5 Urgent Warnings From Big Banks That the Economy Has Gone SuicidalBy Mac Slavo It is working against the very people who need its energy to survive. It is collapsing on its own weight, and the weight of literally incalculable levels of toxic debt. And it is going to create the greatest disaster of our time, if the warnings from the worlds most powerful bankers are any indication. While the general population is obsessed with the details of the worlds most entertaining and bizarre election in American history, the big banks are gearing up for a deadly serious economic collapse. Just during the past few weeks, there have been major discussions about stock markets dropping, the insolvency of Europes biggest investment bank, the mounting debt crisis and a deeper, long-term decline for everyday Americans. Heres what you probably missed while the Hillary-Trump cage match has taken over the collective psyche: The U.S. stock market is artificially propped up by the Federal Reserve, but their ability to stimulate the economy has worn off. Immunity has set in, and theyve got nothing left. It is only a matter of time until Yellen raises rates. When the shoe drops, everything falls with it. Via Business Insider: [] In late September, Gunn said the stock markets moves looked eerily similar to those just before the 1987 stock market crash. Citis Tom Fitzpatrick also highlighted the markets similarities to the 1987 crash just a few days ago. With the US stock market selling off aggressively on 11 October, we now issue a RED ALERT, Gunn said. Germanys and Europes largest investment bank is in the midst of a terrible crisis with its balance sheets, overloaded with toxic debt that is big enough to topple several continents. Goldman Sachs and others, of course, have echoed their concerns. According to the NY Times: The focus of investors has shifted from the level of capital to the business model, and that is why banks are under pressure, said Peter Dattels, deputy director in the I.M.F.s capital markets division. In their report, the funds economists argued that the problems with European banks were deeply structural: a toxic brew of low levels of capital, troubled loans and business models that no longer delivered profits in an era of low growth and negative interest rates. In particular, Mr. Dattels said, banks are transitioning from outdated business models that rely on large scale balance sheets, saying that Deutsche Bank fell into this bucket. Economists and regulators have argued that Deutsche Bank, given its size and culture of risk-taking, poses more of a risk to financial markets than its peers in Europe and the United States. As per usual with the haunting spectre of 2008, Deutsche Banks demise threatens contagion on a global basis, and will almost certainly infect U.S. markets as well. As SHTF reported, even the big banks are being forced to admit that stimulus is no longer working, and that consequences are happening. The Feds disastrous rescue plan after the 2008 financial crisis has left the U.S. economy in a fragile and vulnerable state. via CNBC: We are seven years into a full-fledged, all out, central bankers doing everything they can to stimulate demand, Bank of America-Merrill Lynchs head of U.S. equity and quantitative strategy Savita Subramanian recently warned on CNBCs Fast Money . We looked at all of these indicators that have been pretty good at forecasting recessions and we extrapolated that if they follow the current trends theyre on, were going to hit a recession sometime in the second half of next year. [] What scares me is the market been so fragile. Again, were playing with musical chairs here, not theoretical possibilities. The recording will end, and play time will be over. Federal Reserve monetary policy has absolutely eviscerated small businesses. Even typical players in investment markets are no longer able to get returns in private investment. This is forcing a de facto state-run economy, and to make matters worse, all the humans are about to be laid off as robots take their jobs. In the coming decade, 3.5 million truckers will lose their jobs, and along with will go waitresses, secretaries, teachers, office workers and much more. What then? As SHTF reported: The head of the investment banking firm Macquarie Group went even further, cautioning that we are witnessing nothing short of a terminal economy one which they very well might not be able to put back together again: via the Epoch Times: Global central banks with their easy money policies of negative interest rates and quantitative easing are working against a debt deflation scenario, with limited success, according to Shvets. That was the entire idea of aggressive monetary policies: Stimulate investment and consumption. None of that works, there is no evidence. It can impact asset prices, but they dont flow into the real economy, he said. [] There is no productivity on a global basis The private sector will never recover, it will never multiply money again Our financial problems are global in nature, and markets in China are just as vulnerable to collapse. Basically, all the major economies are playing the same dangerous shell game. As Michael Snyder reported: The pinnacle of the global financial system is warning that conditions are right for a full-blown banking crisis in China. Since the last financial crisis, there has been a credit boom in China that is really unprecedented in world history. At this point the total value of all outstanding loans in China has hit a grand total of more than 28 trillion dollars. That is essentially equivalent to the commercial banking systems of the United States and Japan combined. The Bank for International Settlements warned in its quarterly report that Chinas credit to GDP gap has reached 30.1, the highest to date and in a different league altogether from any other major country tracked by the institution. It is also significantly higher than the scores in East Asias speculative boom on 1997 or in the US subprime bubble before the Lehman crisis. (source) But of course there is more. Put this together with the downright eerie predictions of ranking figures in Goldman Sachs and JP Morgan Chase. Goldman Sachs warns that the Third Wave of the financial crisis is upon us, and will be the worst phase of it yet: This wave is characterised by rock-bottom commodities prices, stalling growth in China and other emerging-markets economies, and low global inflation, Goldman Sachs analysts led by Peter Oppenheimer said in a big-picture note. This triple whammy has its roots in the response to the first two waves of crisis the banking collapse and European sovereign-debt crisis and it is all part of the so-called debt supercycle of the past few decades. (source) JP Morgan Chase CEO Jamie Dimon warned last year that a volatile crisis is coming. He is preparing his firm to dig deeper into control over the digital grid, and the fees, penalties and surcharges that go along with it. As SHTF reported: The trigger to the next crisis will not be the same as the trigger to the last one but there will be another crisis. Triggering events could be geopolitical (the 1973 Middle East crisis), a recession where the Fed rapidly increases interest rates (the 1980-1982 recession), a commodities price collapse (oil in the late 1980s), the commercial real estate crisis (in the early 1990s), the Asian crisis (in 1997), so-called bubbles (the 2000 Internet bubble and the 2008 mortgage/housing bubble), etc [] These reaction transactions of the next financial crisis will be intensified by the new financial terrain: automated, rapid via computers, algorithms, big data; shallow markets andthreatened with illiquidity; positioned to charge for deposits and transactions while less likely to lend and returning little or no interest; vulnerable to cyber theft and subject to account freezes; market depth limited by gravity of actions of big fish in the pond big banks, Federal Reserve bond purchases, derivatives moved by enormous players and rapid computerized trades; dark pools of billionaires steering big deals from the shadows; What do they know that we dont, and how bad is it going to be? More importantly, are you prepared to survive such a crisis? Read more: Click here to subscribe: Join over one million monthly readers and receive breaking news, strategies, ideas and commentary. You can read more from Mac Slavo at his site SHTFplan.com You have to love the way that organizations like BIS, HSBC, etc. warn of economic collapse that they created right before they do it!! That way they can pretend to be the good guys and be able to say we warned you. Well done!! Economy gone suicidal ? No, more like Deliberately drowned in toxic fractionals ! 