What Powell And Lagarde Told The G7?

Here is a joint statement from Lagarde and Powell at a secret G7 meeting with all Leaders and Finance Chiefs of the seven nations attending as well as the IMF and BIS:

“The financial system has been on the verge of collapse since September 2019 when we started Repos and QE. And since then it has only got worse. The coronavirus hit us at a time when the banking system was almost down and out.

We had enough problems saving the banks. But now we must save big corporations, small companies, individuals, local municipalities and states, the Federal State and this on top of rescuing a financial system which is deteriorating by the day. The whole system is leaking like a sieve and we are struggling to keep it all afloat.

Fortunately we have printing presses and that helps to keep it all going but only just. Our big fear is that the market will realise that all the money we are printing is worthless. And it is of course but we can’t tell anyone. But if the world wakes up to this one day soon, the financial system could implode in a matter of days. And we would be totally helpless to stop it………”


And this dear readers is where the world stands today. On the verge of an implosion of the whole financial system. Just a small crack could push the whole system into a black hole.

All that is needed is a severe second wave of CV-19 or a bank collapse, triggering an implosion of debt markets and the whole system.

Yes, we know the world was in a similar situation in 2008 but with over $100 trillion more in debt and who knows how many additional $100s of trillions of derivatives plus a world economy disintegrating – it is now exponentially worse from a risk point of view.

We must also remember that bad debts in the financial system are going up by the minute with most borrowers under severe financial pressure. Just look at the chart below how bad debts follow unemployment. The banks haven’t reported this yet but we will see it in the next couple of quarters.


So why don’t the Fed and ECB chiefs tell the truth? Well, maybe they are, in their own CB Speak.

ECB President Christine Lagarde said the recovery from the coronavirus pandemic will be “restrained” and will change parts of the economy permanently. And Powell recently said: ”The path ahead is likely to be challenging. Lives and livelihoods have been lost, and uncertainty looms large.”

So “restrained” and “challenging” is as far as they can stretch without panicking the world. They would obviously never warn bank depositors that their money will soon be gone. This is why people must figure it out themselves. But they won’t of course until it is too late.

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Laurent Eliane 4 weeks ago Member's comment

Good article and fully agreed. BUT, there is a "but"....as I wrote once in a comment, central banks have the power to print papergold back by???? Gold and silver are the barometer of faith (in an opposite way) in a political/financial or in a whole society and central bank know that as well.

The higher gold is, less faith in gov.

So, only physical gold/silver.

And if you have any data about papergold central bank has issued and how many papergold versus physical situation we are, this can give a complete view of the fiat capitalism we are living in and will see it's collapse like the communism in USSR.

Thanks for your article

William K. 4 weeks ago Member's comment

The rise in gold is a symptom of the fall in other forms of money. The problem is always inflation, the creation of money without value to back it up.

Certainly the irresponsible printing of money to bail out "one's friends" is a large driver and an indicator of the level of corruption prevailing. while the motivation for this head-long dive is clear the rationality is missing.

Unfortunately for me, my investments are at high risk. And I invested because bank interests were too low, not for any quick profit.

So will there be anything learned from this disaster??

Wise folks always try to learn from mistakes, both their own and others. I prefer to learn from the mistakes of others since it is usually less painful for me. It seems that this time the mistakes of others will cause me a great deal of pain.

Stock Tigress 4 weeks ago Member's comment

Lol, good advice William. So what have you learned?

William K. 4 weeks ago Member's comment

it appears that my rather expensive lesson is that while gold does not provide as great an appreciation in good times, and not much in the line of earnings, that it is stable in value, although not in price.

Also, it becomes even more clear that there is a trade-off between profit and stability.