With all the focus on Greece it is easy to forget the coming economic collapse begins with Germany. I shared a warning about Germany in my previous post: David Wilkerson: Economic Collapse Begins in Germany, but I am posting again today to share more confirmations.
The process of a financial meltdown might have already started at Deutsche Bank, which is Germany’s largest bank and the world’s twelfth largest in terms of assets. On Sunday June 7 2015, they unexpectedly announced the resignation of both of their co-CEO’s, Anshu Jain and Jurgen Fitschen. The resignations were unexpected because both men still had nine months remaining on their contracts. Just three weeks earlier both CEO’s told a German publication they would not step down and just two weeks earlier Jain was granted extra powers to reorganize internal operations. So it appears they were forced out due to costly mistakes and penalties. Shareholders were reportedly losing confidence in their leadership. (Source: Wall Street Journal)
Rumors are circulating that there is more to the Deutsche Bank story. Financial analyst Jim Willie recently shared in his newsletter, The Golden Jackass, that Deutsche Bank suffered enormous losses in May, which started an internal financial meltdown that will soon bring down the German economy and the global financial system within a few months.
The rumor is Deutsche Bank lost over $1 trillion on derivative products caused by a sudden spike in interest rates. The interest rate on 10-year German bonds recently spiked up from less than 0.1% in mid-April to over 0.9% in early June. Even though that is only an increase of about 8 tenths of a percentage, it adds up very quickly because of the size of Deutsche Bank’s position. They are the world’s largest holder of derivatives with an estimated $54 trillion, which is almost 15 times the size of Germany’s entire annual GDP. With a position that large even a small mistake could quickly cause unbearable losses, not only for them, but also for Germany. Prices for derivatives are almost always tied to interest rates.
Down Goes the Euro:
As Europe’s largest economy, Germany is currently the only thing holding the European Union together. For the past five years, they have been picking up the tab in the form of bailout packages to prop up failed economies in Italy, Spain, Portugal, Ireland, and Greece. So a financial collapse in Germany would cause investors to lose confidence in the European Union, which would cause the euro to collapse.
Down Goes the Franc:
The collapse of the European Union and the euro would also cause the collapse of the Swiss franc, which has long been considered a safe haven. However, the Swiss National Bank has taken many wrong moves in recent years attempting to prop up the European Union. Their balance sheet now shows very large positions in European bonds and equities. Even this week they announced they were intervening in currency markets to prop up the euro. They are fighting to save the euro in a desperate attempt to save themselves.
Neville Johnson’s Prophetic Vision:
Neville Johnson, founder of The Academy of Light, received a prophetic vision in which he saw the next economic collapse starting in Germany and Japan. He shared the following testimony in his newsletter dated October 2013.
I saw another devastating economic collapse. Although the order and timing was not clear, I saw that Japan and Germany were some of the triggers in this. I saw an earthquake devastating Tokyo, which is also a trigger as the Tokyo stock market closed indefinitely. The USA was seriously affected by this. It was revealed to me that none of the banking safeguards, which were recommended after the last economic meltdown in the USA had been put in place. This economic collapse will be far more severe than the last one. Many churches and Christians organizations along with large corporations will fall into bankruptcy because of this.
Like David Wilkerson, Neville Johnson saw the coming global economic collapse will begin in Germany. However, he also saw a large earthquake hitting Japan. As the world’s third largest economy, a devastating earthquake in Japan would severely hurt financial markets around the world. Back in 1985, John Paul Jackson saw a news headline and a vision of a large volcanic eruption killing 7 million people in Tokyo, but it sounds like that might not be the same event that Neville Johnson saw. Hopefully, neither of these things will happen anytime soon.
Even though Greece is currently getting most of the news headlines, we can expect bigger news coming soon from Germany and Japan. The problems in Greece appear to be very dire today as they are defaulting on their June payment to the IMF, but they still have a nationwide referendum coming up on July 5 that might provide the basis for a new deal with the ECB and IMF. Even if the people vote to leave the EU, we can expect the problems there to be somewhat contained for a while longer. The Greek drama is just the opening act in this tragic play. Germany is the one to watch.
Author: James Bailey
James Bailey is a blogger, business owner, husband and father of two grown children. In 1982, he surrendered his life to the Lord Jesus Christ. In 2012, he founded Z3news.com to broadcast the message of salvation by reporting end time news before it happens.
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