Deutsche Bank Is Scared: “What Needs To Be Done” In Its Own Words
from Zero Hedge
It all started in mid/late 2014, when the first whispers of a Fed rate hike emerged, which in turn led to relentless increase in the value of the US dollar and the plunge in the price of oil and all commodities, unleashing the worst commodity bear market in history.
The immediate implication of these two concurrent events was missed by most, although we wrote about it and previewed the implications in November of that year in “How The Petrodollar Quietly Died, And Nobody Noticed.”
The conclusion was simple: Fed tightening and the resulting plunge in commodity prices, would lead (as it did) to the collapse of the great petrodollar cycle which had worked efficiently for 18 years and which led to petrodollar nations serving as a source of demand for $10 trillion in US assets, and when finished, would result in the Quantitative Tightening which has offset all central bank attempts to inject liquidity in the markets, a tightening which has since been unleashed by not only most emerging markets and petro-exporters but most notably China, and whose impact has been to not only pressure stocks lower but bring economic growth across the entire world to a grinding halt.
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Source: http://financialsurvivalnetwork.com/2016/02/deutsche-bank-is-scared-what-needs-to-be-done-in-its-own-words/?utm_source=rss&utm_medium=rss&utm_campaign=deutsche-bank-is-scared-what-needs-to-be-done-in-its-own-words
