It looks like Deutsche Bank is heading toward failure. Why might we be concerned?
The problem is that Deutsche is too big to fail — more precisely, that the new Basel III bank resolution procedures now in place are unlikely to be adequate if it defaults.
Let’s review recent developments. In June 2013 FDIC Vice Chairman Thomas M. Hoenig lambasted Deutsche in a Reuters interview. “Its horrible, I mean they’re horribly undercapitalized,” he said. They have no margin of error.” A little over a year later, it was revealed that the New York Fed had issued a stiff letter to Deutsche’s U.S. arm warning that the bank was suffering from a litany of problems that amounted to a “systemic breakdown” in its risk controls and reporting. Deutsche’s operational problems led it to fail the next CCAR — the Comprehensive Capital Analysis and Review aka the Fed’s stress tests – in March 2015. Continue reading
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US loses Simulated Air War with China
The Rand Corporation, one of the Defense Department’s most trusted and longest running contractors, was hired by the Pentagon to carry out a computerized and simulated war between China and the US. The results were so horrifying, they were deemed classified, but were leaked to the press. What the computer models showed was that in the most likely scenario for a US-China war, the United States was soundly defeated by the Chinese military.
Most Americans will immediately and arrogantly close their ears to any suggestion that the US could lose a war to anyone. So, it’s a good thing that war correspondent David Axe and War Is Boring published the step-by-step actions each military takes to show readers exactly how and why America loses. The account, leaked to the media and published by Medium.com, shows how the blame lies squarely on one thing – the F-35 Joint Strike Fighter’s abysmal failure in combat.
According to the Rand war scenario developed for the Pentagon, the most expensive military weapon in the history of mankind is a complete and utter failure. The futuristic warplane is supposed to replace all other jet fighters in the US arsenal at a cost of $1 trillion and climbing. As one critic published a few weeks ago, that’s enough money to buy a $100,000 home for every homeless family in America for the next six generations.
The F-35 didn’t fail because of its recurring engine fires or the problems it’s still having with vertical landings and take-offs. It failed because it was designed to do too many things. And sometimes, especially in war, quantity beats quality. We used to joke as teens that you could line up the Chinese and machinegun them down all day and night and they would still reproduce faster than we could eliminate them. Ironically enough, that’s basically the tactic that leads to America’s defeat to the Chinese military in Pentagon simulations. Continue reading
Air Force nuclear missile unit fails key security test, in latest setback
The Chinese, Soviets, North Koreans and even Iranians make daily advances in both military tech and its capability — whereas the U.S. is now floundering and stumbling on a daily basis, even committing suicide via nuclear disarmament.
An Air Force unit responsible for dozens of nuclear missiles failed a recent safety and security inspection — a setback that comes just months after the Air Force temporarily sidelined 17 officers in connection with a prior inspection flop.
The latest failure was recorded by the 341st Missile Wing at Malmstrom Air Force Base, Mont. According to Air Force Global Strike Command, the unit received an “unsatisfactory” rating during the inspection in early August after personnel made “tactical-level errors” during an exercise.
“This failure resulted in the entire inspection being graded ‘unsatisfactory,‘” a statement from Global Strike Command said. Continue reading