Direct Translation via Google Translate. Edited.
by Elena Karaeva
[RIA] The head of the IMF made a subtle allusion to thick circumstances. Uncertainty remains, Kristalina Georgieva stressed, "at a very high level" because "the fear of a split in the world into new warring geopolitical blocs will lead to economic and ruthless rivalry between them." Well, it is clear that "impoverishment will affect everyone."
The contrast between the IMF chief's remarks and Macron's and Scholz's remarks about "the stability of European banks and the European financial system" two days earlier could not be more striking. Words about stability had to be pulled out of the German chancellor and the French president almost with pincers, because exactly on the same day Deutsche Bank shares were flying down at supersonic speed. Scholz, who was the head of the Ministry of Finance under Merkel, could not help but know that the "profitable bank" (this is his expression) was losing everything in the world - from capitalization to investor confidence exactly at the moment when Herr Olaf assured that "everything is fine, beautiful Marquis".
Macron - also not a stranger in the world of finance - decided to act as a backing vocalist and sang about the same song. In general, everything is fine, you should not worry, the French leader assured the public.
However, the European financial system, connected both with American banks by almost the same blood circulation, and with Swiss institutions of a similar profile, begins to storm. And the height of the waves will be the higher, the more the flywheel of inflation spins up. The European Central Bank is trying to curb it, which (theoretically) should somehow quietly let everyone know that the era of "cheap money" (minimum interest rates on loans) is over. Governments have indulged in pouring millions of euros into the economy and now must rethink how they plan for tomorrow.
In the absence of Russian energy resources, raw materials, a large Russian market, which, contrary to popular belief, had a high purchasing power of the population, and most importantly, this market was very capacious, willing to consume. And he consumed. Much, willingly, tastefully.
Actually, therefore, when the EU solemnly introduced restrictive measures against Russia , it was the bankers of the major league and qualified financiers who said that this "should not be done." Exhortations (and the head of Deutsche Bank was among those who warned) were not heard. Pan-European politicians, living in one reporting day, thought that if hell in finance and banking did not happen then, then it will never happen. However, the monetary system is subject to other laws, and it began to give the continent's economy hard slaps.
Non-EU Switzerland was forced to spend an estimated 50 billion francs to save Credit Suisse . For comparison, the GDP of the Alpine Confederation is 800 billion francs. Bern pushed Credit Suisse into the hands of another bank, USB, to prevent a domino effect. Everyone knew that Credit Suisse's bookkeeping hadn't been trusted for the past eight years.
Investment manager Patrice Lescaudron stole hundreds of millions of clients' money (including rich Russians). I falsified the reports with the help of Photoshop, painted on the numbers, Credit Suisse turned a blind eye to this. Lescaudron was tried (they managed to prove the theft itself, but the bank management escaped punishment) and sent to prison.
When production falls, when inflation rises, when a recession begins, when unemployment covers the labor market, including not only blue robes, but also highly paid white-collar workers, the authorities, both national and globalist, treat this as an annoying buzz of a fly. They talk about "the cyclical nature of the economy" and that a recession "is immediately followed by growth."
But when the banks begin to stagger, then the margin call begins to jingle for the globalists. This is a warning of a clear threat, that what has been acquired by "overwork", if and when deposits and accounts are not replenished, will evaporate. At the speed of an avalanche.
The psychotherapy that Scholz and Macron did in Brussels is about this. To reassure investors. So that they retain the remnants of confidence and continue to buy bonds and stocks - and do not demand to open accounting books, but at the same time conduct an independent audit.
But investors are also not fools and understand that if banks, whose main turnover is in the main reserve currencies, are staggering, then it is better to gradually, slowly and carefully transfer assets to where the authorities keep the financial situation under control.
The bankruptcy of just one Lehman Brothers 15 years ago led to a planetary crisis. What if three, four, five banks collapse? And even in the conditions of the current geopolitical confrontation? One thing is clear - the end has come not only to the political system of the West, but also to the financial foundation on which it stands. And the agony will be excruciating.
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