What in the World is Going on with Banks this Week? Emergency meetings, banker summits, crashing European banks.......

Bruno de Landevoisin's picture


Written by David Haggith - The Great Recession Blog

Just about every major banker and finance minister in the world is meeting in Washington, D.C., this week, following two rushed, secretive meetings of the Federal Reserve and another instantaneous and rare meeting between the Fed Chair and the president of the United States. These and other emergency bank meetings around the world cause one to wonder what is going down. Let’s start with a bullet list of the week’s big-bank events:


  • The Federal Reserve Board of Governors just held an “expedited special meeting” on Monday in closed-door session.
  • The White House made an immediate announcement that the president was going to meet with Fed Chair Janet Yellen right after Monday’s special meeting and that Vice President Biden would be joining them.
  • The Federal Reserve very shortly posted an announcement of another expedited closed-door meeting for Tuesday for the specific purpose of “bank supervision.”
  • A G-20 meeting of finance ministers and central-bank heads starts in Washington, D.C., on Tuesday, too, and continues through Wednesday.
  • Then on Thursday the World Bank and the International Monetary Fund meet in Washington.
  • The Federal Reserve Bank of Atlanta just revised US GDP growth for the first quarter to the precipice of recession at 0.1%.
  • US banks are expected this coming week to report their worst quarter financially since the start of the Great Recession.
  • The press stated that the German government will sue the European Central Bank if it launches a more aggressive and populist form of quantitative easing, often called “helicopter money.”
  • The European Union’s new “bail-in” procedures for failing banks were employed for the first time with Austrian bank Heta Asset Resolution AG.
  • Italy’s minister of finance called an emergency meeting of Italian bankers to engage “last resort” measures for dealing with 360-billion euros of bad loans in banks that have only 50 billion in capital.


President Obama’s meeting with Fed Chair Yellen


It is rare for presidents to meet with the chair of the Federal Reserve. The last time President Obama met with Janet Yellen was in November of 2014, a year and a half ago. It is even more rare for the vice president of the United States to join them. In fact, I’ve heard but haven’t verified that it has never happened in a suddenly called meeting with the Fed before.

For security reasons, the president and vice president don’t regularly attend the same events. There are, of course, many planning sessions or emergency meetings where they do get together, but not with the head of the Federal Reserve. Emergency meetings where the VP is included in the planning session would include situations related to dire national security in case the VP winds up having to take over.

(George Bush and Dick Cheney were exceptional to the point that everyone commented on how often the VP was included in meetings with the president, but I always figured that was because George Bush couldn’t think and speak without Cheney acting as the ventriloquist.)

In fact the meeting with the prez and vice prez is so rare that the White House is bending over backwards to assure the entire nation that the president is not meeting with Yellen to try to influence the Fed, which is required to act independently of politics (so they say).

According to the White House, President Obama is meeting with the Fed chair and Biden to discuss the nation’s “longer-term economic outlook,” even though Yellen just told the entire nation that the economy was strong and had arrived nearly back at “full health.” The president says they will be “comparing notes.” Do their notes about the nation’s outlook disagree?


White House spokesman Josh Earnest said both Obama and Yellen are focused on ways to expand economic opportunities for the U.S. middle class. He called the meeting an opportunity for the two to “trade notes” while emphasizing that Yellen makes decisions about monetary policy independently. (SFGate)


Either such meetings are, indeed, extremely rare, or the White House doth protest to much because they spent more time emphasize what the president was not going to do than what he was going to do in assuring us he will not try to influence Yellen.


“The president has been pleased with the way that she has fulfilled what is a critically important job,” Earnest said. He added that Obama has “the utmost respect for the independent nature of her role.”


Earnest also said that, “even in a confidential setting” Obama would not “have a conversation that would undermine” the Fed’s ability to make “critical financial decisions independently.”

If such meetings with the Fed are so rare they require careful explanation, why the sudden call of the meeting, oddly timed between two specially called, emergency meetings of the Fed — or, at least, “expedited” meetings of the Fed. It can’t just be that the president wants to plan what he will be saying at this week’s G-20 conference, if he’s to speak there. That kind of planning would happen in advance because one knows the conference is coming. One striking peculiarity of the presidents meeting with the Fed is that it appeared to have been called immediately after the Fed announced Monday’s “expedited” meeting of the Board of Governors.

We are in an election cycle, and I already speculated in my last article that, with the anti-establishment, Fed-hating candidates, Sanders and Trump doing so well in their bids for the presidency we could be sure the Administration would be doing all it can along with the Fed to put some accelerant on this economy and forestall the recession that I believe we have already begun.

A recession would prove Trump and Sander right in their statements about a coming recession or the failed actions of the Fed and Wall Street to bring true recovery. So, the Fed and the President have every reason to work together to make sure such an announcement never happens. That could be what “comparing notes” on the economy’s future means — how do we assure the economy doesn’t fall apart in the next few months before the election since we have that common interest?

That would explanation why the White House is saying, in advance of any accusations, that the president isn’t trying to influence the Fed. They want to get ahead of the story. Of course, it could just be that they recognize such rare meetings will lead to the kind of speculation I’m now doing.


Tuesday’s specially called meeting of the Board of Governors under “expedited procedures”


Here is the announcement the Fed posted at the end of last week for Monday’s meeting (italics mine):


Advanced Notice of a Meeting under Expedited Procedures

It is anticipated that the closed meeting of the Board of Governors of the Federal Reserve System at 11:30 AM on Monday, April 11, 2016will be held under expedited procedures, as set forth in section 26lb.7 of the Board’s Rules Regarding Public Observation of Meetings, at the Board’s offices at 20th Street and C Streets, N.W., Washington, D.C. The following items of official Board business are tentatively scheduled to be considered at that meeting.


Meeting Date: Monday, April 11, 2016

Matter(s) Considered
1. Review and determination by the Board of Governors of the advance and discount rates to be charged by the Federal Reserve Banks.

A final announcement of matters considered under expedited procedures will be available in the Board’s Freedom of Information and Public Affairs Offices and on the Board’s Web site following the closed meeting.



Dated: April 7, 2016


The promised update after the meeting merely added,


Effective April 11, 2016, the meeting was closed to public observation by Order of the Board of Governors 1 because the matters fall under exemption(s) 9(A)(i) of the Government in the Sunshine Act (5 U.S.C. Section 552b(c)), and it was determined that the public interest did not require opening the meeting.


One day later, the Fed put out an announcement of another special meeting to be held on Tuesday, after the suddenly scheduled meeting with the president:


Advanced Notice of a Meeting under Expedited Procedures

It is anticipated that the closed meeting of the Board of Governors of the Federal Reserve System at 2:00 PM on Tuesday, April 12, 2016, will be held under expedited procedures, as set forth in section 26lb.7 of the Board’s Rules Regarding Public Observation of Meetings, at the Board’s offices at 20th Street and C Streets, N.W., Washington, D.C. The following items of official Board business are tentatively scheduled to be considered at that meeting.


Meeting Date: Tuesday, April 12, 2016

Matter(s) Considered
1. Bank Supervisory Matter

A final announcement of matters considered under expedited procedures will be available in the Board’s Freedom of Information and Public Affairs Offices and on the Board’s Web site following the closed meeting.



Dated: April 8, 2016


O.K. Two expedited, closed meetings in a row with a meeting with the president and vice president in between that is so rare it required special White House defense as to what would not be happening in the meeting.

The first meeting was to talk about setting interest rates, which the FOMC will be meeting to consider again later this month, having just postponed their scheduled increase in March. The second meeting is more interesting. If you have served on board or worked with boards that go into closed session, you know they always use the most generic terminology possible when announcing the meeting for sharing in minutes what happened in the meeting.

The fact that it is a bank supervisory matter makes it sound like a particular concern, not a discussion about supervisory policy. Something is the matter somewhere that requires an immediate meeting right after another immediate meeting … behind closed doors. That something regards bank supervision. Board hold closed meetings when they have to talk about specific institutions or individuals with details that they don’t want to go public. This all comes very close to sounding like some bank somewhere is in trouble, and the trouble is big enough to call a special meeting of the very august board of governors right after they just had a special meeting, and if you know these kinds of guys, they don’t like wasting their time in excessive meetings.

Naturally, I am as curious as you probably are about why so many last-minute meetings behind closed doors and with the president and vice president at a time when all central bank heads will be meeting with finance ministers in Washington, D.C. So, I cast about for some possible related stories as to what could be the matter, and I found several very hot ones going on this same week.


The recession that has already begun — Atlanta Fed revises US GDP down AGAIN!


The president’s meeting with the Fed and the Fed’s meetings with the Fed were all called right after the Atlanta Federal Reserve Bank revised the revisions of its previous revisements to say the US economy now looks like it will report in for the first quarter at 0.1% growth.

It seems I cannot write fast enough to keep up with the Federal Reserve’s downward revisions of anticipated GDP growth for the first quarter of 2016. No sooner did I click “publish” on my last article where I noted they have just revised their estimates of GDP down to a 0.4% annualized growth rate than I read an article stating they had revised it again down to 0.1%!

Isn’t this where I said this quarter was going? That is within a rounding error of going negative and is less their margin of error for their data. It was only back in February that the Fed anticipated a cruising speed of 2% growth for GDP in the first quarter. They have revised that number down every week.

Of course, the fact that the Fed and the President called an unscheduled, closed-door meetings to include the VP does not mean there is any connection between the events, and I certainly am not concluding even for myself that there is something dire happening here … but stay with me. There is more to perk the ears.


US banks expected to report worst quarter financially since start of the Great Recession


That’s no small potatoes for a coincidence in timing. What if the numbers to be reported are even worse than has been anticipated, and the Fed is seeing bank trouble in some of those numbers and the President has received advanced information about some of those numbers. All speculation on my part, of course. What isn’t speculation on my part is that Wall Street is already predicting that this week’s quarterly bank reports are going to look something like the start of the Great Recession.


Analysts say it has been the worst start to the year since the financial crisis in 2007-2008 and expect poor first-quarter results when reporting begins this week…. Analysts forecast a 20 percent decline on average in earnings from the six biggest U.S. banks, according to Thomson Reuters I/B/E/S data. Some banks, including Goldman Sachs Group Inc (GS.N), are expected to report the worst results in over ten years. (Reuters)


Whoa! That means, for Goldman, even worse than any time just prior to or during the Great Recession. When you consider how bad the last decade has been, being worse than that is pretty bad. Moreover, the timing is considered unusually nasty:


This spells trouble for the financial sector more broadly, since banks typically generate at least a third of their annual revenue during the first three months of the year…. Bank executives have already warned investors to expect major declines…. Citigroup Inc (C.N) CFO John Gerspach said to expect trading revenue more broadly to drop 15 percent versus the first quarter of last year. JPMorgan Chase & Co’s (JPM.N) Daniel Pinto said to expect a 25 percent decline in investment banking. Several bank executives have warned about declining quality of energy sector loans.


“The first quarter is going to be ugly and we don’t think that necessarily gets recovered in the back half of the year,” said Jerry Braakman, chief investment officer of First American Trust, which owns shares of Citigroup, JPMorgan, Wells Fargo and Goldman. “There are a lot of challenges ahead.”


Yes, one of the biggest areas of bank troubles comes from defaults in the energy sector that I have been saying will play a major role in birthing this banking crisis. (Translate that primarily oil and gas.)


BofA’s Michael Contopoulos warned last week, it may be the worst default cycle in history with “cumulative losses over the length of the entire cycle could be worse than we’ve ever seen before.”


Over the weekend, the FT got the memo with a report that … said that “the global bond default rate by companies is running at its highest since 2009 with the US accounting for the vast majority, according to rating agency Standard & Poor’s. A further four defaults this week, with three coming from the troubled oil and gas sector, pushed the overall tally to 40 with a little over a quarter of 2016 done.” (Zero Hedge)


According to the Wall Street Journal, these defaults are from “massive energy loans that most investors didn’t even know about until recently.” Recovery of these bad debts is falling extremely fast.


The growth of the high-yield bond market allowed drillers to take on far more debt than in past booms, leaving them more vulnerable to default. The emergence of shale technology allowed companies to expand reserves and the loans backed by those properties. Some of those loans may now be underwater. (Bloomberg)


You can thank the Fed’s zero-interest policy for that easy credit bubble.

Is anyone starting to feel a little financial crisis deja vù? Last time it was declining housing-sector loans. This time, as I’ve been saying for the last few months we would soon see, it’s declining energy-sector loans. Looks like that is ready to materialize.

In code words, Wells Fargo tells us that their trench-worthy report has not even begun to fully write down the bad debts or move into foreclosures that would cause write-downs: (That is, at least, what I read in public bankerspeak.)


John Shrewsberry, Wells Fargo’s chief financial officer, said on a January call with analysts. “We were working with each customer to help them work through this. It doesn’t do us any good to accelerate an issue, or to end up as the holder of a number of oil leases as a bank.


This week and next is the big-bank reporting season. So, we should know right away if this is the next leg down in the Epocalypse, but you will probably have some coded language to look through. Something as big as this would certainly merit a flash meeting with the president and vice president, multiple meetings of the board of directors, and a G-20 financial summit in Washington along with meetings with the IMF and World Bank.

Not saying that’s what it is. Just sniffing out the kinds of stories that could be related to all these meetings, some planned earlier, others suddenly and somewhat secretively called.


Austrian bank failure echoes Great Depression


Five and a half years ago, I wrote an article here that mentioned how the Great Depression took its second and deepest plunge in 1931 because of the failure of a private Austrian bank named Credit Anstalt.


In May 1931, a Viennese bank named Credit-Anstalt failed. Founded by the famous Rothschild banking family in 1855, Credit-Anstalt was one of the most important financial institutions of the Austro-Hungarian Empire, and its failure came as a shock because it was considered impregnable…. The fall of Credit-Anstalt—and the dominoes it helped topple across Continental Europe and the confidence it shredded as far away as the U.S.—wasn’t just the failure of a bank: It was a failure of civilization.


Now, as I’ve been writing about the start of what I believe will be the the second and worst dip of the Great Recession, another Austrian bank is crumbling.

Austria created Heta Asset Resolution AG when it nationalized all the bad loans of Hypo Alpe-Adria-Bank International five years ago to rescue the bank and depositors by creating a “bad bank” to contain the problems. It went down something like this:


Hypo Alpe-Adria bank, when it was still owned by the small Austrian state of Carinthia, was a cesspool of corruption. It involved bankers, politicians, and powerbrokers in Austria and the Balkans. It was the perfect union of money and power. Investigators found 160 instances of suspected fraud….


Six of the bank’s former executives have been convicted of crimes.


“I’m not aware of a criminal case bigger than this one,” explained Christian Böhler, whose forensics team started investigating the bank in 2011. “It was a mix of greed, criminal energy, and utter chaos.” (Wolf Street)


Hypo’s troubles began, much as Credit Anstalt’s had before it, when it was required to adjust its books to reflect the true value of its collateral assets after the value of real estate in southeastern Europe collapsed. Everything fell apart upon the realization of how little it was actually worth.


Austria’s central bank governor Ewald Nowotny and his task force recommended that Hypo’s toxic assets of €17.8 billion should be put into a “bad bank.” But to stop the drag on public finances, the federal government should not guarantee Hypo’s bonds. At the time, Austrian taxpayers had already plowed €4.8 billion into Hypo to bail out these bondholders.


He then explained on TV to incredulous Austrians that this deal would nudge the budget deficit over the 3% limit set by the Maastricht Treaty and push the government’s debt from 74.4% of GDP to 80% of GDP. This one rotten, state-owned bank in Carinthia was causing this much damage to the country’s finances!


The government, at that point, set a one-year moratorium on all payments to the “bad bank’s” bondholders.

After burning through 5.5 billion euros of taxpayer money to no avail and discovering a 7.6-billion-euro hole in its balance sheet still remained to be filled, Finance Minister Hans Joerg Schelling ended support in March 2015. Surprise, surprise, the bad bank created by the government to put a fence around all the bad debts of the original bad bank became nothing but a black hole of debt, swallowing all money poured into it with nothing to show for the effort. That didn’t stop Schelling from claiming the nationalized bank was in good health in order to put a good face on things as leaders are inclined to do when dealing with really bad stuff in order to protect the public from a scare.

Yesterday, under the first application of Europe’s new forced “bail in” procedures, Austria ordered a haircut to the banks bondholders. Sighs. This is apparently what happens if your money is still locked up in a bank with “good health.”

It does, indeed, sound a tad bit like Credit Anstalt. Now the moratorium is up, and it’s time to start dishing out the bad news to the bondholders under Europe’s new rules:


Austria officially became the first European country to use a new law under the framework imposed by Bank the European Recovery and Resolution Directive to share losses of a failed bank with senior creditors as it slashed the value of debt owed by Heta Asset Resolution AG.


The highlights from the announcement…

  • a 100% bail-in for all subordinated liabilities,

  • a 53.98% bail-in, resulting in a 46.02% quota, for all eligible preferential liabilities,

  • the cancellation of all interest payments from 01.03.2015, when HETA was placed into resolution pursuant to BaSAG,

  • as well as a harmonisation of the maturities of all eligible liabilities to 31.12.2023. ((SuperStation95)


This is some much-needed relief from how things used to work:


Throughout the Financial Crisis, and since, there has been one rule: bank bondholders will always be bailed out at the expense of everyone else. The sanctity of bank bonds reigned supreme, no matter what government and central banks had to do to keep it that way. Bank bonds weren’t allowed to be judged by the capital markets. They were simply untouchable. Underpaid and overtaxed workers would have to bail out bank bondholders when these recklessly managed banks collapsed.


That was the rule in the US when the Fed, and to a lesser extent the federal government, bailed out the banks. And that was the rule during the debt crisis in Europe. (Wolf Street cont.)


Europe’s new rules were intended to make sure that depositors did not take all the loss and that tax payers don’t absorb all the loss. Heta, because it was a government created “bad bank,” apparently does not have depositors, as it was the creditors who were pooled into the “bad bank” who take the hit. The preferred creditors at the Austrian bank have been told they will have to take a 54% haircut, meaning the bonds they have purchased will recover forty-six cents on the euro.

The big-money (preferred) creditors of the bank, however, don’t like the new rules. They complained and are still holding out for ninety-two cents on the euro. That doesn’t bode well for anything being left for the smaller guys, whose money will, in the very least, be kept in a lockbox for seven years because payouts to the non-Majors don’t wind up until 2023. Major bond-holders demanding a smaller hit include Pimco, Commerzbank and the already deeply troubled Deutsche Bank. (Anybody see how things can quickly move down the line like dominoes when you consider the size of some of the worried creditors who are complaining that the hit will be too hard for them?)

The “subordinated liabilities,” as I understand the complex breakdown (for which I have been unable to find any clear definitions) appears to include bondholders who took a second position to the “preferred liabilities” in getting their money back and third-party investors in the bank. It also appears to include the partners in the bank. If so, then this is exactly how bank failures should happen. The investors are slated to lose 100% of their money first, allowing for the smaller loss by the bond holders.

It is the investors who elect the board that governs the bank and who fill the board positions and who make the decisions of who will be CEO; so, of course, they should lose all of their money before anyone else does. Creditors (bond holders) should be next, as they are often large institutions like PIMCO that have more than enough capacity to investigate risk before investing. Depositors should always be last, as most of them have no capacity whatsoever to investigate the real risk of banks and nowhere near enough money to put into a bank to make it worth a real investigation of risk. They are acting in trust … and particularly in trust that government regulators are doing their job.

Too bad the United States doesn’t operate this way!

What kind of spinoff can the settlement of Heta have to other institutions? Well, last month, the Association of German Banks had to bail out a small bank called Duesseldorfer Hypothekenbank AG because its hit as a creditor of Heta would have killed it. Though Duesseldorfer is a small bank, it was apparently deemed too big to fail because, once again, government bailouts went to the rescue.

Given that such an agreement happened on Sunday afternoon, and that central banks and regulatory bodies usually talk with other national bodies that may be affected, I have to wonder if the thought of how Europe might react on Monday had anything to do with Monday’s sudden meetings of the Fed.


Italian banks on final crash-landing approach


As if all that were not bad enough for the start of a week in banking news, Italy’s minister of finance called an emergency meeting over the past weekend of Italian bankers to engage “last resort” measures for dealing with 360-billion euros of bad loans in banks that have only 50 billion in capital.


Finance minister Pier Carlo Padoan has called a meeting in Rome on Monday with executives from Italy’s largest financial institutions to agree final details of a “last resort” bailout plan.


Yet on the eve of that gathering, concerns remain as to whether the plan will be sufficient to ringfence the weakest of Italy’s large banks….


Italian bank shares have lost almost half their value so far this year amid investor worries over a €360bn pile of non-performing loans — equivalent to about a fifth of GDP. (Contra Corner)


Could that have had anything to do with the flurry of bank meetings in the US. I have no idea, but I do have to wonder, with so much smoke everywhere in the banking industry, is there a fire we need to know about? You can be sure, we’ll be the last to know, and any announcement of what’s really going down will hit like Bear Sterns or Lehman Brothers. One day, all the central bankers are talking like things are fine. The next day a major vertebrae is knocked out of the nation’s financial spine.

Or maybe presidents and central bankers are just making sure things generally hold together through the election cycle. Such a bad-news week for banks around the world certainly doesn’t sound like all is well as our smiling central bankers, president and V.P, say it is. I don’t know any top secrets to reveal, but the smoke is killing me.

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Skiprrrdog's picture

... would include situations related to dire national security in case the VP winds up having to take over.

*OH GOD* don't tease me...I'll never ask for anything else again, ever...

Bastiat's picture

Why did Goldman and the other big bank just settle now?  To escape prosecution in a much uglier environment?

Renfield's picture

Been waiting for this article to show up on the Hedge -- thanks for posting it. Monday's 'expedited meeting' was only a piece of the story, only the first of several meetings. This isn't about the Fed or the spokesman for USA Inc. All the major cabal bankers from around the world are congregating this week, not in London, their seat of finance, nor in the Vatican, seat of religion, but in DC, the city-state that moves their military arm. No, it isn't b/c they're wondering about who will be the next USA Inc. CEO spokesman. That kind of question is for the peasants.

There's been a global war on, and it's a war the cabal has been losing. I think they're about to lose very publicly, and in a very big way. So now they have to figure out how to escape liability, both in terms of justice and of trying to keep their wealth, looted for the last 100 years from the rest of the world. The rest of the world is pretty pissed at them now so it isn't going to be easy.

My guess is, the cabal is preparing their acceptance of surrender terms, and the rest of us peasants are about to find out what those terms are, and what the victorious alliance has decided to set up in place of the cabal's worldwide plantation. Will it be just another century-long plantation? Only time will tell us. The alliance knows what they have in mind; the cabal now knows; we get to wait to find out.

WillyGroper's picture

sounds like fulford. ;)

hope you're right.  been reading some of the same.

to quote ITM96, they need to be skinned alive with tatie peelers then doused with lemon juice & salt.

gmak's picture

You can take the sociopath out of the White House, but you.... oh. wait. You can never get the sociopaths out of the White House.

overmedicatedundersexed's picture

There is a report a plane has crashed into the world trade center..

How I felt when we saw that happen- is kinda how I feel now..we all know what's coming, but we do not want to admit it ..

oh and 3000 millionaires moved out of chicago this year - running from the city we should rename the" New Mogadishu."

white flight. sorry liberal rich there is no more safe havens you haven't trashed with your PC socialist brush.




WillyGroper's picture

even okra winfrey is closing harpo studios.

what a tell.

Ghost of PartysOver's picture

My ears have perked up a little listening for any sounds of banks starting to turn on each other.  Be it Central Banks against Central Banks, Mega Banks against Mega Banks, or even Mega Banks against the larger regional banks.  Only when this happens will I think the asset / stock / credit bubble is beginning to pop.

This is starting to get interesting and it is happening during a Presidential Election Cycle.

detached.amusement's picture

lol, that's surprising to you, in an election year?  go check out  some history ;)

Latitude25's picture

And massive unmet demand for physical PMs by big money investors.  You can see this in the panic suppression ongoing.

AbbeBrel's picture

Well here we are again - 4 years later. Super Mario's miraculous "Whatever it takes" is morphing perilously close to a "Whatever" response from Mr. Market. Banksters everywhere are suffering from a force-fed diet of Jelly Donuts, their eyes bulging from the pressure to make money out of NIRP.

Meanwhile huge overcapacity in Stuff-manufacturing, courtesy of Asia, insures that demand for credit exists only to cover the interest owed in previous mountains of credit, aka the Ponzi end-game. Therefore there is no demand for credit that actually can be amortized from productive outcome ("Hedge borrowing") and therefore interest rates from an over-banked world remain low. China insures that deflation is their most successful export.

Meanwhile the politicos are pressuring Super Mario to PRINT, in order to cover Pension Promises in countries with negative GDP trends. It is life in the Socialist Endgame. Think Venezuela, but on a much bigger scale, and with a cobbled-together monetary union.

And now, what??? A crack and rumble in the fundament (pun intended) - and from the Heimatland of Creditanstalt no less?? The tension between the serious Teutonic Team (yes I know that is redundant) and the unserious PIGS is palpable. I leave out the Irish from PIGS as they are serious up to their 2nd pint or so. And with DB looking as stable as a broomstick standing on one end - and the TARGET2 balances screaming in opposite directions - something will have to move.

Get your popcorn ready ZH'ers. 2016 is looking to be entertaining like 2008 - with Bankster bashing about. But we are all a bit wiser to this game, aren't we? Look to the actions, not the words, as we are entering into the JunckerZone of the Bankopolypse (after the Bridge scene):

"It's a way we had over here with living with ourselves. We cut 'em in half with a machine gun and give 'em a Band-Aid. It was a lie. And the more I saw them, the more I hated lies."

Remember it is serious now. So all you will hear from Politicos are lies.

semperfi's picture

Reset coming - return to gold standard coming - yuan gold fix and futures contract coming next week - lots of shit coming - popcorn time

Latitude25's picture

What kind of a SGE futures contract is it when not one ounce of gold is allowed to LEAVE China?  Swiss refiners say they have never seen a 4 9's kilobar ever come in the door.

conscious being's picture

China's yuan gold benchmark to launch with 18 members -source Reuters SINGAPORE, April 13 2016

"Two foreign banks will also join the benchmark-setting process, when it launches on April 19, marking China's biggest step to become a price-setter for gold."

“They have built the high places of Baal to burn their children in the fire as offerings to Baal–something I did not command or mention, nor did it enter my mind.”
– Jeremiah 19:5

joego1's picture

The Donald spilled the beans about the bubble- the gigs up- hands up.

Dragon HAwk's picture

the fact that they are having the meetings is no big deal, that fact they they are telling us, that's important.

bunnyswanson's picture

Indeed.  For the record.  a recorded event on a day in history to make it appear they are startled, no longer flashing those million dollar smiles, exuding confidence and the demeanor of the winning team.  Act XII.  Though it appears they are winning.  Only hope is to turn their apparatus against them, round up the now very rich people, and their loot, inject it into the system and try to keep law and order by proving crime does not pay.  Random acts of kindness could save our world but The Money Hoarders and The Currency Destroyers are playing a game.  And in fact, this is why fighting to retrieve a free world from the grasp of sneaky men who connive in secret locations and leave details so horrifying and heartless,  The circus act they placed around us was funded by us but they spent their lives of thinking of little else, like a war room.  By debt or by sword.  Or by sniper from grassy knolls, entrapment, redistricting, strategic moving, voter fraud, colluding to overthrown your own government for the benefit of the British Empire and their henchmen in tuxedos, strong arming via arms sales at bargain prices and sending in the clowns and stage set - Lights.  Camera.  Action.  It's a Silent Movie and they are watching with binoculars when "recording the event" fails.  The helpers > our Christian neighbors and black community are falling right into place.  https://www.youtube.com/watch?v=nbgCpmIuaNU Eunuchs in Imperial China

"EPI research demonstrates that wage stagnation, weak income growth, and wealth disparities can be traced to policy decisions that have eroded the bargaining power of low- and middle-wage workers."


"Now it is clear why Germany has after the war's end, still no peace Treaty. The existing ceasefire agreement empowered to invade the allies In Germany. Now is also understandable, to travel why all the German Chancellor, ahead of their oath of office, in Germany, a "private visit" in the USA (need to write) to the "Chancellor act".


"The secret state contract revealed to the media territories of the allied powers on German newspaper and broadcasting media up to the year 2099, the so-called 'Chancellor acts', so that piece of writing that each of the Federal Chancellor of Germany aufAnordnung of the allied forces before taking the oath of office to sign, as well as the seizure of the gold reserves of the Federal Republic of Germany by the allies."


goldsansstandard's picture

Cue the Nixon speech from Aug 15, 1971, The GHWB NWO speech, the geriatric Walter Cronkite NWO speech,

My Fellow Americans, tonight I am announcing a worldwide introduction of a new currency that will be used to save the banking system. Your dollars will remain the same, blah, blah, blah. God Bless America.

goldsansstandard's picture

Launch 25 trillion SDRs in 3,2,1.

Phillyguy's picture

We can be pretty confident that Obama/Biden’s meeting with Janet Yellen is about keeping fiat money printing by the FED going full tilt. Obama does not want any Banks failing or the stock market tanking prior to the November elections, and HRC is elected (anointed?) president.

StychoKiller's picture

To the Obamatron:  "You can't always get what you want!"

Jungle Jim's picture

All I know is gold is going back down. I'm sitting here watching it go down.

Pogo5187's picture

Jungle Jim no Tarzan!  Tarzan stacking Buffaloes and Silver Eagles as long as he can!!!  Tarzan LOVE lower prices so he can stack MORE!!!

The Blank Stare's picture

His name is Donald Sanders.

frankly scarlet's picture

Now that the bankers can see their wealth extraction policies are going to start hurting them they spring into action. My guess is that these fucks will double down and go negative in the rest of the west. If they think they can appease the mases with some new banker regulations forget it. We want the money they stole back with plenty and then some asses planted in jail and that's before we get to the hard core stuff! Each one a fucking psychopathic turd masquerading as human being.

Atticus Finch's picture

Ben Fulford has extremely interesting commentary today.



putaipan's picture

yeah. you know things are getting a little weird when ben and jim rickards are reporting essentially the same story at the same time.

semperfi's picture

The bankster mob extermination effort was also discussed by Jim Willie's team back in January.

WillyGroper's picture

what's interesting is GHWB's 1K Ba'al points of lite was extinguished in NYC from backlash.

999 to go.

w a l k - a w a y's picture

Closest approximation / revealing limited hangout I've seen:

Exclusive: The Coming Shift to the Esoteric

One always has to wonder why the Select Few who control the Hierarchy so far refuses to allow disclosure? The best guess is so far that it would mean the instant end to their primacy and control over everything in society, and a complete loss of power, riches and status.

And yet there are forces in MJ* pushing for this and various quite powerful Intel factions that have formed from numerous different nations who are pushing hard for partial disclosure at first followed by systematic step to full disclosure over time as the public adjusts.

* MJ - If reports are accurate the New Majestic is functioning as a new secret organization among nations that surpasses even the UN, and may have been approved by the UN to do its negotiating with Alien Ets.

SillySalesmanQuestion's picture

Ahh, the gentle, soothing sound (depending on your point of view) of cascading, waterfalls. I smell panic in the air...something is afoot. Many entities are in trouble. Sun Edison and Valeant are in death throes. Glencore is near death. The banks report earnings tomorrow. Will DoucheBank be sacrificed, ala Lehman? These questions and more, will be answered on the next episode of As the Banksters Churn.

pizzedoff's picture

it's coming unglued Granny!

raeb's picture

dringus dingus, you're a new babe here, stop acting your age.

tarabel's picture



Those Eurofags are such a bunch of Maroons. Who in the hell sets up a bad bank filled with toxic assets...

And then tries to bail it out with taxpayer money!!!!!

Well, duh. Yeah, it's going to crash. It's a BAD BANK. That's the whole point of segregating these turkey assets, so they can be written off without killing the host entity.

Get it?

Theonewhoknows's picture
Theonewhoknows (not verified) tarabel Apr 12, 2016 11:14 PM

Hey, they can print. They like printing. They print to save the financial sector in 2008, now they will print to get energy sector consolidated, bail-out students, auto loan market and countries with their ridiculous levels of debt. Problem with this inflationary escape of debt - idea that through increased money supply (gov spending) you can have inflation bigger than your interest rates accrue on your debt - is that you are TAXING everyone with savings through destruction of money. What is more - if you could have some sort of a guarantee that whatever government spends money WILL WORK - you don't have it. If it is a failure, it is huge and I mean bigger than 2008. Now we have many examples of such risks - Auto loan bubble, student loan bubble, S&P bubble not to mention bankrupted governments that can go to war not to pay the debt... 

this is called war on cash. We see it in front of our eyes and it will be bad.  http://independenttrader.org/war-on-cash-a-piece-of-a-bigger-puzzle.html

Osmium's picture

Launch another round of QE you fkrs.  I want to see if you can control the price of PM's if you do.

DOGGONE's picture

Is this
still kept out of sight?

ebworthen's picture

It's a burning fuse, can you hear it?

I can.  2008-2009 but worse.


tarabel's picture



The bad thing isn't the meetings. It's the not saying anything other than meaningless Soviet-era communiques afterwards. 

But, yeah, I doubt if they're discussing a new venue for the Olympics. At least not at the top of the agenda sheet.

JailBanksters's picture

I think they're trying to work out how to trash the financial system without the public ever knowing.

Up to now, they've done a pretty good job as most Americans have absolutely no Idea how unstable things are or where it's headed. And you really have to thank the White House and all the Lame Stream News for pushing the "Everything is Fine, go back to your homes", theme.

acetinker's picture

Hunh.  I dunno if they deserve thanks.

That's kinda like a death row inmate gettin' a pardon, ain't it?

Ya' get ta suffer longer, knowing that the end result is death- at the whim of another.  Guilty or not- you will one day die of un-natural causes.

"They" ain't workin' on how to trash the financial system.  That was baked in the cake in 1913.

"They" are workin on how to take every scintilla of wealth you even thought you created before the whole facade crashes from the rot within.

If you or me, simple men, were to one day own the earth, depriving all others food, water and shelter in our blind quest for domination-

What's it worth?

JailBanksters's picture

It is like the earths going to hit by 10 km Meteor, and we won't tell them until the Meteor can see the Whites of their Eyes. Otherwise, nobody's going to work, and it better hit !

But, here we have a case where your going to be fleeced one day. no ifs or buts. And what would really F them up As, is if everybody pulled their money out before they pull your money out. And everybody tore up their Credit Cards. There is no nice shiney rainbow at the end of this. And after this, the same players will reboot with a different name doing exactly the same thing again.



acetinker's picture

Some of us have been singin' this song, and it ain't because we 'deserve' it-  It's because we've earned it, the hard way.

Hope you're on that roll, Bruno!


TheObsoleteMan's picture

Say hello to negative rates and massive bail-ins for all {but them of course}, that is the purpose for all of these meetings, to coordinate these policies globally.

RadioFlyer's picture
RadioFlyer (not verified) Apr 12, 2016 9:36 PM

Sweet Jeebus. I am going to have to read this a couple of times. I think the author has nailed it.

We know the stock market is a lagging indicator... everything above is staggering, and hasn't hit the markets...

it's what Schiff and others have been saying, we've been in the eye of the hurricane.

assistedliving's picture

Everythings fine?  BOHICA

WernerHeisenberg's picture

Put your seat backs forward and the tray tables in the upright position

logicalman's picture

Put your head between your knees and kiss your arse goodbye!

Depending on what you have prepared for, YMMV.

I'm sure you are not certain about any of this.


Evil Peanut's picture

Colorado GOP decided that people didn;t need to vote - if you believe in freedom and the right to vote then you ought to be outraged, if people don't see this for the crime that it is then there is no hope for America as a nation. 


I truly believe that the PACE of the COLLAPSE is ACCELERATING very very quickly in 2016 and that it may all come crashing down literally any day now - We are living witnesses to the end of a system collapsing in on itself, the only question is...


Where's me jumper's picture

We do neither. We plant our feet on solid ground, cover the basics and don't get dragged down or up.