Proverbs 22:7 – “The rich ruleth over the poor, and the borrower is servant to the lender”
No More Piggy Banks For Taxpayers
You heard it here first, there will be no more piggy banks for taxpayers! We have in the midst of us, anti-prosperity individuals who will do anything to keep it that way!
So now with the arrival of screaming evidence that the banking system desperately needs the disciplining effect of depositor flight.
But let’s cut to the chase. Banks not disciplined by their depositors and not at risk for deposit flight are dangerous institutions.
They leave bank executives free to swing for the fences on the asset-side of their balance sheets without fear that attentive depositors will move their money to safer pastures.
Nonetheless, Janet Yellen and her fellow Washington clowns got themselves warmed-up last month by bailing-out $155 billion of uninsured deposits at SVB (Silicon Valley Bank).
To wit, between 2020 and 2021 SVB’s assets nearly doubled from $115 billion to $211 billion.
Here’s the thing. These fools massively mismatched their book even without the safeguard of deposit insurance. What in the world is going to happen when deposits are 100% insured?
So if nothing else, we need deposit flight and bank failures to purge the bad actors, incompetents and reckless cowboys from the banking industry.
What now
The de facto policy is now that no depositor can loose money, no bank can fail and no one’s resume should be besmirched.
The banking system has literally drowned in excess deposits and reserves.
But naturally the bank lobbies got their hands on the rule-writing process and determined that a spade was not a spade.
Not all assets were treated as equal when it came to computing capital ratios.
In fact, government debt was determined to be risk-free, requiring no capital backing whatsoever.
From 2015 to 2022, the Fed was fueling asset inflation and repressing money market interest rates during that same period.
In short, some genius thought it was a good idea to artificially stimulate more loans. Not!
The Fed’s reckless money-printing is the reason inflation is out of control.
The so-called Bank Term Facility Program (BTFP) allowed banks to borrow 100 cents on the dollar against 30-year bonds which lost 40% of the market value last year.
Conclusion
Ask yourself? Does the FED regulators have authority to insure deposits greater than the current $250,000 cap on most accounts?
After all, 100% deposit insurance would mean that the $125 billion FDIC fund would be guaranteeing $18 trillion of deposits.
There’s no way 108 million US households with bank accounts could ultimately pay the premium in the form of lower rates on their deposits.
Silver and gold is money and everything else is credit. What you need to do is only keep enough fiat you need to pay the bills. Every other dollar you have needs to be in a tangible assets.
Every single thing the FED does is meant to time the collapse to perfection, ushering in complete digital control of the masses – who have been drained of their cash.
As always, keep Yahweh first, stay free, pay down your debt and prepare. Shalom.
DISCLAIMER: I am not a financial adviser. This site is for educational purposes only. It is imperative that you do your own research. I am sharing my opinion from personal research and experience with no guarantee of gains or losses on investments, finance etc.
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