The Economy Of The Largest Superpower On The Planet Is Collapsing Right Now

But that might not happen.  In fact, things could take a turn for the worse at any moment.

Most people don’t realize this, but European banks are even shakier than U.S. banks, and that is saying a lot.

For example, the largest bank in the strongest economy in Europe is Deutsche Bank.  At this point, Deutsche Bank has approximately 75 trillion dollars worth of exposure to derivatives.  That amount of money is about 20 times the size of German GDP, and it is more exposure than any U.S. bank has.

And Deutsche Bank is far from alone.  All over Europe there are zombie banks that are essentially insolvent.  Many of them are being propped up by their governments.  Those governments know that if those banks failed that it would make their economic problems even worse.

Just like in the United States, most economic activity in Europe is fueled by debt.  So those banks are needed to provide mortgages, loans and credit cards to average citizens and businesses.  Unfortunately, bad debt levels and business failures continue to shoot up all over Europe.

The system is breaking down, and nobody is quite sure what is going to happen next.

So keep an eye on Europe.  In particular, keep an eye on Italy.  I have a feeling that big economic news is about to start coming out of Italy, and it won’t be good.

In 2014, we have been experiencing “the calm before the storm”.

But 2015 is right around the corner, and it promises to be extremely “interesting”.

This article is brought to you courtesy of Michael Snyder.

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