Italian Prime Minister Matteo Renzi Slams Deutsche Bank As Europe’s Most Insolvent Bank

Georgi Stankov, July 7, 2016

A few hours after I published my article on

The Rapid Erosion of the Banking System

in Europe and Brad confirmed that the Orion Ponzi scheme has crossed the Rubicon in the precious metal markets:

The Rubicon of Mr. Jerry R. James

the Diadochi fights within the cabal’s ranks have reached a new fresh peak. None other than Italy’s prime minister Matteo Renzi slammed Deutsche Bank today as the true “derivative problem” facing Europe in a direct attack of Germany. Never before have the cracks in the Orion facade gaped so wide as now. This is the most perilous moment of all for the ruling elite and their banksters minions in the West. The escalation of the collapse of the Orion matrix is now physically palpable. Why?

As already reported on this website Renzi has huge problems to save the insolvent Italian banks, precisely, how to pass a banking bail-out of his bankrupt banks without implementing the dreaded bail-in mechanism unveiled in 2016 as the only permitted European bank resolution mechanism. Which is tantamount to bank robbery of the savers as this was first executed by the EU banksters nationwide in Cyprus in 2013:


At that time I predicted rightly that this expropriation of private savers will be used as a prototype for massive bail-ins in the West when the financial Ponzi scheme will begin to collapse. Three years later my prediction has become reality because the collapse of the Orion monetary system is no longer a forecast with an uncertain time frame but a breaking news.

Renzi knows that a bail-out of the Italian banks by robbing the Italian citizens will transform this nation into 55 million furious futtatennes who will not give a shit on the current Orion state order that is already in a visible decay in Italy as they have nothing to lose. In their inherent anarchism, the Italian futtatennes will quickly destroy the fragile political order on the Apennine peninsula that is already suffocating this once proud and inventive nation with its “graveyard peacefulness” (Freidhofsruhe). And let us not forget that Renzi is not the legitimate elected PM of Italy but a compromise solution for a short interim period that was supposed to end two years ago with new elections.

In his push to bail-out rather than bail-in Italian banks, Renzi has faced stiff resistance from the Germans, namely from Angela Merkel and Wolfgang Schauble who have both strongly opined against this kind of solution at the expense of the EU and the German savers. Just today, Wolfgang Schauble, speaking at a news conference in Berlin hours after Italy hinted once again at an imminent bail-out of Monte Paschi, said that his Italian counterpart Pier Carlo Padoan told him that Italy intends to stick to the banking-union rules.

Which is highly unlikely. As La Republica writes today, the equities of Monte dei Paschi di Siena were punished the last two days in a row and lost further 200 million euro (19.4%). The capitalisaton of this bank has dropped to 777 million euro while the bad loans of this bank amount to 47 billion euro.

Hence it is not at all surprising that when faced with stiff resistance from the Germans, Renzi decided to call a spade a spade when, as Reuters reports, he said that the difficulties facing Italian banks over their bad loans are miniscule by comparison with the problems some European banks face over their derivatives. One look at the two last charts here and it becomes clear just who he was referring to – the DB.

As Reuters adds, speaking at a joint news conference with Swedish Prime Minister Stefan Lofven, Renzi said today other European banks had much bigger problems than their Italian counterparts:

If this non-performing loan problem is worth one, the question of derivatives at other banks, at big banks, is worth one hundred. This is the ratio: one to one hundred.

With this statement Matteo Renzi has Deutsche Bank in the crosshairs. What has actually happened few hours after I published my article on the erosion of the EU banking system where I linked the insolvency of the Italian banks with the collapse of the biggest German bank DB, which is also the biggest holder of toxic derivatives worldwide? Renzi has just activated the MAD doctrine (Mutually Assured Destruction doctrine) in the current financial war among the ruling cabal which is also in the core of the current Cold war between the USA and Russia.

Because now that Deutsche Bank’s dirty laundry has been exposed for all to see, Renzi’s blackmail is crystal-clear: if Merkel and Schauble do not relent on bailing-out Italian banks, the collapse of the Italian banks will assure the failure of Deutsche Bank and the entire EU banking system as DWN writes today. And since in a fallout scenario of that magnitude DB’s derivative portfolio could not be bail-out or bail-in neither by the German government, nor the ECB, there will be no chance to save the German banking giant and the entire EU banking system will fall by the wayside or as the Germans say “wird den Bach runter gehen”.

Now the ball is in Germany’s court and Italy is not Greece. Traders worldwide are watching closely how this diplomatic escalation in which the finger-pointing at insolvent banks is only just the beginning of a deadly spiral will unfold in the coming days. As Merkel seems to have been internally removed from power by her own party, the CDU, the “Koenigsmacher” (kingmaker) seems to be again the old and crippled “Haudegen” (fighter) Schauble. Will he succumb to this Italian blackmail with long Mafia tradition? And what will Mario Draghi do after he was already attacked by his own Italian PM on the same issue?

Very interesting and exciting times, brethren, just as how I love them. The plot is thickening and the drama is in full sway. It is a classical Greek drama where the dreadful end is certain from the very beginning. When there is no money in the family, the falling- outs among the family members begin. When the nations have no money, then the diplomatic falling-outs follow.

Whatever the outcome, the EU will be the ultimate loser. Any bail-out of insolvent European banks at the expense of the tax payers or bail-in at the expense of the savers will merely accelerate the same populist anger that catalyzed the Brexit-revolt against the reckless EU elite and will lead to the collapse of the union. Everybody will lose (or win depending on from which vantage point of view one sees it) as the General Secretary of the European Council, Thorbjørn Jagland, has just admitted in an interview with Deutschen Wirtschafts Nachrichten:

The new poverty of the masses is the primary cause for the crisis in Europe”.

Until now we have been told by the MSM that Europe and North America are prosperous, growing economies and I was the only “caller in the desert” (Rufer in der Wueste) affirming that we live in the Greatest and Longest Depression of all time. I am curious to see when this admission will be officially announced. Trump has already made the first step in that direction. With this accelerated pace of revelations and diplomatic falling-outs among Western nations about toilet paper money which nobody seems to possess nowadays (as the liquidity crunch has finally snapped) it is a matter of days when the dominoes will begin to fall and the house of cards collapses.

Next comes the electric apoptosis of the Orion control system and our final ascension.

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