Saturday, September 22, 2012

A Quick Summary: DEUTSCHE BANK: Western Economies Are Screwed, And Investors Face A 'Disturbing Paradox'

The authors of this DB report believe a gold standard is possible. I would disagree so long as there is a Shadow Banking system with its derivatives and notional value of over a quadrillion dollars and the ever traditional fractional reserve banking system that tolerates leverage at the excruciating levels of 40x or more which is ultimately a by product of Central Banking and accounting mumbo jumbo. The system  of finances today are to corrupted to be inter mingled with a gold standard. The Gold standard is a lovely idea, but structural problems stand in the way. But I digress.

The problems DB also addresses with the colossally extreme levels of debt are in my opinion beyond ever settling (paying off) and can only be perpetuated by continuous restructurings which only lead to higher levels of debt. Is that really a cycle that go on to infinity? The bankers may be clever, but they are not eternal.

The unworkable solution would be a jubilee, or a reset of the system back to zero with a complete structural reform to prevent a new cycle of extreme leveraging. Banks, or the lending class hold an unprecedented level of control over society today. One upon a time, the leaders of eons ago, were smart enough to know that the lending class would from time to time (every 75 years or so) have to be neutered, or that debtors would owe forever. Jubilee was the answer and it worked.

That certainly was no fun for the lending class who ultimately have become the banksters as we know them today. They have never wanted jubilee as it starved them of fees and the ability to enslave people to permanent debt serfdom. They have since made sure to eliminate the concept of jubilee by becoming interwoven with government. Jubilee will never happen voluntarily again. As a result, at some future point we are doomed to a banking system implosion under its own weight and as it overwhelms the ability for society to share in the supply of available money. Yes, one day your ATM cards will not work. Then, the bankers will find a way to take over and control bartering. Humanity seems destined to lose out to the banking cabal no matter what. Now there's a cheery thought! Now go hug a loved one and go about your 'normal' business. lol.

DEUTSCHE BANK: Western Economies Are Screwed, And Investors Face A 'Disturbing Paradox'

No comments: