What is Wrong with Deutsche Bank?

 End Times, EU, Finance, GLOBAL ECONOMY, New World Order  Comments Off on What is Wrong with Deutsche Bank?
Sep 302016


CNBC: “German officials could be about to find themselves in an uncomfortable position: Being called on to show they’re ready to rescue a bank in a part of the world where such operations are considered taboo.

 Deutsche Bank came under intensified market fire Thursday, the latest salvo being a Bloomberg report that a small number of hedge funds are trimming their sails at the German bank.

In a broad perspective, the move would represent a minor dent in Deutsche’s derivatives clearing business. But at a time when investors are fearing what the future holds for the highly leveraged institution, such news is enough to cause ripples.”

Opinion: European banks, reflecting the weak European (Socialist) economy, have had financial troubles since 2008. But until now, Germany has been the bright spot, even being the lender to Greece to avoid that nation from exiting the EU.

Deutsche, the third largest bank in the EU, posted its first full-year loss since 2008 in January, due to a variety of problems including a €5.2bn (euro) provision for fines and lawsuits, sending its shares lower and pushing its new bonds into a tailspin.

And Deutsche Bank has a problem with derivatives.

Here is the textbook definition: A derivative is a contract that derives its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate, and is often called the “underlying.”

Derivatives can be used for a number of purposes – including insuring against price movements (hedging), increasing exposure to price movements for speculation, or getting access to otherwise hard to trade assets or markets.

If that made no sense – don’t worry – you’re in good company. After a career in the financial industry, I don’t understand it either and any one who tells you they do is either lying or a computer.

There are 6 main classes of investments: stocks, bonds, commodities, real estate, collectibles and cash. A derivative is a play on one of those asset classes with an almost infinite amount of what ifs.

They are invented by financial whiz-kids using computer programs and sold to institutions and unsuspecting retail investors as safe and predictable. They are neither.

Deutsche Bank has $65 trillion in derivative exposure, an almost inconceivable amount of money.

When a hedge fund trades in these instruments they have to put up cash. Yesterday 11 of 200 institutional customers pulled their cash as a show of no confidence in the bank’s reserves.

Unlike the US, the EU frowns on bank bailouts, and yesterday’s drop reflected the fear that another Lehman collapse may be around the corner.

If I had to pick out only 1 cause of the financial collapse described by the Apostle John in Revelation 6:5-6 it would no doubt be a derivative meltdown.

For context, it is estimated by financial experts that there are $1.2 quadrillion in derivatives in existence.

But since I don’t really understand it, and will not be here to see it, there is not much point in worrying about it.



The ticking time bomb in Europe's latest economic stimulus

 Bible prophecy, End Times, EU, GLOBAL ECONOMY, New World Order  Comments Off on The ticking time bomb in Europe’s latest economic stimulus
Sep 082016

FRANKFURT AM MAIN, GERMANY - JUNE 05: (EDITORS NOTE: Image has been converted to black and white.) Mario Draghi, president of the European Central Bank (ECB), speaks during a news conference at the bank's headquarters on June 5, 2014 in Frankfurt am Main, Germany. (Photo by Thomas Lohnes/Getty Images)

Fortune: “The European Central Bank has pointed its economic bazooka in the wrong direction.

The ECB announced a series of economic stimulus measures on Thursday designed to induce banks to put more of their cash to work. But policies intended to “force” banks to lend rarely, if ever, work, especially if those banks are barely solvent. Europe needs to get real about its so-called “zombie bank” problem and take the hits needed to unclog its lending machine. Throwing more grease on the problem won’t loosen up the gears — it’s probably more likely to start a grease fire.

Mario Draghi, the head of the ECB, famously promised two years ago that he’d do “whatever it takes” to save the euro.”

Opinion: Mario the Keynesian dragon Draghi is ready to print money till the ink runs dry. Keynesian economists only know stimulus. They do not comprehend letting poorly run businesses go bankrupt so that they can emerge under new management and a lean business plan that might actually work.

Printing your way out of financial stagnation has not produced growth in either the US or the EU but that has little or no bearing folks running the central banks.

Negative interest rates, or paying the bank to hold your money, is the latest scheme to discourage saving and force spending to show growth in the economy.

It won’t work either. The economies of the EU and the US have a date with Bible prophecy. Revelation 6:5-6 sums it up with a sudden collapse of currency leading to hyperinflation.

That, you can take to the bank.

 Posted by at 12:17 PM

Israel begins work on NIS 2 billion underground Gaza barrier

 Antichrist, Bible prophecy, End Times, EU, Hamas, Jerusalem, New World Order, UN  Comments Off on Israel begins work on NIS 2 billion underground Gaza barrier
Sep 082016


The Times of Israel: “Israel recently broke ground on a new subterranean barrier along the length of its border with the Gaza Strip, aimed at stopping Palestinian terror groups from tunneling into the country and carrying out attacks.

The Defense Ministry in July approved the NIS 2 billion ($530 million) project that would see a concrete wall — both below and above ground — built along the entire the 60 kilometer (about 37 miles) border between Israel and the Gaza Strip.

Construction on the barrier wall began at the Sha’ar Hanegev Regional Council, to protect a cluster of Israeli towns bordering the northern Gaza Strip from cross-border attacks, the Ynet news website reported.”

Opinion: It is entirely possible that on October 8, Hamas could win the West Bank municipal elections – pushing their borders right up to Jerusalem.

What other sovereign nation is so besieged by terrorism that it has to spend $2 billion on a subterranean wall to prevent its neighbors from tunneling in to kill citizens for the crime of being Jewish and living in their own country?

The UN says nothing, the US says nothing, and the EU wants to boycott Israel’s products.

The nations that continue to support Hamas and remain quiet are as guilty as the terror group, Genesis 12:3.

Sep 052016
Britain's BREXIT Boom

Express UK: “The closely watched Markit/ CIPS UK Manufacturing purchasing managers’ index (PMI) has dealt a humiliating blow to the Remain campaign’s Project Fear predictions, hitting 53.3 for August, up from 48.2 in July and well above economists’ expectations of 49. The increase is the highest month on month rise in the PMI’s 25 year


EU: ‘Serious concern’ over new settlement construction

 Bible prophecy, EU, Israel  Comments Off on EU: ‘Serious concern’ over new settlement construction
Sep 032016
EU: ‘Serious concern’ over new settlement construction

Arutz Sheva: “The European Union issued a statement late Thursday condemning Israel’s decision the previous day to approve the construction of over 460 new Israeli homes over the Green Line, calling it “a serious concern. “The Israeli decision yesterday to endorse an additional 463 housing units in the occupied West Bank and to retroactively approve

Aug 292016
Global Central Bankers Stuck At Zero

Zero Hedge: “As Reuters’ Howard Schneider summarized in his Jackson Hole post-mortem,  “mired in a world of low growth, low inflation and low interest rates, officials from the Federal Reserve, Bank of Japan and the European Central Bank said their efforts to bolster the economy through monetary policy may falter unless elected leaders stepped forward

Aug 242016
EU President: "Borders Are The Worst Invention Ever Made By Politicians"

Zero Hedge: “If The British needed any more confirmation of their decision to leave the EU, Jean-Claude Juncker, president of the European Commission, just gave them a big one. The often incoherent “when it’s important, you have to lie” politician spewed more United States Of Europe tripe this morning when he called for European nations

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