Dollar Burn

The six month-long exodus of thirteen CEO’s throughout the global banking industry isn’t coincidental to what happened in 2008. It is just another symptom of failed monetary policies that were never properly addressed and corrected by the IMF, central banks, and nation’s financial committees.

A MIRROR OF THE PAST

I was recently asked by economist Thomas Linske my thoughts concerning the wave of resignations of banking CEO’s around the globe via email. My response to Mr. Linske (with his permission):

“This could be a revisit, on a much broader scale, of what happened in 2008 to Lehman Brothers and where other investment banks had to prop up those that were faltering in the wake of its Chapter 11 filing. Even though the catalyst of the collapse (subprime, etc.) is a bit different, the scenario concerning this article, and how it’s playing out, is eerily similar but on a much larger scale. For instance, prior to faltering investment banks, OCEO’s often will ask the CEO to resign in hope to bring confidence back to the firm.

Resigning CEO’s to bolster investor confidence is nothing more than another short-term fix, a banking parlor trick, in desperation to maintain the current banking paradigm. The serious, systemic financial problems that brought down the system in 2008 HAVE NOT been fixed. Balance sheet debts and the dilution of major currencies around the globe continue to escalate at staggering rates.

If American/developed global societies experience another financial crisis, it will be one in which all central banks will need to be bailed out, i.e., offered liquidity during a financial deep freeze. The only institution that could bail out the central banks is the IMF via their special drawing rights (SDR’s). My educated guess is that this would be the only banking tool, within the basket of failing global fiat currencies, which would have perceived liquidity in a time of global panic.

If the IMF intervenes during the next crisis by implementing a global reset, I do not believe the U.S. Treasury debts held by foreign investors will simply be erased. Instead, they will be revalued in the new global trade currency.”

PRECURSOR TO A DYING CANARY

Without falling victim to fear mongering or baseless propaganda, one has to recognize that something serious worth noting is going on in global banking. In no way can you discount the resignation of thirteen CEO’s without coming to a realization that major disruptions in the financial banking system may well be on the horizon.

The billion dollar question is what do these financial elites know that we don’t?

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