I have been writing for a long time that I believe the antics that are being played out in our financial system are by design. The reason so many people can’t wrap their heads around this is because they assume (and are propagandized 24/7) that the central banks are there for OUR benefit. Nothing could be further from the truth.
Once you peel back the onion you see that the Federal Reserve is owned by the major banks. This is the most likely reason that there is always enough “cash” to bail out the largest banks.
Many people were upset when, in 2008, the banks were bailed out to the tune of over $700 BILLION. Reality- and we were never supposed to see this-I carry around a list- put out by the FED itself which shows over $16 TRILLION being shelled out from December 1, 2007 to July 21, 2010. Jim Rickards has reported that, as of last year, that number has gone over $29 TRILLION. The bad news? The banks are still in big trouble financially.
We can guess the reasons for the problems in the banks like:
- Being able to list longer dated bonds at full value when some are down as much as 60% in the worst bond market rout in history. This illusion works until capital is needed to satisfy redemptions and phantom losses become REAL losses.
- Rising interest rates are collapsing demand for commercial deals, mortgages, home equity loans, refinances, etc. Higher interest rates also price many out of being able to buy homes and cars.
- People are moving their deposits out of the banks for higher yields elsewhere. Many banks are holding loans that charge 2-4% interest. This makes it tough to pay more than that on deposits. There are actually what appear to be bank runs happening right now. Only through phony number accounting can this be hidden. According to Bloomberg, as the Fed announced the bank deposit numbers, the ACTUAL report was an outflow of funds of $33 BILLION. With a magical “adjustment stick” (Tyler Durden of Zero hedge), the report released to the financial game shows was INFLOWS of $51 Billion. I guess the banks can just “identify” as having the extra $84 BILLION they don’t have. You know, personally, when I identify as a billionaire and go to board my private jet, I can never find it. I guess none of this will matter- until it does. What could we possibly expect from an entity that conjures up cash out of nowhere, purchases assets and then charges us interest on the magical cash. Magic for them- an albatross for us.
- Loan losses are rising at record rates as delinquencies on auto loans, credit cards, etc. are at all-time highs. Who loses when loans default? Banks. This will likely not get better any time soon since, according to a report by Lending Club, 62% of all Americans are living paycheck to paycheck and layoffs have been rising across the board and across all industries.
- Let’s also not forget that many of the major banks have become gambling casinos with just the 5 largest US banks carrying derivative exposure of over $182 TRILLION.
While all of these are major reasons I believe the banks are in trouble there are some sure signs like reports from Weiss Ratings which highlights many banks that could fail in a short time and many others that are greatly impaired. Another sign is MAJOR layoffs, the closing of branches and other cost-cutting measures. This doesn’t take place when the banks are expecting expansion, but it is the first go-to when they expect more contraction.
So, what does this have to do with the financial system being imploded by design?
It all starts with the banks and central banks. Since around 2014 I have been writing about Central Bank Digital Currencies (CBDCs). More recently I have written about the BIS mandate that ALL central banks have a CBDC by 2025. A few have been rolled out like the SAND DOLLAR, the digital Yuan and others. In Nigeria it was a total flop and in Canada a poll showed that 88% of Canadians were against a CBDC.
Knowing this, those “in charge”, I believe, are aware that they will need a major collapse to institute this new system. As I write this it is apparent to me that if you are instituting a NEW system the OLD system has to be destroyed first.
This is the major reason I believe so many can’t make sense of what is happening. Most believe that the central planners want to “fix” what is wrong when, in reality, I believe they want to destroy it.
Looking at it through this lens makes most of what we are seeing appear to make sense.
Many who are aware of what is taking place- which is most governments, companies and individuals are going deeper into debt and central banks are “printing” their currencies into oblivion, are taking action to protect themselves from what appears to be coming.
Major banks and central banks are buying gold in record amounts. Countries are repatriating their gold.
At the same time the gold price is being suppressed in the paper “markets” where hardly any- IF any gold ever changes hands. This keeps regular people out of the “market” and keeps prices artificially low so that those “in charge” can buy and buy. By the time most people figure this out it will be too late.
The only thing I can say is that with every dollar, euro, yen, yuan and every other currency conjured up out of nowhere the VALUE of hard assets including gold, silver, oil, uranium, gas, water, food, etc. goes higher. Games can be played in the short term but in the long run reality will rear its head and the market will do its only job- reveal the true VALUE of all things.
Those assets being artificially propped up will likely collapse far more and far quicker than many can imagine at this time. By the same token those assets being artificially repressed will react in the opposite way.
When is anyone’s guess but I am sure that at some point it has to happen. With the hundreds of trillions of currency units conjured up out of nowhere and done so with no correlating VALUE to balance it out the distortions in the “markets” are beyond comprehension.
How close are we? I can’t answer that, but I can guess we are getting awfully close to the end game. My guess has been that there would be a financial crisis PRIOR to 2025- right around the corner. Some clues may be that the Treasury has just announced that for the first time in history the INTEREST on our debt will be over $1 TRILLION in fiscal 2024. Keep in mind that it took from 1776-1980 to run up our first trillion in debt. The last trillion took 8 weeks and the next trillion won’t take much longer than that. The interest expense has DOUBLED since April of 2022- hardly ancient history.
Bank of America’s Michael Hartnett put out a note that the CBO (Congressional Budget Office) projects that our US government debt will increase $20 TRILLION in the next 10 years. While this is likely WISHFUL THINKING to the low side that would still equate to $5.2 BILLION of new debt per day or $218 MILLION per HOUR.
I believe that the endgame has arrived and that the prior cure which is more debt to pretend that we were still solvent and prosperous has now become the disease that will destroy the old US dollar based financial system and usher in a new system designed to own and control it all. I believe that those who are in debt and hold debt-based assets are the most at risk.
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