"The World is in Trouble" - Deutsche Bank

Fear when mainstream financial analysts start to trumpet economic doomsday. We saw this in the run-up to the initial economic meltdown.

Since then, many small, independent analysts have been screaming that the dollar is headed for the waste bin of history and inflation is about to make America a third world country (well, that's the extreme view, but most are not far from that).

Now, when the chief economist from Deutsche Banc is openly saying that not only America, but the world, is in real trouble and we will see a triple W "recovery," then really, what's left to say. There is no recovery underway. There is a second phase taking place that will further demolish the financial markets.

“I’m deeply worried about the worries of those investors who have invested a lot, really a lot into the dollar” like the Chinese, Japanese, Arabs and Russians, he said. “If they have second thoughts about the quality of this currency then the dollar is bound to weaken” which means higher long-term interest rates for a country where government debt is approaching 100 percent of gross domestic product, he said. If that happens, “2010 could be a worrisome year for all of us,” he said.

www.cnbc.com...

These guys where the first to officially project GM's stock price at $0.00; so I tend to think that they don't B.S. as much as certain other institutions do.

Depressing.

What do we have left to sell to pay our debt after we have already sold our soul?

Originally posted by Anonymous Avatar
What do we have left to sell to pay our debt after we have already sold our soul?

Well, in a ZeroHedge.com poll, 75% of voters were in favor of giving California to China, if China will forgive our debt.

reply to post by Anonymous Avatar


We could start hawking the pain pills for our senior citizens. It's patriotic afterall.

reply to post by behindthescenes


You do also realize that the last time they put out a story about the USA and the dollar like this is when they wanted money from us right?
Oh and when the gov paid them what they wanted they joined in on the happy days band wagon.
How much you want to bet they are asking for MORE money state side? I give it about two months before it comes out, just like it did last time.

We where talking this one up in the market thread several months ago. Same topic same people just a different month !

Do not worry america, you can get jobs as gang stalkers to murder anyone you did not like at school, and who have nothing to do with them.

Originally posted by theWCH

Originally posted by Anonymous Avatar
What do we have left to sell to pay our debt after we have already sold our soul?

Well, in a ZeroHedge.com poll, 75% of voters were in favor of giving California to China, if China will forgive our debt.

when did they start that poll? That was my idea!!!

www.abovetopsecret.com...

We cross-contaminated zerohedge...

[edit on 13-8-2009 by hotrodturbo7]

Yeaaaah,and it's coming late.
Down with system,we need to rebuilt.
I'll open a bottle of champagne if that happens and i've been waiting for to long!
A world of share,respect for one another is what we need.
Down with capitalism and STOP BEING GREEDY!
THERE IS ENOUGH FOR EVERYBODY!

there is no inherant value in currency, in any currency. currency is only worth what someone is willing to swap for it.

the guy from Deutsche Banc is just observing the fact that there is limited demand for dollars and a clearly unlimited supply which is eventually going to crash the value of the dollar. it's a no-brainer.

on the up side, there is an upside, if the dollar is worth less against the euro or the yen or whatever, imports are more expensive but american goods are far more competitive to produce. this could, possibly, give the US a stronger manufacturing sector in the medium to long term. it also makes american food more economic to produce, making agriculture increasingly viable.

things get more expensive but manufacturing potential improves, so a good job is easier to get.

While the Cheerleaders in Washington keep the propaganda of recovery, numbers don't lie.

Compare to the great depression, we indeed are in a big depression right now, but don't let the bozos and clowns in government know that because they will not believe it.

Originally posted by xoxo stacie
reply to post by behindthescenes

 

How much you want to bet they are asking for MORE money state side?

I'll bet they aren't asking for US dollars.

Originally posted by pieman
there is no
on the up side, there is an upside, if the dollar is worth less against the euro or the yen or whatever, imports are more expensive but american goods are far more competitive to produce. this could, possibly, give the US a stronger manufacturing sector in the medium to long term. it also makes american food more economic to produce, making agriculture increasingly viable.

things get more expensive but manufacturing potential improves, so a good job is easier to get.

This is true on the surface. But you're taking into account that the rest of the world will still be relatively healthy. It won't. We're talking worldwide depression. Sure they may want our wheat or corn, but will they want American-made widgets? Will there be an uptick in blenders being made by Americans? How about watches or computers or even basic commodities like steel or wood planks? Not likely.

So we can be as competitive and cheap as possible, given value of the dollar, but if nobody's buying, does it matter? Plus, while Brits may be able to buy Gucci handbags at unbelievable discounts, we Americans - trapped in the dollar - won't even be able to buy a loaf of bread without cashing out our 401K.

Originally posted by Anonymous Avatar
What do we have left to sell to pay our debt after we have already sold our soul?

Our bones for fertilizer....

I wonder if this has something to do with our gold reserves.

I remember a thread on here a month or two back that was saying that Germany was requesting a gold Audit and the clowns up in Washington were stalling.

So I wonder if that is leading to fears that the US doesn't have the gold that it says it does. That would be a bad thing because we also hold other peoples gold too.

Originally posted by theWCH

Originally posted by Anonymous Avatar
What do we have left to sell to pay our debt after we have already sold our soul?

Well, in a ZeroHedge.com poll, 75% of voters were in favor of giving California to China, if China will forgive our debt.

That is a fair assessment. I think Pelosi would be quite successful with a country that is as like-minded as her.

I say again: Get rid of money while promoting abundance. If we can instigate that, all "debt" will vanish.

How? Link for details in my sig.

I don't think the dollar is going to collapse, in fact I think other asset classes outside of the dollar are going to collapse...even, yes, Gold. I say this because I think we are in the midst of a global deflationary spiral...the good news is we will recover...the bad news, it may take decades. I think we will experience "hyper inflation' eventually...but not now, not during this crisis. The dollar's fall won't come through an economic collapse of the U.S., but an economic boom of another.

First off, the dollar WILL eventally collapse. It's a fact because of 1) Fractional reserve banking and 2) There is nothing backing up the dollar anymore. There used to be a gold standard where every dollar was redeemable in silver or gold. Now they're just promisory notes. This is all explained very well in the documentary Money as Debt, which you can find in its entirety by searching google videos.
Second off, the US wont become a third world country, and we wont be getting rid of California to pay off the debt. What will happen is a loss in soverignty in exchange for a new currency, the amero. The borders of North America will virtually vanish. Is you live in the US and you pay attention, this is already happening. There will also be a drop in wealth across the economic board while the transition takes place, but provided things go well and we can improve our manufacturing sector (and the prick CEOs and politicians stop off-shoring OUR work), I bet we'd recover in, oh say the next 40-60 years.

reply to post by behindthescenes

I think that it is the Deutche Bank, which is in trouble -- not the world:

Senate Subpoenas Banks Over Subprime Mortgages

Goldman Sachs, Deutsche Bank, and Washington Mutual were issued subpoenas by a Senate panel investigating evidence of fraud in the subprime mortgage crisis, the Wall Street Journal reports this morning (subs. req'd). Washington Mutual is now largely owned by JPMorgan Chase, so their subpoena also drags Wall Street's other titan into the mix.

www.npr.org...

Deutche Bank ran the subprime motgages scheme in Michigan, mainly in Detroit area. Here is a Bloomberg article from July 2007 when it was "almost wonderful world" for Deutche Bank.

Now Germany's largest bank is poised to reap a bonanza of at least $270 million and as much as $540 million from a strategy that enabled its traders to sell subprime mortgage loans with derivatives contracts that appreciated as the U.S. housing market suffered its worst slump in 16 years.

www.bloomberg.com...

Deutche Bank did take some preventive measures, so its execs have something to their credit as far as the vision of future is concerned. But ask the Goldman Sachs guys for a second opinion -- they are the smartest around.