Posted on 03/19/2023 4:55:33 AM PDT by MtnClimber
The next logical step is for the government to insure all bank deposits, which is tantamount to nationalizing the entire banking system. But to what end?
A collection of seemingly random crises can spell out a sinister “conspiracy theory” when you consider their connections and where they are leading. An overplayed plot? Perhaps, but how many so-called conspiracy theories have proven to be reality recently?
First, the world economy shut down with the COVID lockdown. Manufacturing stopped and capital construction projects were put on hold. No one was making anything, and consumers were buying very little.
The government injected huge amounts of cash to stimulate spending, even though there wasn’t much to spend it on: witness supply chain issues. This cash was created out of thin air by the Federal Reserve. Household savings rates rose to new highs. Personal and commercial bank deposits soared.
Consider banks, a confounding inversion of logic for most consumers. While it seems odd to think that a loan is an asset and a deposit is a liability, it makes sense when you realize that making loans is the method banks use to make money. Every time a bank takes in a deposit, they try to loan that money out as quickly as possible to put it to work making income for the bank. If no one is applying for loans, the bank invests the money in bonds to earn a little interest.
During the COVID shutdowns with the stimulus monetary infusions, people and businesses were making deposits and not taking out loans. Banks had to put all that surplus cash into bonds. U.S. Treasury Bills were paying a few points interest—historically low rates given the low inflation of recent years—but more than no income for the banks. Longer term bonds paid slightly higher interest than short term.
As the economy started to recover from the shutdowns, inflation was more than predictable with all that newly created money chasing the limited goods available. So in swooped the Federal Reserve to “solve the problem!” The Fed started cranking up interest rates to slow demand and ease inflation.
Now think back to the banks. They are holding long term bonds at the pre-inflation low interest rates. When loan demand picks up or customers start withdrawing cash, they would ordinarily sell the bonds to make the cash available or turn it into more profitable loans to customers. The problem is that interest rates have risen so fast that the banks are “under water” on the bonds—which can only be sold at a loss since similar-term bonds are now paying higher interest. Really good risk managers will have this all hedged, but then there is SVB.
Silicon Valley Bank did not practice good risk management, obviously, for numerous colorful reasons that we need not explore here.
The point is that this sequence of events from shutdowns, to stimulus, to inflation and rate hikes created major problems for banks. These events were all precipitated by government actions. It is no surprise that some, perhaps more, banks cannot meet customer withdrawals.
The Federal Deposit Insurance Corporation (FDIC) provides “insurance” to cover deposits of up to $250,000 when a bank cannot meet customer withdrawals. This “insurance” fund comes from fees paid by banks. Like any insurance, the total fund is not large enough to cover a loss of everything insured by every participant all at once.
Once again, the government comes to the rescue! Joe Biden announced that the government and the Fed will cover all the deposits at the “failed” banks above the FDIC limit. Do you believe that this program “won’t cost taxpayers a dime?” The cost is going to come out of higher bank fees, paid ultimately by customers, or higher taxes.
The next logical step is for the government to insure all bank deposits, which is tantamount to nationalizing the entire banking system. Once that is accomplished, putting in place the proposed Central Bank Digital Currency (CBDC) is a snap.
Compound the CBDC with digital medical IDs from the World Health Organization (WHO), and all of our privacy and personal control of our lives is gone. A fertile mind can string together further crises to paint a vivid “conspiracy theory” of totalitarian control. Do you doubt the logic?
Left out of this article is the probability that the government would tie a digital currency into a Chinese style social credit system to track not only everything you purchase, but your movement and speech.
BTTT
There’s nothing special about banks, or the banking system, that suggests it should not be nationalized.
The money system is a national function already. Congress “coins money, and regulates the value thereof” and “issues bills of credit on the united States”, and no State may “make anything but gold and silver coin legal tender in payment of debts”.
Banks and bankers are supposed to be servants of the above, not masters.
Because the central government consists of servants and not masters?
“””The next logical step is for the government to.....”””
For the past 30 years government has been the cause of one crisis followed by another crisis.
1. Irrational exuberance
2. Y2K
3. Dot Com Collapse
4. Collateralized Housing Mortgages
5. TARP
6. Quantitative Easing
7. Outsourcing gain of function to China
8. Covid stimulus checks
9. Bailout of depositors in excess of FDIC $250,000 limit
The pattern is clear. When government interjects itself into the market, bad things happen.
Our nation is under siege, and it seems the people are too wrapped up in their cell phones and narcotics to see what's happening.
The ones who are behind all of this are same ones who engineered and payed for the theft of the last presidential election..
Those who financing the invasion at the southern border.
The same ones who brought us covid.
The same ones who are working overtime at this very moment to destroy our banking system, and our economy..
Who do you think that might be...? Who do you think would have the most to gain..? Money would be irrelevant, they already have that..
Yellen already told Congress that only systemically important banks will be protected beyond $259K, which is a call for those with deposits above that to further centralize our banking system by moving from community or regional banks to those monstrosities deemed “too large to fail”.
From there it will be able for our new level of corporate banking fascism to deputize the surviving banks to enforce AML/KYC surveillance and control over the CBDC that has started to roll out.
*$250K
Ping
And by "government" it means the WEF/deep state cabal, not the U.S. government, which is but a North American regional office.
People can pooh pooh the whole Beast of Revelation under the excuse that "well, it never came to fruition before". crudbutt in hell didn't have the technological tools to make it happen before. With the rollout of to total surveillance state and AI, and a populace intoxicated by the false promise of becoming gods of their own personal digital utopia, he and his minions now do.
I have asked before, and I will ask again..
How exactly did we “bail out” the bank?
If what I have read is correct, we bought the assets at purchase price. This made the depositors whole.
When the assets mature, we reap the profits.
How is this a bailout?
“””If what I have read is correct, we bought the assets at purchase price. This made the depositors whole.”””
The bonds held by SVB are only worth 60 cents today. SVB paid 100 cents when they bought the bonds.
So if the FED paid SVB 100 cents for the bonds, then the FED just lost 40 cents.
This may help you.
When interest rates go up, bond prices go down. You may want to consider this.
Thank You.
Those 51 elections occur at the direction of, and are subservient to, 50 legislatures and Congress. The States unwisely granted Congress 3 Electors by ratifying the XXIII Amendment in 1960, so Congress does have supervisory power OVER THOSE THREE, but not otherwise.
There is only one Presidential election in the Constitution, it takes place in December, there are 538 voters, and in December 2020 Biden got 306 of them and was elected President.
No State Legislature objected that its Electors were not the ones they had appointed. No State Legislature even convened to consider the matter. In the case of Pennsylvania, the Legislature fled to avoid considering the matter.
It has never been alleged that a single one of the 306 votes for Biden/Harris was a forgery, that the Electors who casted them were impersonating someone else, or that the Legislatures had secretly appointed other Electors.
There is zero space for an allegation of fraud in the Constitutional Presidential election of December 14, 2020.
As far as the 51 elections which occurred on November 3, 2020, they may very well have been rife with fraud, but since the appointment power of the 50 State Legislatures (535) and Congress (3) is plenary, that’s a problem for those legislatures to deal with should they choose to do so.
This is precisely what the ‘ists would tell me. Then they would tell me to kick rocks.
So you’re carrying their water.
BUT, what you describe is a Government that is no longer representing the people, it is merely an out of control criminal entity. Playing around in the margins, but in no way operating within the spirit or intent of the constitution. The founders were quite clear that the American most certainly doesn’t have to kick rocks under these conditions.
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