Deutsche Bank led the bankers’ charge against Scottish independence, claiming that an independent Scotland would enter “a great depression” that would blight generations of Scots. This dire prediction was made by Chief Economist David Folkerts-Landau, who owns several personal homes with a value of tens of millions and is a friend of the Camerons.
Deutsche Bank was the central pivot of the LIBOR fixing scandal. In the great banking crash it wrote off 92 billion dollars of junk assets that Folkerts-Landau had failed to notice was a liability. Today its share price has fallen even below the 2008 levels it reached after that write-off, and the German Finance Minister has just announced his full confidence in the bank and that there is nothing to worry about. Deutsche Bank shares have fallen 40% in a month.
Who the crooks and shysters at Deutsche Bank think they are to tell an entire nation of hard working and talented people that they are inadequate is beyond me. As for Scotland, this week a new natural gas facility came into production which by itself can supply all of Scotland’s natural gas needs for the next sixty years.
Deutsche Bank, feel my schadenfreude. No matter how badly we do post independence, was cannot possibly be as economically incompetent as you.
Doubtless Folkerts-Landau has a lifestyle and finances well-protected from the fate of the bank he has been skimming for decades. Should banks actually start collapsing again, I shall advocate immediate revolution as the only possible ethical stance if the politicians again move to bail them out with ordinary taxpayers’ money.
It was interesting to see RBS adverts claiming that they ‘fully supported’ the farmers playing rugby on Saturday.
They should have supported the people of Scotland rather than siding with the likes of DB during the Indy ref.
Craig said: “As for Scotland, this week a new natural gas facility came into production which by itself can supply all of Scotland’s natural gas needs for the next sixty years.”
I’d appreciate it if someone can give me a link for this.
Since Scotland is still part of the UK, this natural gas will be sold in US dollars. If Scotland does become independent will this natural gas still be sold in US dollars?
Ergo, there’s no way that ‘they’ will allow Scotland to become independent.
Don’t forget the derivatives. DB has derivatives equivalent to 20 years of Germany’s GDP. Ouch!
As for RBS and their threats to “leave” in case of independence… I for one am willing to CARRY their directors to the border myself! Just long as they take all their stinking, rotten DEBT with ’em!
“Should banks actually start collapsing again, I shall advocate immediate revolution as the only possible ethical stance if the politicians again move to bail them out with ordinary taxpayers’ money.”
That’s a bit Bolshie Craig. You’re starting to sound like me. 😀
Good post. I’m not surprised by this financial skulduggery. I’ve just read Part 1 of Ken Sievers most excellent article on the historical progression into the US dictatorship over all banks including Deutsche Bank through medium of the petrodollar fiat currency. Here is his summary:
“SUMMARY OF MAJOR EVENTS LEADING TO THE CURRENT PETRODOLLAR SYSTEM:
US abandoned the gold standard and introduced the US dollar as a fiat currency.
Multinational oil companies and OPEC agree to fix world oil prices.
Oil prices increase by 400%.
US allowed the creation of a world wide oil monopoly.
Western banks flooded with dollars paid to OPEC countries for their oil.
All countries must have dollars for oil and any other international trade.
Western banks can force countries which borrow dollars to change their policies to suit the banks.
The US can print money but not suffer the consequences all other countries would.
The US government, major oil companies and biggest US banks are the winners in the Petrodollar system.”
However, the article is worthy of ten/fifteen minutes of anybody’s time, and would certainly enlighten some who post comments here. The way he explains how loans through the IMF backed by petrodollars work, reminded me of Robert (Noonan) Tressell’s great money trick from The Ragged Trousered Philanthropists.
http://australianvoice.livejournal.com/12523.html
Reminds me, Today is the day.
‘Germany: Varoufakis launches new movement DiEM25 in Berlin’
https://www.youtube.com/watch?v=5cRh9jPaFS8
live link,
https://www.youtube.com/watch?v=iXN94UGaSH4
I couldn’t have put it better myself, well said Craig.
I thought Iceland handled their banking mess pretty well.
Kenny – I read that 20x GDP bit in another article yesterday, which made the point that if true, DB’s exposure is so great that it wouldn’t actually be possible to for a government to bail it out.
Found via http://www.theautomaticearth.com/2016/02/debt-rattle-february-8-2016/
Article: http://secularinvestor.com/deutsche-bank-shaking-foundations-new-banking-crisis-around-corner/13242/
“Since Scotland is still part of the UK, this natural gas will be sold in US dollars. If Scotland does become independent will this natural gas still be sold in US dollars?”
The gas would still be sold on the markets in London by the companies which extract it priced in dollars just the same.
If DB goes down the toilet again, will the Greek government want it bailed out to protect their investment? ;O))
Kenny
“Don’t forget the derivatives. DB has derivatives equivalent to 20 years of Germany’s GDP.”
_______________
That sounds astronomical. Are you sure? A source or reference would he welcome.
re Deutsche Bank and its derivatives exposure.
The second of the two links given by Bort at 21h10 says:
“Keep in mind the exposure of Deutsche Bank to its derivatives portfolio is a stunning 55B EUR, which is almost 20 times (yes, twenty times) the GDP of Germany”.
I take it that “€55B” means €55 billion.
According to Wikipedia, German GDP (nominal 2016 estimate) is €3573 trillion.
Some discrepancy somewhere, I’ say.
~~~~~~~~~~~~~~~~
By the way, Bort’s link seems to vaunt the advantages of buying gold.
Habbakuk continues to advise: buy USD, GDP, CHF and NIS; dump reals, rupees and renminbis; use as wallpaper if you haven’t yet dumped your rubles.
No charge. 🙂
“According to Wikipedia, German GDP (nominal 2016 estimate) is €3573 trillion.
Some discrepancy somewhere, I’ say.”
Yes.
It’s 3.573 trillion.
No more bail-outs
Unfortunately we the public have been designated from bank depositors to unsecured bank creditors. When the banks go belly up this time, they will confiscate deposit account money in exchange for an IOU to be paid at a date of their choosing. The Db derivatives exposure is frightening!
Forgot at add its now bail ins (Cypress style) not bail outs.
An independent Scotland stuck in the EU is not an independent Scotland.
Habbabkuk – yes, something has been scrambled somewhere that might render the entire point about bailing out moot. Where it’s quoted at Automatic Earth the article says ’55T’, but the original article as it currently stands says ’55B’. Not really clear what happened!
As long as the Tories are in power there is not a hope in hell of Scottish Independence, nor is there a hope in hell of leaving the EU. The Tories may, & do, allow referenda but only to rubbish & kill the idea as they did Scottish Independence playing on SNP misplaced delusions of power. Hubris!
Is Craig referring to this..?
http://www.presstv.ir/Detail/2016/02/08/449239/Frances-Total-natural-gas-Laggan-Tormore-gas-fields
It’s the only report I can thus far find, and it’s from the Iranian Press TV.
@ Fred
9 Feb, 2016 – 9:14 pm.
In 2000 the Iraqi president, Saddam Hussein, started making noises that in future he would sell Iraqi oil in Euros (prompted by France and a few other EU members). In 2001 we had 9/11. In 2002 Iraq started selling its oil in Euros. In 2003 the US invaded Iraq on the flimsiest of pretexts. One of the first things the American occupiers and their puppet government did was to bring back the petrodollar. At the time the Euro was relatively strong against the dollar, and by selling its oil in dollars Iraq was losing 20% of the value of its oil.
Same is true for Libya, and just about all other nation states that have tried to get out of the dollar hegemony (what do you think Syria is all about?).
Scotland, a relatively tiny nation, will be crushed by these psychos, unless people wake-up to what’s going on.
Here’s’ a BBC link
http://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-35516144
“Total turns on gas from west of Shetland Laggan and Tormore fields”
“When the banks go belly up this time, they will confiscate deposit account money in exchange for an IOU to be paid at a date of their choosing.”
Well of course that is what banknotes are about – broken promises like: “I promise to pay the bearer . . .”
By the way, they are already doing this, but you need to be a Muslim, or a Muslim human rights’ organisation to know this. Ironically this, apparently, is from the United States Holocaust Memorial Museum.
“First they came for the Socialists, and I did not speak out—
Because I was not a Socialist.
Then they came for the Trade Unionists, and I did not speak out—
Because I was not a Trade Unionist.
Then they came for the Jews, and I did not speak out—
Because I was not a Jew.
Then they came for me—and there was no one left to speak for me.”
“a new natural gas facility came into production which by itself can supply all of Scotland’s natural gas needs for the next sixty years.”
Regardless of how the industry itself might be inflating this figure, you didn’t even bother to put in the usual lazy caveat of “at present rates of consumption”, which assumes zero growth for the next 60 years.
Or are you suggesting that no matter how much the population and energy use per capita of Scotland increase over the next half century increase, the new supply will magically expand to fit the increased demand?
If you’ve not seen or heard the late Professor Albert Bartlett’s much acclaimed lectures on this topic, here’s a good place to start…
https://www.youtube.com/watch?v=sI1C9DyIi_8
Paul,
I think per capita demand for natural gas may indeed have peaked. Domestically boilers more efficient, homes better insulated etc etc. Also fields generally turn out to contain more than estimated. And remember this only one plant. Indeed I believe another is coming online very soon indeed.
But if it makes you feel better to add at current rates of consumption to the sentence…
@RobG
Iran and Iraq nationalised their oil industries.
Britain hasn’t and Scotland wouldn’t.
Independence would change nothing except a bit of juggling about of tax revenue between Scotland and RUK and right now it’s debatable who would end up better off.
Don’t expect a major increase in gas turbines for electricity generation giving the increase in renewables
Squonk, thank you for the link. Iranian Press TV and the BBC are unlikely bedfellows, but they are reporting the same thing.
” And remember this only one plant. Indeed I believe another is coming online very soon indeed.”
And at current prices will they show a profit?
It’s a little bit of good news in a sea of bad news.
http://www.bbc.co.uk/news/uk-scotland-scotland-business-35512217