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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 Bankorrealestate.com, 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.

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