Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Closing Report: Gold and Silver Gain About 1%
By: Chris Mullen, Gold Seeker Report

Northern Vertex Files Preliminary Economic Assessment Report for the Moss Gold Mine in NW Arizona
By: Northern Vertex Mining Corp.

Does The CoT Structure Prohibit A Rally?
By: Craig Hemke

Harry Dent’s Gold Prediction Invalidated
By: Przemyslaw Radomski, CFA

SELLING OUT OF PRECIOUS METALS AND BUYING BITCOIN…. Very Bad Idea
By: Steve St. Angelo

The Bitcoin Bubble Explained in 4 Charts
By: Jake Weber

VXX Sends an Awesome Message from Another Galaxy
By: Rick Ackerman

Geopolitical Risk Highest “In Four Decades” – Gold Demand in Germany and Globally to Remain Robust
By: GoldCore

Asian Metals Market Update: November-22-2017
By: Chintan Karnani, Insignia Consultants

Gold Seeker Closing Report: Gold and Silver Gain With Stocks
By: Chris Mullen, Gold Seeker Report

 
Search

GoldSeek Web

 
Scapegoat!


 -- Published: Wednesday, 25 May 2016 | Print  | Disqus 

By: Bill Holter

Have you ever wondered "who" would be blamed this time around?  To this point, we speak about the "Lehman moment" when we look back at 2008.  Of course it was not Lehman's fault as they were forced, sacrificed or purposely destroyed, however you'd like to describe it.  The way I saw it, the banking system needed an injection of capital, cheap capital and lots of it.  The only way to get public funds was to "create" an emergency BEFORE the emergency became all engulfing, this is exactly what they did.

 

  Now, some eight years and multiple $trillions later we are facing another "liquidity crunch".  It does not make sense that liquidity is scarce after all of the various QE's but it is.  The credit markets are very thin and trading even small pieces of credit has become hard work.  The liquidity is just not there to support fully functional and liquid markets.  The question now becomes, which financial donkey will have the tail of failure pinned on them?

 

  I believe we have been getting the answer over just the last few weeks.  My odds on guess is none other than Deutsche Bank, the largest or second largest derivatives monster on the planet.  They have settled several cases recently including Libor, stock manipulation and for manipulating the London gold and silver fixes.  I find it humorous as we were assured for so many years that gold and silver were THE ONLY things not being manipulated ...how foolish of us to have thought such a thing? 

 

  As you know, DB is now offering 5% rates on 90 day money from it Brussels division.  This makes no sense at all since they should be able to raise money in credit markets or from the ECB directly for nearly 0% or even negative ...but for some reason they cannot.  I have speculated Deutsche Bank has been "kicked out of the club" and their access to capital is being blocked.  This may or may not be true but would make sense since they have agreed to turn state's evidence and rat on other firms misdoings.

 

  The latest, DB had their credit rating downgraded yesterday to two notches above "junk" Deutsche Bank's credit rating was downgraded to 2 notches above junk.  This will obviously make it even more difficult to raise capital and certainly increase their costs for capital.  I find this very curious because from a systemic standpoint, we now have a wobbling counter partner in the derivatives market with well over $50 trillion!  How comfortable can those be on the other side of derivatives with Deutsche Bank?  Are they (were they ever?) really "hedged" or not?  Without a doubt, it will be better not to find out but that is only wishful thinking.

 

  Another aspect is from the judicial side, it now appears the courts are going to allow civil suits against the banks collectively based on criminal acts.  The obvious here is that the banks collectively do not have enough capital to settle all the claims that are sure to come.  What I am saying here is this, the old "pay to play" model which worked so well for so long may be breaking.  It may be that the "paying" part may end up as more expensive than the profits made from "playing".

 

  All of which... which leads me to an important conclusion, the "banks", collectively, need the system to come down and they need someone to blame.  The "someone to blame" part is obvious, but why do they need the entire system to come down?  Think about this, if the collapse is systemic then no one individually (except Deutsche Bank?) will have fingers pointed at them.  The next logical point is this, how will a court be able to find for plaintiffs if the banks are ALL broke?  Can you really squeeze blood from a stone?  And penalizing the banks, no matter what they did would certainly not be viewed as something "for the common good". 

 

  Let's face it, the system is coming down one way or the other.  If you cannot see this yet then all I can say is "you don't know that you don't know" and good luck to you.  If the banks have reached the point of no return, doesn't it make sense to "control" the crash?  Or at least the narrative?  Doesn't it make sense to be able to point a finger at one particular bank as the reason instead of admitting it is ALL the banks and the system itself that was flawed.  It will be very interesting to see how this exactly unfolds but my money is on Deutsche Bank as the Lehmanesque scapegoat!

 

 Speaking of scapegoats, I am sure you saw the Senate vote last week that "sovereigns" (think Saudi Arabia) can be sued civilly.  The finger has been pointed at the Saudis for being complicit in 911.  The Saudi press returned volley yesterday by claiming the U.S. government was complicit themselves Saudi Press Just Accused US Govt of Blowing Up World Trade Centers as Pretext to Perpetual War  .  I think what is being missed here is both the Saudis and the U.S. are moving away from the official (impossible) story.  Neither now claim that 19 Arabs did this on their own!

 

  Do you see the importance of this?  "Truth", (uncovered in these small portions) is slowly coming out via "truth bombs".  The official stories whether they be financial, political or geopolitical are having small shreds of truth added in.  As I have said all along, I believe we will see the mother of all truth bombs dropped by Mr. Putin with an absolutely "shocked" China looking in.  Any sort of truth bomb will have U.S. (Western) financial markets as the prime target...  Can Western markets even survive the real truth? 

 

  This has been a public article, if you enjoyed this and would like to see all of our work please click here to subscribe

 

Standing watch,

 

Bill Holter

Holter-Sinclair collaboration

Comments welcome 


| Digg This Article
 -- Published: Wednesday, 25 May 2016 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.