get your money out of the credit unions. In general, they are just as bad as the banks.
Greg,
Look how tightly wound the ECB is.
https://cointelegraph.com/news/estonia-rolls-back-its-plan-to-issue-national-digital-currency
Just imagine the carnage in Europe if DB goes down. My prediction? The ECB will be exchanging in Yuan before the summer is over.
Guess what ? Deutsche Bank is just the tip of the iceberg.
https://www.investing.com/indices/ftse-italia-banks
Jerry: You seem to imply the ECB (and the EU) will still be in existence. What kinds of odds are you offering?
Jerry: If you are offering odds, I suppose that such a contract would be dominated in either Dollars or Yuan.
William,
What I am saying is the Chinese will transition them to their trade system. Will it work? Who knows, but what choice do they have. The United States will be the last domino to fall.
Like I was saying.
https://www.bloomberg.com/news/articles/2018-06-04/deutsche-bank-says-never-mind-trade-tensions-buy-china-stocks
Do you remember The Working Group? The banking coop was launched internally by the globalist.
Jerry: re: “what choice do they [Europe] have”?
Somehow it amuses me to imagine them getting a white flag and some knee pads, go crawling to Putin and beg him to let them be part of the Russian Federation.
I’m not so sure that he wouldn’t be a kinder master than Xi.
Greg,
Deutsche Bank is shutting down it’s African operations.
https://www.bloomberg.com/news/articles/2018-06-04/deutsche-bank-cutting-s-africa-units-as-part-of-global-review
The big question is whether China can stop the bleeding, or will they go down with them since they have lashed their financial sector to them. This is worth watching. It’s for all the msrbels.
The real Problem with too many U.S. Banks and Bankers alike is simple: They are dishonest and greedy. The combination of Big Banks and Big Government can not be Free Markets or even Capitalism. If not, then what is it ?
I would be fascinated to see a study of the true cost of crony capitalism. My contention is that banking and almost all capitalist – or Non-profit Corps these days take all the capital out of their business’, causing the framework to collapse.
It may sound communist but i feel like if bank execs made 3-5x the salary of their working employees instead of 10-100x we would see a different picture in america. A real capitalist knows you have to invest money BACK into your business. All the execs who flew private jets to beg for money from TARP in 2008 should know what I’m talking about if they went to business school – the thing that saves this country will be the same thing that built it prior to 1971 – hard work… ok now i sound like my grand-father
For many – we are our grandfather.
Sounds like Shiff thinks Trump is no savior as many thought he would be. I wish candidate Trump had been allowed to become President Trump then things could have been better. The real powers have put pressure on him since the beginning and I think he has given in to a degree to survive, just look at the people he has surrounded himself with. There was no way possible to “make America great again” as it has gone too far downhill for much too long. Just to say the phrase is to admit the country is no longer great. I think candidate Trump could have better managed a crash landing but at the present rate we are just going to crash nose down and the result will be a country none of us recognize but hopefully, it can be rebuilt in a manner the Founders would have intended. Just look at any nation throughout history that has fallen from its pinnacle and every nation has. But the difference between them and us is the Constitution as a foundation to rebuild from. Sounds like a dismal outlook but it is just the way of the world throughout time and the way of human nature. As Greg says put your faith in God and not the things of this world as they all come to an end.
Greg: Great interview. Solution: Glass-Steagall, National Bank (responsible to the citizens owned by the citizens), low interest long term credit to rebuild industry and agriculture, crash program for Fusion Energy with a viable space program. Join the One Belt one Road Project with China and Russia to turn it into a World Land Bridge via a tunnel under the Bering Sea to connect Asia and The Americas north and south. Deep six the special relationship with London the real home of the deep state, the originators of the swamp. The London directed (not the British people) attack on our New President has to stop. Anything less than the above is national suicide.
Thanks for interviewing Schiff, Greg. I like him. He’s a smart man. I’ve been listening to him as long as I’ve been listening to you.
But…
Whether or not gold goes up is of no consequence to the average American. The US gov’t imposes so much cost on exchanging gold (taxes, penalties, etc…) that it’s value is irrelevant because it’s what the US gov’t makes it. Gold might go to one-million dollars an ounce, but the gov’t is going to charge a buyer or seller or both $999,999 to exchange it.
That’s true with all financial instruments, investments and commodities. The only time anything will see real price discovery is when the US gov’t stops interfering in markets for political and bureaucratic expedience (deciding who lives and dies in exchange for votes and absolute power). And stops taking away the proceeds of a man’s labor.
Also, businesses, people, institutions, etc… sell gold at a 10% mark-up but exchange it for something liker a 10% mark-down (about that). So unless you see gold increase in value more than say 20% in a reasonable period of time, then it’s a worthless investment. Just not much worse (or better) than any other investment.
Under Trump’s economy (like under all other economies since Eisenhower or even before that, advent of the Federal Reserve and the 19th Amendment), the gov’t is deciding where the money (the proceeds of a man’s labor) goes and who profits from it. It’s just different demographics. The bottom line is: if you were a slave before, you’re still a slave now… The only difference is to whom or which demographic the proceeds of your labor are going.
They still aren’t going to the slaves. The US is still a slave-based (usury-based) economy (not debt). And if you’re one of the slaves, then it still sucks. And Schiff is still gaming the system and is complicit with the problem like any other hedge-fund, annuity, nutual-fund, etc… manager. Money changers all.
The only real economy is the proceeds of a man’s labor and his choice of what to purchase with it. Anything more complicated than that is money-changing. Fraud. Sorry, Greg… I like Schiff but he fails to see where in the grand scheme of things he is. He’s not as high-and-mighty as he thinks.
Worthless investment ? I think not It’s what let’s me sleep well at night and that’s priceless to me
I’d settle for ‘that rich and famous’.
Dr.Jewett, I don’t ‘invest’ in gold. But like most, i do insure my property.
I agree with Schiff that Trump’s misrepresentation of the unemployment (and inflation, etc…) indices is just as dishonest as all the other Presidents since Clinton. This is an important change that Trump can make but he hasn’t. Meet the new boss, same as the old boss.
NEW AND IMPROVED
President Trump is the New Kind of Politician. Even still, its still the same brand of “politics” , just new and improved. Biggest change: No more Clintons in Federal Government.
THE TRUTHER: Read Armstrong
The greatest threat to the U.S. Economy and the World Economy is a Strong Dollar, NOT a weak dollar so many gold bugs imagine. (Strong dollar is bad for gold buffs).
https://www.armstrongeconomics.com/world-news/capital-flow/capital-flows-not-central-banks-are-holding-up-us-economy/
I think Peter Schiff has it correct regarding the economy .overall.
I think President Trump is aware that the stockmarket and economy if it does collapse could affect his chances . He knows that we have systemic problems with debt etc but he has to show that. He is trying to. Do what he can something Hillary or Sanders would not even have tried. We would become obviously Socialistic as a country.
President Trump needs to reset our economy either through a major devaluation of the dollar by going back to a gold reset including perhaps silver.
A second term seems more likely if he were to reset the dollar at a fairdollartogold ratio.
The world would accept this also.
Greg and fellow Watchdogs,
I have always liked Schiff and his financial logic. I changed my my whole outlook on investing going back to when he was warning about the housing crisis in 07/08. If the US banking system goes down, however, there will be no safe place to invest as we will be facing a deflationary collapse over the entire globe. We have no idea how a derivatives collapse will unwind nor do we have any idea of how a US currency collapse will affect other currencies and markets because mass psychology is the metric we can’t quantify. I think we all understand the outcome will not be good. It is my view that people do the following to mitigate the carnage that is before us:
1) Get liquid by reducing debt and cutting back on non-essential goods and services.
2) Stop contributing to 401 k plans so you can increase liquidity to pay off debt. Of course this will send every certified financial planner into a tail spin! Use some of that money to start purchasing Ag, Au and Pt. How much growth is left in bonds/stocks/housing with threatened rate increases? You have to look at physical metals as a way to restart after a reset and not as a short term trade – it is insurance and a form of liquidity that has thousands of years of history behind it and it is still honored by the fastest growing region of the world – Asia.
3) Get small – reduce the size of your house thereby reducing insurance expenses, heating/cooling expenses, property taxes, maintenance costs and mortgage interest burden. This will serve to increase liquidity which then can be used to service debt at a faster rate.
4) Fortify your residence and by this I am not just saying to buy a firearm as this should have been done a long time ago imho. Instead, make repairs, stock up on food/water and alternate power generation devices. Get to know your neighbors and be prepared to help each other in times of need – this is a Jewish/Christian mandate btw. Protect yourself but be willing to help others.
5) Get a fuel efficient car! Lower property taxes, maintenance costs, fuel expenditures and makes you less of a target of crime as your wealth is not on display. In short, get rid of the outward display of “bling”.
6) Humble yourself – it is ok to live on a budget and not have the best. My idea of wealth has changed from having “stuff” to being able to retire early!
7) Understand exponential functions and what Einstein said about them – can exponential debt/money creation keep rising with near stagnant wage/income growth?
8) Understand that the world is heading for a correction to the mean – the US will come down in a standard of living where many parts of the world will come up in a standard of living. The instrument of this correction will be a worldwide financial crisis – driven by not understanding exponents.
And I just traded up to a larger, less fuel efficient car. Stink!
Excellent post John! Day after day, troubles are heating up worldwide. Who comes out of a reset better, the one with the 10,000 digits parked in a bank savings account, or the person carrying 8 gold eagles snug in their pocket? Stay small my friend!
My wife and I had decided 8 years ago to stop spending money on things and we started spending money on memories because that is something no one can take away from us.
The best part about memories is creating them.
Thanks Mr Hunter and Mr Schiff,fascinating and diametrically opposite Mr Armstrong’s model.However,the economy of Europe is broken and corrupt,even the new PM of Spain is more corrupt than the last.
Here in the UK the weather is beautiful,the economy sucks and food is expensive.We have an additional spies in our midst who will no doubt be as useless as the last lot,unless they bring in Israeli spies like Sweden has done.Why even the new king of Saudi Arabia,His Royal Highness Crown Prince Mohammed bin Salam,has brought in Israelis spies and interrogators,according to the Tatler (July 2018 page 96 paragraph two,”highly trained foreign mercenaries”fluent in Arabic particularly that Arabic specific to the Gulf Region).These mercenaries were very efficient in quickly extracting the money needed by His Royal Highness Crown Prince Mohammed bin Salman and keeping quiet.At a wild guess these have to be Israeli hardly Turkish or Iranian.
Still our magnificent prime Minister ,Theresea May(favourite of GCHQ,MI5 and MI6 who are dvious to the USA amd Mr Trump as well as us plebs),is actively wrenching our exit from Europe out of the hands of the monsters in her cabinet,just astounding.
https://hat4uk.wordpress.com/2018/06/03/brexit-nailing-the-guilty-who-have-neutered-britains-negotiating-position/
Astoundingly the plebs of this United Kingdom await the news of Mr Tommy Robinson’s demise seething at some unknown force.Well the “unknown force”resides in the beautiful areas of London and The South East”,so swinging a guillotine through here your bound to get most of the anti-democratic league.Yet bankers remain at large as terrorists to us all.
https://hat4uk.wordpress.com/2018/06/01/feedback-tommy-robinson-under-the-cosh-and-bankers-above-the-law/
Astringently us plebs are being ground into the ground aided by the elite institutions of the UK,its a bit much to start thinking Mao Zedung had something.
Still can’t miss the corruption in our beloved bureaucracy from town halls to Whitehall with ISPs in between,our PM’s favourites.If life were not so miserable it woud get you down!
Maria Das; The US has always had the UK’s back. The UK doesnt want our help at the moment, but maybe one day!!!
Greg,
Aren’t you tired repeating the same tune from 2008 with the same singers?
And they are wrong all the way from 2008?
I do not listen to those interviews at all, cause I already did a decade ago. nothing new.
Mohammad
Sing for us Mohammad. You have the stage.
Greg
sing for me…
https://www.youtube.com/watch?v=tE6SRBnDHx8
Bhn: Yes, funny. But please bring back TSI. He is just as funny, and I like and respect him more. (and if I’m wrong, TSI, please repudiate Bhn).
You got me.
Curses I have been unmasked!
TSI: Thanks for the fun!
BTW, Charles Turner comments here from time to time. His post relating to Greg’s, June 1 weekly news wrap-up was really intriguing to me.
I think that Charles also lives in London and, based on my research and guesses, he is an extraordinary man. Do yourself a favor and see if he would be willing to have lunch (or tea) with you.
Let’s sing a prayer for Humanity … who has lost its way!!! … https://www.youtube.com/watch?v=pb8Z_6HVutk
LOL!
Greg,
Assad will meet with kim Jing In just before the latter will meet with Trump…How about this song?
Mohammad
“Kim Jong UN”
Mohammad: Still laughing!
You are correct, I doubt that Crumpet will have meeting with Kim in Singapore, he has never flown anywhere and will not…. In steps Putin someone Kim can Trust, have the meeting in Vladivostok Russia , known for its past meeting success with president Gerald Ford. We can guarantee your safety on our Amor Train ride fit for a king, it’s only 400 miles, and buy the way do it at our world convention….. Kim yes yes yes, Crumpet if he wants his peace prize will have to eat humble pie…… You see Guys the real peace is happening with Putin Christian church.
The real Church Marcus, the real one..!!!!
Mohammad
Mohammad Peter was laughed at before and he had the last laugh in 2008 when he was proven correct Early perhaps but spot on I truly believe history will repeat shortly
Mohammad:
You don’t listen to the interviews? So you only come to this site to opine ?
So Mohammad if your so tired of the same song and singer why don’t you ask for a refund? Oh wait…You were let in for free!
Mohammad,
I’m assuming since you are a doctor that you can read charts?
https://fred.stlouisfed.org/series/M2V
Mohammad,
If you were tired of Schiff you may find John Exter’s son in law interesting.
https://m.youtube.com/watch?v=ar4HONOHlQI#fauxfullscreen
Are they all wrong all the way back from 1970, 1998 and 2008?
Yes, they are wrong because nobody expected the deep state would close the gold window, blow up the twin towers, slaughter millions in the Mid-East, restart the Cold War and attempt to remove a duly elected POTUS just to prolong the inevitable.
I attached a wrong video. This is the one – John Exter’s Pyramid – Podcast.
https://www.youtube.com/watch?v=XuELup6F5Q0
Come to think of it, the destruction of American liberty started way before 1971.
https://www.fff.org/2018/06/04/the-emergency-destruction-of-american-liberty/
Constitutional money replaced. Fait accompli. (+/-)
Mohammed, the banking system was temporarily saved by a large tsunami of more debt that caused the credit crisis in the first place. Its a long way down the Niagara River till you get to Niagara Falls. Be sure to give us all the finger as you go over.
I cannot help but believe that Schiff is spot on. He makes a lot of sense.
Thanks Greg!
Remember we are at the end of the current financial system. There is a battle between pro American side led by Trump and the globalist anti-American side. The battle right now is between the two sides is to try to make sure the other side is blamed for the collapse. The only way to get rid of the criminal globalist is to break the banks which is where there power is. So everyone wants the crash.
Peter was one of the only guys who prominently called the last two great bubbles: both the Tech/Internet Bubble and the sub-prime housing Bubble. Peter is no longer allowed to give his opinions on those bubble-vision business networks because he’s a threat to the MSM Keynesian-Globalist narrative. This current bubble is so much bigger and more serious.
Three things MUST happen for America to be SAVED from ruin.
1.) We must be the premier manufacturing and producing exporter of real goods once again, reversing our abysmal balance of trade deficit.
2.) We must replace the PetroDollar (which is almost dead) with a real monetary standard that is honest and true with a real value backed by precious metals. (I think continuing to have the world’s reserve currency is no longer feasible nor is it morally responsible considering our track record of massive fraud.)
3.) Trump must find a way to bring back all the trillions of dollars (and gold) that has been stolen by the Bush Globalist Club, the Clinton Crime Syndicate, and the Obama Gang of Thieves. The psychological impact of this would be immense, and it could possibly be a good down payment and an act of good faith to help break America’s bondage to DEBT. (* I hear this speculation bandied about the internet — only if it were true)
And of course there should be a #4 as number one — America needs to publicly proclaim itself as a nation of God that truly follows God’s natural laws.
Too much! Two sensible John’s!
Greg, both Pinto and Schiff – and all the rest of your corral of analysts – while being broadly correct in their analyses, are seemingly unaware of the unfolding Big Picture: The meritocratic/capatalistic ( and once-moralistic ) West is being incrementally dismantled by Marxists ( from 1848 forward! ), for installation of what I have termed GLOBAL ECONOMIC SOCIALISM ( in order to be fair to the un-/less-productive and mostly self-disadvantaged poor ). // Failure by conservatives and ibertarians to stop using LEFTISM’S propaganda-language explains much of why rightists are losing ( have lost? ) the culture wars; e.g., Pinto, Schiff – and all the rest your interviewees – keep saying, “Federal Reserve,” instead of more correctly using this term: PSEUDO-FEDERAL RESERVE–as there is nothing FEDERAL ( or U.S. GOVERNMENTAL ) about that privately run cabal of central banking planners using the SOVIET MODEL of power and control over WE-THE-PEOPLE’S finances and economic well-being (( I’ve 23 other terms rightists mistakenly use, ignorantly so!, to serve the march of Marxian Leftism across the West )). // America isn’t CHANGING , as everyone likes to say, Greg, but BEING CHANGED by behind-the-scenes COMMUNIST / SOCIALIST movers and shakers. // Find and study the 1972 book, “None Dare Call It Treason,” by Allen and Abraham. They had explained/predicted the WHO? / WHAT? / WHY? / HOW? of all that we now suffer to reverse.
Peter Schiff is wrong.
“Money” (in terms of monetary assets) and “currency” (as we know national currencies) are not the same thing, yet he never even alludes to the distinction. They are as different as heat and temperature, yet fairly analogous in the sense that one needs to other to find quantification. If Peter Schiff had been right, the banks would have blown up years ago, yet they haven’t…it’s always “just around the corner”. It’s about time somebody started wondering why instead of grinding out the same old apocalyptic nonsense in order to boost their floundering gold trades.
I’ve lived in countries that have “blown up” the way that Schiff asserts the world financial system is about to – all that happens is that prices skyrocket, salaries skyrocket, everything skyrockets and then everything returns to normal. It’s barely noticeable. Sinks are found for excess currency and debt is killed off in various ways.
In fact it’s already happening – Italian banks are insolvent, Greek banks are, Spanish banks are and the Japanese exchequer is. But where’s our apocalypse ? Nowhere to be seen because there’s now sufficient central bank financial engineering to put cushions under all these collapses.
So…all good things must come to an end…
Gold has been a real bad investment for the past several years.
Schiff has been wrong a long time. If you look, the US
economy is still improving, the stats and stock market are not all phony.
Investing in stocks has worked well over the last several years and should continue.
Had Trump not been elected, the economic outlook would be much worse.
MY gold is NOT an investment! MY gold is insurance! And hopefully, I never need it! Maybe my kids will! So I’ve insured them too! So simple! It’s good to sleep well. Rant off.zzzzzzzzzzz
You are correct Peter, Gold has been a bad investment and my home insurance for the last 33 years has been a bad investment but I pay it every year.
But with my lifestyle insurance, I only had to pay it once.
You can’t call the game without a rule book. And the rule book was thrown away years ago. Now it’s just guess work.
Hi Mr G Hunter,
Thank you very much for all the time you are giving in trying to inform the people.
The interview was great. But It’s become very strange always listening to those experts saying that the system will collapse and they seem very calm, and only speaking about an economic collapse.
As we all know, once we do good research as many experts are saying we are headed toward a socio economic collapse that might be very hard. Like many experts are saying 1929 will look like a walk in the park compared to what is going to happen.
It would be very appreciated if experts could speak about the probability that a social economic collapse could arrive and for how long people should really be prepare for what’s probably coming. This collapse might be totally different from what we ever heard since it might be global. All the currencies are losing their values, total global debt is unstainable, hyperinflation is rising, more people are dependent on the government, more people are dumb, brainwash, etc.
Some experts unfortunately are speaking about a collapse but only in terms of economic and never go deeper in the explanation that this time it might be very different since it’s a social and the economy it’s only one of the consequence for this collapse. Since people are totally brainwashed into socialist, communist/marxist ideology, they lost their core values, morality etc…
The experts in economy ex: P Shift, John William, G Mannaniro, J Roger, M Faber, E Griffin, Mike Maloney, Catherine Austin Fitts, Jim Sinclair, , etc…some of them rarely tell people to prepare accordingly only for the financial aspect but never speak about the importance of all aspect of the life ( water, food, shelter etc..)
Some experts are not very clear concerning how long and how bad the coming collapse could probably be. They are also not very clear about how extensively people should prepare. These experts seem to be saying that it is good enough to store some food, water, fuel, etc… for a few years and expect a quick recovery after only three to seven years while other experts are saying that the recovery actually takes much longer (Ex. 30 to 40 years). Who’s right ? This question needs to be answered accurately. Looking at how those crises unfolded throughout history and compares the current situation with previous collapses. When we compare the present situation with past situations, the present situation seems to be actually much worst. It seems that the coming collapse will be a very bad one since it has been building up for decades and that most people are terribly unproductive, uneducated, stupid/brainwashed and dependent on others. To make the situation even worst, people are now much more interdependent and our societies are dependent on high technology and especially the power grid, computers, high tech communication and public services. This coming collapse could be a real nightmare and could possibly last for decades. It would be nice to know for sure how long and how bad this collapse will be and have different experts opinions.
This question seem very important since the scenario to prepare for a short versus a long period it’s quiet different, less expensive, less time consuming. etc… What are the probabilities?
Thank you and god bless you.
Right you are,Liberty. Many here are prepared, but you can’t be ready for everything. Some of us have asked for guests on this subject. New people are awakening each day and come here for information. Greg, I think it’s time for a preparedness 101 class.
I have prepared for this scenario https://www.imdb.com/title/tt0898367/ but hoping for the best.
Liberty: Agreed. Well said.
Liberty: Actually, I do have some minor differences in viewpoint. I think you are correct in the worst case scenarios. I also think, society is now the least resilient to civilizational collapse than ever before in history, thus it is more likely than ever before, and will be more severe than ever before.
However, crises do come in various degrees of severity. In fact, lesser, more localized, more short-lived catastrophes are more frequent than civilizational collapses. Thus, it is worthwhile to prepare for lesser catastrophes.
As a rule of thumb, I would suggest (following Pareto) that about 80% of maximum survivability can be attained with about 20% of the effort and expense needed to attain close to maximum survivability — and survival is not guaranteed no matter how well prepared you might be.
Nevertheless, for humanity to continue in some form, some people need to prepare for the worst.
Dr. Jim Willie thinks that China will EASE the failing Anglo/Euro system into a new paradigm. Meet the new boss….
Charles H: I enjoy Willie and find that he makes sense . . . usually.
Nevertheless, I think of China as a tyrannical, totally corrupt, communist regime. I tend to see such regimes as unstable, notwithstanding the fact that China has, under previous regimes, enjoyed long periods of stability.
I’m a China skeptic and see it as a great threat, not only to itself, but to the entire world.
Liberty: Oh, not that I’m an expert, but I put the probability of the grid going down for over a year at about 1% per year. What is your assessment?
Liberty: One more thing, especially for those who may not have contemplated such things, a grid-down scenario would entail about a 90% loss of life by the end of the first year.
Hi, William Stanley,
You are writing, : “Oh, not that I’m an expert, but I put the probability of the grid going down for over a year at about 1% per year. What is your assessment? »
I am not an expert either thus I cannot really say the possible length of time, it wouldn’t be rational or proper for me to assess a time frame on this particular question. The only thing I can say based on my research from the experts ( ex: James Westley Rawles, Matt Bracken, Hamman report, Mike Addams, G Celente, etc….) on this issue its they might be a possibility that for certain period ( in interval time) the grid could go down because of employees making pressure because they don’t have their pensions, salary etc… All this employees frustration is possible, realistic since the money to pay all those false promises with others people money is not there.
Best Regards.
Liberty: I hope I didn’t offend you by asking you your opinion on your assessment of the probability that the electric grid might go down for a year or more (my rule of thumb for defining “civilizational collapse”).
It’s a question that nags me though, and I am interested in others’ opinions on the matter.
I arrived at my assessment by starting with experts’ opinions about the yearly probability of about 1% of a “Carrington Event” sized coronal mass ejection (causing EMP-induced loss of the grid). I then added in my own intuitive guesses about nuclear war, pandemics (think Ebola), and massive asteroid strikes (plus other known unknown and unknown unknown global catastrophes).
To William,
You didn’t offend me at all, your question was totally correct. We are having a conversation that I would love having the opinion of expert like I wrote in my first comment.
Sorry if it might seem like I was offend , don’t forget English is not my mother tongue.
Best Regards
Liberty – the one factor that is way too often left out of the equation is the very basis of life … food and food production! If agriculture (Agr) collapses – so goes society. The French Revolution is/was a big bye product of the collapse of Agr … starving equates to pure anarchy … A starving person has nothing to lose by storming the elites castles walls and everything to gain if he finds food. The Northern European hordes invaded Rome because of cold winters and a big loss of crops … Their Tribes were starving . This coming financial collapse, if coupled with a big drop in Agr production- spells real, real ugly! The US wheat prices are up 13% in May – Wine is going way up, France lost a lot of wine crop due to very late frost and Hail damage http://www.france24.com/en/20180528-france-wine-bordeaux-hailstorms-ravage-vineyards-pessac-medoc-bourg-blaye-gensac … Let’s hope this is not a trend. I keep my eyes on the Agr – this is the real story … as goes food – as goes society! https://agfax.com/ If Agr starts to fail around the world by let’s say a large Volcano going off … If you do not know how to be self sufficient, you’ll learn to bow to Uncle ‘Joe’ or Father Mao … think of all the populace in big cities world wide who have no clue to producing food … Their only recourse will be via procurement by any means.
freebrezer: Good points!
One reason I focus so much on the electric grid is precisely because food production and delivery is so dependent upon it: no electricity, no fuel refining, very little fertilizer or pest control, no water pumping, no fuel for tractors or trucks or keeping meat fresh — essentially, no agribusiness. Not to mention no economy to provide all the other essentials and the flow of incomes needed to sustain mass agriculture and distribution.
Thank you everyone for reading my comment and give some thought.
@ Freebrezer , don’t forget like Jim Roger always said, less than 1% of the population knows agriculture and farmers are growing older and not a lot of person know how to farm and the big farm land they are doing mono culture which is not the same as doing mixed agriculture and produce your own food.
Most people depends on others and this is not a good way of life for preparedness in times of a socio economic collapse.
I think that people need to be inform and to prepare not only financially but have skill, food etc… so when times come more difficult they will be ready and can focus not on surviving but building a better world like the founding fathers did.
When people lose everything and they have nothing to lose, they “lose it.” – Gerald Celente on the Shadow of Truth.
Thank you everyone for reading my comment and give me your opinions, it’s really appreciated.
PS: sorry if my English is not perfect , unfortunately it’s not my mother tongue.
You do well enough in English ; and better in manners. I’d say you are doing well.
Thank you Peter Schiff! I’m all set up in my North Carolina/Virginia border area mountain cabin waiting for it with five years of food and more than what I need for that period. Farming in the meantime, plenty of hidden gold, weapons, cousins on adjacent properties and everybody knows everyone up here. Don’t even think about coming up here. Once its all over the boys from the mountains will be down to take over. The flag of the Cross will be higher than the American flag, but we’ll still have that flag. Get on your knees now and repent for eternal salvation!
Frank Smith,
Well said and Bravo for your preparedness.
Great read for all Watchdoggers…
https://www.zerohedge.com/news/2018-06-03/modern-civil-war-being-fought-without-guns-so-far
ivil War
How do civil wars happen?
Two or more sides disagree on who runs the country. And they can’t settle the question through elections because they don’t even agree that elections are how you decide who’s in charge. That’s the basic issue here. Who decides who runs the country? When you hate each other but accept the election results, you have a country. When you stop accepting election results, you have a countdown to a civil war.
The Mueller investigation is about removing President Trump from office and overturning the results of an election. We all know that. But it’s not the first time they’ve done this. The first time a Republican president was elected this century, they said he didn’t really win. The Supreme Court gave him the election. There’s a pattern here.
What do sure odds of the Democrats rejecting the next Republican president really mean? It means they don’t accept the results of any election that they don’t win. It means they don’t believe that transfers of power in this country are determined by elections.
That’s a civil war. See more in the link to the post… Chip
BINGO, Chip!!! Best comment so far this year!
So this is it. Gold is going through the roof. The long anticipated rise will soon be taking us to $10,000 gold.
The documents Israel captured from Iran reveal that Iran’s leaders ordered their army to enrich uranium to over 90%, enough for an atomic bomb.
Iran cannot be trusted.
http://www.israelhayom.com/2018/06/04/netanyahu-heads-to-europe-with-iran-on-his-mind/
The Golan Heights belong to Israel and the United States will soon officially recognize that fact.
http://www.israelhayom.com/2018/06/04/us-recognition-of-golan-as-israeli-is-best-response-to-iran/
Palestinians “shoot themselves in the foot”.
http://www.israelhayom.com/2018/06/04/israel-to-deduct-damage-caused-by-kite-terrorism-from-pa-taxes-%E2%80%8E/
https://www.armstrongeconomics.com/world-news/capital-flow/capital-flows-not-central-banks-are-holding-up-us-economy/
GREG: A Question
I often hear the phrase, ” emerging markets “. What does that refer to
Flattop,
Third world countries basically.
Greg
GREG!
Are you following this?
https://www.bloomberg.com/news/articles/2018-06-05/citi-s-stephen-roberts-others-charged-in-australia-cartel-case
This could be the final death blow to Deutsche Bank. Whatever credibility they had left may have been destroyed. No one knows how deep the corruption runs or how much theft has taken place.
I’m not an economist but don’t credit default swaps work like insurance? If there is a default on the derivatives doesn’t someone have to pay to cover the loses? This would be a great question for Rob Kirby don’t you think?
Interesting Jerry. Are they going to have a pack of fall guys for the crimes?
Greg
It looks that way Greg. The vultures are circling.
https://www.reuters.com/article/us-deutsche-bank-short/short-sellers-and-options-traders-bet-on-more-deutsche-bank-pain-idUSKCN1J11TC
jerry,
Remember what happened to Lehman. On Friday the stock was over $10 on Monday it was 10cents: https://www.bing.com/images/search?view=detailV2&ccid=5h%2fdcUpJ&id=C8BDEE8C04B3E87A44F1642AC4D2FB89A65561BE&thid=OIP.5h_dcUpJoni77qwjy1ly3QHaD3&mediaurl=http%3a%2f%2fwww.infiniteunknown.net%2fwp-content%2fuploads%2f2016%2f02%2fDeutsche-Bank-Lehman-Brotheres-Chart.jpg&exph=503&expw=963&q=db+and+lehman+brothers+chart&simid=608028867344665760&selectedIndex=2&ajaxhist=0
Greg
Jerry,
Not being a derivatives expert but I believe a credit default swap has nothing to do with a default on another derivative but insuring against a credit event such as a default on a debt instrument such as a bond.
Jerry,
I may have misunderstood your questions so let me try again. Yes, a credit default swap acts like insurance in that it insures the owner of a debt instrument such as a bond against a credit event such as a default by the bond issuer. This is done by the bond owner entering into an credit default swap agreement with a third-party (counterparty) who will cover the losses of the bond if the bond issuer defaults. In exchange for getting this insurance, the bond owner will pay the counterparty periodic payments much like when you pay insurance premiums.
You also asked if there is a default on the derivatives doesn’t someone have to pay to cover the loses. I am not sure about actually paying but many derivative contracts do have collateral posted in case a counterparty defaults in which case the collateral can be taken. Most collateral that is posted is cash or government securities.
Like I said though, I am not a derivatives expert but I think what I said is basically correct.
Sorry guys but DB is a TBTF bank. It’ll be ‘protected’ at the expense of depositors and tax payers.
Lehman was a ‘sacrificial lamb’ bank, to save the others. DB is one of the ‘others’ (like GS, JPM, etc. here in US) and so other smaller banks, like the ones in Italy, will be defaulted upon and imploded to ‘save’ DB. The loans (debts) of these banks, are considered ‘assets’ to the predator banks like a DB, so the ‘good stuff’ will just be ‘folded into’ DB’s portfolio to help save it, while the ‘bad stuff’ will be turned over to the ECB.
Our very own Fed, built this new faux model, of a corrupt banking world in which we live today. backroom deals, cloak and dagger type stuff is the reality us peons never get to ‘see.’ (and never will). DB’s ‘real estate portfolio’ is spread throughout the entire world, including much here in the US. Does it matter it is leveraged 1,000,000 to 1, or some such unfathomable number ? Nope. Its called business as usual for the corrupt elite. They’ll always ‘socialize’ any losses onto the backs of citizens and taxpayers, and ‘privatize’ (into the deep corrupt pockets of a very few elite) the profits.
Besides that, its derivatives are so intertwined with our own 5 Big Banks, it would bring them down too, if it were ever allowed to implode. It doesn’t have to be written in stone anywhere to know that DB wont be allowed to ‘fail.’ The ‘boys’ simply wont let it.
I agree Mike. DB is going to be protected and not just simply allowed to fail. Bail-ins and bailouts will happen mostly at the expense of stockholders, bondholders and taxpayers. May be even a small percent of the uninsured deposits if needed.
Information on bank resolution and bail-in.
https://www.deutsche-bank.de/pfb/data/docs/ser-bankenabwicklung-und-glaeubigerbeteiligung-engl.pdf
Get your popcorn folks. There may be a lot of fireworks come July .
https://en.m.wikipedia.org/wiki/Credit_default_swap
My guess is the Chinese backed another dead horse in Deutsche Bank, just like they did Goldman Sachs in 2008 . FYI we still close to 2 trillion dollars in loans to them that is never taken into accountability when figuring our debt. Out of sight out of mind.
Jerry, I agree. Deutsche Bank is the canary in the coal mine. It is only a matter of time. At least this time I am watching and see the signals and am ready, unlike 2008/9.
No it is not.
You guys are looking in the wrong direction.
Deutsche bank is saved long time ago by Russia.
Iran is their market and they will shove their way in unless major war breaks out.
Germany had leaned eastbound LONG TIME AGO.
Mohammad
F.C. said, “I believe Peter Schiff and Brandon Smith are correct that the Globalists have Trump exactly where they want him because when they choose to PULL IT they have Trump as their escape goat allowing the New World Order of Socialism to take hold.”
However, Trump can re-issue Executive Order 11110 as John F Kennedy did on June 4, 1963, “to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury not then held for redemption of any outstanding silver certificates, to prescribe the denominations of such silver certificates, and to coin standard silver dollars and subsidiary silver currency for their redemption” see the full Executive Order below. Of course President Kennedy was assassinated in November 1963 before the order could be fully implemented and Johnson nullified President Kennedy Executive Order right after he became President. And what is a once of Silver and GOLD worth? It’s what the government say it’s worth $10,000 an once. And today President Trump has the complete might of the U.S. Military behind him. Just something to consider.
“John F Kennedy Executive Order 11110.
Executive Order 11110—Amendment of Executive Order No. 10289 as Amended, Relating to the Performance of Certain Functions Affecting the Department of the Treasury
June 4, 1963
By virtue of the authority vested in me by section 301 of title 3 of the United States Code, it is ordered as follows:
SECTION 1. Executive Order No. 10289 of September 19, 1951, as amended, is hereby further amended —
(a) By adding at the end of paragraph 1 thereof the following subparagraph (j):
“(j) The authority vested in the President by paragraph (b) of section 43 of the Act of May 12, 1933, as amended (31 U.S.C. 821 (b)), to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury not then held for redemption of any outstanding silver certificates, to prescribe the denominations of such silver certificates, and to coin standard silver dollars and subsidiary silver currency for their redemption,” and
(b) By revoking subparagraphs (b) and (c) of paragraph 2 thereof.
SEC. 2. The amendment made by this Order shall not affect any act done, or any right accruing or accrued or any suit or proceeding had or commenced in any civil or criminal cause prior to the date of this Order but all such liabilities shall continue and may be enforced as if said amendments had not been made.
JOHN F. KENNEDY
THE WHITE HOUSE,
June 4, 1963″
There is no real difference in 20 trillion in debt, 200 trillion in debt, 200,000,000 trillion in debt, 200,000,000,000,000,000,000,000 trillion in debt. Computers can compute near infinity so this ponzi scheme can go on much much much longer then anybody can believe…
It doesn’t work when those who have to swallow the fraud get fed-up. You view is very one sided.
DerStan: re: “Computers can compute near infinity so this ponzi scheme can go on much much much longer then anybody can believe…”
I’ve got to admit it’s gone on longer than I thought possible.
However, one of money’s important functions is as a store of value. Once that loss in functionality is recognized for one currency, people will look for an alternative. That will necessarily involve much transfer in wealth (the ability to buy stuff) between those who recognize the phenomenon (loss of the store of value function) later to those who recognized it earlier.
When wealth is massively transferred it also tends to destabilize business and society. Lots of potential for violence in that.
Cryptos are going to zero. More governments around the world and banks are doing what this bank in India is doing here…
RBI prohibits dealing in Virtual Currencies
“Dear Customer, We would like to bring to your attention that the Reserve Bank of India has a clear stance on Virtual Currencies (VCs) – that these currencies do not have any regulatory permission or protection in India. In its latest circular (dated April 6, 2018), the RBI has directed that the entities that it regulates shall not deal in VCs or provide services for facilitating any person or entity in dealing with or settling VCs. These services include maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer/receipt of money in accounts relating to purchase / sale of VCs. We here at Kotak Mahindra Bank request you not to make any transaction involving virtual currencies from your bank account. However, if done so, under regulatory guidelines, we would need to close your account without further intimation. We value our relationship with you and for further clarification; reach out to your Relationship Manager or Branch Manager.
Warm regards,
Team Kotak Mahindra Bank”
Cryptos, hence technology – under Bankster control is the new paradigm. Once one tastes real power – no other appetite will do. It is a fad; a stupid worthless gesture – but the world will go after it. Sheeple – who will wantingly embrace their own slavery.
Peter’s predictions seem heavily based in his ideology. Reality is that his financial predictions have been off base. Granted, the dichotomy of asset values in this country has been exacerbated by CB monetary policy. Average real estate values exceed $1,000,000 in the county I reside. Even the 2008 liquidity crunch had minimal impact on real estate values here. Peter talks in macro terms that might be less relevant to some regions even in a financial crisis. That’s my conclusion after following him for over 12 years.