What is a bank holiday? No, it's not when they're closed because of Thanksgiving or President's Day. It's when a bank goes into receivership and becomes insolvent, in other words, belly up. In the last update, I touched upon how the FDIC, Federal Deposit Insurance Corporation, initiated by President Roosevelt and signed into law on March 9, 1933, is bankrupt. How can this be? Isn't everyone's bank deposits insured up to $250,000? Yes and no. Firstly, despite a common misperception, once you deposit your money into a bank, IT IS NO LONGER YOUR MONEY. It is the banks. They agree to give it back to you should you request a withdrawal. The money is in YOUR name, but it becomes the legal property of the banking institution. Now, what happens when that bank fails? Do you get your money back? Did you read the fine print when you opened your account? Well, according to President Roosevelt's EMERGENCY BANKING ACT OF 1933 (and yes, Virginia, the United States defaulted on its financial obligations in 1933 and was technically bankrupt), the newly created FDIC would assure depositors their funds were safe by Roosevelt signing another bill into law on June 16, 1933, called the Glass-Steagall Banking Reform Act. One of this act's foremost tenets was that commercial banks could not speculate on Wall Street. The act forbade them from engaging in the Stock Market. Investment Banks could, but commercial banks could not. This secured the public's trust in the banking industry and, along with the FDIC, gave them assurances that their deposits were safe. After the Great Depression and earlier bank runs, the public had very little trust in financial institutions. | Now, what happened on November 12, 1999? President Bill Clinton signed into law the Gramm‐Leach‐Bliley Act. This REPEALED Roosevelt's Glass-Steagall Act, opening the floodgates for banks to wildly speculate on Wall Street with depositors' money. Now, in a nutshell, you know why banks are starting to collapse in 2023. James Carville is famous for saying, "it's the economy, stupid," during Clinton's first run for President in 1992. I was 25 years old, and I remember it succinctly. However, now I say, "it's Section 16 of Glass-Steagall, stupid." Banks were always designed to fail, ultimately. How could they not when tied to U.S. Treasury bonds? Are you following me? 2022 was the worst year for U.S. Treasury bonds in almost 100 years. And now bond yields are heading to the moon in 2023. What does this mean? It means collapse on an epic scale OF EVERYTHING even remotely connected to U.S. Bonds! | Some of my well-intentioned and much more financially astute peers worth millions still can't see the forest for the trees. They are 'shorting' the markets believing this is just another cycle that will soon bring them windfalls beyond imagination. I'm not so confident of this certainty. In my opinion, the bank defaults will lead to the granddaddy of all bankruptcies—that of the U.S. Treasury. The U.S. dollar hegemony is collapsing, with it, confidence in the United States' ability, let alone determination, to pay off its debts. It won't. It can't. And this is what most people don't understand. If you have a debt-based monetary system, financial constraints like monetary tightening ALWAYS ALWAYS ALWAYS end up in disaster for the average American, financially speaking. That is, most of them get wiped out. Say goodbye to your 401k's. Say goodbye to your pensions. Say goodbye to retirement. I did it a long time ago. I will work until I die or die trying to survive. But is it really this bad? What about SIPC (Securities Investor Security Corp)? Like the FDIC and bank deposits, aren't all investors covered should the broker they do business with fail? Again, yes and no. One of the largest investment banks in the United States, Charles Schwab, covers each investor's account up to 150 million dollars. That's great news, right? Let me answer this question with a question - what happens when up becomes down, left becomes right, and the bottom becomes the top? To stop a national run on United States banks, the Federal Reserve intervened in an emergency session less than 48 hours ago and told customers nationwide yesterday that their deposits would be covered no matter if they had $1 in the bank or over the $250,000 FDIC threshold - ALL DEPOSITS WOULD BE COVERED. What does this mean? Firstly, yesterday, if powerful banking forces did not intercede, it would have been the 'end of the world' relatively speaking for the United States of America. IT'S THIS BAD, FOLKS. And people will find out relatively soon that the FDIC is, itself, insolvent. | Many say the worst is now behind us; the FED will pause or pivot, and 'good times' are here again. I say hold on really, really tight. You haven't seen anything yet. Our country is being attacked from all angles right now; some see it, but most do not. I see it. Do you? People are creatures of habit. And most are followers. Wear your mask, get your shots, and stay six feet apart! Remember that? I didn't follow any of it, nor did many of us. And who is suffering and dying now in record numbers? The mask wearers, the vaccinated, and those who obeyed a lying, corrupt government hell-bent on population reduction. So I ask you - is this banking crisis over? Has the FED stopped the contagion? Or are people going to start panicking? I remember the Great Toilet Paper shortage of 2020, do you? The fear that toilet paper would run out caused it to run out. Had everybody remained calm and bought according to their everyday needs, nothing would have happened, and supply would have kept up with demand. But people panicked. This is why I told you six months ago to get your money from the banks. I knew the panic was coming; I knew people would panic more than they already had. And this is going to cause a banking collapse in the United States and around the world. The can cannot be kicked down the road forever. This is all by design and is a strategy to keep enriching the cronies of government bailouts and psychologically manipulate the public into accepting digital money completely and forever saying goodbye to physical paper currency. When this happens, it's game over. Privacy and freedom will no longer exist. Think about that, seriously. More to come . . . | |
