A while back I wrote an article that included the information that the FDIC had $120 Billion in assets to insure over $9 Trillion in deposits. * In the meantime, we have learned that just with the banks that have failed so far in 2023 the amount needed to avoid total implosion of these banks was $400 BILLION. This would have wiped out the FDIC’s assets over 3 times. So, how did this work? It’s pretty simple. The Fed conjured up that cash out of nowhere and bailed out those banks. Good assets were purchased for pennies on the dollar by larger banks (JP Morgan getting assets from First Republic as an example with guarantees from taxpayers to insulate them from losses). This allowed those “in charge” to not bail-in those depositors. The bail-in is a way that banks become solvent again by reducing their liabilities. The liabilities they reduce are to the “depositors”. Keep in mind that when you deposit your money in the bank it becomes an asset of the bank and a liability owed to you by the bank. By the way, many of the “depositors” were large tech companies and many had ties to the Chinese government.
When I started thinking about this, I heard Paul Simon in my mind singing “anyway you look at it you lose” from his song Mrs. Robinson. If they do the bail-ins, which they have been practicing since at least 2014, MANY people would lose a substantial part of their deposits. If they continue the “print-up and pay off” scheme, we all pay with FAR higher inflation.
This is just one more example of how our US dollar is being undermined by those “in charge”. With every keystroke that conjures cash up out of nowhere, and creates NOTHING, the value of OUR LABOR is compromised. Is it any wonder why so many people are disillusioned with the way things are going? It used to be the harder you worked the more rewards you got. Today, many must feel disenfranchised as they work harder and harder and fall further behind. As a matter of fact, REAL WAGES have been FALLING for over 25 months in a row. When our president says “wages are rising” he is not lying but he is leaving out an important fact- those wage rises are FAR less than the inflation that is eating us all alive.
If that wasn’t enough it appears that the rest of the world is ditching the dollar in increasingly meaningful ways. Jim Rickards is saying that the BRICS summit in South Africa on August 22, 2023, with over 35 countries attending, will introduce a gold-backed currency. While Jim Rickards is a well-respected commentator who was on Wall Street for 35 years and has been an advisor to the pentagon, he does have a history of calling dates that don’t always pan out. Having said that, if it happens the US dollar will lose a large portion of its perceived “value” VERY quickly. If not, then we will still have some time before inflation really gets out of hand.
To me it is an ominous sign that so many countries want to join BRICS, SCO, Belt and Road, etc. 70% of the world’s population will be represented at that BRICS conference. Included will be many South American countries. Reuters reported that Argentina (BRICS invitee) just made a $2.7 BILLION loan repayment to the IMF using CHINESE Yuan and Special Drawing Rights rather than the usual US dollar payment.
India- the I in BRICS, has many refiners paying for Russian oil with Chinese Yuan. Others are making non-dollar payments with the UAE currency- the dirham. This could be because of the sanctions on Russian oil put on by the west which again shows how ridiculous the sanctions have been. Basically, we are hastening our own demise as we force even our allies to circumvent dollar use.
The main reason that inflation has appeared to slow down is that many nations are releasing their oil reserves to keep the price of oil and gas down. This has a trickle-down effect on almost all prices as oil is used in most everything we produce in one way or another and there is also the delivery of goods that has an impact on the final cost. Recently, Russia and Saudi Arabia have just announced production cuts that should increase the price of oil at a time when our oil reserves are the lowest on record.
I am actually stunned by the lack of knowledge that I am seeing about what is taking place here. I guess it should be no shock actually, when most people are being distracted with all means of misdirection. Whenever something important happens there always seems to be another story that grabs the headlines so that we don’t focus on the story that could affect our financial or personal well-being but focus on something else. A lot of important news- particularly financial news comes out after 4PM on Friday when the least amount of people are paying attention.
For those who are interested in maintaining their current lifestyles and independence I suggest you start doing some of your own research and don’t rely on the media to keep you informed. Some things to research:
BRICS Summit
SCO (Shanghai Cooperation Organization)
Belt and Road Project
ASEAN
Some people who put out great content would be Zerohedge, King World News, Gregory Mannarino, Gerald Celente, and many others.
With hundreds of trillions in debt and unfunded liabilities, and with an annual deficit of $1.5 trillion (that they admit to- FAR higher with off balance sheet items like wars, etc.) I believe anyone counting on the government long-term is in for a rude awakening. I don’t at all doubt that they will conjure up cash and pay what they have promised. The problem is, as they do that, the payments will buy less and less and there will likely be a revolt- just like we are currently seeing around the world in places where they don’t have the reserve currency and inflation is already causing societal decay. When you actually start doing private research and don’t rely on the propaganda stations you will soon find that the US dollar is in greater peril than our “leaders” are letting on.
My take is that we should be looking to HOLD ASSETS and retire liabilities- if possible.
- FDIC is the source of the numbers
Be Prepared!
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