ECB and Italy’s bank rescue fund head clash over bailout rules … The European Central Bank and the head of Italy’s bank rescue fund clashed on Monday over the European Union’s tough conditions on state aid for troubled banks. Speaking at the same conference in London, one of the ECB’s most senior supervisors said EU states should follow the bloc’s rules when it comes to dealing with problem banks while the head of Italy’s Atlante fund called the resolution process “absurd.” – Reuters
More bad financial news. Italy, Germany and China continue to decay economically as they move toward financial catastrophe.
Banking sectors are trembling and on the way to toppling. Meanwhile, in China, one of the country’s top businessmen just issued a warning that the country’s dreadful real-estate bubble could pop at any time.
This sort of horrible economic narrative is not a coincidence. It has been painstakingly put into place by the world’s elites. It takes a lot of time and effort to shake the prosperity of seven billion people.
But by establishing the dead hand of central banking around the world and then pumping money for decades into the world’s swollen coffers, the grand debacle has been painstakingly prepared. All that is needed now is a shove.
First you create monopoly money issuers – central banks – that can print as much money as their controllers choose. Then you turn on the printing presses and flood the world with money.
Finally, you encourage people, industries and governments to borrow more than they can afford.
This, in simplest terms, is how you destabilize the world’s economy. It may take a 100 years, or 50 or 10, but by encouraging borrowing and supplying the necessary cash, the economic debasement can evolve as necessary.
We call this “directed history.” The catastrophe now looming is supposed to look both natural and inevitable but it’s not.
That doesn’t make it any less frightening. Germany’s largest bank, Deutsche Bank is on the verge collapse and now comes word that Germany’s second largest bank, Commerzbank intends to cut almost 10,000 jobs and stop paying dividends to shareholders.
Meanwhile Italy and Europe are fighting about Italian bank solvency. Italy wants to put cash into bankrupt Monte dei Paschi di Siena. But EU rules bar state aid to banks except as a last resort.
More, from Reuters:
“There are European rules and those rules have to be followed,” Ignazio Angeloni, a board member of the ECB’s banking supervisory unit told Reuters on the sidelines of a conference organized by Imperial College’s business school. The rules, known as the bank recovery and resolution directive, set out “modalities” that must be followed in order to “understand what can be done”.
What this means, basically, is that the arguing continues while Italian banks continue to topple. It’s not just Germany or Italy either. Portugal, Spain and Greece also have bank sectors on the verge of falling apart.
In China, the troubles are even larger as the sector jeopardizing the solvency of the Chinese economy is not banking but real estate – and real estate drives the entire economy of 1.4 billion people.
Here, from CNN:
China’s richest man’s Hollywood ambitions Chinese billionaire Wang Jianlin made his fortune in the country’s real estate market — and now he’s warning that it’s spiraling out of control.
… After struggling to contain the fallout from the stock market debacle, China’s leaders could face a similar headache in the real estate sector.
The big problem, according to Wang, is that prices keep rising in major Chinese metropolises like Shanghai but are falling in thousands of smaller cities where huge numbers of properties lie empty. “I don’t see a good solution to this problem,” he said. “The government has come up with all sorts of measures — limiting purchase or credit — but none have worked.”
The ongoing banking debacles in Europe could help kill the euro and maybe split the EU itself down the middle. The inevitable deflation of the Chinese real-estate bubble will sink that giant economy into catastrophic depression.
As Europe and China dissolve, the US’s sky-high stock market will deflate as well – maybe in a crash that will far exceed 1929.
Again, it is easy to see these various events as disassociated from one another but they are not. They are all the product of central bank money printing and a determined campaign to ensure that borrowing worldwide outstripped solvency.
The terror of the world’s current climate seems vast and complex but it is really very simple. And the reason behind it is simple too. Those elites running the world want to create heightened global governance.
They intend to destroy the current system in order to replace it with a new one.
And thus, when it comes to the onrushing financial catastrophe, there is probably no turning back. Billionaires and financial executives have been warning about what is to come with increasing frequency and fervor.
No less an authority that former chief economist of the Bank for International Settlements, William White, told the UK Telegraph at the beginning of this year that the current world economic system is insupportable and that a debt-based collapse is inevitable.
He has called for a global jubilee, of the type that used to take place where debts will be forgiven and financial records expunged. He says nothing less will do if the world is to revive itself economically.
Certainly it is possible that bankers will attempt some sort of jubilee as a way to support people as they restructure the world’s economy and further centralize it.
The tools as usual will be a combination of “carrot and stick.” It is easier to move people where you want them to go if they are broke and desolate and you are holding out the promise of promise of free – “jubilee” – money.
We can see the gradual deterioration of the world’s economy but we are not fooled about the course it is taking nor do we wish to provide false hope about the eventual destination.
Again, this is planned event driven by monopoly central banking, money printing and decade’s of elite determination to indebt the world.
The system is artificial. It has been built from the ground up for just this purpose.
If you can absorb this message; if you can comprehend that you, your family, your community and your country are the target of the catastrophe to come, if you can internalize the disaster now being cultivated, then perhaps you can find ways to take action to minimize its effects.
We’ve stated the solutions many times. It includes positioning yourself to have access to food, potable water and housing even in the face of another Great Depression. Having physical gold and silver close by is also important – and also a way to protect yourself.
The current economic climate is insupportable and worse is to come at some point, though the timing is as yet unclear. It may well be that the catastrophes tip over into hyper-inflation as is now occurring in Venezuela. Prepare yourself now, gradually or all at once. Again, what’s going on is planned.
Conclusion: There is determination behind it, as horrible as that is to say. None of this, ultimately, is by coincidence, anymore than the planting of 100-plus central banks around the world is coincidence. The system is meant to fail. But you don’t have to fail with it.