The major banks look to be forcasting a major breakdown of the world economy, and have called emergency meetings to discuss the matter.
Just about every major banker and finance minister in the world is meeting in Washington, DC, this week, following two rushed, secretive meetings of the Federal Reserve and another instantaneous and rare meeting between the Fed Chair and the president of the United States. These and other emergency bank meetings around the world cause one to wonder what is going down. Let’s start with a bullet list of the week’s big-bank events:
- The Federal Reserve Board of Governors just held an “expedited special meeting” on Monday in closed-door session.
- The White House made an immediate announcement that the president was going to meet with Fed Chair Janet Yellen right after Monday’s special meeting and that Vice President Biden would be joining them.
- The Federal Reserve very shortly posted an announcement of another expedited closed-door meeting for Tuesday for the specific purpose of “bank supervision.”
- A G-20 meeting of finance ministers and central-bank heads starts in Washington, DC, on Tuesday, too, and continues through Wednesday.
- Then on Thursday the World Bank and the International Monetary Fund meet in Washington.
- The Federal Reserve Bank of Atlanta just revised US GDP growth for the first quarter to the precipice of recession at 0.1%.
- US banks are widely expected this week to report their worst quarter financially since the start of the Great Recession.
- The European Union’s new “bail-in” procedures for failing banks were employed for the first time with Austrian bank Heta Asset Resolution AG.
- Italy’s minister of finance called an emergency meeting of Italian bankers to engage “last resort” measures for dealing with 360-billion euros of bad loans in banks that have only 50 billion in capital.
The Activist Post isn’t the only publication seizing on this news. The Wealth Watchmen are also considered, and has gone into detail about what is being discussed at these secret meetings.
Things are now deteriorating in the global economy so quickly, that it cannot be hidden from the public any longer. Just yesterday, the world sat tight as the Federal Reserve and the President had a secret meeting.
However, it was the advanced nature of the meeting that turned the most heads. Just look at tone of the announcement, via the Federal Reserve’s own website:
Advanced Notice of a Meeting under Expedited Procedures
It is anticipated that the closed meeting of the Board of Governors of the Federal Reserve System at 2:00 PM on Tuesday, April 12, 2016, will be held under expedited procedures, as set forth in section 26lb.7 of the Board’s Rules Regarding Public Observation of Meetings, at the Board’s offices at 20th Street and C Streets, N.W., Washington, D.C. The following items of official Board business are tentatively scheduled to be considered at that meeting.
Meeting Date: Tuesday, April 12, 2016
1. Bank Supervisory Matter
Uh oh. In the past these “expedited procedure” meetings were rather rare, yet now they’re getting more commonplace!
“Watchman, what are you fear-mongering about now? It’s just one meeting? Who cares?”
Uh, if you just said that…then you won’t wanna look at this next picture from the Fed website:
Slow Motion 9
As you can see..it wasn’t “just one meeting”….it was the 3rd such meeting in one week, with ANOTHER such meeting happening today!
4 expedited meetings in one week, and Mike Maloney says, that there will be 8 such meetings just this month, total!
That is an unprecedented shotgun blast of meetings for so short a time slot!
Clearly, something ominous is happening to make them panic. So what is it they’re looking at, that requires such immediate(and secret)attention? Well, there are many troubling signs now on the horizon, but I believe the next one is the doozie!
BIG Oil Trouble for Banks
I’ve been writing for months now, how collapsing oil prices worldwide are going to affect everyone. This is especially true for banks! Prolonged, sub $40 oil that we’ve all been experiencing is going to drive global growth prospects into the very ground.
Oil and cheap credit are the engines that make the world go round. The problem is…that many large governments and corporations made forward purchases and contractual, budget agreements based on $80+ oil!
That price is now history, and the with it, the hopes of many too big to fail banks, who’ve over-extended themselves by giving insolvent oil companies too many loans! Many, many large oil companies(especially shale oil) are now utterly bankrupt. It’s all over but the shouting for many of them.
The only thing that has kept these companies from declaring bankruptcy has been their ability to draw up vast, cheap credit lines that mega banks have extended to them! I’ve been waiting for that credit line to end, and the newest headline yesterday suggests that day has come….and the losses to banks will be EPIC!
The list of potential failures is too long to list in its entirety, but the implications of each failure could be dire. To see the rest, follow the source links below.