Executive Intelligence Review
Subscribe to EIR

PRESS RELEASE


Et Tu, Mr. Schäuble?

Oct. 8, 2017 (EIRNS)—Having been removed from his long-time position as Germany’s Finance Minister, Wolfgang Schäuble gave an interview with the Financial Times, and revealed that he has been one of those banking "insiders" who see a global financial crash coming. He did not talk about this as Finance Minister, merely stating his view that the problems of Deutsche Bank would not trigger any general banking crisis.

Schäuble told the Financial Times that he would warn that "spiralling levels of global debt and liquidity present a major risk to the world economy." This, he said was because of "bubbles forming due to the trillions of dollars that central banks have pumped into markets," as the newspaper reported it.

Schäuble also warned that there were greater risks in the Eurozone, because the balance sheets of its major banks are weighted down by masses of non-performing loans from the 2008 financial collapse.

The now-former austerity controller of German government policy for the entire Eurozone, echoed what former Bank for International Settlements chief economist William White warned of in a Financial Times interview last month, and the warnings of the International Monetary Fund in its April annual report and of experts in the United States as well. $14 trillion in money printing by the biggest central banks, while holding interest rates near zero, has created a huge and fatal bubble of corporate debt—spent on the stock markets rather than on business investment—which is going to blow. Particularly the high-yield or "junk" debt within this bubble has deteriorated so far that Moody’s Ratings Service has reported the credit quality of this debt to be the worst it has rated since it began such an index in 2000.