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The Financial Disease Spreading Globally No One Will Discuss: “The Real Risk Is Contagion”

Shaun Bradley
August 3rd, 2016
The Anti-Media
Comments (45)
Read by 6,466 people

financial-armageddon

This article was written by Shaun Bradley and originally published at The Anti-Media.org.

Editor’s Comment: No one knows how much longer they can prop up the system and keep appearances. But one thing that is undeniable is how deep the financial crisis really goes. Nearly every Western nation is much more fragile than it appears on the surface; the exposure to derivatives, and the unsustainable system is headed for disaster – and there is no way to contain, stop or “fix” it.

Unfortunately, the perpetrators who have set us up for a fall are likely to escape in their golden parachutes before the disaster hits, and devastation spreads rapidly deep into the fabric of society. What is now a difficult time can and likely will become a nightmare where jobs are gone, money is inflated and worthless, and the real assets have been swindled. The patchwork solutions of the past financial crisis won’t hold, and the big one is falling upon us all like a ton of bricks.

The Looming Financial Crisis Nobody Is Talking About, But Should Be

by Shaun Bradley

The world has been captivated by a continuous stream of disturbing and shocking headlines. Seemingly every other day, different terrorist attacks, police assassinations or political stunts ignite the public into an emotional frenzy. But as fear shuts down critical thinking, banks that control Europe’s financial system are entering a death spiral. Despite what establishment media narratives push, the most dangerous threat to our way of life isn’t a religious ideology or political divide.

The real risk is a contagion that is undermining the core of the financial system, and the interconnectedness of the globalized economy we live in makes containing the problem nearly impossible. Concerns that used to be isolated to the failing state of Greece have now engulfed the rest of the PIIGS nations. If these dominos continue to fall in Europe, the momentum could carry the destruction to every corner of the globe.

Italian banks are the latest on the chopping block in the wake of Brexit. For years, they have been acknowledged as a weak link in the economic chain, but they now face stress tests that could expose the scope of their internal problems. The oldest bank in the world, Monte Dei Paschi, is at the center of the controversy, with an expected shortfall of over 3 billion euros.

Other big names, like UniCredit, are in equally bad shape. Wells Fargo recently found that nearly 15% of all loans held by Italian banks could be at risk of default, a staggering figure to attempt to unwind. Further, England’s departure from the E.U. has sparked questions over the future of the euro — and Italy could be the catalyst for an all out breakdown of confidence. If panic begins to grip the Italian people, things could escalate quickly, potentially triggering bank runs.

Mihir Kapadia of Sun Global Investments explained the current situation in a recent article:

A perfect storm of slow or zero Italian economic growth, low interest rates and politically connected, often corrupt, lending have combined to create a situation where the Italian financial system is in need of a large rescue.

The head of the European Central Bank, Mario Draghi, wasted no time reassuring the markets and downplaying the significance of the hurdles ahead. Draghi is a former governor to the Bank of Italy, and he recently came out in full support of a ‘public backstop’ for the toxic loans. The public backstop suggested is the political term for shafting the taxpayer. Governments and banks alike have no problem shifting the responsibility of the debt onto the citizens, all while chastising them about how excessive their entitlement programs are and framing the greed of everyday people as the root of the issue. For the elites, it is much easier to use austerity measures, inflation, and shaming of the public to deflect blame from themselves than it is to take ownership for their own corrupt actions.

New regulations passed by the E.U. prevent bailout-style action similar to what the U.S. implemented during the 2008 crisis, meaning the only other option on the table is to use customer accounts to re-capitalize, otherwise known as a bail-ins. We saw a test run of this a few years ago in Cyprus, which led to the confiscation of all personal funds exceeding 100,000 euros. In this trial, the seizures only affected the very wealthy, so there was little major outrage; most accounts over the threshold were also held by foreigners, particularly from Russia.

But in such a future scenario, private savings accounts, retirement funds, and IRAs of average citizens could be stolen by the banks — without compensation — to cover their bad investments. Although it would be devastating for Italy to have to implement these tactics to save their failing institutions, the real fireworks would be the effects such a move could have on other key banks and foreign nations.

As time passes, red flags continue to emerge that point to a terminal diagnosis for the system as a whole.Deutsche bank is by far the most crucial in the E.U., as it supports the union’s powerhouse economy of Germany. In the last year alone, however, their stock price has plummeted more than 60%, bringing the total decline to 90% since its peak in 2007. The bank also just announced its plan to close over 188 branches and cut 3,000 jobs in the coming months. The rebound in the American financial sector over the last seven years never manifested in Europe; instead, the value of their banks continued to grind lower, perpetuated by political ineptitude and central bank manipulation. Germany is the last strong economy left to prop up the crumbling trade bloc in Europe, and without its stability, this grand experiment is doomed to fall apart at the seams.

financial

If those signs aren’t bad enough, Deutsche has also become the poster child for the ominous derivatives bubble. It, alone, has amassed an exposure of over $75 trillion dollars in these risky devices, which is almost equal to theannual GDP of the world. This problem is by no means isolated to the European markets; the U.S. banks also drank the kool-aid, and believe it or not, helped create a quadrillion dollar mess.

The empty promises made by financial managers are only as good as the public’s confidence in them. Before the subprime mortgage crisis, it seemed like there wasn’t a care in the world — until everyone got spooked and headed for the exits at once. If a similar stampede occurred today, the implications would be far worse. The amount of money needed to pay out on the outstanding derivative contracts doesn’t even exist, and the CIA’s factbook states that broad money, including all paper currency, coins, checking, savings, and money market accounts, equals just over 80 trillion dollars — a mere fraction of the what it would take to cover the exposure of the banks.

Warren Buffet famously referred to these instruments as “financial weapons of mass destruction.” He reiterated his perspective in a more recent interview:

“I regard very large derivative positions as dangerous. We inherited a modest sized position at [Berkshire’s reinsurance vehicle] Gen Re in a benign market and we lost about $400m just trying to unwind it with no pressure on us whatsoever. So I think it does continue to be a danger to the system.”

The derivative market is one of the most obscure in all of finance. Instead of buying a share of a company, or a commodity like oil or corn at a future price, a derivative has no value on its own. Its entire worth is derived from the performance of other parts of the market. It is essentially a side bet on the price movements of real assets. If the major banks, like Deutsche, were to go under, all of those derivatives would be wiped out and could light the fuse on this economic time bomb.

Even George Soros has commented on the ongoing crisis in the E.U., saying:

“Europe’s leaders must recognize that the EU is on the verge of collapse. Instead of blaming one another, they should pull together and adopt exceptional measures.”

The Italian banking crisis and the ballooning derivative market may seem like a trivial issue that is out of sight and out of mind, but the black hole it could open up would destroy our way of life. Thinking about these possibilities can be terrifying, but there are steps that can be taken to ensure individuals at least have an insurance plan in place. Becoming educated on the financial system we’re living in is paramount to having the foresight needed to take action.

Developing technologies like Bitcoin and other cryptocurrencies have created an entirely new monetary system that isn’t subject to the corruption of the broken centralized model. These peer-to-peer networks can secure wealth while allowing unprecedented mobility and anonymity. Other forms of stable money, like gold or silver, also play a key role in financial independence. There are few assets with zero counter-party risks, and precious metals allow each individual to become their own central bank.

Being self-reliant is also a powerful tool; not being dependent on someone else in a worst-case scenario is crucial to thinking clearly when financial panic breaks out. There is no antidote for the potential chaos bearing down on us, but building strong relationships, obtaining basic skills, and stockpiling the necessities of daily lifecan provide peace of mind and preparedness.

A chain of events has been set in motion that will expose the massive fraud world banks and governments have perpetuated on their citizens. When fear porn is being promoted on the major networks, keep in mind the real threats to freedom and security will not be openly announced. The focus on the lone nutjob that kills 20 or the spread of deadly pandemics, for example, is nothing but propaganda aimed at shifting attention to things that are uncontrollable. Ensuring the masses feel helpless and in need of the government’s protection is priority number one for the ruling class. Talking heads and hedge fund managers will be eternally optimistic on the outlook for the future, even as the collapse becomes undeniably obvious. Problems for the European Union will continue to build, and the risk of the disease spreading to other economies increases by the day. Unfortunately, this Ponzi scheme system we built our societies on has left us vulnerable to any well-timed black swan event.

This article was written by Shaun Bradley and originally published at The Anti-Media.org.

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Author: Shaun Bradley
Views: Read by 6,466 people
Date: August 3rd, 2016
Website: http://theantimedia.org/looming-financial-crisis/

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45 Comments...

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  1. AGENT SKINHEAD says:

    I WANT A BETTER WORLD FOR … WHITE FOLK… Though I destroy myself in the attempt!

    • eppe says:

      Agent, you are alright.
      We all have our own devils to face.
      Be well all…

      • AGENT SKINHEAD says:

        Thanks eppe. Though I can’t afford any weakness… Got my booties back on Birthday Bwoy , Happy days fella xXx.

      • WhoWTFKnows... says:

        Besides Bipolar, little man snail syndrome, eppi ego, bigger than life liar, has alcohol demons that chase him daily. Drinking and typing is his motto. Don’t you have some cable line to lay today? Does your boss know you waste business hours, chasing demons on his computers? Make sure you punch in and punch out on time worker bee.

        ~WWTI…

        • eppe says:

          What a sad little boy you are.
          Compulsive liar.
          Comes here and slanders posters.
          If he died today, who would care?
          I would, since my personal hemmoroid would be gone.
          A 96 hour leash could fix that.

          Does anyone know his problem???

  2. eppe says:

    Hold on folks, it will get crazy for the next few years.
    But yall know that, since we are preppers.
    Some of us prepped before it was a word.
    Contrairy to some posters belief…

    Be well all, turned 57 today.

    It is not the age, but the mileage and terrain.
    Lately I feel all 3 at once…

  3. AGENT SKINHEAD says:

    At this very moment, I’m listening to a MSM Fagot presenter telling me that Trump is going to drop out of the Presidential race.

    WTF… I loath this LBC Iain Dale Presenter here in Britain and his anti-Republican Donald Trump bullshit.

    Like who the fuck cares about a “crying baby” …apart from good milk providing mothers?

    SHUT THE FUCK UP YOU LIBERAL C U N T S.

  4. aljamo says:

    Happy Birthday Eppe, damn I wish I was 57. Collapse, do you mean money printing presses smoking at warp speed can’t bail us out this time?

  5. AGENT SKINHEAD says:

    A very happy birthday “uncle eppe” and many happy returns of the day old bean xXx

  6. AGENT SKINHEAD says:

    If this is AGENT SKINHEAD for every post then… Please forgive me… I know you people know how Macs site works sometimes!

    Peace up to ALL here.

    Very happy birthday eppe.

  7. Houston/Cypress/Katy/Shtf says:

    BAD NEWS FOR TROLLS ON THIS SITE. YOU KNOW THE ONES WHO COME ON HERE TO ATTACK ME, CALLING ME NAMES, AND OTHER BS. Well you wont be able to convince the legitimate posters on this site anymore because I am OFFICALLY HANDING YOUR ASSES TO YOU IDIOTS.

    http://www.thecommonsenseshow.com/2016/08/03/venezuela-is-beta-testing-executive-order-13603-food-shortages-and-slave-labor/

    I had commented on the fact that Venezuela was the testing ground for martial law to see how bad things would get. The scientist, I have to give him credit.

    HCKS.

    Nice try trolls, you wont be talking anyone of this one. Hodges just posted on it and I heard that this was the case 3 months ago.

    • MommaD says:

      HCKS,
      I heard that early today. The city folks are being taken out of town to work the fields for two months at a time, unless of course they are needed longer, which I’m sure they will. Basic slave labor, work for food, no pay.
      Sad, it’s probally coming here before long.
      Take care

    • MommaD says:

      HCKS,
      I heard that early today. The city folks are being taken out of town to work the fields for two months at a time, unless of course they are needed longer, which I’m sure they will. Basic slave labor, work for food, no pay.
      Sad, it’s probally coming here before long.
      Take care

  8. Observer says:

    When you have to borrow money to pay the interest on your debt, you are in deep trouble. The US government borrows money to pay the interest on their debt. They have a printing press and lots of ways to hide the problem. But still, the problem exists. It won’t go away. It gets worse every day. Slowly but surely the standard of living goes down. We’re at the breaking point. Any month now and wham! Right in the kisser.

    • ponomo says:

      Amen…Observer!

      • Them Guys says:

        Every Nation on earth has its own form of money, own printing capability, own right to do so.

        So why do so many folks think it is so swell an idea that out of all aprox 203(?)global nations in total, ALL but a small few of aprox 4-5 nations in total have the policy of Borrowing their Own Cash money, FROM jewish banksters, and then agreeing to Repay that borrowed cash WITH Usury-intrest, TO the same jewish banksters?

        And furthermore in a nation such as america at least 80-something percent plus, of said jewish bankster folks do Not even reside within usa lands NOR are they even an usa citizen!

        How and why in the world does anyone, let alone top national rulers and elected officials think this policy and program to be so swell and proper?..To Borrow whats Already rightfully Yours, then agree to repay with intrest too?!! It is Already Ours so no real need to borrow it capisch?

        When in Reality EVERY such nation can RIGHT NOW TODAY Tell said jewish banksters to Piss off and scram for we are not going to comply with this policy any longer.

        And also tell them bastard banksters that furthermore we also repudiate that debt owed and refuse to EVER repay it Nor ANY of the usury-intrest you banksters have attached as a condition of Loaning Our own Cash we already Own back to Us!

        Thats precicely what Germans did back during worlds worst ever depression when germany was hit hardest of all developed nations then in the wiemere republic admin.

        Them germans told the bankster to GET the hell Out of germany and screw you and that fraudulent aquired debt and usury intrest we aint paying a cent more.

        And germans Did boot out jewish banksters and in just under five yrs time made the best and greatest comback financially and nationally than all other nations at that time, including america which remained bogged down in great depression for many more years.

        And germans did that withOUT harming anybody and not harming a single hair on a single jewish head.

        No main problems existed in germany then other than the same great depression troubles every nation had then…Untill of course in Late spring of, 1933 when “International Jewry Declared War on germany and German folks everywheres they existed globally”, made Headlines in Every major global newspaper then, check newspaper archives if you doubt that as true.

        Then, only After War was first declared against germany did them german folks get kinda fed up with and testy towards germanys population of, jewdeo-bolshevik-kommies that were hard at work for quite a long time prior doing their damn best efforts at destroying germany from within Via Cultural Marxism policy/agendas/programs Much akin to how usa has been ruined and wrecked from within by the exact same marxist agendas and same marxist jewry here in usa as prior was there in germany.

        Once one comprehends these issues and facts, it changes the entire story line, and just perhaps various forms of what they call antisemitism are actually a product of and created by jewry itself, due to their being so expert at nation wrecking be it via cultural marxism methods and agendas or some Other agenda they used before they invented communism.

        But we in usa can totally avoid such problems or antisemitism’s by simply booting them all out instead of just the bankster bunch eh. By All I mean all that are or remain loyal to various jewry scams and swindles and refuse the chance to come out of that system and Join with Us patriot americans etc…they are welocme to remain with us here….But we do need some form proof of said usa loyalty, for, after their tribal track record for past 3500+ yrs now reflects very badly upon the whole tribe in general, do not take My word for it, but rather research the 109 previous nations that were forced to boot them out prior to they infiltrated usa as their new Host nation.

        And Why is it that litterally None of all the so caled “Economic Experts” and writers of such articles never seem to mention the banking “Fix” as per done by germans back in the 1930. They keep telling us NO other posibility of a real fix is possible other than austerity for the masses as done in EU states or total collapse?

        Why not Give Ourselves and Our nation a real fix by simply Repudiating it all as scammed, crooked, criminal Debt done BY design by criminal nefarious jewish banksters and their several shabozz goyim acomplices?

        Germans well proved it works period. it would likewise fix usa problems also and faster and better yet!

        About the Only one thing I can think of that will so swell Fix america that even comes remotely close to rid usa of its scam jewdeo banksters is if we can also rid usa of its savage african blacks, most of them anyways.

        Maybe we need do Both eh?

  9. swinging richard says:

    Happy birthday Eppe. You share the same date as my brother. Wait till I tell him a great man was born on the same day.

  10. AGENT SKINHEAD says:

    What is “contagion?”

    Whatever it is I’ll have a go at mainlining it.

    Sounds cool.

  11. Babycatcher55 says:

    Happy Birthday Eppe! May you have many more! 60 is the new 40. Remember that when you get there!

  12. I do not give a rat’s rear what warren or george say. They are both parasites that prey on others and take advantage of everything they can.

  13. ISIS

    Israeli Secret Intelligence Service

    Nothing is as it seems

    ___

    • WhoWTFKnows... says:

      Just read where Hillary sat on a board of a Company that funded ISIS. They also bought Oil from ISIS.

      Hillary needs to be indicted. Any fools not see this Bitch is a witch traitor to America?

      ~WWTI…

  14. anon says:

    Prep Tips

    I was in a Book Mine today which is a store that sells and buys all types of books on any subject.
    Found a few Military Training and Field Manuals you do not find at the Army Navy store or the Gun shows.

    If you have a store like this in your area, it is a place you should visit and check out for information.

    Might be a little high in price but you pay for info now that will be priceless later.

  15. Asshat says:

    Anon you gotta get this literature before it’s not for sale anymore. Army fm’ online free PDFs you could just print what you want and leave the rest. Never herd of book mine. We got Barnes and noble. Delta press has publications you can order online.

  16. Heartless says:

    When I read Mr. Bradley’s words, “Governments and banks alike have no problem shifting the responsibility of the debt onto the citizens, all while chastising them about how excessive their entitlement programs are and framing the greed of everyday people as the root of the issue” …. I about smashed my screen. Not because it isn’t true that TPTB and Financiers are alike in such a methodology; rather, because they are – and… I am not and never have been on any – repeat “ANY” form of entitlement. And I will include not sucking the govt. teat of Social Security when the day of my retirement comes (if ever). I am not greedy. I give and work for multiple charities. Real money I earn, real time and labor I allocate and exert. So? How the ‘Sam Hell’ am I to be held up as “the problem”?

    These S.O.B.s steal my hard-earned money, strive to accuse me of causing this situation – they will not succeed. What is mine, is mine. I worked damned hard, long hours, sacrificed to build my business, build/pay for(off) my house, raise my kids and own what I do. Someone, anyone, try to commit and act of theft, I will prevent it. Or die trying.

  17. Martus says:

    Cheap interest rates hooks the gullible into becoming slaves, (that includes nations) because there comes a point where you will only be able to pay back the interest owed and those that you owe money too will bankrupt you and the nation.

  18. Military Mom says:

    Been reading on this site for years. Never posted until now. I do get tired of seeing the petty, whiney-butt comments. I don’t agree with every post, but don’t need to get my two cents in just to berate someone. GROW UP–WE ARE ON THE SAME TEAM if you haven’t noticed.

    And happy birthday, Eppe; I tip my hat to ya!

 

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