When Artificial Debt Buying Stops Things Will Come Apart-Nomi Prins

When Artificial Debt Buying Stops Things Will Come Apart-Nomi PrinsBy Greg Hunter’s USAWatchdog.com

Best-selling author and former Wall Street investment banker Nomi Prins says no matter what you are told, “For all practical purposes, quantitative easing continues here as well as zero interest rate policy, and capital is available.  The ECB (European Central Bank) has just announced their next version of quantitative easing (money printing) . . . of course, there is the fear that, at some point, there is just no powder left in that gun, and at some point, it will go down.  The volatility you are beginning to see is indicative of that coming apart.  There is nothing else that has been propping up the market, and when there is nothing left to prop up the market, the markets are going to come apart.  It still hasn’t happened yet, but the enhanced volatility is a sign we are moving in that direction.”

On the Greece debt crisis, Prins explains, “Greece is saying look, we don’t want to pay this back, not because they are a deadbeat country, but because the terms to begin with were absolutely awful.  They were awful for Greece, and they would be awful for anyone.  They are loan shark terms to one of the member countries of the EU.  That is what they were, and that is what they still are. . . . Greece is saying look . . . debt on these terms was and continues to be impossible.  Meanwhile, the ECB, while trying to stomp Greece further into the ground, is buying covered bonds from Deutsche Bank.  It has the money, or the availability to create the money, to buy bonds.”

Prins goes on to say, “All of these banks have been subsidized by quantitative easing (money printing).  It is subsidized by central banks and government policy.  This is a power policy.  It is not an intelligent economic policy.  It’s not for the benefit for the people on the ground. . . . These big banks are the identity of political power as well as financial power, and central banks have been coming on for more than half a decade to sustain them.  That is what is happening now. . . . All of these (European) banks have mega derivatives positions, as do the U.S. banks which are also being propped up.”

So, is anything in the financial sector actually fixed?  Prins contends, “We have many trillions of dollars and government policy trying to basically cover up the holes in the entire financial system that could create another Lehman or multiple Lehmans.  So, we have a white wash, or a hole in the wall, that’s been plastered over many, many, many times.  The hole is still there.  The danger is still there.  The co-dependency is still there.  The leverage is still there. . . .It all looks like there has been this cosmetic shift supporting these ban