German government calls for disaster preparedness

[Gawan]

Thanks for sharing Pierre. It could be a likely reaction after the Apple slap. According to some other German news also the DAX dropped about 1.5 points today and also DB said they will not pay that much money. In the end it could have been a shocker towards the EU, if you don't behave we make you trouble. Beside some German politicians said if the DB gets in trouble the government most likely will back them up. I also don't think that they have to pay that much since psychos are on both ends imo.

_http://www.handelsblatt.com/finanzen/maerkte/marktberichte/boerse-frankfurt-deutsche-bank-vermiest-dax-das-wochenende/14555638.html

 

[Mike]

DB exposure to derivatives ($72 trillion) seems to be a threat indeed. However this should apply to other banks too:

Five Banks Account For 96% of $250 Trillion in Outstanding US Derivative Exposure … A mere 5 banks (and really 4) account for 95.9% of all derivative exposure … The top 4 banks: JPM with $78.1 trillion in exposure, Citi with $56 trillion, Bank of America with $53 trillion and Goldman with $48 trillion, account for 94.4% of total exposure.

So this focus on DB exposure seems a bit suspicious to me. Is it the German tree who is supposed to hide the US forest? Is it one more maneuver designed to put pressure on Germany? (Cf the 'Volkswagen 'scandal')

Meanwhile, Citi is buying hundreds of billion of derivatives from...Deutsche Bank!

In the past year I have subscribed to Rob Kirby's subscription service http://www.kirbyanalytics.com/ I use to read his work when it was free back in the early to mid 2000's. I always found him to be very insightful and a derivatives expert. He is one of my favorite alternative financial voices.

Either in one of his videos (can't find the exact one) or one of his subscription articles he describes how DB took over the derivatives book of Bankers Trust by buying them after they were having problems or failing - http://www.kirbyanalytics.com/ If I remember right this was to ensure the derivatives system remained intact and didn't crash. This was at the behest of the Federal Reserve. With DB now having problems, the sale of derivatives to others such as Citi, I think Kirby has said, is similar to what happened with Bankers Trust. DB could have easily gone under about a year ago or so and it seems it has been kept alive and from failing so that the systemic derivatives risk could be transferred to others before it collapses or is allowed to collapse. Kind of like passing around the problem to the next bag man before the problem becomes systemic if the original holder fails.

It is interesting with DB, because they were the ones who admitted to manipulating silver in April http://www.bloomberg.com/news/articles/2016-04-13/deutsche-bank-settles-silver-price-fixing-claims-lawyers-say

They were connected to a failure to deliver gold, which seems like it wasn't accurate in terms of how Zero Hedge reported it - http://investmentresearchdynamics.com/there-is-no-default-or-fraud-committed-on-the-xetra-gold-securities/

You have the Zero Interest Rate Policy (ZIRP) in Europe and Germany driving people to cash and to buy safes and the warning to prep for disaster.

Now they are slapped with this $14 Billion fine. Could be DB is being set up as a scapegoat and trigger point in TPTB's plans after the systemic derivatives risk is offloaded. This could be to cause chaos in Europe/Germany when they deem it is time for such in whatever plans they have. They already have implemented the refugee crisis/problems and a economic/financial problem could be in the cards to be the next step to sow chaos.

 

[LQB]

Now they are slapped with this $14 Billion fine. Could be DB is being set up as a scapegoat and trigger point in TPTB's plans after the systemic derivatives risk is offloaded. This could be to cause chaos in Europe/Germany when they deem it is time for such in whatever plans they have. They already have implemented the refugee crisis/problems and a economic/financial problem could be in the cards to be the next step to sow chaos.

I agree Bear - and the latest news on DB, to me, illustrates one example of how the PTB Elite can press the "reset" button on the world financial Reserve system whenever they want.

BTW, I like Rob Kirby too. :)

 

[Ca.]

Deutsche Bank Slapped With $14 Billion Fine By DOJ Over Mortgage Probe

www.zerohedge.com/news/2016-09-15/deutsche-bank-slapped-14bn-fine-doj-over-mortgage-probe

Blowback? Just a few weeks after the EU slapped Apple with a $14 billion bill for "back taxes," the U.S. has apparently responded with a $14 billion fine of their own to Deutsche Bank to settle an outstanding probe into the company's trading of mortgage-backed securities during the financial crisis.

One Falls they all Fall. Derivatives as posted before is the final straw....bring down the _https://www.youtube.com/watch?v=ptQS2h5zwyM

Deutsche Bank Investors Fret Its Legal Reserves Won’t Be Enough Video

Jan-Henrik Foerster September 16, 2016
http://www.bloomberg.com/news/articles/2016-09-16/deutsche-bank-investors-fret-its-legal-reserves-won-t-be-enough

Deutsche Bank AG is moving closer to settling one of its biggest legal cases. How it manages to pay will depend on whether it can persuade the U.S. to lower its initial request of $14 billion, and by how much.

The shares of Germany’s biggest bank plunged on news the Department of Justice is seeking an amount that’s more than twice the 5.5 billion euros ($6.1 billion) Deutsche Bank has set aside for litigation. Aside from the U.S. probe into residential mortgage-backed securities, the lender also faces inquiries into matters including currency manipulation, precious metals trading and billions of dollars in transfers out of Russia.

Reaching a mortgage deal would clear a major hurdle for Deutsche Bank, which has paid more than $9 billion in fines and settlements since the start of 2008, according to data compiled by Bloomberg. Still, JPMorgan Chase & Co. analysts said any agreement exceeding $4 billion would raise questions about Deutsche Bank’s capital position.

“Deutsche Bank is going to be looking at other options it has,” Chris Wheeler, an analyst at Atlantic Equities, told Francine Lacqua on Bloomberg Television. “Maybe selling some of the assets it doesn’t want to sell, or maybe it can find further investors.”

The stock fell 8.5 percent in Frankfurt trading, erasing 1.5 billion euros in market capitalization. The bank’s 1.75 billion euros of 6 percent additional Tier 1 bonds, the first notes that would take losses, fell 5 cents to 78 cents on the euro, the biggest drop since the U.K. voted to leave the European Union.

“Deutsche Bank has no intent to settle these potential civil claims anywhere near the number cited,” the company said in a statement early Friday in Frankfurt. “The negotiations are only just beginning.”

JPMorgan analysts wrote in a note to clients that a settlement range of $3 billion to $3.5 billion would leave the German lender room to settle other legal issues. Any additional $1 billion in litigation charges would erode 24 basis points in capital, according to the note. Analysts at Credit Suisse Group AG said that Deutsche Bank may have to take another 3.8 billion euros in provisions in the medium term.

Deutsche Bank was among the worst-capitalized lenders in European stress tests earlier this year. Chief Executive Officer John Cryan, who took over last year, already suspended the dividend to preserve capital and has repeatedly ruled out tapping investors. The bank’s common equity Tier 1 ratio, a measure of financial strength, was set to edge higher in the second half from 10.8 percent at the end of June, helped by asset sales, Cryan said when the company published first-half results.
Asset Management

The German lender may be forced to sell large parts of its asset management business, including the U.S. unit, or potentially raise equity if the DOJ fine exceeds about $7 billion, according to bankers with knowledge of the firm. Deutsche Bank has raised 31.7 billion euros through three capital increases since the global financial crisis erupted.

Cryan said on Sept. 12 that asset management was an “essential part” of the company.

The bank confirmed that it had started negotiations with the Justice Department to settle civil claims the U.S. may consider over the bank’s issuing and underwriting of residential mortgage-backed securities from 2005 to 2007.

“The indicative penalty for Deutsche Bank of $14 billion is totally unrealistic,” said Hans Ulrich Jost, a fund manager at GAM Holding AG, which owns the lender’s shares. “This is just the opening bid and the beginning of lengthy negotiations likely to settle at a more realistic level of some $3 billion to $5 billion, which would be consistent with the banks that have already settled.”
Past Fines

Bank of America Corp. paid $17 billion to reach a settlement in a similar case in 2014, the biggest such accord to date. Goldman Sachs Group Inc. agreed to a $5.1 billion settlement with the U.S. earlier this year, including a $2.4 billion civil penalty and $875 million in cash payments, to resolve U.S. allegations that it failed to properly vet mortgage-backed securities before selling them to investors as high-quality debt. The settlement included an admission of wrongdoing.

The Justice Department, in concluding previous investigations into the sale of mortgage-backed securities that soured during the financial crisis, typically has presented initial penalties higher than what banks ultimately paid, people familiar with those negotiations have said. The sides may negotiate over the final tab, as well as what conduct the bank will acknowledge and whether individuals will be sanctioned.

Justice Department spokesman Peter Carr declined to comment on the negotiations.

“In defense of protecting its shareholders’ money, Cryan is well within his rights in negotiating a more equitable and just settlement with the U.S. government, and calling this one a punishment that’s several orders of magnitude greater than the crime,” said Tony Plath, a finance professor at the University of North Carolina. Plath expects a final settlement of about $4 billion to $5 billion.

Jim Rogers WARNING 2016 Deutsche Bank is Broke, Derivatives Collapse Coming
Sep 7, 2016
_ttps://www.youtube.com/watch?v=4Kg-M3RlfLs

 

[Pierre]

Although the title of the article below mentions Italy, it shows how Germany depends on exports towards other European countries and its drop in industrial production:

George Friedman: Italy Is the Mother of All Systemic Threats

http://www.mauldineconomics.com/editorial/george-friedman-italy-is-the-mother-of-all-systemic-threats

Italy has been in a crisis for at least eight months, though mainstream media did not recognize it until July. This crisis has nothing to do with Brexit, although opponents of Brexit will claim it does. Even if Britain had voted to stay in the EU, the Italian crisis would still have been gathering speed.

The high level of non-performing loans (NPLs) has been a problem since before Brexit. It is clear that there is nothing in the Italian economy that can reduce them. Only a dramatic improvement in the economy would make it possible to repay these loans. And Europe’s economy cannot improve drastically enough to help. We have been in crisis for quite a while.

Banks were simply carrying loans as non-performing that were actually in default and discounting the NPLs rather than writing them off. But that only hid the obvious. As much as 17 percent of Italy’s loans will not be repaid. This will crush Italian banks' balance sheets. And this will not only be in Italy.

Italian loans are packaged and resold, and Italian banks take loans from other European banks. These banks in turn have borrowed against Italian debt. Since Italy is the fourth largest economy in Europe, this is the mother of all systemic threats.

Bail-Ins, Not Bail Outs

The only way to help is a government bailout. The problem is that Italy is not only part of the EU, but part of the eurozone. As such, its ability to print its way out of the crisis is limited. In addition, EU regulations make it difficult for governments to bail out banks.

The EU has a concept called a bail-in, which means the depositors and creditors to the bank will lose their money. This is what the EU imposed on Cyprus. In Cyprus, deposits greater than 100,000 euros ($111,000) were seized to cover Cypriot bank debts. While some was returned, most was not.

The bail-in is a formula for bank runs. The money seized in Cyprus came from retirement funds and payrolls. Rome wants to make sure depositors don’t lose their deposits. A run on the banks would guarantee a meltdown. A meltdown would topple the government and allow the Five Star Movement, a Euroskeptic party, a good shot at governing.

The bail-in rule exists because Berlin doesn't want to bail out banking systems using German money. Anti-European sentiment in Germany is already growing, with the rising popularity of the nationalist Alternative for Germany party. The Germans feel that they are fiscally responsible, and they resent paying for others' irresponsibility.

Therefore, the German government’s hands are tied. It cannot accept a Europe-wide deposit insurance system, as it would put German money at risk. Nor can it permit overprinting of the euro. That would come out of the German hide as well.

The Italians can only try to manage the problem by ignoring EU rules, which is what they are doing.

Crisis Spreading

And another European economic crisis is brewing. Germany derives nearly half of its GDP from exports. All the discipline and frugality of the Germans can’t hide the fact that their prosperity depends on their ability to export. The ability to export depends on the demand of their customers.

Germany exports heavily to the EU, and the Italian crisis could cause an EU-wide banking crisis. That would cut deeply into German exports, slashing GDP and driving up unemployment. Logically, the Germans should be desperately trying to head off an Italian default. But Chancellor Angela Merkel is not eager to announce to the German people that their economy depends on Italy’s well-being.

Clearly, German businesses are aware of the danger. German production of capital goods fell nearly 4 percent from last month. German production of consumer goods rose only 0.5 percent.

German consumption can’t possibly make up for half of Germany’s GDP. In addition, the IMF recently said Deutsche Bank is the single largest contributor to systemic risk in the world. A rippling default through Europe will hit Deutsche Bank.

The US Piece of the Puzzle

However, the real threat to Germany is a U.S. recession. Recessions are normal, cyclical events that are necessary to maintain economic efficiency by culling inefficient businesses. The U.S. has one on average once every six to seven years. Substantial irrationality has crept into the economy. The yield curve on interest rates is beginning to flatten. Normally, a major market decline precedes a recession by three to six months. That would indicate that it likely won’t happen in 2016, but it could in 2017.

Given the stagnation in Europe, Germany has been shifting its exports to other countries, particularly the U.S. If the U.S. goes into recession, demand for German goods, among others, will drop. But in the case of Germany, a 1 percent drop in exports is nearly a half percent drop in GDP. With Germany’s minimal growth rate, drops of a few points could drive it into recession and high unemployment.

A U.S. recession would not only hit Germany, but the rest of Europe. Many countries export to the U.S., either directly or through producing components for German and British products. The U.S. is somewhat exposed to foreign debt defaults, but not enough to bring down the American system. The United States, with relatively low export percentages and low exposure, can withstand its cycle. It is not clear that Europe can.

The Big Picture

The EU must address Italy’s and Germany’s problems, but its regulations make finding solutions very difficult. This all was put in motion in 2008, but it is not a 2008 crisis. This is most of all a political and administrative crisis. The European system was created to administer peace and prosperity, not to manage the complex gyrations of an economy.

The argument from those who are against internationalism is simple. Sometimes the major international systems fail. The less entangled you are with these systems, the less damage you suffer. And since such systemic failures historically leads to political conflict and crisis, the case for nationalism increases – assuming you aren’t already trapped in the systemic crisis. In any event, increasing nationalism follows systemic failure like night follows day.

 

[Pierre]

Here is an article shedding some light on Deutsche Bank situation. I omitted the last part of the article which goes into technical details about how Monte Paschi transformed a loss into a tier-1 capital increase (via the creation of a joint venture with DB and an equity swap)

Deutsche Bank Charged By Italy For Market Manipulation, Creating False Accounts

http://www.zerohedge.com/news/2016-10-01/deutsche-bank-charged-italy-market-manipulation-creating-false-accounts

For Deutsche Bank, when it rains, it pours, even when everyone tries to come to its rescue.

One day after its stock soared from all time lows, following what so far appears to have been a fabricated report sourced by AFP which relied on Twitter as a source that the DOJ would reduce its RMBS settlement amount with Deutsche Bank from $14 billion to below $6 billion (and which neither the DOJ nor Deutsche Bank have confirmed for obvious reasons), moments ago Bloomberg reported that six current and former managers of Deutsche Bank, including Michele Faissola, Michele Foresti and Ivor Dunbar, were charged in Milan for colluding to falsify the accounts of Italy’s third-biggest bank, Monte Paschi (which itself is so insolvent it is currently scrambling to finalize a private sector bailout) and manipulate the market. Two former executives at Nomura Holdings Inc. and five at Banca Monte dei Paschi di Siena were also charged.

The news comes in a time of heated relations between Italy and Germany, when the former has been pushing to get German "permission" for a state bailout of its insolvent banks only to be met by stiff resistance by the latter as Merkel and Schauble have demanded a bail-in of private investors instead, even as - ironically - it has been Deutsche Bank's woeful financial state that has been in the Wall Street spotlight this past week.

The charges culminate a three-year investigation by prosecutors that showed Monte Paschi used the transactions to hide losses, leading to a misrepresentation of its accounts between 2008 and 2012. The deals came to light in January 2013, when Bloomberg News reported that Monte Paschi used derivatives to hide losses.

As BBG adds, "the charges deal another blow to Deutsche Bank, which is seeking to reassure investors and clients that it will be able to withstand pending U.S. penalties over the bank’s sale of mortgage-backed securities and its dealings with some Russian clients."

In what appears to be another case of Wells Fargo-esque scapegoating of junior employees to keep senior execs off the hook, just weeks after Milan prosecutors shelved a probe against Monte Paschi's former chairman and CEO for alleged market manipulation and false accounting as it "risked undermining investor sentiment", a judge approved a request by Milan prosecutors to try the bankers on charges involving two separate derivative transactions arranged with Nomura and Deutsche Bank, said a lawyer involved in the case who was in the courtroom Saturday as the decision was announced.

DB's Faissola, whose roles included overseeing rates and commodities, was put in charge of Deutsche Bank’s combined asset and wealth management division in 2012 when Anshu Jain and Juergen Fitschen took over as co-chief executive officers of the Frankfurt-based lender. Deutsche Bank last October said Faissola would leave after a transition period, and John Cryan has replaced Jain and Fitschen as CEO.

Just as importantly, the firms are also named as defendants in the indictment, as the Italian law provides for a direct liability of legal entities for certain crimes committed by their representatives. Which means even more legal charges, fines and settlements are looking likely in DB's future.

A trial is scheduled for Dec. 15.

Both DB and Nomura have denied any guilt: “We will put forward our defense in court and have no further comment to make today,” Deutsche Bank said in an e-mailed statement. “I’m convinced that the debate will definitely show that Nomura has no responsibility over Monte Paschi’s false accounting,” said Guido Alleva, a lawyer for Nomura. A spokeswoman for the Japanese bank and a Paschi spokesman declined to comment.

As Bloomberg adds, Monte Paschi’s former executives Giuseppe Mussari, Antonio Vigni and Gianluca Baldassarri, and Nomura’s former bankers Sadeq Sayeed and Raffaele Ricci also will face trial for allegedly obstructing regulators after the investigation revealed that the 2009 deal, dubbed Alexandria, was designed to disguise losses from a previous investment.

The basis for the legal action are two deals conducted by Deutsche Bank and Nomura which took place at the height of the financial crisis, meant to mask Monte Paschi's financial woes. Prosecutors have been reconstructing how Monte Paschi’s former managers misrepresented the lender’s finances in the years through the two deals signed with Deutsche Bank in 2008 and Nomura in 2009. The investigation revealed Monte Paschi arranged the transactions to hide billions in losses that led to false accounting between 2008 and 2012, according to a prosecutors’ statement released Jan. 14, when they completed the investigation.

The fraud first came to light in January 2013, when Bloomberg News reported that Monte Paschi used the transaction with Deutsche Bank, dubbed Santorini, to mask losses from an earlier derivative contract. The world’s oldest bank restated its accounts and has since been forced to tap investors to replenish capital amid a slump in its shares. It’s now attempting to convince investors to buy billions of bad loans before a fresh stock sale.

[...]

 

[Pierre]

According to the Frankfurter Allegemeine Zeitung, the reduced fine (from $14 billion to $5.6 billion) was just a rumor, albeit a convenient one (to prevent a collapse of DB share price). Actually the negotiations have not even begun.

http://www.zerohedge.com/news/2016-10-02/about-deutsche-settlement-rumor-cryan-hasnt-even-started-negotiations-doj

 

[angelburst29]

This article has a graph which shows how Deutsche Bank is connected to all the main Banks in the World. It states: “Deutsche Bank appears to be the most important net contributor to systemic risks.”

Rothschild Doubles Down on Gold as Banking Collapse Begins, Germans Told to Stockpile Food/Water
http://thefreethoughtproject.com/rothschild-doubles-gold-banking-collapse-begins-germans-told-stockpile-foodwater/

Berlin, Germany – The most prominent bank in Germany is at risk of imminent collapse, with potentially profound effects for the EU, the United States and the rest of the world. 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 it’s 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.

Of all the world’s big banks, the I.M.F. said, “Deutsche Bank appears to be the most important net contributor to systemic risks.”

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 bail-out, which involves the rescue of a financial institution by external parties, typically governments using taxpayers money. Typically, bail-outs have been far more common than bail-ins, but in recent years after massive bail-outs some governments now require the investors and depositors in the bank to take a loss before taxpayers.

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 bank’s 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!

 

[thorbiorn]

If Deutsche Bank collapses, it it another "11" that goes down. It wouldn't be more than a coincidence, but ...

Architecture
The towers were built from 1979 to 1984 originally to house a hotel for the Hyatt Hotel Group. The buildings were already under construction when Hyatt cancelled their plans and Deutsche Bank decided to set up their headquarters there.

[...]

The buildings have become a popular backdrop in print media and television as a symbol for the German economy because of the role that Deutsche Bank plays as one of the most important global banking and financial services companies.

 

[angelburst29]

Concerns are growing worldwide about the possible collapse of Germany’s biggest lender, Deutsche Bank, after the US Department of Justice slapped a record high fine on the lender, prompting its market value to plummet and financial problems to ensue; German financial analyst Ernst Wolff explained to Sputnik what it is all about.

US Attack on Deutsche Bank 'Attempt to Destabilize Global Financial System'
https://sputniknews.com/world/20161007/1046088040/us-eu-deutsche-bank.html

Germany’s biggest lender, Deutsche Bank, has been beset by a wide array of problems for which it is now being sued worldwide.

The biggest complaint comes from the US: the Department of Justice is fining the lender $14 billion in connection with the the settlement of its mortgage lending and securitization activities during the 2000's housing bubble. The potential fine far exceeds previous media reports and has raised new worries among investors about the bank's financial health. Deutsche Bank shares have already lost around half their value this year. The bank barely scraped by during European stress tests in July and has warned it may need deeper cost cuts to turn itself around after revenue fell sharply in the second quarter due to challenging markets and low interest rates. Last week German media reported that the German authorities had rushed to develop a state aid package plan for the bank, as its shares hit a record low of $10 per share amid a standoff with US authorities.

German financial expert Ernst Wolff explained to Sputnik Deutschland what the real purposes were behind the US attack on Deutsche Bank.

The expert noted that the recent attack on Germany's biggest lender is certainly intertwined with an earlier EU ruling that Apple had an unfair advantage over its competitors and the ongoing tax investigations against Amazon.com and McDonald's.

I think this is a fight between two competitors, a violent exchange of blows," the expert told Sputnik.

"All of this, in my opinion, has been caused by the policy of global destabilization being pursued by the US. The US is facing huge internal problems: its national debt is heading toward $20 trillion. 60 million Americans live on food stamps. Its infrastructure is forfeited. Its population more and more hates the country's political establishment," Wolff said. Besides, he added, in the international arena, the US is losing the status of a world power.

"To be able to somehow resist it, Washington is trying to hurt its world market partners as much as possible. And it is the EU which has currently in the firing line," he noted.

The financial analyst also pointed out at another point of discord between the US and Europe: the Transatlantic Trade and Investment Partnership Agreement (TTIP). "Speaking about TTIP, I would not use the word "negotiations". They [the US] try to make secret every detail of the agreement while applying pressure and political influence on their partners. This has absolutely nothing to do with democracy. TTIP is of primarily benefit to the American industry, its financial industry. And the Americans will push it through, because they have the stronger leverage. They have the dollar which still remains the world's number one reserve currency," the German financial expert said.

When German politicians are critical about TTIP, this is only part of their election campaign for more votes. However at the end of the day they will capitulate and the TTIP will be signed," he suggested.

Ernst Wolff also said that by hitting Deutsche Bank, the US is certainly "playing with fire." Deutsche Bank is one of the most important players of the "international financial casino." If Deutsche Bank collapses, the global financial system will follow. This is yet another proof of the level of desperation the situation is that Americans have found themselves in at the moment. "One has to ask, however, why the Americans are targeting Deutsche Bank in particular and why now. My assumption is that they are trying to force the German government to intervene and nationalize Deutsche Bank at least in part or may be even completely," he suggested. In doing so, they would destabilize the German domestic situation, since the German population will be overwhelmingly against such a move, he explained.

Besides, Germany would have been isolated within the EU, the expert suggested, because Berlin is against a similar bailout of Italian banks. So this could come as a direct blow to the EU and its strongest country, Germany.

However, in the end the US would ultimately harm itself. Because if the Deutsche Bank goes down, it will cause a "domino effect": it will be followed by the Credit Suisse, JP Morgan and the whole of the world financial system, he finally said.