(Neon
Nettle) Rothschild’s Buy Up Remaining Gold Signalling World Banking
Collapse :
Jacob Rothschild has just announced
that he is to buy up all remaining gold to replace stock market and currency
exposure, due to the world’s central banks being “out of control”, signalling
what could be the biggest financial crisis since the Lehman Brothers crash in
2008.
The biggest bank in Germany is on
the verge of collapse which is set to send massive verberations throughout the
EU, the US and around the world. The predicted global banking collapse
seems even more imminent as the Rothschild’s signal more warning signs by
buying up gold.
FreeThoughtProject reports: The
prospect of a cataclysmic global banking collapse of this nature has not been
seen since the implosion of Lehman Brothers in 2008, and subsequent fallout in
the global banking world.
But these events haven’t taken place
in a vacuum, as earlier this year savvy international investor Lord Jacob
Rothschild, during a semi-annual address to RIT Capital Partners, announced
that they are reducing stock market and currency exposure and increasing their
gold holdings, warning that the world is now in “uncharted waters” and the
consequences are “impossible” to predict.
Rothschild stated:
“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 collapse of Deutsche Bank would
most likely begin a cascade of Western banking institutions falling like
dominos (which could include Barclays in London and CitiGroup in the U.S.).
According to the same expert who valued Lehman’s worth at its collapse,
Deutsche Bank’s current value of $1 trillion dollars is significantly more than
Lehman Brothers’ valuation during their collapse in 2008.
The contagion from a collapse of
this magnitude could potentially trigger a systemic banking collapse the likes
of which the world has never seen. The EU would almost certainly disintegrate
upon a collapse of this magnitude, as Deutsche Bank is the largest bank in
Germany - which is essentially the financial heart and soul of the EU.
When Jacob Rothschild says that he
is buying gold because the central banks are out of control, you begin to
understand the scope and magnitude of what is transpiring, as his family has
been in de facto control of the world’s central banks for centuries.
Deutsche Bank shares have fallen
sharply on the news that German Chancellor Angela Merkel won’t bail out the
struggling bank, with shares falling by as much as six percent in early week
trading, turning in their worst performance since 1992. Since just January, the
bank’s shares have lost over 52 percent of their value.
Merkel has also refused to provide
state financial assistance to Deutsche Bank in its legal battle with the U.S.
Department of Justice. The chancellor made her position clear during talks with
Deutsche CEO John Cryan, according to Focus magazine. The German-based lender
may be fined up to $14 billion over its mortgage-backed securities business
before the 2008 global crisis.
The German Chancellor also noted
that Deutsche Bank will not be getting a bailout from the European Central Bank
– the lender of last resort for European banks.
Revealing the truly dangerous threat
the German megabank poses to the international banking system, a report from
the International Monetary Fund in June implied that Deutsche Bank was a
systemic risk to the global financial system.
Many fear that in the wake of
Merkel’s refusal to bail out Deutsche Bank, Germany may now be considering a
bail-in instead?
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 bailout, 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 bailouts, some
governments now require the investors and depositors in the bank to take a loss
before taxpayers.
Essentially, this entails the bank
stealing deposited funds, with virtually no recourse for those individuals who
have their savings stolen.
It’s not at all beyond the realm of
possibility, as it has happened before in very recent history. To keep the bank
solvent, 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.
Perhaps this explains why in
mid-August Germans were told by their government to stockpile 10 days worth of
water, and five days worth of food in case of a “national emergency” hitting the
country, with the Czech Republic following suit and making a similar
announcement within days of the German warning.
Deutsche Bank’s unbelievably risky
portfolio and its exposure to the derivative markets, which stands at over $40
trillion dollars, would undoubtedly cause exponentially more damage than the
Lehman Brothers collapse did back in 2008, which precipitated the Great
Recession of 2008.
This risk of failure has now gotten
so threatening that a number of funds that clear derivatives trades with
Deutsche Bank AG have withdrawn excess cash and positions held at the lender,
according to Bloomberg.
While the vast majority of the
banks, more than 200 derivatives-clearing clients have made no changes, the
hedge funds run on cash highlights serious concern. The paranoia of an imminent
collapse spread to the US on Thursday, as 10 hedge funds that are Deutsche Bank
clients have decided to withdraw cash and listed derivatives positions from the
bank, according to a Bloomberg News report.
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.
Highlighting the contagion banking
effect, news that some hedge funds were pulling positions and excess collateral
from Deutsche Bank caused shares of U.S. banks to quickly reverse early gains,
according to Bloomberg.
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. One would be wise to be very suspicious of any statements made by a
failing banking institution.
When the government warnings start,
you can be assured that it’s already too late, as the availability of supplies
in the case of emergency would be severely constrained after a warning due to
the large number of people attempting to procure an extremely limited amount of
supplies.
Will Germany become the powder keg
that implodes the global economy? Only time will tell, but all signs point to a
very similar situation to 2008 - but without central banks having much
recourse, as negative interest rates and quantitative easing were some of the
last arrows in the quiver being used to prop up the global economy.
What is certain is that an ounce of
prevention, ahead of any potential collapse, is the most viable solution for
those looking to safeguard themselves and their families. The key is to stock
up on food, water and other necessities in advance of the actual crisis fully
manifesting. A minimal amount of effort put into preparing early for the side
effects of a major economic disaster could be the difference between surviving
the crisis, or not, for your family.
Please share this extremely
important information to help others be prepared for this potentially dangerous
crisis, the severity of which is largely being covered up by mainstream media!
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