Turkey Default Risk Spikes to 2008-2009 Crisis Levels; Possible Contagion, Warns Russell Napier

Source: Bloomberg, Financial Sense® Wealth Management. Past performance is no guarantee of future results.

 

All focus is on Turkey right now as their currency goes into freefall and 5-year credit default swaps (insurance against default) have now spiked to levels last seen during the 2008-2009 financial crisis.

Global credit crunch WARNING issued on debt bubble as current trends mirror 2008 crash

A indicator tracking credit is following a worrying trend [Getty]

 

WARNING signals have been felt today after a key credit indicator mirrored the same pattern experienced ahead of the financial crisis of 2008, in a eerie sign that the global economy is heading for another downturn.

A key UBS credit impulse which monitors the changes in credit volume has tumbled by six per cent of GDP since last year.

It mirrors the same movement seen before the financial crisis 10 years ago, raising fears the global bubble could be about to burst and another credit crunch.

Financial Crash Warning: Markets to ‘be hit’ by triple collapse ‘worse’ than 2008 crisis

The next crash could be even bigger than 2008, according to Mike Maloney [GETTY]

 

THE next financial crisis will be worse than the collapse seen in 2008, and investors should seek shelter from the storm in precious metals and crypto currencies, according to an analyst who has predicted a triple market burst.

Mike Maloney said housing, bond and stock markets are now in for a big fall, after forming an ‘everything bubble’ which will have devastating effects when it bursts.

The crash will push investors into gold, silver and the likes of bitcoin, according to the gold analyst.

Eurozone rocked by Brexit: Now George Soros bets €100m on German bank collapse

BILLIONAIRE investor George Soros took out a staggering €100MILLION bet that a major German bank would collapse after Britain decisions to cut ties with the crumbling EU.

The man who “broke the Bank of England” took a short position of 0.51 per cent in Deutsche Bank shares on Friday – the day after the people of Britain backed Brexit.

In growing signs that desperate Angela Merkel’s economy is struggling in the wake of the nation’s decision to leave the EU – Soros Fund Management said its short position was now 0.46 per cent – suggesting it had begun to take profits from the trade.

Germany May Be a Bigger Threat to the European Union than Brexit

Destroy to rebuild and retake Europe is the German plan.

Further detailed information: Germany’s Invisible Crisis – Mauldin Economics (PDF format)

 

Two polls were recently released that call the European Union in question.

A poll in Italy reported that the Five Star Movement (a populist political party that wants to hold a referendum on whether Italy should remain in the European Union) was the most popular political party in the country ahead of local elections scheduled for next month.

On the same day, British researchers who surveyed nine EU countries reported that 45 percent of respondents believed that their country should hold a referendum on whether to remain in the EU.

Europe on the BRINK: Financial disaster looms for Eurozone as markets plunge into the RED

EUROPE’s top stock markets plunged into the red AGAIN on Friday amid panic over the future of some of the continent’s biggest companies.

Germany’s DAX and France’s CAC both dropped this morning before later recovering following a dire day of trading yesterday, which could mark the return to market carnage witnessed at the start of the year.

Germany’s biggest banking stocks have been among the biggest casualties this week, with Deutsche Bank falling by almost nine per cent and Commerzbank down by almost five per cent.

Is the European Union Dead?

 

Years of crises appear to provide a definite answer. But Bible prophecy answers differently.

There is no shortage of commentators predicting the demise of Project Europe. From the eurozone financial crisis to the refugee crisis, Europeans are becoming increasingly skeptical about the future of the European Union.

End of the eurozone? Germany’s biggest lender Deutsche Bank CRASHES with first annual loss

If you’ve been reading here long enough, this shouldn’t come as a shock, especially after knowing that Deutsche Bank is exposed to over $72 trillion in derivatives exposure. To put this in perspective, and as the article states, Germany’s humble GDP currently sits at only $3.4 billion. For further perspective, the $3.4 billion GDP is 0.00004722222% of the $72 trillion in exposure.

Either way, you don’t have to be a financial expert to see Germany has a slight problem on its hands. Litigation charges are likely the least of its worries. The United States economic woes (i.e. debt) might be a seriously problem, but Germany’s are astronomical when considering such things as the debt-to-GDP ratio. It wouldn’t be surprising at all to see Germany collapse and become the falling dominoes catalyst that leads the world economy into a global depression.

The global collapse is a sure bet and is a matter of when, not if. It’s almost a sure bet that Germany will lead the way. The United States is more of an expert in the game of kicking the can down the road.

 

GERMANY could force the European Union into ruin after Deutsche Bank’s share price plunged following the country’s biggest lender’s first annual loss since the financial crisis.

The German lender posted a full year loss of £5.1 billion (€6.8bn) on Thursday – higher than the expected €6.7bn million.

With losses of €2.1bn in the fourth quarter of 2015-16, fears of the entire eurozone toppling are becoming an increasing reality.

Much of Deutsche’s losses have been down to litigation charges, racking up €1.2bn in the last quarter – which could still increase.

Is The Cloward-Piven Strategy Being Used To Destroy America?

In the mid-sixties at the height of the “social revolution” the line between democratic benevolence and outright communism became rather blurry. The Democratic Party, which controlled the presidency and both houses of Congress, was used as the springboard by social engineers to introduce a new era of welfare initiatives enacted in the name of “defending the poor”, also known as the “Great Society Programs”. These initiatives, however, were driven by far more subversive and extreme motivations, and have been expanded on by every presidency since, Republican and Democrat alike.

At Columbia University, sociologist professors Richard Cloward and Francis Fox Piven introduced a political strategy in 1966 in an article entitled ‘The Weight Of The Poor: A Strategy To End Poverty’. This article outlined a plan that they believed would eventually lead to the total transmutation of America into a full-fledged centralized welfare state (in other words, a collectivist enclave). The spearpoint of the Cloward-Piven strategy involved nothing less than economic sabotage against the U.S.

Theoretically, according to the doctrine, a condition of overwhelming tension and strain could be engineered through the overloading of American welfare rolls, thereby smothering the entitlement program structure at the state and local level. The implosion of welfare benefits would facilitate a massive spike in poverty and desperation, creating a financial crisis that would lead to an even greater cycle of demand for a fully socialized system. This desperation would then “force” the federal government to concentrate all welfare programs under one roof, nationalize and enforce a socialist ideology, and ultimately, compact an immense level of power into the hands of a select few.

Beware the great 2016 financial crisis, warns leading City pessimist

Albert Edwards joins RBS in warning of a new crash, saying oil price plunge and deflation from emerging markets will overwhelm central banks, tip the markets and collapse the eurozone

The City of London’s most vocal “bear” has warned that the world is heading for a financial crisis as severe as the crash of 2008-09 that could prompt the collapse of the eurozone.

Albert Edwards, strategist at the bank Société Générale, said the west was about to be hit by a wave of deflation from emerging market economies and that central banks were unaware of the disaster about to hit them. His comments came as analysts at Royal Bank of Scotland urged investors to “sell everything” ahead of an imminent stock market crash.

Oil price crash means petrol could become cheaper than bottled water

Brent crude prices fall below $30 for the first time since April 2004 and could make fuel cheaper than water

Petrol will soon cost less than bottled water as the relentless decline in oil prices sends fuel down to 86p a litre, it has been claimed.

Brent crude fell to below $30 a barrel for the first time since 2004 on Wednesday evening – and has fallen by more 73pc since reaching highs of $115 last summer.

Motoring group RAC said pump prices now could fall back to levels last seen in the aftermath of the financial crisis in 2009, if the commodity plunges to as low as $10, a forecast made by Standard Chartered bank earlier this week.

Global markets will only get more volatile and put UK lending at risk, Bank of England warns

The stock market turmoil that followed Black Monday could become a common occurence, with serious implications for bank lending in the UK

…

Modern technology and mathematical formulas mean dealers can execute split-second trades at higher volumes than ever before. But the downside to this is that when everyone uses similar algorithms, it results in a market with only buyers or only sellers, causing prices to swing violently, according to the Bank of England.

Deflation Warning: The Next Wave

The signs of deflation are now flashing all over the globe. In our estimation, the possibility of an associated financial crisis is now dangerously high over the next few months.

As we’ve been saying for a while, our preferred model for how things are going to unfold follows the Ka-Poom! Theory as put out by Erik Janszen of iTulip.com.

That theory states that this epic debt bubble will ultimately burst first by deflation (the “Ka!”) before then exploding (the “Poom!”) in hyperinflation due to additional massive money printing efforts by frightened global central bankers acting in unison.

First an inwards collapse, then an outwards explosion. Ka-Poom!

We’ve been tracking the deflationary impulse for a while, and declared deflation the winner back in July of this year.

ISIS declares war on the US dollar with the “gold dinar”

The Islamic State on Sunday, Aug. 30, launched a new campaign to destabilize the US Dollar with a 54-minute video tape, produced to the professional standards of New York Madison Avenue. for general distribution. This is the first known instance of a terrorist organization declaring financial war on America. Graphic diagrams and figures are displayed to demonstrate that the mighty dollar is nothing but a piece of paper, whose value declines year by year when this is realized.

“The Jews” are inevitably presented as the prime movers behind the dollar’s false status as the world’s strongest currency.

Washington, China, and the Rise of the Renminbi: Are the Dollar’s Days as the Global Reserve Currency Numbered?

Abstract

The U.S. dollar has dominated the international monetary system since the end of World War II. While the U.S. economy has generated weak growth since 2009, and accumulated a large sovereign debt, the dollar’s status as an international medium of exchange and reserve currency has not diminished. The Chinese renminbi (RMB), however, barely visible in international trade or financial flows just three years ago, appears to be blossoming. China is now the world’s largest trading nation, and more corporations, particularly in Asia, are beginning to invoice their business in RMB. The Chinese regime is calling for a reform of the international monetary system to expand the internationalization of the RMB. Speculation has begun about whether the U.S. dollar could be supplanted by the RMB. Such a development would jeopardize the enormous economic advantages that the U.S. has enjoyed by possessing the world’s dominant currency. Moreover, it would signal a relative decline in American prestige and global leadership. The answer to the dollar’s potential decline is not to seek obstacles to China’s or any other nation’s economic success, but to change fiscal and monetary policies at home in order to maintain the dollar’s competitiveness.The U.S. dollar has dominated the international monetary system for approximately 70 years. While the U.S. economy has generated weak growth over the past six years and accumulated a large sovereign debt, the dollar’s status as an international medium of exchange and reserve currency (currency held by foreign central banks) has defied the odds and has not diminished.