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Tuesday, December 13, 2011

Global economic collapse: D-Day not too far off!

Global economic collapse: the unfortunate day the brakes finally fail

(left) Commerzbank- 2nd largest bank in Germany and (right) Crédit Agricole- the largest retail banking group in France  
(left) Société Générale – large European bank based in France whose credit rating was cut to A1 by Moody’s Dec. 8th. (right) Banca Intesa- Italy’s largest bank and Europe’s third largest in terms of assets.
The coming storm: According to the website, the four largest U.S. banks are in much worse shape than even their European counterparts. J.P Morgan Chase is believed to be carrying as much as $78 trillion dollars in derivative debt, Citibank is said to have $56 trillion, Bank of America is said to have $53 trillion and Goldman Sachs is believed to have $48 trillion. According to BOR’s report, U.S. banks are over-leveraged by debt-to-asset ratio somewhere around the tune of 50:1. It might be worth mentioning that the GDP of the entire world for one year is only $100 trillion and the largest U.S. bank is almost carrying that much is debt exposure. Meaning banks have almost no real money in them, only IOU’s and enough government-printed cash to keep the fiat pyramid scheme going for yet a little while longer until the whole system is so over-stressed with debt that it eventually crashes. – See BOR
Finally, when we hear a conservative news outlet like Reuters doing a segment about a complete crash of the global financial system, perhaps it’s time for all of us to start worrying.

1 comment:

  1. I don't see it as being out of control and the brakes failing, I see it as putting their foot on the accelerator and deliberately crashing it into a brick wall.