“All the big banks in Europe are technically insolvent but they are doing deals with the government to take their bad debts off their balance sheets and in turn the governments are imposing austerity measures which in turn are forcing contraction in these economies,” said Max Keiser, financial journalist and broadcaster, in a Wednesday interview with Press TV.
The Bank of France warned on Wednesday that the European state is set to head toward recession in the third quarter of the current year as the eurozone continues to grapple with economic woes.
Germany’s Economy Ministry also announced on Wednesday that the country’s industrial production declined 0.9 percent in June compared to May.
“It is a bit of a game of chicken though where Germany is probably poised to do relatively better than others because of course the weak euro helps their export market and so they stand to do well. But then, of course, France has a very large agricultural component of its economy and during this current drought season due to manmade global warming and climate change driving the price of wheat so high, France very studiously planted record wheat crop this year. So they are insulated to some degree,” Keiser noted.
The analyst further argued that the high number of banking scandals point to the fact that the banks are responsible for the deterioration of the global economy.
“The economy is still shrinking; GDP is still deteriorating. Look at the banking scandals that are coming every week now…. Nobody is doing anything to stop the banks. So it is very similar to what we saw in the late 20s and 1930s, the crash and then the global depression. So that is where we are in right now, a global financial economic depression,” Keiser explained.