In their books “The Biggest Robbery in History“, “The Crash is the Solution” and “Capital Errors” as well as in interviews, articles and comments … Matthias Weik and Marc Friedrich have correctly forecast:

AUSTERITY POLICIES HAVE FAILED

The Crash is the Solution; page 206

In many cases, austerity policies have delivered short-term and cosmetic improvements, but have mainly ruined the economies of the countries affected.

Capital Errors; page 43

Austerity policies have failed. Only work and investment produce value creation, added value, incomes, domestic consumption, tax revenues and – in the final analysis – prosperity. The upward spiral of prosperity must be supported and bolstered, and the downward spiral of destructive austerity and unemployment must be broken.

A study conducted by the German Institute of Economic Research (DIW) A study conducted by the German Institute of Economic Research (DIW) meanwhile notes: “The austerity policy in Spain, Portugal and Italy was counterproductive”.

EXTENDING THE ECB PROGRAM

 

On Facebook on 8 December 2016

On Facebook on 8 December 2016

We expect that the ECB’s crazy purchasing program will be expanded for 6 to 12 months.

OUTCOME OF THE US PRESIDENTIAL ELECTION

 

 

NTV; 1 NOVEMBER 2016

NTV; 1 November 2016

In an NTV interview on 1 November 2016, Marc Friedrich correctly forecast that Donald Trump would win the election, thereby averting a downturn in financial markets.

BREXIT/ EU/ STRENGTHENING OF EXTREMIST POLITICIANS

Capital Errors; pages 19, 20

More than ever before, people in the EU are working against each other, instead of with each other. It has become hard to ignore the signs of the European Union’s decay. It appears to be simply a matter of time before it disintegrates in its current form.

Unless the macroeconomic situation in many European countries undergoes an upturn – which we do not assume – we expect the EU to implode sooner rather than later.

Unless politicians immediately start to resolve problems not only for the banks but also for the people, the risk is considerable that sooner rather than later political parties in Europe will come to power that no real democrat wishes to see.

On 29 March 2017, the United Kingdom applied to leave the European Union.

On 29 March 2017, the United Kingdom applied to leave the European Union.

NEGATIVE INTEREST RATES FOR SAVERS

Withdrawal fees, expropriation, incapacitation

Capital Errors; page 21

The noose around Germany is becoming ever tighter. At the moment, negative interest rates affect only big clients, but at some point they will affect us all.

To head off the next crisis, financial repression against citizens is being expanded worldwide, and will require even more financial restrictions in the future.

Capital Errors; page 23

For this reason, it should be clear to us that low interest rates are here to stay. It is foreseeable that interest rates will fall even further and that expropriation by central banks will continue to advance, in order to impose the costs of the crises on us all and breathe a little life into the system.

The Crash is the Solution; page 213

Central bankers face a huge dilemma, with a choice between a rock and a hard place – whether to raise interest rates, or finally cut them to zero. Or to even smooth the path to negative interest rates.

The Crash is the Solution; page 253

This would mean that you would even have to pay to keep your money in a bank account.

Banks have meanwhile massively increased their account management fees and some banks have already introduced negative interest rates for private customers. Moreover, some cooperative banks and savings banks are already demanding fees for cash withdrawals.

Banks have meanwhile massively increased their account management fees and some banks have already introduced negative interest rates for private customers. Moreover, some cooperative banks and savings banks are already demanding fees for cash withdrawals.

SAVINGS BANKS, COOPERATIVE BANKS AND BUILDING SOCIETIES

Capital Errors; page 21

Germany’s savings banks, cooperative banks and building societies – usually solid businesses – are encountering ever greater problems due to the phase of low interest rates.

German savings banks and cooperative banks will hardly survive an extended phase of low and zero interest rates – to say nothing of Germany’s building societies. It is expected that costs will be passed on increasingly to customers, with account fees jumping significantly.

Some saving banks are now even imposing fees for cash withdrawals.

Some saving banks are now even imposing fees for cash withdrawals.

OUTCOME OF THE EU ELECTIONS

The Crash is the Solution; page 13

At the time of the European elections in May 2014, politicians from Helsinki to Rome and from Lisbon to Warsaw will give emotional speeches singing the praises of the European peace order and the incontestable advantages of cross-border economic cooperation. At the same time, however, the same politicians – through grossly ill-considered decisions – are creating a fertile and combustible ground for populists, nationalists, separatists and extremists.

Populists achieved big gains in votes in the 2014 EU parliamentary elections. Populist parties also recorded considerable successes in the subsequent elections in Europe.

REDUCING THE INTEREST RATE FOR ENDOWMENT POLICIES

The Crash is the Solution; page 242

The guaranteed interest rate of 1.75 percent for new contracts already lies below the current and extremely moderate inflation rate. The guaranteed interest rate is to be reduced to 1.25 percent in 2015.

The guaranteed interest rate (maximum for the discount rate) was cut to 1.25 percent. The guaranteed interest rate was reduced further to 0.9 percent from January 2017.

THE HARD-WORKING ARE BECOMING EVER POORER AND THE RICH ARE BECOMING EVER RICHER

The Biggest Heist in History; from page 280

Friedrich & Weik pointed out this trend as early as 2012. In 2016, 62 ultrarich individuals already own the same level of wealth as is owned by as much as half of the world’s population.

In its report on poverty and wealth, the German government meantime also warns about “solidified inequality”.

In its report on poverty and wealth, the German government meantime also warns about “solidified inequality”.

THE NEXT BANK RESCUE WILL ALSO INCLUDE SAVERS (A BAIL-IN)

The Biggest Heist in History; page 327

Banks had to be rescued by governments in 2008. The financial industry succeeded in plundering state coffers and bringing politicians into a position of risky dependency. The problem is that states can no longer afford a further rescue of the overinflated and speculation-driven financial market. A further bank rescue can only occur at the public’s cost.

Friedrich & Weik thereby successfully forecast developments such as in Cyprus and the EU.

FURTHER RESCUE PACKAGE FOR GREECE

The Biggest Heist in History; page 249

After the first rescue package from May 2010 proved insufficient, a second rescue package of €130 billion was launched in July 2011. It is already clear in February 2012 that a third rescue package must be arranged for Greece.

Following a debt reduction, a third rescue package was needed in 2015. The emergency loans and assistance that have been transferred in the past years meanwhile stack up to a grand total of around €362 billion.

GREECE

Capital Errors; page 276

The biggest insolvency postponement carries on cheerfully.

Even the International Monetary Fund (IMF) categorises Greece’s debt burden as currently “unsustainable” and as “explosive” long-term.

Even the International Monetary Fund (IMF) categorises Greece’s debt burden as currently “unsustainable” and as “explosive” long-term.

PENSIONS ARE NOT SAFE

The Crash is the Solution; page 116

The figures for German pensioners are alarming. They will have a mere 42 percent of their average monthly gross income and 55 percent of their net income available for their future retirement. We thereby lag far behind on an international comparison. Measured in terms of economic performance, German workers are seeing their share of the value creation they have contributed being whittled down to a greater extent than in any other country. Retirement poverty is effectively preprogrammed in many cases as a consequence.

The Biggest Heist in History; page 270

The question is whether Germany’s politician Norbert Blüm ever seriously meant his statement “Your pensions are safe”. If yes, I have grave doubts about his powers of judgement, and if not, he has been very misleading. It is a sufficiently well-established fact young working people are to pay for the pension system for their elders alive at the same time. For this, however, we need ever more young people, as older people are becoming ever older.

The pensions problem and the threat of old-age poverty are sufficiently well known today.