Babylon's Bankers

EUROPEAN CENTRAL BANK TO DEUTSCHEBANK: SIMULATE A CRISIS

With all the Syria and Skripal goings-on, you may have missed this one, and it's a biggie. This article was brought to my attention by Mr. L.G.R., and it's one of those that invites "careful reading between the lines." The story? The European Central Bank (based in Frankfurt), has ordered Deutsche Bank (also based in Frankfurt), to prepare a "crisis scenario":

ECB Tells Deutsche Bank To Simulate A "Crisis Scenario"

Now, I have no doubt that banks, corporations, government finance ministries and regulatory agencies probably run such games and scenarios all the time. It's the financial equivalent of a wargame, and this, indeed, is what we're being reassured of here, toward the end of the article:

To be sure, in order to avoid a panic that the ECB is preparing for the worst and simulating a full-blown Deutsche Bank bankruptcy, SZ adds that the exercise is not about simulating an event of bankruptcy, "which would be many times more expensive and difficult." In response to the article, the ECB said that it generally gives banks many tasks, without elaborating on the "crisis scenario" it has requested.

Meanwhile, Deutsche Bank said it is routinely tasked by regulators to determine "the consequences of orderly settlement of positions in its trading books." Perhaps, but never until now was Europe's biggest bank asked to quantify how the abrupt end of its banking business, with its associated €48.3 trillion in gross notional derivatives, would affect both the bank itself, and would percolate across markets. (Emphasis added)

All's well; it's perfectly routine, nothing to see here, move along.

Except I suspect, and I suspect the reader suspects, there is much more going on here than standard "financial scenario gaming." For one thing, there's nothing normal about Deutsche Bank's position if one considers those figures alone: forty-eight point three trillion euros' worth of derivatives. That's 48,300,000,000,000.00 folks. Now, just by way of comparison, here's the figures for the USA's gross domestic product:

United States GDP

According to the chart, the USA's gross domestic product for 2016 was 18624.48 billion dollars in 2016, or 18.624 trillion dollars. That means Deutsche Bank is carrying an amount of derivatives on its books that is approximately two and a half times larger than the gross domestic product of the USA.  And that's just Deutsche Bank. Don't forget that at the time of the 2008 "bailouts", to total derivatives estimated to be on the books world wide was in the quadrillions of dollars, that is, several times the entire gross domestic product of the planet. The problem, in other words, is not confined to Deutsche Bank. In other words, as Zero Hedge puts it, " few if any of the outstanding concerns involving Europe's banking behemoth - Deutsche Bank, which has gone thorugh - with €48 trillion in net notional derivatives has been resolved...".

Which brings me to my high octane speculation of the day. Indeed, in true goat fashion, I'm going to climb the tree and walk way out to the end of the twig: for I strongly suspect that the "scenario" being gamed with Deutsche Bank is the tip of the iceberg, and that this is being run across the board with any major banks with large amounts of derivatives on their books.

And what do you want to bet that, lurking behind these scenarios, is a "rape of Russia" model, but this time, applied not to Russia, but the West itself?

See you on the flip side...

 

22 thoughts on “EUROPEAN CENTRAL BANK TO DEUTSCHEBANK: SIMULATE A CRISIS”

  1. Well TURKEY is (and has been, as the article states) repatriating its gold presumably located in the NY Fed. Let’s not forget the country’s links with Germany and the estimated 4 million “German Turks” living in the Reich (sorry Bundesrepublik).

  2. May I recommend a book from I think the seventies titled Pentagonism by Juan Bosch deposed president of the Dominican Republic. It dealt with neo-imperialism but that has always been intertwined with economics in the book colonial wars were waged to loot the home country sound familiar and the prize will be not only Europe but the rest of the world and probably the rest of the solar system and who knows what else.

  3. I’m sorry but I just don’t “get” the point of this post. Are you positing that the ECB is actually encouraging DB to cook up a false-flag scenario whereby DB self-immolates via its derivatives exposure? With the idea that the Eurocrats would actually put such a suicidal op in play?

    I’m sorry, I totally agree that just about all the Western leadership are a bunch of third-rate, leftover sociopaths who can’t even form normal marital bonds, let alone run major nations, but I don’t think any of them (or the money changers behind them) are THAT daft.

    This just has no basic logic behind it. Why on earth would DB self-immolate, taking the EU economy with it? I totally grant that today economics are totally co-opted and entirely false, but all of that manipulation has been done exactly to keep the West’s fiat Ponzi scheme alive; committing financial hari-kari is simply not part of the program. The whole idea is to perpetuate the present scam as far as they can; none of the Money Changers wants to crash their parasitic party while it is still in the least bit viable.

    1. Christ!
      Kick those Money the Money Changer’s ass out!
      Get back to public banking![[where State’s & National Government’s issue their own currencies. The hell with THE international Banking cartel!

      1. not sure when was ever thus…
        Bank of England from 1694 was a private central bank. even after ‘nationalisation’ in 1947 it did not publish proper public accounts. Private Men’s business. Lincoln a little, Jackson for 40 years killed the bank (whilst the robber barons took over). Washington had stock in the BOE through to 1790.(to be fair there was no uSA mint for a while)
        Even if the pollies did print their/our own money, they have them by the balls with blackmail these days and control the media by which to smear.
        Nazis did for a few years , but were still beholden to the BIS and needed war to get around an increasing inflation problem.
        The derivative death star hovering overhead like the sword of Damocles. Bankers too big to even simulate failure and
        the people must pay, get them golden tooth fillings to privatise the gains and socialise the losses.
        Samson options before financial disclosure and reform.
        (Australian banking royal commission is just skittering around the edges.)
        who cares? the drones are coming.

          1. she’s good and honest.
            that is about all the banks, rather than the central banks that control the banks. the economic miracles started off on a low base.. then they get problems themselves later (Chinese unemployed for instance).
            $10 trillion for reboot – $21 trillion went missing last year from gov’t accounts.
            only 3 have state central banks, north korea, iran, cuba. the latter has since castro been ‘illuminated’, Iran you cannot rant about zionism.
            australia is thinking about something like the glas steagal following this lame royal commission.
            you’d have to denuke israel like they are doing to nth korea before embarking on reform.
            public banks will still run by freemasons and zios, though I wonder if this money laundering system had it’s sails deflated how much less corruption there would be (as she says at the end)

          2. Yes Pierre, she good & honest.
            You make some solid points in your analysis.

            I’m fascinated by serendipity; Just before reading your email, I started a DVD/Mafiosa Season 2. Season one was the second layer of the onion/power. Season 2 peels away the next layer where private government[aka public government] & organized crime work hand in hand to for more money & power.

            It surprised me, the intrigues just kept getting deeper and better.

            By the way, I despise royalty & redcoats.
            They’re multiplying like cockroaches.
            Whenever one of the them dies; it’s none stop 24/7 accolades.

  4. Your article is dated 4/15/2018.
    On April 19 2018 Zero Hedge floated another story/Deutsche Bank “Mistakenly” Sends $35 Billion Out The Door. The article goes on to site a series of mishaps in the tens of billions being mistakenly sent hither & tither; but subsequently recovered.

    The ground is being prepped….

  5. Methinks the central bankers long term goal of “owning it all thru bankruptcy” is about to come to fruition. Almost the entire earth bought into their “something for nothing” scheme and are now about to pay the price of doing so. The cost in lives lost will be unthinkable and the end result will be biblical in scope.

      1. Their wet dream: a cashless globalized currency that they have backdoors to and can have ultimate control.
        No doubt the crypto currencies will be cast as a free market battle to decide the winner.
        But that horse has already won;
        it’s just waiting for showtime’s curtain call..
        That’s Show Biz!!

  6. When one becomes accustomed to currency without true value, I think the phrase, “Play silly games; win silly prizes” is most appropriate to this reported situation.

  7. PYRAMID HAIKU 39
    Climb tree and walk twig.
    Giza gas chamber rope day.
    Gravity vector.

    Moving from order to new order goes through chaos crisis.

    Frontiersmen are prepping chaos pilots navigating wilderness.

    Natural state is Wild West. Peace of apple pie.

      1. Johnny Appleseed is memorable aspect of American pioneering, sowing apple seed from Avalon (apple isle), where Arthur is dormant, preceding a new vegetative cycle, when best of blades will be drawn from standing stone (Druid tree).

  8. Mr Global is preparing a “derivatives shredding” service. And Germany could, in an instant, restore the Deutschmark as official legal tender.

  9. (It is important to realize that the ‘total’ derivative amount is different than the ‘net’ derivative amount. Many firms take out derivative contracts on both the ‘winning’ and the ‘losing’ side, to cover catastrophic losses. They lose part of their profit in doing this, but guarantee staying in business. Nevertheless…)

    I see this “European Central Bank ordering Deutsche Bank to prepare a ‘crisis scenario'” as a PR job. For a bank as ‘on the edge’ as DB, investor confidence is crucial. Otherwise, you get a bank run-style scenario, similar to what took-out Bear Stearns in 2007. Anything that can be done to soothe semi-asleep investors will be undertaken. Even if it is as ‘useless’ – except for PR – as the stress-tests demanded of US banks in 2008 (after they pocketed the taxpayers’ money, of course).

    (Might have been triggered by HNA Group’s liquidity crisis and resultant DB stock sell-off…)

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