a Banking Insider Says 'It’s Time To Be Very Worried'
by Simon Black: Five
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from Santiago, Chile
the Latino version of Jusin Beiber is in town.
I have no idea
who this kid is, but as I was walking into the W Hotel last night
for a meeting, there were hundreds and hundreds of adoring prepubescent
girls lining the metal cordon that had been set up outside of the
Then he walked
outside, flanked by hotel security. He couldnt have been more
than fifteen, a bit pimply-faced and gangling at that awkward age.
But the crowd couldnt have cared less. The screaming persisted
for ten minutes
just like those old black and white reels
of teenage girls losing their minds at Beatles concerts fifty years
the commotion outside, I met up with my colleague, and we dove immediately
into a conversation about international banking and the state of
the global financial system. As a senior executive of a large international
bank, he is the ultimate insider. And I was floored by what he told
He openly acknowledged,
for example, that banks are frauds. Most banks, particularly in
the developed west, only hold a tiny fraction of their customers
deposits in cash. The rest is gambled away on whatever the popular
toxic security du jour happens to be.
system rests upon a very thin layer of confidence, reinforced by
the occasional taxpayer bailout. Yet it struck him as incredible
that people still had confidence in banks, especially given that
most of the investment products promoted to their customers are
He told me
how destructive central bankers are, creating untold amounts of
inflation that only serves to make people poorer, while enabling
governments to go deeper into debt.
Most of all,
he told me that very few of the banking sectors underlying
deficiencies have been addressed since the 2008 meltdown. Many western
banks are still insolvent, with the key difference that their governments
are now also insolvent.
that in the coming years, this confluence of risk will finally burst,
most likely induced by the effects of the currency wars and competitive
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© 2013 Sovereign Man
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