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Deutsche Bank's Head Of Global Credit Strategy Explains Why "This Is Not Capitalism"
When Deutsche Bank's head of global fundamental credit strategy, Jim Reid, writes a blurb that could have come from any single Zero Hedge article posted here over the past 6 years, it makes us wonder if we, like that Onion, have missed our IPO window.
I don't think it’s too controversial to say that personally I believe that capitalism is generally the best economic system. However part of the problem today is that over the last 15-20 years, capitalism has been propped up every time it’s about to go through one of the cyclical creative destruction phases.
Compounded up that's left us with a big mess to clear up across the globe and a lot of sub optimal resource allocation. That's not the fault of capitalism per se it's the fault of the authorities for not letting cycles naturally evolve. This has become increasingly more difficult as the imbalances build on top of each other.
So across a lot of the Western World we're left with too much debt, too much inequality, low real wage growth, limited conventional tools to help the economy to de-lever, QE and ZIRP and a political backlash against the mainstream. Until we find a better solution voters are likely to have a bias to find alternatives whatever the economic literacy of these views.
As long as said alternative don't involve the war and/or revolution predicted by Paul Tudor Jones of course...
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End the FED! Down with the BIS! Hang the Central Banksters!
Isn't Deutche Bank part of the FED cartel?
So one day Deutsche robbs and rapes the ordinary traders as much as possible and the second day it comes out and says the system is not good. Where do these guys come from and where do they get their education and principles?
They get their education, morals from their Nazi ancestors...
This is another useless text hiding the truth. It is not capitalism that needs a cyclical destruction phase. It’s the monetary system that needs it. Capitalism CAN exist with a monetary system where money is NOT created out of debt. Period. The root of all the problems is the fractional reserve DEBT based monetary system.
More Capitalism please!
Under Capitalism, if you die, you just die.
That's a good thing. Sorry sparky, no bailout for you.
but i want my fucking trophy.....
I agree that the underlying issue is a DEBT-BASED FINANCIAL SYSTEM that demands as tribute, compounded interest. this backwards logic is devilish in its subtlety and destruction.
but we hold notes of debt we've been trained to value as an asset. backwards. debt is not an asset, I don't care what these thieves say.
so, finally, when the debt bubble does burst it will create a storm of cognitive dissonance that will drive many to suicide and mental instability.
not so much for the average ZHer.
Agreed all around.
And its still unclear how much compounded interest is needed year after year to beat the blurred CPI. When the game is rigged don't play.
https://youtu.be/_L2fazw5Y9k
Righ on! Don't forget the problem of usury, which causes scarcity of money and deflation. With usury, eventually all money goes to the bankers. You might find this site worthwhile?
https://realcurrencies.wordpress.com/2009/11/26/on-interest/
Understand that Capitalism IS the system of fractional reserve banking. Free markets and sound money are very distinct from capitalism. Capitalism rose on free markets and sound money and pitched the sound money once they had captured all of it. Now there are only crony markets and debt. It can end three ways - a steady downward grind down, a credit collapse (default), or a crackup boom currency destruction Valhalla. I've bet on the latter two but leave the former as a fall back position.
Who got it from their Bolshie ancestors, who got it from their Spanish ancestors, who got it from their Turkish ancestors, who got it from their Mongol ancestors.
Principles..... Lol, you don't get to a position like his if you have principles.
i think most of these guys believe they are doing the right thing ... until the Nuremberg trial.
the real players always remain unknown and they will be running the next Nuremberg
The Nuremberg trial was a show trial. The instigators, industrialists & financiers all walked, all kept their spoils and all kept their influence.
This guy is a cog within a mechanism within the sub-assembly of the machine. That's the problem, the organizations - whether they be banks/insurers/corporations or .gov - drive the machine. Joseph LaBologna is the flashing screen and dinging clanging noises of the Deutschbank slot machine. The guy writing this is the logic circuit that sees the Pavlovian responses of the gamblers.
Yeah, but If we the Sheeple of the United Coorporations of America allow it, then it is unrealistic to expect any coorporation to play the game against such a stacked deck. Perhaps when this collapses a political/economic revolution will change the dynamic. I ain't holdin' my breath!! A Hundered to One, The Ministry of Truth will triumph as they manipulate and herd the idiocracy like they always do.
Boy this guy is smart!!! Where did he go to school?
Isn't Deutche Bank the operation that employs cocksucker Joseph Lavorgna?
Being a dick sucker is the least of Joe "The Blow" Lavornga's faults. I personally can't wait to see that "just sucked a biggie" grin wiped off his face.
It's so uplifting when satanic criminal pedophiles at Douche Bank tell us what's right and wrong in the world.
So Greenspan's "Great Moderation" was actually Greenspan's "Great Distortion"
I guess if you call leaving the credit faucet on full blast for 10 years "moderation"
7 bilion people are way out on a limb. maybe not the simplest ones, third world farmers and the like.
Greenspan is nothing more than an elitist playing the Washington game. Now a normal businwss cycle would produce a huge worldwide recession bringing down the entire fiat credit system. We are left with dreaming that miraculous technological growth will ocurr saving mankind. Dream on, however when reality sets in a more equitable distribution system of existing wealth will be demanded which is the nightmare of elitists, especially bankers and financial manipulators.
Great delusion is more like it IMHO. Don't forget Greedscum's 'flaw' was built in to the plausible deniabilty he needed to save face and avoid jail. Without 'the flaw', and access to his PhD thesis, we are limited to speculation which, is exactly what Greedscum planned.
Central Gangsters sounding a bit nervous now? None of them were complaining while begging to be bailed out.
So is mr. head of global credit strategy going to resign in protest over his firms role in this mockery?
the HEAD of DEBT Strategery????
wtf???
end DEBT-MONEY
who benefits the most from a welfare/warfare state/world?.......the bankers, of course...........who runs the world???.........the banks of course........who is the fadder of modern banking......Rothschild.......
KILL THE BANKs
War and revolution are WHY the authorities keep the system from balancing itself; they see opportunity to seize all control and gather all wealth unto themselves.
But dont worry, more .gov (translation higher taxes, more tyranny, less liberty) will fix all that. . .
"it makes us wonder if we, like that Onion, have missed our IPO window"
Now that's funny.
I am always get a little suspicious when guys who works for TBTF/TBTP banks start bemoaning the loss of free market capitalism. It just makes me queasy.
It took him six years to come to this conclusion? Where the fuck was he when Paulson was threatening the U.S people with tanks in the streets if we didn't bail out the banks? Fuck this guy, he needs a nailgun to the head.
+1. Thinking the exact same thing
Obviously these 1% pricks have known all along what the game was, and how to play it. These recent "relevations" may indicate that, some of these high value targets of our collective ire, are starting to realize they are not invincible after all. There is no wall high enough or bunker deep enough.
"American Sniper" that was a good movie.
Exactly.
Now at some point TPTB have to pick the Losers.
Lehman, Bear-Stearns have to be joined by others.
Royal Bank of Scotland, Lloyds, Barclays, Anglo Irish.
Sort of Remember Deutschbank as being a known bad back in 2006 or maybe 2001.
PNB Paribas.
Satander.
Pissing in his soup just won't cut it.
Hank Paulson should hang for treason. Period.
Oh, he's FAR from the only one. But that motherfucker needs to swing by the neck until dead, dead, dead.
There is a reason he works for Douche bank.
From 40,000 ft up:
Officially low unemployment, easy money, stable government, secure mega-banks, financial asset inflation , low interest rates, officially low inflation, nominally positive financial metrics = Keynesian economics. Your welcome.
Meanwhile, on the ground:
Massive underemployement, a high percentage of crap jobs, high inequality, no credit for the non-rich, limited prospects for the financial asset-poor, rising cost of living for stuff you actually need and an unfriendly climate for small businesses = "Capitalism" and needs to be fixed by government.
Quite an experience to live in fear, isn't it? That's what it is to be a slave.
hahaha, "this is not capitalism"...sounds like Luther saying to the Pope : "this is not catholicism".
But Luther put his life out on the line. What has this bankster done to put his head on the block?
Deutsche Bank now has a stink that won't go away, a stench that wrenches belly ache amongst its own.
As the lady from the SEC belatedly said : Please close the door NOW that the horse has bolted!
Capitalism hasn't failed it just hasn't been tried yet!
Eine Svey, Drai, Vere Did Vee go Faschimilt und de Schtupped Up HQ mit Dat Fercockta Vegas Casino? Dumkopf!
Vee ischt lousy mit der Casino Springerverk, It wasnt German, IT WAS SVISS!!!!
Und da Front running Panzerfaust Computerpiken and gassen all Z Juden und der Cockroachn Past and futures Traders und London Blitzcreig?...
Vee Schtupped it Vonderbar Und AWSSSSUUM
Under der Libor and Bonz und der Freak Q unzee Markets
Vee Goosteppin ahead und der Fatherland???
.....Yaaaa, Biznesss icht Vonderbar.....
Si, si....bidness is grand.
I guess that this article gives insight into why the alphabet of US regulatory agencies are going after DB. Too bad it's not some loner in his mother's basement making millions.
No. This is capitalism. Just in its dying stages.
It's clear that you have no idea what capitalism is.
I know capitalism. And I know it is dying.
If you knew capitalism then you would know this is not it. If it were capitalism then there would be no such thing as too big to fail. This is a fascist system with just enough capitalism and socialism sprinkled in for people on either side of the economic spectrum to point the finger of blame at.
For TBTF, their capitalism has died to partial socialism. When they profit it's only for them. Then they loose, the rest of us pays for their lose. So they win all the time. So for the rest of us, we loose all the time.
The TBTF love their version of socialism. They just do not want you in it. That is why they implemented fascism for rest of us to create that barrier between them with their winning ways and us with our losing ways.
And I know it is dying...
Personally, I don't believe Capitalism is an annual, it's deciduous. Leaves falling off in the autumn don’t mean the tree is dying. Our governing authorities have been busy gluing the leaves back on when they should've been upholding orderly processing of bankruptcy laws, including prosecuting blatent control fraud.
I suppose cold winters are an anomaly too.
jmo
I'll take war for 2,000 Alex
The Central Bank (emperor) has no clothes - a fairy tale (=old children's story) by Hans Christian Andersen about an Central Bank (emperor) who pays a lot of money for some new magic economy (clothes) which can only be seen by wise people. The economy (clothes) do not really exist, but the Central Bank (emperor) does not admit he cannot see them, because he does not want to seem stupid.
As expected another banker confused about socialism and capitalism, as well as being willfully ignorant about true role of power elites, he belongs to, and their banking system he works in. Yes. It’s ruling elite’s banking system and has always been.
For brief comparative analysis of “real” socialism and “real” capitalism i.e. systems that actually were implemented under these names regardless of their academic definition I found at:
https://contrarianopinion.wordpress.com/2015/01/06/pools-and-propaganda-...
An honest and interesting discussion on origin of money within human society and its derivative namely financial system and its “products” can be found at:
https://contrarianopinion.wordpress.com/2015/04/14/plutus-and-the-myth-o...
For those still infatuated with “free” markets, benchmarks and indices I suggest fresh look at financial propaganda of deceit at:
https://contrarianopinion.wordpress.com/2015/01/29/invisible-hand-and-other-paranoid-delusions/
For those believing that economy is rational science and economic conditions are result of laws or rules of economy I suggest interesting read on wage economy at:
https://contrarianopinion.wordpress.com/2015/01/28/slaves-of-wage/
And for those who after years of being bombarded by propaganda about Marxism and K. Marx from both sides of political divide, want to separate facts from political fiction I suggest very interesting and comprehensive read on politically motivated myths and misconception about Marx and his writings.
https://contrarianopinion.wordpress.com/2015/03/02/subversive-ideas-of-karl-marx-lessons-unlearned/
this kind of analysis shows you why DB has to fix all the 'bors' and every other market to stay in business
If there was one good thing about Karl Marx: at least he wasn't a Keynesian.
BTW, Timothy Geithner has spoken again:
Former Treasury Secretary Tim Geithner said Thursday that a financial crisis will happen again at some point, but the structural reforms undertaken after 2008 can serve to mitigate the damage.
The U.S. economy now is a more stable, resilient, and stronger economy than before the 2008 financial crisis, Geithner said in an interview with CNBC's " Squawk Box ." Even with the challenges in the U.S. economy, America is a "lucky country," he added.
Standard Disclaimer: Is there a spec on the range of nail guns?
Maybe this is obvious, but it seems that you can't have capitalism and big government at the same time. Government always seems to get in the way of the market for the sole purpose of protecting its own interests.
My guess is that the bigger the government, the less capitalism there will be, with a global government providing the least capitalism and the least opportunity for all.
For my money, the only way out of this mess is the implementation of Co-operativism as an economic system.
The below statement by author is his worldview, and it is BS:
“I don't think it’s too controversial to say that personally I believe that capitalism is generally the best economic system. However part of the problem today is that over the last 15-20 years, capitalism has been propped up every time it’s about to go through one of the cyclical creative destruction phases”
It is BS because it has been totally refuted by episodes in history, and also any rational investigation.
Central Banks exist as agents for private credit system. Central Banks do the propping – it is why they were created. Private credit in turn is part and parcel of Capitalism. Note: The Bolsheviks were funded by Wall-Street Capital, and they kept their private Central Bank in Russia. Later when Stalin overturned the private Central Bank, that is when Russia became an enemy of the bankers.
National Banks are a different animal than Central Banks. National Banks can issue state fiat. State fiat is NOT Central bank fiat. It is a different kind of money. Notable National Banks in history are Bank of Canada 1938-74, when it was a crown bank and it issued Debt Free money. Another National Bank was Reconstruction Finance Corporation in the U.S., which funded much of the war effort. This was no small experiment as it put $50B into the economy as both loans and debt free Treasury money:
http://www.fourhourday.org/content/docs/Jesus%20H.%20Jones.pdf
Both Canada and the U.S. channeled Treasury money into modes of production. In fact, Capitalists start wars, and it then takes Treasury money to bail them out. Private Credit as Capital funded and created Communism. It funds and creates Oligarchy. Private Credit, especially usury on this credit, funds and usurps government. Private Credit as money is not moral, and it cannot be directed into the commons. Private credit as money is civilization destroying. There are many other examples of good monetary stewardship in history e.g. Franklins Colony, Australia at its inception, Guernsey Islands, beginning of Rome, Sparta’s money, the Hanseatic League, Germany’s money at Reichsbank during Schacts tenure.
I guess it is too much to ask economists to study actual monetary history and examples of money systems from the past – even the recent past?
www.sovereignmoney.eu
We, modern humans, have enough historical evidence to see ill effects of private Capital. Capitalism can work, but it cannot work properly until the money problem is fixed. We need to be running real monetary experiments today. History’s verdict is that private money powers - in their greed, will cycle man into endless war, rather than let go of their rent seeking ways. And yes, these private money powers are wrapped up with the Jewish problem, so that needs to be de-tangled as well. These powers will resist moral money creation. Kabbala wants world domination to make way for its messiah.
and so to paraphrase... system needs a big enima and huge toilet
The status quo stays in place while still breaking all previous industrial slaughter records. Better step up and defend your borders America. Your purge is imminent.
Personally, I will not lift a finger to defend the "Just Us" scum.
However, I will give my all and my life if necessary to defend our farm and local community.
Is the penny dropping that none of this is sustainable and WW3 will not happen to erase the liabilities?
"...capitalism has been propped up every time it’s about to go through one of the cyclical creative destruction phases”
That is a fact. Bubbles always burst and those kept propped up explode the most violently.
http://www.globaldeflationnews.com/anatomy-of-a-bubble-how-the-federal-r...
gee...
"... part of the problem today is that over the last 15-20 years, capitalism has been propped up every time it’s about to go through one of the cyclical creative destruction phases. Compounded up that's left us with a big mess to clear up across the globe and a lot of sub optimal resource allocation. So across a lot of the Western World we're left with too much debt, too much inequality, low real wage growth, limited conventional tools to help the economy to de-lever, QE and ZIRP and a political backlash against the mainstream."
ya think?... dumbass.
It is of course not capitalism - it is desperation to delay the collapse of civilization
THE PERFECT STORM (see p. 59 onwards)
The economy is a surplus energy equation, not a monetary one, and growth in output (and in the global population) since the Industrial Revolution has resulted from the harnessing of ever-greater quantities of energy.
But the critical relationship between energy production and the energy cost of extraction is now deteriorating so rapidly that the economy as we have known it for more than two centuries is beginning to unravel.
http://ftalphaville.ft.com/files/2013/01/Perfect-Storm-LR.pdf