Deutsche Bank is now been classified as a problem bank by FDIC and has been included in a list of banks to be watched. This is the biggest bank in Europe. It cannot be merged within Germany with Commerce Bank for there is just not enough equity to overcome the derivative losses. The only other candidate is BNP, but that is a French bank. This is where the fairytale of Euroland ends. They wanted to create a single currency, but they were unwilling to actually merge the economies. This is why our sources in Italy argue they are now an occupied country.
A merger of BNP with Deutsche Bank would mean Germany is subservient to France. That is not “politically” acceptable. The entire “BAIL-IN” scheme was NOT because the government wanted to hold banks “responsible” but because a bailout of banks in one country would be seen as a transfer of money from one country to another. This exposes why the Euro is in serious trouble. There is ONLY the idea of a single currency and then Brussels will dictate what everyone else must do, but Brussels refuses to take responsibility for the debt and banking system of all of Europe.
From the very beginning when the committee in charge of creating the Euro came to our WEC in London, I warned that (1) there would be no single interest rate, and (2) without a debt-consolidation, the Euro would NEVER compete with the dollar and ultimately fail. The success of the USA was primarily (1) a single language, and (2) Alexander Hamilton consolidated all the debts of the member states making it the national debt federally. ONLY federal debt is at reserve status. Whatever California does is on them. Their bankruptcy does not threaten the entire country or the status of the dollar. In the EU, because the debts were never consolidated, then the failure of one brings down the whole. The 50 states in the USA can issue whatever debt they want in dollars and their status economically is no different than Brazil issuing its debt in dollars.
There is the EURO CRISIS as Brussels has tried to be half-pregnant. That is why the Euro is doomed!
Full article: Deutsche Bank Formally Classified as a Problem Bank (Armstrong Economics)
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