“There will be another crisis, and its impact will be felt by the financial markets,” he wrote
April 10, 2015
Another economic crisis like the Great Recession is inevitable, according to JPMorgan Chase CEO Jamie Dimon, who heads the bank that recently imposed capital controls and limits on cash withdrawals.
“Some things never change – there will be another crisis, and its impact will be felt by the financial markets,” he wrote in his annual letter to shareholders. “The trigger to the next crisis will not be the same as the trigger to the last one, but there will be another crisis.”
Dimon’s admission is particularly concerning considering that JPMorgan Chase, the largest bank in the U.S., has already enacted a $50,000 monthly limit on cash withdrawals and has also banned American customers from sending money outside the U.S.
Such restrictions would be enacted amid an economic crisis, financial analyst Gerald Celente predicted in 2011.
“With banks closed and economic martial law in place, restrictions will be set on the amounts, times and frequency of withdrawals,” he wrote in the Summer 2011 Trends Journal. “As we have cautioned before, it will be essential to have a stash of cash on hand.”
The total global debt is now at a record $199 trillion, an increase of $57 trillion since the Great Recession, and the largest banks in the U.S. have more than $40 trillion in exposure to risky derivatives.
“[Derivatives] can be incredibly complex, but essentially they are just paper wagers about what will happen in the future,” analyst Michael Snyder wrote. “The truth is that derivatives trading is not too different from betting on baseball or football games.”
“Trading in derivatives is basically just a form of legalized gambling, and the ‘too big to fail’ banks have transformed Wall Street into the largest casino in the history of the planet. When this derivatives bubble bursts (and as surely as I am writing this it will), the pain that it will cause the global economy will be greater than words can describe.”
This article was posted: Saturday, April 11, 2015 at 5:00 am