Home / Foreign Affairs / Major Bank Official: Banks Are “Preparing for an Economic Nuclear Winter” 

Major Bank Official: Banks Are “Preparing for an Economic Nuclear Winter” 

After years of giveaways to megabanks, marketed to the taxpayers as ‘quantitative easing,’ the crutches shoved under the banker-controlled global stock trade are about to snap. Bankers now say they are preparing for the collapse.

In June of 2015, former Congressman Ron Paul predicted that these crutches would fail, and the financial bubbles created by them would send the stock market into a free fall.

“The consequences will not be minor. Surprises will be many, since we are in uncertain waters and the world has never faced the gross misallocation of capital that exists today. The process is self-limiting. It will come to an end, and it’s not going to be far into the future.”

Now, as chaos in the EU and weak corporate earnings create a tornado of uncertainty, banks are preparing for the worst.

According to CNBC quoting a major lender, banks are “preparing for an economic nuclear winter situation.”

The chaos in the market has major bank officials running for the hills. According to CNBC, European banks, in particular, have had a very tough six months as the shock and volatility around Brexit sent banking stocks south. Major European banks like Deutsche Bank and Credit Suisse saw their shares in free-fall after the referendum’s results were announced. In the U.K., RBS was the worst-hit, with its shares plunging by more than 30 percent since June 24.

On Sunday, speaking on the condition of anonymity due to the fact that revealing this information can get bankers killed, a source from a major investment bank told CNBC “that financial services firms have put together a strategy in place that takes into account the worst-case scenario that could happen by the end of this year.”

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“This could mean triggering Article 50, referendum in other European nations leading to a break-up of the euro or sterling hitting below $1.20 or lower. The banks are ready for anything now,” the source said.

This grim warning comes after the Royal Bank of Scotland has warned its investors of a “cataclysmic year.” In an eerily ominous note to its clients early this year, the megabank predicted another worst-case scenario.

“Sell everything except high quality bonds. This is about return of capital, not return on capital. In a crowded hall, exit doors are small.”

In the note, RBS’s credit chief Andrew Roberts told investors how Quantitative Easing has failed and was expected to fail.

We have been told for 7 years now since the credit crunch, under QE, to borrow money and invest it in one of 3 things: 1) EM 2) credit 3) global equities. This is a big picture, multi-year bet that has been taken, which has worked fine, and stopped working 10 months ago, (this is NOT NEW).

As the Guardian’s Larry Elliott points out:

Markets have been supported for some time by low-interest rates, stimulus measures from central banks including quantitative easing, and hopes of economic recovery. But with the Federal Reserve raising rates and the Bank of England expected to follow suit, that prop is being removed.

Those who pay attention to the effects of central bankers looting their respective countries have long pointed out the mathematical certainty that is an economic collapse.

The collapse of global markets is inevitable, as it is a natural correction to the wholesale fleecing of the citizens through the unscrupulous actions of central banks.

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Ron Paul sums up the situation perfectly:

The credit and new money, when created by a central bank, is delivered to the market in a political fashion for which the one percent receive special benefits. It allows the pyramiding of debt to fractional reserve banking, which compounds the long-term problems.

It may be fun while it lasts, but it always ends with a crash.

Matt Agorist is an honorably discharged veteran of the USMC and former intelligence operator directly tasked by the NSA. This prior experience gives him unique insight into the world of government corruption and the American police state. Agorist has been an independent journalist for over a decade and has been featured on mainstream networks around the world. and now on Steemit
  • David Bedford

    in times of banking chaos turn real money gold and silver.

    • Rassah

      Even better, bitcoin. That they can’t seize in times of trouble, and you can take across the border without confiscation.

      • Kevin

        Bitcoin? LOL. You can’t be serious! It won’t be accessible should there be an EMP attack or if the power grid fails. Don’t be so sure!

        • Rassah

          Neither will dollars, euros, or any of the other of the world’s currencies. What’s your point?

          • Rabelrouser

            You are right about standard currencies becoming worthless in such a senario, as with all “electronic currencies” being the same during a crash.
            The People need to have their own form of trade to rely on, that being a barter system and using gold and silver as currency.
            The former can not be stopped and the later will always have value and wealth.
            Always Remember the Old Saying;
            An Empty Stomach makes for a Willing Slave.
            Prepare for the worst by storing useful items for barter and food for survival. Create in your neighborhood a community to work together where everyone supplies something to the good of all.
            Those who will not initally, will, once their stomach starts to gnaw at them, and they realize the folloy of their original thinking.

          • Rassah

            In a scenario where all networks are wiped, which would not only kill currencies but all business logistics, and thus even food and water deliveries, I doubt anyone will care about gold or silver. People will be bartering for useful stuff like cans of food or bullets, not shiny metals they have no way of testing to not be counterfeit. But I highly doubt such a scenario will happen.

          • Rabelrouser

            I agree with your premis, but how did you come to the conclusion that something of that nature would’nt happen?
            Just curious.

          • Rassah

            We live on a big planet. Some countries could get wiped out, others on other parts of the planet won’t care. Even if the sun has some EMP type event, it’ll only wipe half the planet.

          • Kevin

            Let’s see you act that a virtual currency like bitcoin is a safe bet than the other currencies. That’s my point! It’s not physical, but you make it out to be. Let me guess you turn out to be one of those bitcoin investors?

          • Rassah

            Most currencies aren’t physical already. Less than 5% of US dollars exist as paper. The rest of your US dollars are also virtual currency consisting of just 0’s and 1’s. And since bitcoin exists all over the planet, the entire planet would have to have all its data and networks wiped out for it to disappear. And even then backups exist on paper and media that won’t be affected by EM. Dollars and banks will be wiped, Bitcoin will continue on whatever networks still exist.

  • Prince

    Time to pay the piper…

  • Mary

    I don’t know…I have been hearing about this “major collapse” for years now and it never arrives.

    • Luke

      It did 08 and right now everything is ready for another bigger one

      • SlowBro

        The funny thing about the story about the boy who cried wolf? Eventually the wolf came.

    • Nohwhat

      2008 Was MAJOR, This next one could make that look like a Sunday sale

  • Stan Joy

    Can not keep spending what you don’t have. I forgot exactly how much we, as citizens owe or would have to come up with to bail us out of our debt. We can thank ALL of our elected officials for this. Yes, we have been hearing this for a long time, but you all know that you can’t spend money that you don’t have, UNLESS you are the government of the USA and they just keep PRINTING money!! Yes, I believe it’s coming, sooner than later! Lord God Almighty, we need help!!!!

    • Lenny Reali

      Vote out all the politicians,no exceptions.Try some new blood.

  • michael t

    Mary… watch this space

  • Bobs_Vendetta

    Consider that most, if not all, of the giant banks have been zombie banks since 2008. Zero interest rates (for the first time ever) for the past 8 years, and quantitative easing…a euphemism for creating huge sums of money out of thin air… worked for a while.
    On the horizon is negative interest rates (paying the banks for the privilege of “saving” money there) and bail-ins, in which a bank can use its own depositors money to bail itself out. These two have already started in some places in Europe.

    People who now financial markets better than me can explain how some of what has been happening in recent years has kept stocks (and maybe bonds) artificially high.

    All of the above is unsustainable. Will it be in this downturn in the business cycle, due any year now, or maybe the next one. Before long, the next collapse is coming. One difference is that in 2008 governments of affluent nations took on trillions in debt to bail out the oligarchs. Now those governments are hobbled by massive debts. That option ford not exist this time.

    • ron17571

      People just need to talk to others and drive around and see the empty buildings and strip malls.Go to your local industrial sites.The gov. stats are a bunch of lies.

  • ron

    The truth is a lot of money was created, and it takes time for that much capital to trickle down. Barring any disasters, things may not be so bad, and we maybe in for some good times.

    • raz-0

      Fantasy ledger money created by leferaging made up “assets” doesn’t trickle down.

      None of this would be nearly so bad if the investment spending were actual spending that touched the real economy.

      • ron

        10 trillion is a lot, and the tax payers are ultimately on the hook , some of that would ultimately trickle down? Has to free up money some way?

  • Stan Joy

    Lenny, you are absolutely right, but I am afraid that is never going to happen. I have my fears based on the fact that there are so many give-a-ways that they are not going to vote any of the liberals out and I am fearful that they out-number us! That being said Lenny, we will lose our country, the country that was made great because of our founding fathers and how they set it up. We will become a third world country!! Lord, help us!!

    • sharonsj

      It’s not the liberals, it’s the corporations who own the politicians who write the laws in favor of the corporations. The Fed has given banks trillions of dollars and the banks have used the money to gamble and to rig the system in their favor. None of that money made it to ordinary people. The low interest rate was for the banks and corporations–none of that was passed onto their customers. Did your credit card rate go down? No. Are you getting a decent percentage return from the bank where you have a savings account? No. Are you getting a better rate and a quick approval if you will go into debt on a car, a house, or just about anything that you probably can’t afford? Yes….

  • NobodyInParticular

    This is another interesting article that goes along with this article.

    http://sprottglobal.com/thoughts/articles/jim-rickards-there-will-be-a-war-on-gold/

    Now this is probably somebody trying to sell gold as is the case with a lot of this stuff. However that does not mean it is wrong.

    What I think is interesting and unnerving is the current tension between deflationary pressure and inflationary pressure. IMO “natural” economy is trying to deflate due to various forces. Policy makers are fairly desperately trying to counter this. Lots of stress almost like a geologic fault line. Hard to say what will happen.

  • N_Disnye

    They’ll kick the can down the road, letting the debt rise and rise until they’ve created just the right smokescreen(a war or big false flag event) to justify announcing a financial reset.

    At present the debt already exceeds what it was in 2008, but Vlad keeps thwarting their attempts at provoking war. But now he’s had enough, and whether or not he’s part of the same devious masonic bunch, the road to war is clear.

    And the result is also clear, many grunts and innocents will be sacrificed for the sake of the very few and their ultimate goal of total control.

  • ron17571

    It’s all smoke and mirrors.Printing and borrowing and lies.4 point something unemployment?
    I tell people to get out of debt and get ready.

  • Ectomy

    Look at Venezuela. Food, meds and an alternate power supply
    followed by defensive weapons seem to be critical for individual survival.