"We are in the middle of an economic war"
Ernst Wolff, author of an important book on the IMF, believes that the
US is specifically putting pressure on Germany and the EU to prevent
Europe from turning to Russia and China. But this would lead to the collapse of the world financial system.
Many distrust the dollar because of US policy. (Photo: dpa)
Ernst Wolff: The German bank is struggling with enormous problems that they can not solve on their own. In the past, it has had too high a risk and has responded too late to market changes. The general problems in the financial sector, the stagnation of the global economy and the rapid loss of trust among their customers are compounded. Deutsche Bank's derivative volume of approximately $ 46 trillion also makes it a treadmill for the global financial system. If Deutsche Bank falls, the feared domino effect occurs: Then the global financial system collapses.
German Economic News: Will the German Bank attacked at the time of speculators?
Ernst Wolff: It's quite possible, but they will be hard nut to crack in it. Because of the threat to the global financial system, every conceivable measure will be taken in order to prevent Deutsche Bank from failing. Who knows whether it has already been manipulated behind the scenes? The sudden tightening of the share price last Friday because of an unconfirmed Twitter message, for example, is more than suspicious.
German Economic News: What would be the risks for Germany, the country should nationalize or teilverstaatlichen the DB?
Ernst Wolff: It is interesting that is spoken about nationalization or partial nationalization, since, according to current EU legislation actually a bail-in would take place. However, there will probably be no such thing as it could lead to a bank run and the beginning of Merkel's reign. A bail-out by a state participation in the bank will not be sufficient in case of emergency because of the amount of the sums. It is likely that the ECB will draw enormous sums out of nothing and will make it available to Deutsche Bank - which would ultimately lead the problem to the laboring population by the further depreciation of the euro.
German Economic News: Would pay a fine $ 14 billion endanger the existence of Deutsche Bank?
Ernst Wolff: This number is artificially hyped, as well as the alleged 5.4 billion US dollars, which are under discussion since Friday. These are, in my opinion, distraction maneuvers, which are intended to convey to the public certain events, such as the surprising rise in the share price on the last Friday afternoon. In addition, these figures serve at most to ease the problem: 14 billion US dollars are nearly the same as the "peanuts" evicted by former Deutsche Bank CEO Hilmar Kopper.
German Economic News: Can you interpret the amount and timing of the impending penalty as a political maneuver?
Ernst Wolff: Certainly. On the one hand, the threat of punishment is likely to be a retaliatory measure by the US for the tax bill of 13 billion US dollars demanded by the EU Commission of Apple. On the other hand, the handling of the entire affair by the US exposes the political intentions: Normally, it was expected that the US Department of Justice discreetly addressed the bank concerned to discuss the matter behind closed doors. The fact that the demands on the way through the media were made world-wide shows that here an example is made and a bank consciously in the public should be exposed.
German Economic News: Are we in an economic war between the US and the EU?
Ernst Wolff: We are in the middle. Since the turn of the century, the US has been feeling more and more clearly that their status as an unquestioned supermarket is slipping. They therefore try to stop their historical descent with military and economic means. Their greatest strength in the financial sector is still the dollar, the world's most important reserve currency. But he too loses power and influence every day. The greatest fear of Washington and Wall Street is a departure from Europe from the USA and a turn to Russia and the most important and strongest US competitor China in the future. That is why they are putting pressure on the EU and its main economic power, and thus demonstrating its power.
German Economic News: If saving the DB to save taxpayers' money the welcome precedent, also Italian banks such as the MPS with state funds?
Ernst Wolff: Just this case the US is trying to bring about: they want to force the government in Berlin to become part of the Deutsche Bank, so it lacks the arguments in dialogue with Italy, to the Italian Premier Renzi more of a bail-out of its problem bank Monte dei Pashi. This would lead to the next torniment within the EU, which is, after all, the strongest competitor on the world market.
German Economic News: Why does the German government refuses to agree to a bail-out of the Monte dei Paschi?
Ernst Wolff. (Photo: Ernst Wolff)
German Economic News: If, as you say, that will "take all possible measures" to obtain the German bank alive - as long as you give her then?
Ernst Wolff: This can be as little as predict the remaining life of our current financial system. No one can prevent the authorities at the ECB (and the rest of the world's central banks) from continuing to draw huge sums of money out of nowhere.
However, one has to keep in mind that the current Fiat money system is based on no real value, but only on the trust of the people. When nobody will know about this confidence, no one knows - but one thing is certain: we are approaching this event every day, and when it happens, the lights will go out very quickly and not just at the Deutsche Bank.
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World power IMF. The book of Ernst Wolff
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