Bank On It

Deutsche Bank (DB) has been in the news recently. To summarize, it’s about the biggest banking outfit in Germany and operates in several other countries. This bank is struggling with keeping enough cash flow to serve all their various legal obligations. They invested way too much in the derivatives market and the investments are not paying off.

I suppose I need to explain that just a little. One of the dirty secrets is that banks can create as much money as they like. But that doesn’t pay the bills, because that money needs to get into the hands of all the little people. If you just give them the money, it won’t accomplish much because the money isn’t matched up with an increase in production of goods and services. What we all need is economic activity, exchanging all those goods and services.

So banks take actions to get folks to borrow that money. That’s how banks get rid of their excess cash reserves. But too many people are already in debt beyond their ability to pay; all their productivity is going to service those debts. Of course, part of the problem is government policies that restrict productivity, or policies that scalp too much of that productivity in various forms of taxation that is then wasted on programs that don’t make people more productive.

At any rate, the whole system is choked with excess debt. Derivatives are just another kind of debt, when you boil it down to the essence. So banks are holding too much debt and not enough of that debt is being paid back. The banks don’t mind holding debt when people are paying back their loans, but way too many of those loans were very risky, loaning money to people who were frankly unlikely to pay according to the terms. The banks that knew this looked for ways to spread the risk and make it less painful for themselves. They lied about the nature of the high risk loans and sold it as high-grade loans. So now almost every bank in every part of the world has some of this crappy derivative debt — some more than others.

The Greek banks had way too much of this junk and now they are generally insolvent. I won’t get into how they were suckered into this, just noting what it looks like when things go broke. Well, DB may go broke real soon. When they do, it will be somewhat like the thing with Lehman Brothers in 2008. It sort of cascaded across the whole banking system. Remember the bailouts, how the debt was transferred to the taxpayers without actually fixing the problems?

So now the taxpayers are mortgaged to the hilt via their governments. Individuals may not have any debts, but the effect of government debt is still there. As the government borrowing piles up, the amount of the budget required to pay the interest on the loans takes a bigger and bigger bite. Government ambition has never been known to shrink, so somebody has to take less. Governments haven’t been too smart about this. The next round of banking shocks will see the money stolen directly from all the little people investing in the banks, or just the hapless folks forced to choose one bank or another as a place to store their income. It’s called a “bail-in” — depositors and investors will take the hit for keeping the banks alive.

That’s what causes so much of the social unrest we see in Greece, along with the massive increase in government expenses for things like handling refugees. Greece’s elite allowed themselves to be suckered in multiple ways because of their own petty greed and now the people are on the verge of revolt. But if DB does a bail-in from their investors and depositors, it will involve a much bigger number of people and affect a much bigger economy than just that of Greece, because DB’s situation is much more complex.

We are starting to see the knives come out. I’ve often tried to warn people that the global banking elite are highly influenced by The Cult. They’ll work together when things are going well and mercilessly screw us little people, but they are fiercely competitive and won’t hesitate to skewer each other. The other banks will let DB fall if that costs less than trying to help. Now, the European Banking masters are trying to keep it afloat, but they can’t control the broader sentiment of market investors who are selling their DB stock. We can’t know how this will turn out because there are too many independent actors involved.

You can bet they’ll try to hide the facts from us, so don’t expect to get the news until it’s too late for victims to take action. For example, DB is lying about some kind of computer networking glitch is cutting off ATM withdrawals. DB is in panic mode.

As always, our Father is in control. We knew this stuff was coming a long time ago. I’ve done as much as I could up to now trying to help you all reduce your vulnerabilities. Not so much prepping for disaster like all the crazy Preppers, but preparing your lives by engaging your hearts with a different value system. We should rejoice that God is revealing Himself through wrath, because His wrath on sinners is blessing for His children. You just have to make a shift to an alternative system, a moral currency deposited in eternity in the Bank of Heaven.

About Ed Hurst

Disabled Veteran, prophet of God's Laws, Bible History teacher, wannabe writer, volunteer computer technician, cyclist, Social Science researcher
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