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THE WORLD IS ON THE EDGE OF A DEFLATIONARY BLACK HOLE
THE WORLD IS ON THE EDGE OF A DEFLATIONARY BLACK HOLE
The world economy is now at its most dangerous point in history. In virtually every major country or region, there are problems of a magnitude which individually could trigger a collapse of the financial system. Because of the interconnectivity of the system, when the first domino starts falling, there is zero possibility to stop all the other unstable dominoes from crashing one after the other in quick succession.
The world is now staring down a deflationary black hole that is on the verge of sucking into it all global debt of $250 trillion plus unfunded liabilities and derivatives of another $2 quadrillion or so. That would be the end of the financial system as we know it. Governments and central bankers around the world are of course totally aware of this and are standing with their fingers ready to push the button for the biggest money printing bonanza that the world has ever experienced.
Deutsche Bank worse than Lehman
Look at Europe – Deutsche Bank, which is one of the biggest in the world, is valued at less than 1% of its asset value and it has derivatives which are standing at 20x German GDP. The share price is telling us that DB is bust. And so are Greek banks, Italian as well as Spanish, Portuguese and French banks and many more. Deutsche has now become front page news and its survival is no in jeopardy. It has total assets of EUR 1.9 trillion but a deposit base of only EUR 450 billion. This means that DB is totally dependent on short term loans to finance its massive balance sheet. That is extremely dangerous and the reason for Lehman’s demise. The pressure on DB is likely to increase in coming weeks.
To continue reading please click link https://goldswitzerland.com/the-world-is-on-the-edge-of-a-deflationary-black-hole/