Global Panic Has Just Started

By Egon von Greyerz – Re-Blogged From Gold Eagle

Greg Hunter interview with Egon von Greyerz on USAWatchdog:

In this Interview with Greg Hunter, Egon von Greyerz says the signs abound that we are nearing the end of this global fiat money experiment.

Asked about the health of the global financial system EvG replied: “The central banks are panicking. They don’t know what to do anymore. Europe is starting QE again with $20 billion a month, but that’s nothing compared to what is coming… This is simply a ‘practice round’”.

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Next Financial Crisis Will Come From Europe!

By Chris Vermeulen – Re-Blogged From http://www.Silver-Phoenix500.com

A financial system stability assessment report from the International Monetary Fund (IMF), about one bank in Europe identified Deutsche Bank AG (NYSE: DB) as the TOP bank that poses the greatest systemic risk to the global financial system. Systemic risk was identified as a major contributing factor in the ‘financial crisis’ of 2008. This is essentially the risk of contagion by the failure of one firm leading to failures throughout its industry.

On February 24th I talked about DB (Deutsche Bank) as the next major bank to fail. Since then price has plunged 31% and it’s likely headed much lower yet.

IMF: The Top Bank That Poses Global Financial Risk Is DEUTSCHE BANK! Continue reading

It’s A Small Club

By Bill Holter – Re–Blogged From http://www.Gold-Eagle.com

For many years we have warned of the dangers of derivatives.  We were laughed at leading up to the 2008 financial debacle when Lehman broke and nearly took the entire system down.  That turned out to be no laughing matter and here we are again at exactly the same situation where derivatives threaten to melt the financial system again.  The difference now of course is the “saving ammunition” has already been spent where sovereign treasuries and central banks have destroyed their own balance sheets.

Two weeks ago, the Fed announced a “48 hour stay in place” provision for collateral of any derivative contracts where the big banks are involved.   http://www.bloomberg.com/news/articles/2016-05-03/fed-expected-to-drag-hedge-funds-into-plan-to-halt-next-lehman  The idea here is to prevent collateral being pulled by the survivor for 48 hours should the bank counterparty become insolvent.  This will give the Fed a window of time to get the fire hose of liquidity out and reliquefy a large bank’s balance sheet before they can break the derivatives chain.  But what does this really do?  Does it make derivatives any more sound or does it really just add more risk to central bank balance sheets and thus the currencies themselves?  ( Derivatives Crisis Of Banks…Worldwide )

It is very important to understand just how important derivatives have become.  Derivatives have been used to push, pull, manhandle and outright price many global markets.  They have been used to paint a picture as “proof” the Alice in Wonderland markets are in fact real.  Not even one single market can get out of control because “truth” anywhere will lead to TRUTH everywhere!  Even one single market left alone to Mother Nature will lead to questions that cannot be logically answered.

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Germans And Japanese Play “Rollover!”

By Bill Holter – Re-Blogged From http://www.Gold-Eagle.com

After my last article we received two logical questions from readers.  The first one pertaining to “gaps” and the Deutsche Bank derivative exposure; the second pertaining to Japan’s strong currency with negative yields while the debt to GDP levels are astronomical.  Below is the first question.

“In the past you have warned about derivative exposure and now gapping.

One of my worst fears as a day trader on a derivatives platform is gapping. That is why I will never have an open position when the market is closed. Even then, that is not guaranteed.

A lot of trading platforms got hammered when the Swiss franc was revalued.

Could you put out a letter for your readers explaining why for example the Deutsche Bank derivatives exposure is so dangerous in terms of gapping.”

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Some Countries Have Begun To Ban Physical Cash

By Graham Summers – Re-Blogged From http://www.Gold-Eagle.com

Central Banks hate physical cash. So much so they there will likely try to ban it in the near future.

You see, almost all of the “wealth” in the financial system is digital in nature.

  • The total currency (actual cash in the form of bills and coins) in the US financial system is a little over $1.36 trillion.
  • When you include digital money sitting in short-term accounts and long-term accounts then you’re talking about roughly $10 trillion in “money” in the financial system.
  • In contrast, the money in the US stock market (equity shares in publicly traded companies) is over $20 trillion in size.
  • The US bond market  (money that has been lent to corporations, municipal Governments, State Governments, and the Federal Government) is almost twice this at $38 trillion.
  • Total Credit Market Instruments (mortgages, collateralized debt obligations, junk bonds, commercial paper and other digitally-based “money” that is based on debt) is even larger $58.7 trillion.
  • Unregulated over the counter derivatives traded between the big banks and corporations is north of $220 trillion.

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What Two Risks From Rising Interest-Rates Could Each Trigger A New Global Crisis?

By Daniel R Amerman – Re-Blogged From http://www.Gold-Eagle.com

Why are interest rates at historic lows in the United States and around the world?

The widely-accepted answer is that very low interest rates exist for the purpose of stimulating economic growth and corporate profits, and are thereby helping the United States and other nations that are struggling with persistent and deep-rooted economic and unemployment problems.

However, if we accept this answer, then another question arises. If the US economy is booming while unemployment purportedly nears a mere 5% – then why do interest rates remain so low? Why the continuous drama about whether the Federal Reserve will slightly increase interest rates?

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