Major Bank Official: Banks Are Preparing for an Economic Nuclear WinterBy Matt Agorist In June of 2015, former Congressman Ron Paul predicted that these crutches would fail, and the financial bubbles created by them would send the stock market into a free-fall. The consequences will not be minor. Surprises will be many, since we are in uncertain waters and the world has never faced the gross misallocation of capital that exists today. The process is self-limiting. It will come to an end, and its not going to be far into the future. Now, as chaos in the EU and weak corporate earnings create a tornado of uncertainty, banks are preparing for the worst. According to CNBC quoting a major lender, banks are preparing for an economic nuclear winter situation. The chaos in the market has major bank officials running for the hills. According to CNBC,European banks, in particular, have had a very tough six months as the shock and volatility around Brexit sent banking stocks south. Major European banks like Deutsche Bank and Credit Suisse saw their shares in free-fall after the referendums results were announced. In the U.K., RBS was the worst-hit, with its shares plunging by more than 30 percent since June 24. On Sunday, a source, speaking on the condition of anonymity, due to the fact that revealing this information can get bankers killed, a source from a major investment bank told CNBC that financial services firms have put together a strategy in place that takes into account the worst-case scenario that could happen by the end of this year. This could mean triggering Article 50, referendum in other European nations leading to a break-up of the euro or sterling hitting below $1.20 or lower. The banks are ready for anything now, the source said. This grim warning comes afterthe Royal Bank of Scotland has warned its investors of a cataclysmic year.In an eerily ominous note to its clientsearly this year, the megabank predicted another worse case scenario. Sell everything except high quality bonds. This is about return of capital, not return on capital. In a crowded hall, exit doors are small. In the note, RBSs credit chief Andrew Roberts told investors how Quantitative Easing has failed and was expected to fail. We have been told for 7 years now since the credit crunch, under QE, to borrow money and invest it in one of 3 things: 1) EM 2) credit 3) global equities. This is a big picture, multi-year bet that has been taken, which has worked fine, and stopped working 10 months ago, (this is NOT NEW). As the Guardians Larry Elliott points out: Markets have been supported for some time by low-interest rates, stimulus measures from central banks including quantitative easing, and hopes of economic recovery. But with the Federal Reserve raising rates and the Bank of England expected to follow suit, that prop is being removed. Those who pay attention to the effects of central bankers looting their respective countries have long pointed out the mathematical certainty that is an economic collapse. The collapse of global markets is inevitable as it is a natural correction to the wholesale fleecing of the citizens through the unscrupulous actions of central banks. Ron Paul sums up the situation perfectly: The credit and new money, when created by a central bank, is delivered to the market in a political fashion for which the one percent receive special benefits. It allows the pyramiding of debt to fractional reserve banking, which compounds the long-term problems. It may be fun while it lasts, but it always ends with a crash. Matt Agorist is the co-founder of TheFreeThoughtProject.com, where this article first appeared. He is an honorably discharged veteran of the USMC and former intelligence operator directly tasked by the NSA. This prior experience gives him unique insight into the world of government corruption and the American police state. Agorist has been an independent journalist for over a decade and has been featured on mainstream networks around the world. Follow @MattAgorist Last year after a global economic meeting of national government reps we learned that the new economic system (essentially represented by Agenda 2030) being rolled out is going to see an infusion of $90 Trillion dollars of capital a tiny example being the Saudis investing billions in Uber. This shift also involves a massive privatization scheme taking place all over the world, recent examples include the Saudis selling off state owned assets and Russians doing the same (oil and diamond mines). QE can continue without creating massive inflation IF deflationary measures are also taken, e.g. the engineered sharp drop in oil prices. However, we have the Fed calling for more inflation and Bankster Larry Summer plotting ways to stoke inflation. These harbingers do not equate to large scale collapse or stock market crash, instead, these signs hint at TRANSFORMATION (think shell game) and slow motion inflationary depression bringing on the elites desired 2030 austerity and greater dependence on government handouts. Nice Try, but heads are going roll big time as this central bankster circus comes to an end. I hope youre right!! Many predicted the banksters comeuppance on the way to the 2008 banking crisisunfortunately, the only change was the banksters centralized their system even more. BTW, I mentioned Summers because hes always been at the forefront of big policy shifts including the repeal of Glass Steagall, end of cash, rise of Bitcoin and digital/crypto currencies, global emergence of negative interest rates, privatization of public assets, etc. Youre exactly right, but this time around lots of people got it figured out, and most important, lots have burned through their reserves and are beginning to hurt. I understand, friend, and completely agree, in fact, Im sure thats why TPTB crashed the price of oil, as a pressure venting mechanism aimed at the struggling working and middle classes. How else to keep the plebs from outright revolt as housing and health care costs soar to the stratosphere? TPTB have already set their pins up for the next sweep preparing for a bigger shift towards austerity / squeezing. Inflationary recession, largely boiling frogs style. Theres a bribery aspect too, the floating of debt jubilees, basic income, increases in entitlement payouts, targeted tax cuts (and tax increases on the wealthy?), Hillarys free college tuition, etc. The emergence of the 2030 paradigm of austerity and restructuring in Saudi Arabia has been mostly seamless because there was a lot of wealth to begin with. I wonder if that is similar to what well experience in the west. Simple solution sovereign nations to create, issue and control through their treasuries, debt-free and interest-free money that is based on the nations credit and potential. Very simple! Been done before! Job done! Central banks and banking dynasties to be arrested and put before juries! Time to clean out the Augean Stables! The Rule of Law will prevail! Bingo! I love it! I think bringing back Glass-Steagall would also help. In the present fractional reserve lending system, drastically increasing the lending reserve would stop this Ponzi scheme of lending money on airpart of which is contributing the economic turmoil of our time. Your thoughts on this? Agree. In addition, shut down ALL Central Banks and deport ALL dual citizens. Its not revenge that motivates! its getting that 4 trillion dollar balance sheet ransom against future growth prospects away from the fed and under control again? You know, somewhere along the line this culture has got to stop with the we must move on rhetoric. Seriously. Look at what moving on has gotten us. Has moving on crushed the privately owned/Fractionalized banking of the FED RES and its private collection agency the IRS? Has it stopped our legislative/executive judicial branches from ripping our constitution and this nation to shreds? If the thought of, as you call it, revenge is too harsh for you, why not simply call it justice? This Sewer Nations evil government has cost literally millions of lives, our infrastructure like 25th over all in developed nations etc. I am tired of moving on, I want to see heads roll, real live prison sentences in real live prisons, (general population?), and public executions of the guilty, not we the people at the hands of Israeli trained L.E. Raid the Eccles building lynch the governors turn the balance sheet over to social security. The fed balance sheet pays everyone 2 grand a month as a base salary and persons could still work just not to survive! Global chaos, (again), theft of sovereignty, (again), huge loss of life, (again), all merrily brought to us by the synagogue, their Judas Class in D.C. and their Central Banks.. (again). Ill tell you what. If it was myself in that oval office and in-charge Id personally invite all the major banking leaders in this country into my office for a luncheon where Id tell each and every one of them that IF the banking system does implode, Ill personally deploy and direct the US Homeland Security people to find and arrest each and everyone of these criminals whod have a price on their heads, declare them financial terrorists and throw them into the deepest darkest dungeon I could find until theyd come around tomy way of thinking. If that didnt work quick enough Id then show them my new printing press where we now issue US Govt notes instead of Federal Reserve notes similar to what Kennedy was doing when he was gunned down in Dallas in 1963 some say for doing this very thing Before you took your first bite, youd take a direct hit right between the eyes. Dude, these people are playing for keeps, this isnt a debating society. well thanks Matt for your speculation based on NO investigative journalism but relying on CNBC and the Guardian. Great sources for reliable information. Keep up the good work and get back to us when you have the ability to provide us some reliable and revealing information. You are owned by the fed and if something were to happen ( fed giving john q. A chance to buy zero coupon bonds backed by its balance sheet) you will be required to finance its war against real money! Run for your lives.the sky is falling.the sky is falling!!! lmao 