Thursday, October 8, 2015

Got Karatbars? Glencore and Deutsche Bank showing signs of a liquidity problem that could bring down entire system

Remember this proven doctrine... when the next banking or financial crisis comes, any money or paper assets you have in the financial system will be used to re-capitalize the banks without your permission.

This doctrine is from the U.S. legislated Dodd-Frank banking reform act, and a G20 joint resolution passed back in January.  Thus seizure of your assets to bail out the banks is not only on the books, but it is now considered accepted and primary policy.  And all one has to do is go back and look at Cyprus and MF Global to validate it.

The reasons why we are bringing this up again at this time is because there are multiple warning signs flashing in neon lights of a new and more devastating liquidity crisis on the horizon, that is even greater than in 2008 which would have brought down the entire system had it not been for TARP, and tens of trillions of dollars printed to bail out the banks.  Yet the problem now is that the warning signs are coming from Europe, which have intricate and binding ties to every American bank like dominoes standing in a line.

Germany: Deutsche Bank / Switzerland: Credit Suisse in trouble

Not everything is "fine" in the land of European banks, in fact quite the opposite. 
One day after Deutsche Bank warned of a massive $7 billion loss and the potential elimination of the bank's dividend which had been a German staple since reunification, a move which many said was a "kitchen sinking" of the bank's problems (but not Goldman, which said it was "not a kitchen sinking, but a sign of the magnitude of the challenge" adding that "this development confirms our view that the task facing new management is very demanding. Litigation issues do not end with this mark down – we expect them to persist for a multi-year period. We do not see this as a "clean up" but rather an indication of what the "fixing" of Deutsche Bank will entail over the 2015-18 period), it was the turn of Switzerland's second biggest bank after UBS, Credit Suisse, to admit it too needs more cash when moments ago the FT reported that the bank is "preparing to launch a substantial capital raising" when the new CEO Thiam unveils his strategic plan for the bank in two weeks’ time. 
FT adds that "while not specifying an amount, they pointed to a poll published last week by analysts at Goldman Sachs concluding that 91 per cent of investors expect the Swiss bank to raise more than SFr5bn in new equity."
The most concerning question one needs to ask is, with the European Central Bank (ECB) running at negative interest rates for their borrowing facility, why wouldn't these banks use this option to borrow massive amounts of euros to stabilize their own institutions?  As of now we have no answer, but on the surface it appears that the Eurozone's bank of last resort isn't as capable as many think, and this leaves banks like Deutsche and Credit Suisse to seek different avenues to deal with their growing and accelerating insolvencies.
*to note - Switzerland is not part of the European Union, but up until recently, their currency had been pegged to the Euro, so access to the ECB in some form was allowed in their banking system.

Yet as a side note to see just how dire Deutsche Bank's problem's are, the German central bank (Bundesbank) issued a press release just this morning announcing their updated gold reserves, and how much gold they expect to receive in future years from repatriation.  This drastic announcement signifies just how much in trouble the German banking system is, especially as they attempt to quell concerns by showing their gold holdings as a collateral backstop.
Over US$100bn in estimated gross exposures to Glencore 
We estimate the financial system's exposure to Glencore at over US$100bn, and believe a significant majority is unsecured. The group's strong reputation meant that the buildup of these exposures went largely without comment. However, the recent widening in GLEN debt spreads indicates the exposure is now coming into investor focus.

$100 billion in unsecured liabilities is not catastrophic unto itself, but Glencore is a commodity desk that trades in an immense amount of derivatives that have counter-parties all around the world.  Those counter-parties are the same ones that had derivatives tied to Lehman Bros. back in 2008, which of course takes this simple sum of $100 billion and multiples it by factors of hundreds or even thousands.

Now of course you would be talking REAL money.

So if multiple signs point towards the need for extreme measures to aid in re-capitalizing some of the largest banks in the world, and the largest commodity and oil trading desk in the market stands on the cusp of an implosion, what options are left for the banking establishment to use to stave off their potential insolvency?  We already pointed out that in the first part of this article, and why it is beyond time that you moved your money and paper based assets into something they cannot confiscate, or use to bail themselves out at your expense.

And that solution lies in a company called Karatbars

Buying gold through Karatbars is one of the easiest things on the net.  In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.

And as added perks to signing up with Karatbars, as a customer or affiliate, you can have the power to move your money into a free e-wallet that functions just like an offshore bank account, and is outside the authority of the banking system.  From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.

Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet.  And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.

But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate.  Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.

Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.

How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money?  And there is never a mandatory requirement to buy beyond what you desire, on your own schedule.  And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.

The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold.  And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?

To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.


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