Is the World Already Broke?

2012 December 6
by drdog09

Or, Is International Banking a Criminal Enterprise?

First I need to be clear. I have no axe to grind with bankers or banks. Most I have dealt with do a good job, and in a ethical manner. Not to say there are not a lot of incompetents but that is another story. But that’s retail level banking.

But this story broke yesterday —

Forget the perfectly anticipated Greek (selective) default. This is the real deal. The FT just released a blockbuster that Europe’s most important and significant bank, Deutsche Bank, hid $12 billion in losses during the financial crisis, helping the bank avoid a government bail-out, according to three former bank employees who filed complaints to US regulators. US regulators, whose chief of enforcement currently was none other than the General Counsel of Deutsche Bank at the time!

And the observation, though more for flourish, may actually be accurate —

Or actually, since every bank in the world is forced to lie, cheat and mismark its own balance sheets every single day, not least of all the European Central Bank which as of moments ago has to accepted defaulted Greek bonds as collateral, this may just be completely ignored.

After all opening this particular Pandora’s Box may well reveal that not only DB but the world’s entire financial system is completely and totally insolvent.


Here in a nutshell we have lying, falsification, double dealing and revolving door. Only thing missing is sex and I am not sure there. Its so bad I think this should be made into a reality TV series — The Derivative. A dozen banking nymphs jet around the world trying to sell fungible financial instruments on unsuspecting executives.

Here we have a bank that doctored its SEC filings to avoid any taint of being touched by the TARP bailouts. Which is kinda odd since DB could have given the money back a year later and been none the lesser for it. Unless of course the strings attached to the funds would lead to the discovery of an even bigger mess at DB than they were willing to admit.

This is just another case that can be made for anti trust action against the big banks. The bigger question is of course is the world already insolvent?

23 Responses leave one →
  1. 2012 December 6 12:49 pm
    justrand permalink

    “Is the World Already Broke?”

    short answer: Yes!

    Does it matter yet? hmmm…it is starting to, but the residual faith in the system will sustain it for a bit

    Ultimately, as I’ve posited before, it comes down to variations of this:
    Question: If an egg is valued at 25 cents today, and 2 years from now our currency is worth only 10% what it is now…what is the value of two eggs two years from now?
    Answer: Breakfast!…same as now.

    Things retain their value and use…”currency” is an artificial construct

  2. 2012 December 6 1:06 pm
    drdog09 permalink

    There is of course the Big Mac index —

    On a uneconomic note there is a very interesting article over at ZeroHedge — I don’t agree with everything in it but it takes a different perspective of the GOP’s woes quite different from the current wisdom. (such as that is these days.)

  3. 2012 December 6 4:42 pm
    Wylie E. Coyote permalink

    “As survivalists who are preparing to make an economic endgame scenario as comfortable to live through as we can, it is incumbent upon us to consider the kind of company we keep during the gambit. Some allies will make that mad world bearable; others will bring the madness to your doorstep.

    Many preppers are aware of the dangers inherent in our progressively deteriorating Nation. Unfortunately, some of them are completely unaware of the dangers inherent within themselves. Building a solid community of people to rely on during a collapse is absolutely essential, and the larger the group of liberty-minded neighbors the better. But if certain ground rules are not established from the very beginning, a rainbow of personal issues and character flaws could very well destroy years of effort. Care must be taken by all parties involved to ensure that internal conflicts remain at a minimum and that, when they do arise, each person is wise enough to resolve issues in an adult manner.

    I hate to say it, but you will inevitably run into some folks who are beyond compromise and beyond hope. Working with them is like pulling teeth — shark’s teeth — from your jugular. Here are just a handful of powder-keg personalities who will make the apocalypse more than a living hell for you and your friends if they manage to latch onto or take leadership in your survival watch.”

  4. 2012 December 6 5:40 pm
    bc3b permalink

    I read an article a few weeks ago about how small and even mid-size U.S. banks are struggling because they don’t get the advantages the big banks (those that are too big to fail) do.

  5. 2012 December 6 6:07 pm
    JustMary permalink

    The same people who broke everything will be the ones who create whatever system they replace our current one with, and will laugh all the way to the bank (so to speak).

  6. 2012 December 6 6:32 pm
    bc3b permalink

    Has Kalifornia been nuked yet?

  7. 2012 December 6 6:53 pm
    JustMary permalink

    Not yet. We’re just waiting, and drinking. Called Dad tonight after I opened a bottle of champagne just because. Might as well!!!!! haha

  8. 2012 December 6 7:16 pm
    drdog09 permalink

    As mullet suggested, have the NK Unicorns been blasted from a nuke falling short?? 🙂

  9. 2012 December 6 7:21 pm
    drdog09 permalink

    WEC, interesting article you posted. One that is always in the back of my mind is the rouge cop scenario in a collapsing environment. Mentally they are already in the control mindset, its part of their training. Coupled with presence of the color of law they have a fair latitude before even the enforcement system collapses. I don’t see that mentioned too much in the prepper lit.

  10. 2012 December 6 7:39 pm
    JustMary permalink

    #8 Gosh, I sure hope not! Save the unicorns!!!!!

  11. 2012 December 6 7:47 pm
    TLS permalink

    Here’s an interesting article on CA governor Jerry Brown. Think the libs will care that he made his fortune off of blood money? Yeah, me neither.

    Be sure to read to the 2nd half:

  12. 2012 December 6 7:48 pm

    Post 9~~That scenario was played out in NO when the cops there confiscated firearms.

  13. 2012 December 6 8:21 pm
    gnqanq permalink

    Did anyone listen to Rush today when he had Jim DeMint on? Everyone thought Jim DeMint was such a good guy, he was one of us a conservative – I am not buying it. We are screwed. I will never give a dime to the Heritage Foundation – F’em.

    Either Jim DeMint is a liar or a fool. Either one is bad for us.

    If you did not hear Jim DeMint. Here is what he said.

    RUSH: So you’re gonna have a different and a greater opportunity to work against, for example, Harry Reid, than you’ve had in the Senate?

    DEMINT: This may surprise you, but Harry Reid’s a good friend of mine. I just walked into his office and talked to him. The problem is not Harry Reid. I think the problem is, as conservatives, we have not taken enough control of our message and our ideas and communicated them directly to the American people. That’s what we want to do at Heritage is convince the large majority of Americans that conservative ideas will make their lives better.

    HOW in the HELL can you call Harry Reid a good friend when he has shit on everything you believe in and stand for. How can you be a friend with a known liar who lies to YOU and the American public at every opportunity. How can you be a friend with a man who describes your party of hating the poor and middle class. Harry Reid is a liar and a classless individual.

    And you Jim DeMint call Harry Reid your friend. Either you are a fool or a liar.

    And if a Jim DeMint is one of the best we have – then we are FUCKED.

    Good riddance you Piece of Shit. And people wonder why some Americans are loading up on beans and bullets – they see the shit storm headed our way and are preparing.

  14. 2012 December 7 5:33 am

    Spin up the ministry of truth… 7.7 140k -50k revisions for sept\oct.

  15. 2012 December 7 5:36 am

    13 – Implosion the whole party is doing it, sit back and enjoy the show. Fk’em.

  16. 2012 December 7 5:37 am

    I have to that NK unicorn ch1t had me rolling in laughter yesterday.

  17. 2012 December 7 5:40 am

    Sorry just got around to the OP.

    “The bigger question is of course is the world already insolvent?”

    Does a bear…

  18. 2012 December 7 5:55 am

    Oh and minus another 550k+ from the labor force.

  19. 2012 December 7 6:03 am
    justrand permalink

    KnightHawk…the BLS also said this: “Our analysis suggests that Hurricane Sandy did not substantively impact the national employment and unemployment estimates for November

    Wait…WHAT? Every A/P and Reuters report since “Sandy” (including EVERY ONE from everyone from before the election) touted how the ONLY reason things weren’t just peachy was…SANDY!

    Oh, and the Participation Rate fell back 2 points to its historic low…in order to make it appear the number is good.

    again (*sigh*)…according to the BLS website…THEIR numbers…
    there are 500,000 FEWER people employed in the U.S. now than one month ago…FEWER. Yet there are 150,000 MORE humans of working age in the U.S. now than one month ago…MORE. And yet…tah dah…the Unemployment rate FELL????????????

    More people of working age…fewer people working…lower unemployment rate? And they wonder why we don’t believe anything coming from our corrupt government??

  20. 2012 December 7 6:51 am
    drdog09 permalink

    From the `it takes one to know one` dept — — in spades.

  21. 2012 December 7 7:30 am
    drdog09 permalink

    Michigan to become a RTW state? Looks like it unless the guv vetoes.

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