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''Fiat money is fragile'' - The collapse of Silicon Valley Bank is causing fears to spread to other major U.S. banks.

Silicon Valley Bank (SVB) was in the spotlight after its collapse prompted the Federal Deposit Insurance Corporation (FDIC) to close the bank Friday. It was the largest U.S. bank collapse since 2008.

Some believe venture capitalists caused the bank failures, while others blame the U.S. Federal Reserve's rate hikes. Economist and gold specialist Peter Schiff said Friday that the U.S. banking system will face more problems in the future. He and several speculators believe these financial institutions hold mountains of long-term Treasury bonds.

Market watchers are predicting a broader financial meltdown in the U.S.

In the past week, two U.S. banking institutions, Silvergate Bank and Silicon Valley Bank (SVB), have collapsed. The SVB collapse was the largest banking collapse since Washington Mutual (Wamu) in 2008, which was blamed for expanding branches too quickly and issuing a huge number of low-quality mortgages to so-called unqualified buyers.

Before its collapse, Wamu held $188.3 billion in deposits, while SVB is estimated to have lost about $175.4 billion in deposits. However, while SVB had $175.4 billion in deposits at the end of December 2022, customers attempted to withdraw $42 billion on Thursday alone. It's safe to say that the collapse of SVB happened much faster than the collapse of Wamu in late 2008.

Other analysts and market watchers blame the illogical inverted yield curve facing long-term and short-term Treasuries today, as well as the U.S. Federal Reserve's rate hikes.

Suna Amhaz, founder and managing partner of Volt Capital, said: "It's no secret that technically most U.S. banks are bankrupt right now because they're all sitting on long-term Treasuries, which are at risk in a 4% interest rate environment."

Peter Schiff expects a much larger financial collapse in the United States. "The U.S. banking system is on the verge of a much bigger collapse than it was in 2008. Banks hold long-term securities at extremely low interest rates. They cannot compete with short-term Treasury bonds. Massive withdrawals by depositors seeking higher yields will lead to a wave of bank failures.

Craft Ventures CEO David Sachs wrote on Twitter, urging Powell to step in and prevent a possible contagion. "Where is Powell? Where is Yellen? Stop this crisis NOW," Sachs tweeted. "Announce that all depositors will be safe. Put SVB in the top 4 banks. Do it before Monday's opening or there will be contagion and the crisis will spread."

Billionaire and Galaxy Digital founder Mike Novogratz also spoke out, expressing surprise that the Fed allowed depositors to lose money to a Silicon Valley bank. "Are all banks going to be treated like hedge funds? Sounds like a political mistake," said Novogratz.

Most importantly, Peter Schiff is probably right this time. CITIGROUP INC's bankruptcy protection form 424B2 has been widely circulated online (https://www.benzinga.com/secfilings/23/03/31267611/citigroup-inc-form424b2). This is not just a measly $175 billion, but it has more than $2.4 trillion in liabilities. The situation is similar at JPMorgan and BOA, and all other banks in the top 10, but the liabilities are several times higher.

We wait for Monday. Maybe ChatGPT was right this time when they predicted the March 15, 2023 crash.

$elfish gene 2y ago

https://nostr.build/av/nostr.build_bf21a646e5162e6ff033902ed55006aa587d31b8e3df79a53362aedf4db84e2a.mp4 Treasury Secretary Janet Yellen convened the heads of the top U.S. financial regulators Friday morning for a previously unscheduled meeting of the Financial Stability Oversight Council.

The meeting was closed to the public. The Treasury Department did not say what time the meeting would begin, and no one made a statement following the meeting.

The move came amid ongoing regulatory efforts to bring calm to financial markets and bank depositors after the recent bankruptcy of two mid-sized lenders in the United States and the near-collapse of banking giant Credit Suisse Group AG before its government-brokered takeover by rival UBS Group AG.

The FSOC includes the heads of the Federal Reserve, the Federal Deposit Insurance Corporation, the head of the SEC and several other regulatory agencies. It has little legal authority but serves as a coordinating forum.

U.S. financial regulators have come under pressure to be clearer about their willingness to guarantee uninsured bank deposits after the collapse of SVB Bank, which was brought down by a sudden outflow of such funds.

All this comedy was intended to lull the public's attention, to show that the authorities were concerned about the events taking place and were taking emergency measures to prevent the impending collapse of the banks. The average person may be under the false impression, even for a moment, that all these talking heads are really solving something.

But all crises are man-made. And the decision is made on a completely different level. From the mouths of these talking heads we can only learn the scientific interpretation of the collapse of the markets. Another talking head who took part in Friday's secret meeting, Fed Chairman Jerome Powell, did say something.

As Bloomberg reports: Fed Chairman Powell said, (https://www.bloomberg.com/news/articles/2023-03-24/yellen-calls-friday-fsoc-meeting-after-banking-sector-turmoil) that: a rate cut "Is not part of our base case scenario." "Inflation remains too high and the labor market continues to be very tight," Powell said, adding, "Financial conditions appear to have tightened, and probably more so than traditional indices say."

So much for the undeclared result of the secret meeting. If rates are not urgently lowered, it will mean only one thing - the planned collapse of banks, foundations, mortgages, and the ruin of hundreds of millions of citizens.

All analysts and economists known to the world are unanimously screaming that a crash, collapse and default awaits us and are calling for an urgent disposal of the dollar in favor of gold, silver and bitcoin.

There's a March 22 insider tip from the president of Kenya walking around the Web, warning (https://www.businessdailyafrica.com/bd/corporate/companies/cbk-whips-banks-to-unlock-dollars-after-ruto-warning--4169160) and advising to get rid of U.S. dollars in the next few weeks.

Of course, Kenya has its reasons to scare the people, because of currency starvation, which, however, is compensated by USDT, which became a universal African currency.

However, the general mood and forecasts replicated by the first echelon world mass-media looks like a coordinated information attack and sets the public for a grandiose collapse of all markets in the coming weeks. Be vigilant.

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$elfish gene 2y ago

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$elfish gene 2y ago

U.S. Senator Ted Cruz (R-TX) announced Tuesday that he has reintroduced "a bill to prohibit the Federal Reserve from developing a central bank digital currency directly for consumers that could be used by the federal government as a financial oversight tool." The bill, supported by Senators Brown (R-IN) and Grassley (R-IA), was first introduced last March.

CBDCs could allow an entity like the Federal Reserve to mobilize into a retail bank, collect personal information about users, and track their transactions indefinitely.

The Texas senator noted that unlike decentralized cryptocurrencies like bitcoin, CBDCs "centralize Americans' financial information, making it vulnerable to attack."

"The federal government does not have the authority to unilaterally introduce central bank currency. We should empower entrepreneurs, innovate and expand individual freedom, not stifle it."

"Allowing the government to centralize Americans' financial information and increase oversight of Americans' financial activities ' is just a bad idea," said Senator Brown. The American people should be able to spend their money as they choose without the government being able to track every transaction.

It is worth noting that Senator Cruz is a bitcoin investor who buys BTC on a weekly basis. While expressing strong optimism about the cryptocurrency, he explained that he is optimistic about BTC because it is decentralized and unmanageable. In January of this year, he introduced a resolution encouraging Capitol gift stores to accept cryptocurrency.

This week, Florida Governor Ron DeSantis proposed banning the use of federally accepted CBDC as money in his state.

Federal Reserve Chairman Jerome Powell, said the Fed is not at the point of making any real decisions on CBDC. "We have not decided that CBDC is something that the financial system in the United States would want or need."

So the Fed, in the words of its chairman, is not developing and is not going to implement a CBDC, which is what is hard to believe. But most importantly, the U.S. parliament has representatives who even before the official introduction of the digital dollar want to legislate against it.

Unfortunately, neither in Russia nor in other countries there is not even a hint of desire to prevent the introduction of total surveillance of all expenses of citizens. All obediently accept the tools imposed by the global financial authorities for total surveillance of citizens and depriving them of the ability to save the results of their work. ⚡⚡⚡⚡⚡⚡⚡⚡⚡