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Financial podcasts have been featuring ominous headlines lately along the lines of “Your Bank Can Legally Seize Your Money” and “Banks Can STEAL Your Money?! Here’s How!” The reference is to “bail-ins:” the provision under the 2010 Dodd-Frank Act allowing Systemically Important Financial Institutions (SIFIs, basically the biggest banks) to bail in or expropriate their creditors’ money in the event of insolvency. The problem is that depositors are classed as “creditors.” So how big is the risk to your deposit account? Part I of this two part article will review the bail-in issue. Part II will look at the derivatives risk that could trigger the next global financial crisis.
From Bailouts to Bail-Ins
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 states in its preamble that it will “protect the American taxpayer by ending bailouts.” But it does this under Title II by imposing the losses of insolvent financial companies on their common and preferred stockholders, debtholders, and other unsecured creditors, through an “orderly resolution” plan known as a “bail-in.”
The point of an orderly resolution under the Act is not to make depositors and other creditors whole. It is to prevent a systemwide disorderly resolution of the sort that followed the Lehman Brothers bankruptcy in 2008. Under the old liquidation rules, an insolvent bank was actually “liquidated”—its assets were sold off to repay depositors and creditors.
In an “orderly resolution,” the accounts of depositors and other creditors are emptied to keep the insolvent bank in business. And even if you are getting only a few cents a month on your deposits, you are a creditor of the bank. As explained in a December 2016 article in the University of Chicago Law Review titled “Safe Banking: Finance and Democracy:”
A general deposit is a loan made to a bank. This means that the bank is the general depositor’s debtor, but that the bank has legal title to the funds deposited; these funds may be commingled with the bank’s other funds. All the general depositor has is a general, unsecured claim against the bank …. [T]he bank is free to use the deposit as it sees fit. [Emphasis added.]
Fortunately, bail-ins do not apply to deposits under $250,000, which are protected by FDIC insurance. That is true in theory, but as of September 2021, the FDIC had only $122 billion in its insurance fund, enough to cover just 1.27% percent of the $9.6 trillion in deposits that it insures. The FDIC also has a credit line with the Treasury for up to $100 billion, but that still brings the total to just over 2% of insured deposits.
If just one or a few banks become insolvent, the FDIC fund should be sufficient to cover the insured deposits (those under $250K). But under the 2005 Bankruptcy Act, derivatives creditors (which are considered “secured”) are first in line to recover the assets of a bankrupt bank; and the Dodd-Frank Act followed that practice. So if a bank with major derivatives risk collapses, there might be no bank assets left for the non-insured creditors; and a series of major derivative cross-defaults could wipe out the whole FDIC kitty as well.
As of May 2022, according to the most recent data from the Bank for International Settlements (BIS), the total notional amounts outstanding for contracts in the derivatives market was an estimated $600 trillion; and the total is often estimated at over $1 quadrillion. No one knows for sure, because many derivatives are “over the counter” (not traded on an exchange). In any case it is a bubble of ominous size, and pundits warn it is about to pop. Topping the list of U.S. derivatives banks are J.P. Morgan Chase ($54.3 trillion), Goldman Sachs ($51 trillion), Citibank ($46 trillion), Bank of America ($21.6 trillion), and Wells Fargo ($12.2 trillion). A full list is here.
The FDIC and Disclosure
On Nov. 9, 2022, the FDIC held a 3.5 hour webcast discussing the bail-in process among other topics. In a clip raising alarm bells in the alternative media, Donald Kohn, former vice chairman, Board of Governors of the Federal Reserve System, said, “…it’s important that people understand they can be bailed in. But you don’t want a huge run on the institution. But they’re going to be…”
Richard J. Herring, co-director of The Wharton Financial Institutions Center said, “I would think your strategy ought to be to disclose as much as possible to people who professionally need to know about it …”
Gary Cohn, former director of the National Economic Council, said, “I almost think you’d scare the public if you put this out — like, ‘Why are they telling me this? Should I be concerned about my bank?’ … I think you’ve got to think of the unintended consequences of taking a public that has more full faith and confidence in the banking system than maybe people in this room do …we want them to have full faith and confidence in the banking system. They know the FDIC insurance is there, they know it works, they put their money in, they get their money out…”
This was followed by some laughter, which critics have interpreted as a cynical agency warning the wealthy while leaving the smaller investors to eat the losses, similar to the phone calls to the favored few before the 1929 stock market crash. But the clips have to be taken in context. Here is that whole section (taken from the video transcript beginning at 1 hr. 15 min):
SUSAN BAKER (Division of Complex Institution Supervision and Resolution): … So what we want to think about today is, “What should we be transparent about now that would help improve confidence in the event that we’re called to use our Title II authorities?”…
RICHARD J. HERRING (Co-Director, The Wharton Financial Institutions Center and Professor of Finance, The Wharton School, University of Pennsylvania): I would think your strategy ought to be to disclose as much as possible to people who professionally need to know about it, and that would certainly include the ratings agencies and the people within the banks who are responsible for these judgments, and simply have publicly available a place where people can go if they need to know more; because we’re dealing with a society where people are getting their information in tweets. There’s just no patience I think for going through the elaborate and careful planning that has gone on. It should be accessible when people need to know but I don’t think you have much hope of reaching a public that doesn’t have a professional need to know.
MEG E. TAHYAR (Partner and Co-head of Financial Institutions, Davis Polk LLP): … I do think there’s more that could be put out in the public … in a way that isn’t scary to folks. I mean … There’s a timing question, right? We’re at a delicate moment now, so if it goes out tomorrow it might have a different impact than if … it goes out as we’re moving out of the recession. But I’m very big on transparency. I think transparency leads to accountability.
DONALD KOHN (Former Vice Chairman, Board of Governors of the Federal Reserve System and Senior Fellow, Economic Studies Program, Brookings Institution): … It’s a little bit conflicted, right? I mean it’s important that people understand they can be bailed in, but you don’t want a huge run on the institution. But … they’re going to be ….
MICHAEL J. HSU (Acting Comptroller of the Currency): … I think we have to sit down and talk to long-term debt investors and make sure that they as a stakeholder group fully understand. Bank debt today is not what it was before. It is not principal protected, by design.
The FDIC staff were engaged in the delicate act of balancing the need to inform the public against the risk that the disclosure itself could trigger a systemic collapse due to widespread bank runs. The “need to know” stakeholders were the long-term investors with more than $250,000 in the bank, whose funds would be at risk. But smaller depositors, who would be protected by FDIC insurance, might panic from mischaracterized tweets and precipitate the very run the FDIC staff were trying to avoid. To their credit, they were trying to be transparent and accountable; it does seem the public should know what risks are hidden in the economy. The first step to solving the problem is understanding what is going on.
Bank Runs and Systemic Risk
Not just the speculative investments of the SIFIs but bank runs themselves are systemic risks. Nationwide bank runs were the sort of “disorderly resolution” seen in the Great Depression of the 1930s.
In 1913, the Federal Reserve became the settlement agent for private banks, and settlement funds for clearing transactions were held in gold. The Fed was required to hold gold reserves valued at 40% of the Federal Reserve Notes (paper dollars) it issued, and to redeem withdrawals in gold at a fixed price. The reserves were sufficient to backstop withdrawals in normal times, but the years following the 1929 stock market crash were not normal times. Domestic and foreign depositors rushed to withdraw their gold; the banks ran out; and they had to close their doors.
In 1933, Pres. Franklin D. Roosevelt declared a national bank holiday; and when the banks reopened, domestic deposits were no longer backed by gold. They were backed only by the “full faith and credit of the United States.” But that is actually quite solid backing, something neither gold nor cryptocurrencies can claim to have. You can’t pay your electric bill or your credit card bill with gold or cryptocurrency. People are willing to accept dollars in payment because they know vendors will take them, and so will the IRS.
After 1933, the funds held at the Fed for settling transactions became simply data entries called “reserves,” which were created by the Fed and held by the banks in Fed accounts. Most of the circulating money supply is now created by private banks by writing loans as deposits into the accounts of their borrowers. But banks cannot create the reserves needed to clear withdrawals through the central bank. Those reserves must be acquired from the Fed, either directly or from another financial institution that has acquired them. Besides the bank’s own incoming deposits, options include borrowing from other banks in the fed funds market, the Fed discount window, or the repo market. Until recently, depository banks could borrow from each other or the Fed at 0.25%. That rate has now gone up to 4.5-4.75%. The only cheap, readily available source of liquidity left to a bank today is its own pool of incoming deposits, from paychecks, credit card payments, mortgage payments and the like.
Traditionally, banks had to hold only about 10% of their deposits in reserve. That percentage was considered sufficient to cover transfers and withdrawals because most people left their money in the bank, and withdrawals were largely netted against incoming deposits. In March 2020, the Fed removed the reserve requirement altogether; but banks still need to hold enough reserves to meet withdrawals. With a reserve of only the standard 10%, however, they will not have enough liquidity (readily accessible funds) to meet a nationwide bank run of the sort seen in the early 1930s.
The FDIC is therefore right to be concerned about warnings that can be misinterpreted. Distrust of big banks is rampant today, but collapsing them suddenly through a “disorderly” nationwide bank run would be as catastrophic as it was in the 1930s. Before the FDIC was founded through the Banking Act of 1935, depositors routinely lost their money when their banks went bankrupt. But we don’t want to lose our deposits to a bail-in either. Better would be for the regulators to unwind the speculative SIFI bets in a “soft landing” if possible. More on that in Part II of this article.
Meanwhile, the banks clearly need our deposits, and today they are scrambling to compete for deposits and reserves. According to a Feb. 7 article on Wall Street on Parade, Goldman Sachs is now offering an interest rate on its savings accounts that is 350 times the interest rate being offered by JPMorgan Chase and Bank of America. Why isn’t stated, but both of those major competitors have already amassed huge deposit bases. When the Global Financial Crisis hit in 2008, Goldman was an investment bank like Lehman Brothers, which barely escaped Lehman’s fate by becoming a bank holding company. This allowed it to acquire deposits and gave it access to the Fed’s discount window, but it obviously came in late to the deposit-collecting game.
How, Then, to Protect Your Deposits?
One popular alternative is to move your money to a credit union. With respect to deposit insurance, according to the FDIC, credit unions are no safer than banks, but they are also no less safe. Whether the institution is insured by the FDIC or by the National Credit Union Share Insurance Fund (NCUSIF), your deposits are guaranteed up to the $250,000 limit per depositor. More to the point here, credit unions and other small local banks are not subject to bail-ins.
Some commentators recommend moving your money out of the banking system altogether – into cash, cryptocurrencies or precious metals. Having enough cash on hand to cover perhaps three months’ worth of expenses in a crisis is certainly a good idea. But many people don’t have even that much in savings, and people with large sums in the bank probably won’t be able to withdraw them all at once. Changing banks is also a slow and cumbersome process. Many people won’t do it or will be caught unaware when the next crisis hits.
In theory, the Federal Reserve could step in as lender of last resort to save the creditors and depositors if necessary, calling on the same emergency powers it exercised for the SIFIs in 2008-09. It could provide cheap liquidity for the banks in the form of quantitative easing, alleviating the need to bail in depositor funds. The Fed is not required to act – it is “independent” – but that means it does not need authorization from Congress, and it does not need taxpayer funds. It can create its own reserves.
The question is whether the Fed would see depositors as “systemically important,” but the rush to compete for deposits shows that they are. Arguably deposits are the people’s weapons of mass destruction: pull them and the banks go down. The banks need our deposits; and we need the sort of self-sustaining financial system in which money, credit and banks are treated as public utilities, accessible by and accountable to the people whose full faith and credit backs them.
Part II of this article will look at the systemic risks currently facing the banking system, and at how it could be reengineered to deal with those risks and restore the trust of the people sustaining it.
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what most people fail to understand is that when you place your money in a bank it is no longer your money, you have invested it in that bank. if that bank fails your investment fails and you’re relying on the fdic to bail you out (for deposits under $200,000). as soon as your money is deposited it is no longer yours. try to take six figures out in cash and you will realize, it’s much easier to deposit money rather than withdraw it.
We should all just carry around little flakes of metal
and gems and scales with lithium batteries
to deprive those stupid bankster yous of prophet$…
However, that may interrupt most efficiencies by a
factor of about 87 quadrillion.Wheel be rich.
Humanity needs to mine space rocks.That’ll bring
down prices to a reasonable level, when we get
more platinum than we’ll ever need, right?
And… like the poop says, don’t wear condoms, sinners.
Our capitalism does not tell us also that the capitalism is forced on people. Your salary,wages,pension plan ,401 K have to be served by the bank . No bank! No salary .
Labor wont be honored.Slavery can be brought to you or imposed on you in the future by using you past labor.
I didn’t have to read any more of this nonsense than They were backed only by the “full faith and credit of the United States.” But that is actually quite solid backing, something neither gold nor cryptocurrencies can claim to have. but I did.
This is typical banker / economist bullshit. Because the law precludes the use of the precious metals for routine payments does not provide any luster to the fiat currency scam. The dishonesty in this piece is off the charts.
The point is that the dollar is accepted everywhere. Gold is not a currency. You can’t buy groceries with it. You can’t buy them with BTC either, not in my local grocery store. The dollar is global; it backs the eurodollar system, the largest money market in the world. Eurodollars aren’t going away any time soon; they are the unregulated source of liquidity for most of the scams on the planet. I’m not saying it’s good; I’m saying that’s how it is.
This article is correct and accurate as far as I can tell.
The “full faith and credit of the United States.” is backed up by its military and its resources, which are vast.
It is Levithan and you are a mere grub.
Deal with it.
The point is that the dollar is accepted everywhere.
It’s in accelerating decline and anyone with any sense knows it. Why are central banks purchasing record amounts of gold when the dollar is such hot stuff? Why did the BIS redefine gold as a tier one asset instead of the shiny rock status as was claimed for decades.
Gold is not a currency.
Yes it is in several states, but no one is stupid enough to pay in real money when fiat is the more common substitute. I assume you’re aware of Gresham’s Law.
https://www.mintstategold.com/investor-education/cat/news/post/states-where-gold-and-silver-have-become-legal-tender/
You can’t buy them with BTC either, not in my local grocery store.
Some of the crypto exchanges are starting to issue credit cards aimed at being used in stores. China is rethinking their ban on crypto and Hong Kong is poised to take the lead in allowing trading without the US’s KYC control scam.
The dollar is global; it backs the eurodollar system, the largest money market in the world.
Two cripples holding each other up. They’ll both fall over at roughly the same time. The European banks are in real rough shape because they are far too leveraged. If any bank does the global take down it is likely in Europe or Japan, the other central bank basket case.
Eurodollars aren’t going away any time soon
LOL
I’m not saying it’s good; I’m saying that’s how it is.
Soon it will be how it was.
The “full faith and credit of the United States.” is backed up by its military and its resources, which are vast.
This line is repeated often as though it were true. It isn’t. The US will default on its debts a second time, Nixon’s closure of the gold window being the first, and this time probably for the last time. The US debt at 30+Trillion and growing plus the unfunded liabilities estimated at around 100 Trillion means each adult in the country has a share of that debt and expectation of income. Even if every one of them wanted to provide their life saving, they couldn’t pay that off.
As for the US military, it’s a paper tiger against any peer adversary, full of mental midgets that can’t make it in the private sectors and recently adding ever more freaks to their ranks. The US military is only good at kicking the minor nations around that haven’t the capacity to fight back or killing off the manufactured ‘white supremacists’ and other targets yet to be named when the SHTF once the US economy tanks due to Dollar death.
The US’s resources have been strip mined for decades leading to deteriorating infrastructure, an ever dwindling manufacturing base, and education system turning out mental midgets that need to take their socks and shoes off to count past 10 and a legal system designed to protect the criminals from the citizenry.
Stop drinking the Kool-Aid.
What you call US debts actually is the US money supply. The US has to spend in deficit so that its dollars are available for the rest of the world to use as reserve currency and in trade.
Those dollars don’t necessarily come back to the US right away. They circulate in the global economy as people trade in dollars.
America is still a very large country with the worlds second largest economy after China. It has a lot of assets you are not counting. Energy, technology, etc.
The thing about the dollar is, as Ellen showed above, the banks are in the catbird seat. And the Fed has the best seat in the house. When you open a bank account, you agree to a lot of fine print that most people don’t even bother to read. In other words, if you do something the Fed doesn’t like, it can shut your account down yesterday and then make you jump through 10 different hoops to get your money back. If you ever do get it back. Just ask Russia.
Most countries want more dollars not less. They trade in dollars and take out loans in dollars, which means they need dollars to make payments and a legit system to keep track of their payments.
The US doesn’t have a money supply it operates on currency conjured out of thin air. Your description of the US’s currency as debt is partly correct. Large portions of that debt is long gone in the munitions used to murder people around the globe and all the useless junk rotting in the desert southwest that the military considers obsolete.
The foreign dollars are coming back to the US at an accelerated pace sparked by the idiotic sanctions that have done nothing but backfired on the US and more so Europe. I just finished reading that Europe enacted sanctions #10 on Russia because the first 9 did such a wonderful job.
Assets in the ground are a fiction until they are dug up and properly accounted for. Saudia Arabia has been lying about their oil deposits for decades. The US claims over 8000 tons of gold, but is adamant to not audit it. BTW – for a steep discount, I’ll sell you the uranium, diamond and platinum mine in my backyard.
The US economy is a mirage based on shuffling papers around. It builds next to nothing the world actually wants since it decided to become a consumer economy devoid of manufacturing. FYI – there’s no such thing as a consumer economy, at least not one that can be sustained. Only producer economies like China’s create wealth by converting low value resources into higher value products.
As far as the banks being in the catbird seat, thanks for the laugh. That they can hose over the individual is not evidence of their might. It’s their balance sheet that determines their overall health and that’s deteriorating. Sure some jackass in a costume with a badge and gun can get his way with an individual, but that doesn’t work against the huge part of the world that has decided to call the US’s bluff.
Lots of countries are having financial difficulties. If I were to advise them, I’d tell them to default on their dollar denominated debt and start with a clean balance sheet after they join up with the eastern initiative gathering up the worlds countries the US has screwed over for decades. That flood of defaults hasn’t really started yet, but I think it will and soon. As far as Russia is concerned, it will get back every Ruble with interest after Europe tells the US to pound sand and also hooks up with the rising east. Any old debts will just be added into new invoicing. The former not so friendly nations won’t be getting preferential treatment when they are forced to beg for Russian energy or else become deindustrialized husks. The fat lady will sing some time in the future on German / Russian relations and as Germany goes, so will the rest of Europe.
Please satisfy my curiosity. What part of the humanities or social sciences do you hail from?
Yeah, part of it’s debt. And part of it is probably just passed out like candy to accomplish whatever.
The surfs aren’t supposed to know what these clowns are up to. They’ll just continue to pull tricks out of their bag until they run out.
WW3 might be a good indicator that the bag is close to empty.
The next few years should be a lot of fun!
That is what I meant about the Fed. You can’t repatriate faster than the Fed will let you. If it doesn’t like what you are doing it will simply freeze your account. It can also ban transactions on SWIFT. Meaning most countries will try to be accommodating to protect their assets and their access. So again, the Fed wins.
If money does come back to the US it means that exports should rise as foreign powers buy more US goods and services. Both the debt and the deficit should shrink.
But another thing to consider is that the US currency floats on top of other currencies like the Japanese Yen, the Pound and the Euro. So far, the dollar is up against the Euro. For the dollar to go to zero, it would have to either smash through all the currencies under it, or crush them under it as it collapses. (meaning they all go to zero)
Some countries want their currency weaker. Asian countries have grown rich by keeping their currencies weak and exporting to the US and the rest of the world. When the dollar weakens, they weaken their own currencies to maintain exports and the jobs related to exports. Right now, the Fed is raising interest rates which is pulling in capital from around the planet where they have had negative interest rates for years. This increases dollar demand and strengthens the dollar.
I agree that the US is abusing its exorbitant privilege, but the system is more robust than you think.
The MMT perspective would be to end bail-ins and expand the deposit guarantee using the Fed. Short of that, buying US T-bills and owning them directly could de-risk large deposits.
Also, it isn’t just corporations and individuals that might need to worry about bail-ins. States and municipalities also have accounts at some of these banks. What happens if they lose money through bail-ins?
Maybe Ellen will answer some of these question in her next article.
To run an advanced technological society requires a certain number of high IQ people. Because of the dysgenic effects of our welfare and immigration policies, every year we have fewer people like this. In the future we will be seeing more industrial or transportation accidents like train derailments spewing toxic chemicals. Inflationary Federal Reserve policies have increased wages and made American workers uncompetitive on the world market. This has led to the offshoring of much of our industrial base.
We are no longer a country with a small population and large natural resource base. We have looming water shortages in much of the U.S. because of population growth from open borders. We have steady soil erosion. The peak oil theory is probably true, and we have declining oil reserves. Fracking was only practical if money could be borrowed at low interest rates, but the low interest rates lead to high inflation so can’t continue.
Things are getting so bad U.S. life expectancy has declined five of the last seven years. We have had twenty months in a row of decreasing incomes, adjusted for inflation. The corrupt parasitic elites in control of the country are slowly destroying our high standard of living.
You can’t repatriate faster than the Fed will let you.
Anyone can purchase property in the US and move the currency to do it. Anyone can purchase stocks and own portions of US corporations. The no longer needed Dollars are going to buy US assets resulting in increased price inflation in those assets and the knock on effects that will raise prices generally as more Dollars float around the US economy.
exports should rise as foreign powers buy more US goods and services
The foreigners with excess Dollars are just going to raise the prices on whatever it is they want. There’s not necessarily any increase in production, just new owners of existing infrastructure thus squeezing out US owners that can’t pay as much. With an estimated 50% of all Dollars having been sequestered outside the US for decades, as those Dollars go home, you scenario would require a doubling of GDP to absorb it. That’s impossible.
meaning they all go to zero
Finally, you got something correct. The world’s finances are so intertwined, especially with derivatives, that when one major institution fails, the ripple will destroy the lot. Remember – Lehman was a hair away from starting the dominoes crashing. Wait till it’s Credit Suisse, Deutsche Bank or some other GSIB.
The MMT perspective would be to end bail-ins and expand the deposit guarantee using the Fed. Short of that, buying US T-bills and owning them directly could de-risk large deposits.
I suspect only someone miseducated via the fraud of economics could come up with something so ridiculous.
worry about bail-ins.
The bail-ins are misdirection. Bail-ins really don’t matter. It makes no difference if someone’s savings are legally stolen via bail-in or the wealth denominated in Dollars loses it’s purchasing power. Either way, the wealth is lost. The real problem is currency inflation that might lead to hyperinflation. The US might last the longest if the death of fiat currencies around the globe is slow enough to not cause a major disruption in a GSIB, but I doubt that amount of insulation is possible.
Maybe Ellen will answer some of these question in her next article.
Seeing as how Ellen never answered the questions I posed, I’m not expecting any serious effort to address the real issues, which aren’t bail-ins. I think I’ll get the Hudson treatment soon so I won’t be able to comment on her articles either. It avoids the embarrassing questions I might pose.
Nope. they can’t. Sorry it’s just not true. Even Canada has put restrictions on who can buy properties. The Japanese were restricted and so were the Arab oil states. The US has entire bureaucracies dedicated to determining who can buy what and when. If it gets to be a problem they will just ban it.
Maybe. Maybe the producers will simply increase production or invest in more plants and material. It’s just Capitalism. If there is a market, someone will produce for it.
The bit about currencies collapsing begs the question “In relation to what?” Other currencies? The currency showing the most wear and tear right now is the Euro. The Euro might go down if the EU breaks up, but why should the Yen or Dollar or other currencies go to zero? People still need dollars for rent, groceries, gas, etc.
One question I have about bail-ins is who will do business with a bank that just robbed its depositors. The idea of a bail-in is to save the bank, but if no one want to keep money there, what happens to such a bank.
It’s not theoretical. Italy has had at least one bail-in and I think Cypress has also had one. What happened to those institutions?
Perhaps Ellen Brown will tell us in her hotly awaited second installment.
Hey, I’m doing my part here.
Foreigners own 40% of the US stock market, which is ownership of US assets, that they moved money into the US to acquire.
https://advisor.visualcapitalist.com/u-s-stock-ownership-over-time/
Canada just put a hold on foreign buying but the courts still haven’t chimed in. Chinese own a third of Vancouver and Canada isn’t the US we’re discussing. What the US may do in future is grasping at straws to allow you to says something now. Try harder.
https://www.fortunebuilders.com/one-third-of-vancouvers-real-estate-market-is-owned-by-chinese-buyers/
The Dollars flowing back into the US aren’t looking to purchase burgers and fries. They will purchase businesses, land, Real Estate, boats, planes, whatever big ticket items. These are not items the market can spin up to quickly replace and as I already pointed out, it is impossible to double GDP in anything like a life time given current conditions.
In relation to what?
I can’t believe you came up with something so lame.
https://ginifoundation.org/kb/fiat-currency-graveyard-a-history-of-monetary-folly/
People still need dollars for rent, groceries, gas, etc.
More lame prose. Who in his right mind is going to sell food, clothing, shelter, etc to someone paying for it with the value equivalent of toilet paper. The answer is no one and that’s precisely my point. Once the Dollar get hyperinflated, it becomes toxic and no one will accept it for anything. To cut more lameness off don’t bother asserting the gov’t will mandate people accept worthless script for actual goods. That just leads to no goods as producers go broke. Yes, it’s been tried before and it always fails.
One question I have about bail-ins is who will do business with a bank that just robbed its depositors. The idea of a bail-in is to save the bank, but if no one want to keep money there, what happens to such a bank.
That’s what the CBDC push is for. When all faux ‘money’ is digital and everyone has an account with the Fed, there is no out for the average person and the banking system doesn’t have to worry about trust issues, run on the bank scenarios. There are no longer ‘depositors’ in the classic sense when all transactions MUST go through the CBDC mechanism.
Cyprus was the test case. People’s deposits were locked up with their ability to withdraw severely curtailed for quite some time.
As a Canadian I am always amazed at the proliferation of banks, financial institutions etc., one finds in the USA. It is the opposite in Canada where there are just five big banks here. The financial industry in America seems to be like an anything goes wild west free for all.
Someone who needs dollars to pay their debts. Car loans, student loans, medical loans, housing loans, rent, etc. etc.
How can a currency be worthless if everybody wants and needs it? If everything costs more, then the demand for dollars should probably go up not down. Most Americans worry about not having enough dollars rather than too many.
Also, it’s the very availability of the dollar that makes it suitable for international trade. That and the integrity of the dollar system. Gold is not available in quantities sufficient to support international trade. You can’t use gold if you don’t have it and can’t borrow it.
It’s much easier to sell stuff for dollars and repay loans with them.
I believe you are hopelessly brainwashed by economic bullshit so this will be my last reply to you on this topic.
Let me propose a scenario. You have a loaf of bread. Someone comes to you with a wheelbarrow full of currency that people are regularly using to stoke a fire for warmth as happened in Weimar Germany. Are you going to exchange bread for that wheelbarrow full of fire starter and treat is as money, or would you trade it because you need it to not freeze to death?
I gave you references to currencies that became worthless and you just ignore its implications. Every fiat currency in world history has deteriorated to its inherent intrinsic value of toilet paper, wallpaper, fuel for a stove, souvenirs inside a frame as a wall ornament, etc. The current fiat currencies of the entire world are no different and is why the ‘east’ is, right now, planning for a gold based trade currency.
In our conversation, you have regurgitated the central bank talking points and done no thinking of your own. You resist or ignore any information that history provides for how fiat eventually fails and stick with the nonsense the bankers want everyone to believe. Why not try to do some original thinking and use the history of fiat currencies as a guide to investigate what actually happens during a hyperinflation and compare that with your parroting of economic nonsense.
There is ample gold in the world for all international trade. What’s not needed are the national currencies. Absolutely everything can be prices in grams of gold and silver eliminating the superfluous jew currencies. Just think of what will happen when the Dollar, Euro, Yen or one of the other major currencies becomes as worthless as the Weimar Papiermark. Everything gets repriced in something else and for thousands of years, gold has always been the fallback position after the political class debauches the currency.
I have a few thousand “Dollars” a few thousand “Lempira” for paying bills while people still accept them. As soon as I can, I convert excess of those currencies to tangible goods, spend them on whatever I want, and in general get rid of that trash as quickly as possible. I know I’ll be stuck with some of that junk when it hits the fan, but I’m not too concerned with that because I know it’s going to happen.
As soon as 1 major currency changes to specie convertibility it’ll be over for the rest. Just as central banks are all about acquiring specie, everyone will bolt to the new currency because of its convertibility factor. Keynesianism will be fully exposed as the snake-oil economics that it is. Everyone should have a set of The Foxfire Books series for when the almighty dollar collapses. Education & entertainment.
That statement is a true one.
The practical question is what to do about it.
I have stocked up on durable goods–enough to last a lifetime.
I have zero debt.
So then the question is–what to do with the excess to preserve capital–I am too old to worry about actually increasing wealth.
My take is not that the banks are “safe”–they are not–but for deposits below the FDIC limit they are safer than almost any other kind of investment because if the big banks go down the modern economy goes down with it.
The FDIC is obviously way under-funded, but at the end of the day .gov would have to either make good on its obligations or kiss the modern state and economy bye bye.
Someday that probably will happen–but at that point any lost bank account funds will be the least of the problems.
Every attempt to sidestep gold and silver has ultimately failed every time and after the failure, the utility of gold and silver as money, not currency, was rediscovered until such time the memory of the last fiat failure was largely forgotten to once again allow the political class and bankers to reintroduce fiat. The desire to cheat the common man by the snakes in the society is a constant and the poorly educated (gov’t schools) are prime marks for the con of fiat.
It doesn’t have to be the precious metals, but it must be something that can’t be conjured into existence at the whim of the bankers and gov’t. It has always defaulted to gold and silver because of their excellent properties and I suspect they will again be money. What I see in the not too distant future is the worldwide reemergence of gold and silver to back, at least partially, every national currency. What the Russians are doing right now is heavily gold centric to be used as the base of a trading currency between ‘friendly’ nations. Once that gets implemented, the dollar will immediately play second fiddle and as a consequence, trade with the US will suffer as partners for the commodities the US has on offer will be sourced instead from gold trading nations.
I keep very little ‘cash’ on hand and in the banks. I get rid of it as soon as possible in exchange for tangible goods. You may want to research what people in failed currency States used previously as barter goods and stock up on a selection. Of course, gold and silver coins and bullion have been used for thousands of years as a store of wealth. BTW – crypto is the modern tulip craze, IMO.
Estimates are all over the place, but I suspect the metals will be revalued much higher in the near future. James Rickards calculated a conservative fair market price for gold at $15,000/oz using the need to partially back the US dollar alone. Other nations will also need to back their currencies after the SHTF so the value of gold and silver can be calculated equal to the world’s total currency value divided by the above ground quantity of metals with the natural silver to gold ratio of 15:1. This is common sense.
I posted a video today in Newslinks where the FDIC meeting attendees stated that the public has more confidence in the banking system than they do. I consider all funds in the banks as forfeit when the SHTF because the funds will largely be used as bail-in to recapitalize the banks with the depositors getting shares in the venture as investors. It could take years, if ever to get your funds back.
I don’t share your confidence in the gov’t snakes making good on anything since it’s their scams that have led us to the current situation and they actually have no tangible resources to use for any compensation. Ask yourself, where would they get the money, not phony currency, to make you whole? Everything gov’t has it stole from a producer. The entire FDIC mechanism is a confidence scam and always has been.
Central banks have been buying record amounts of gold.
https://www.bullionstar.com/blogs/ronan-manly/singapores-central-bank-mas-boosts-gold-reserves-to-nearly-200-tonnes/
My problem with gold is that it depends on a “goldilocks” scenario (pun 🙂 ) where the currency and economy collapse enough so that it becomes the de facto currency but not enough to totally destroy the modern world economy.
The notion that folks will be able to trade gold for groceries (and presumably local taxes and local cops will be paid in gold as well) is just far fetched.
I could see gold coming back as a medium of exchange after decades of collapse–but I will be dead by then anyway.
First, I recommend silver. Gold is more likely to get confiscated because it will be needed by the various mafias for international trade. The Shanghai Cooperation Organisation (SCO) that Sergey Glazyev is working on has gold as the base of their proposed trading currency for the gov’ts that represent 3.5 billion people with more countries joining all the time. Silver is an industrial metal for which there are no good alternatives. Electric cars and solar panels are estimated to consume 30% of supply in the next few years and that’s above the 50% industry currently uses.
I see precious metals (PM) as an insurance policy for when the fiats craters. Most people are too propagandized to accept PM’s for anything so I don’t buy their utility as a money currently. I expect to trade PM’s for whatever paper the ignoramus at the other end of the transaction will accept for his real goods. Over time, people might wise up to what money is and that currency, every currency, is nothing more than their gov’t cheating them continuously.
As much as I wish national currencies to disappear, voters are too ignorant of how their currency enslaves them and will have no problem signing up for another piece of paper to replace the ones in the process of failing now. I expect there might be two currencies per nation, one backed by gold for trading solely between the mafias, and another for their open air prisoners called citizens backed first by some percentage of metals with that percentage being lowered continuously over time to reproduce pure fiat once again. This process of debasing ‘money’ is thousands of years old and will be used again to enrich the oligarchy at the expense of the average ignorant peasant.
CBDC will enslave everyone if they manage to implement them without a revolution.
It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe that there would be a revolution before morning.
Henry Ford
Agree with everything you said except the gold2silver ratio. For the last 30 yrs the ratio low point was 32:1 & high of 125:1. The last ratio that the US used was 20:1, but the ratio would fluctuate according to supplies of each coming into market as it’s mined.
And furthermore this idea (not RoatanBill ‘s) that pm are not workable in today’s market is hogwash not supported by anything but opinion. Pm have served as money for 10k yrs that’s documented. Who knows how long before that too. Pm is honest money & the pigs can’t be the spendthrifts they’ve become accustomed to with honest money.
Please note I said the natural ratio. Estimates do vary, but silver is nominally 15 times as plentiful as gold. In a free market, it is the natural ratio that will win out.
The reason for the ridiculous ratios in recent years is due to the paper market that is highly controlled. A professional in the market recently stated that paper silver trades over a billion dollars a day when the entire annual production is only 800 million dollars. He also stated that he expects there are 300 owners for every ounce of unallocated silver.
Once silver and gold get re monetized, that’s when nature comes back into the picture. What Russia is doing right now is setting up an alternative to the LBMA and the COMEX that will allow for a mechanism to undermine the paper market since Russia is in the physical business.
PM’s won’t work as money presently because the populations don’t understand what actual money is. Ask the average person what the difference is between money and currency and you’re likely to get a blank stare. Also, at present gov’ts demonize the metals as shiny rocks and people dumb enough to vote will believe just about anything. A YouTuber, I believe it was Mark Dice but not sure, offered people an ounce of gold or a chocolate bar. Everyone chose the chocolate, at least of the ones he probably kept in the video.
Gold and silver won’t come back as money, but might be used to show how much currency is backed by the metals for the various mafias to gauge the relative value between the currencies to still allow the movement of paper currencies for trading purposes. The gov’t mafia’s will keep the gold but pay the producers involved in international trade in their paper currencies. It’s really the same scheme used now, only that the mafia’s no longer trust the other mafia’s currency and want gold for balance of payment purposes.
Real money for the average person won’t be available, and by available I mean walk into a bank and turn in your currency for metal. The push for CBDC in and of itself indicates to me that what gov’ts want to do is tighten the screws on their populations even more than before. They want a population totally controlled like the old company town that paid in company script and are well on the way of achieving their totalitarian dream. That dream might last a few decades and then fail, but for the immediate future that’s how I see it playing out.
I think that is the goldilocks scenario of the elites–enough of a collapse so almost everyone begs them to take over, but not enough of one to destroy .gov authority on the ground.
Eventually I think we will see some sort of Spanish Civil War type scenario–where officially there is a government in charge but the facts on the ground are totally crazy–and the last thing on anyone’s mind is the medium of exchange.
Fifteen years ago, Zion’s National Bank in Utah used to sell one ounce gold coins over the counter; i.e. gold was fungible.
I’d be very surprised if one cannot TODAY, pay his taxes in the Dakotas, Wyoming, Montana and Nevada with gold coin.
Bank Run in Silicon Valley.
Bannon and Cortes Discuss the Collapse of Big Tech’s Bank.
Video Link
Where I live(Thailand) gold is most certainly a currency, and you can buy groceries with it.
It’s much easier to withdraw $100k in cash than it is to deposit $100k in cash.
You don’t know how to count.
Roosevelt stealing the Americans’ gold was the first time the US defaulted.
My sister-in-law laughed when I said, “Just wait until ATMs stop spiting out money.” I should have added “and EBT cards stop working.” It will be time to stop complaining, quit crying, and embrace the coming horror.
Article 1 section 10 of the federal constitution
“No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts”
Gold and silver it is. At least for the States.
“The US will default on its debts a second time,”
This is the PROPHETIC MODE of political discourse. Just like the slinging of Biblical prophecy from the Book of Daniel it’s a pleasant masturbatory technique available for self-regarding explainer types but it’s a worthless waste of words for the reader.
All political pundit hacks amateurs and professionals use this technique and manipulate via this technique because people lust for knowledge of the future.
Just read pundits writing about the “climate” or the “war in Ukraine” or the “dollar” and note the use of “will” or “is going to” or other grammatical indicators of the future. Then, stop reading. Put the writer on your “ignore list”. No pundit amateur or professional is EVER punished for false prophecy.
“Credit Suisse” was likewise on the news today and it was not good news.
“Some people say a man is made outta mud
A poor man’s made outta muscle and blood
Muscle and blood and skin and bones
A mind that’s a-weak and a back that’s strong
You load sixteen tons, what do you get
Another day older and deeper in debt
Saint Peter don’t you call me ’cause I can’t go
I owe my soul to the company store”
A great song from the 1950’s–now a coming reality?
Conversation With Economist Richard Werner | The Plandemic Was Used To Usher In TOTAL CONTROL
Princes of the Yen | Documentary Film
There is always some medium of exchange, no matter how crazy the situation. You might remember that tobacco was used in Germany after WW II, cigarettes’ were a medium of exchange among combat troops in WW II, back when cigarettes were used in C rations. At one point canned hams have been used in Eastern Europe (with sand filled cans as counterfeit). It’s just that when the situation gets crazy, so do the media of exchange.
Our current technological/industrial society looks like it is failing. You note mass layoffs in the US (half of General Motor’s staff is being fired, “mass layoffs” at some of the social media companies, obviously debilitated and undermanned railroads, half a million US residents living in tent cities, the leading Silicon Valley startup investment bank being closed down, the absence of notable innovative products for the past, what? Decade?, etc. Take a look at fertilizer (N, P, K) prices on Amazon. I can’t buy N or K fertilizers at local feed and seed retail stores. Of course, that’s only important if you buy and eat food.
Gold/silver isn’t really a likely source of exchange during a major failure, if only because of Gresham’s Law. It might be useable to buy land or houses by people who want to move elsewhere. Local currency or currency substitutes would be expected to vary, and might be some canned goods or bulk oil (like the canned hams), and would at first be thought of as simple barter.
It’s not really the sort of thing you can prepare for, although installing an actual effective security system might help. Ordinary security systems are really good at documenting the moment when the home invaders shoot you, which your kids might treasure if they are on bad terms with you. As far as I can tell, ordinary security systems are made so that they cannot keep the police out, and are therefore vulnerable to home invasion, so you’ll have to design your own and have it installed by non-establishment contractors. And you can’t do it if your neighborhood association objects or if it is against local regulations.
I’d suggest praying to God that He takes you to Paradise when you die. At least that, and repenting your sins, might do some good. Breakdowns are not, by their nature, predictable.
Very interesting comments. I have not banked at a “bank” in many years. I bank at two credit unions, which are “owned” by the depositors, such as myself. They are solvent.
My only debt is the house in which I am living. I “could” have paid for it outright, except that I would have incurred a huge income tax liability by cashing in some of my IRAs. That is the ONLY reason I obtained the mortgage. My main fear is that the “company” holding my mortgage will go belly up and that they would come after my house as a result.
I removed all of my money from the stock market years ago and what relatively little I have invested has been invested in U.S. Treasury instruments. I also have a small quantity of “junk silver” that I could draw upon, in case the American dollar becomes worthless.
Thank you.
So we have about 66 million on Social Security benefits { all included}, mostly being pumped into the banks every Month which is about 100 billion bucks so are we supposed to think those ” Too big to fail banks” are going to allow the pensioners to access their accounts once the SHTF moment comes around? Nope ! Of course the Banks aren’t our only problem – it’s the guys that own that printing press that have cooked the books for sooo long – there isn’t much left for the Peoples rainy day back-up.
This was a good article explaining our problems , and I doubt that anyone has the key to make our financial demise go away so let’s see what Ms. Brown says in Chapter 3. Thanks.
1979 reggae song by Peter Tosh, from his album ‘Mystic Man’
The day the dollar die, Things are gonna be better
The day the dollar die, No more corruption
The day the dollar die, People will respect each other
Finance ministers groaning, Unemployment is rising
And I hear my people crying
The day the dollar die, It’s gonna be nice
The day this here dollar die, There be no more inflation
The day the dollar die … We will love each other
I will agree with Ms Brown , that the dollar is still king – from Saigon to Istanbul to even aat a Bank of Russia , We can change a buck right now. The big question is – How long will this last, which country will want to change dollars, and how many people will still be able to travel from the West to the East. Especially if there is another currency option worldwide. The domestic dollar could still be used if the people rise up and tell Washington and their Federal Reserve to forget about the Digital slave coins, but this could be very hard since the sheeple are even backing the Nazis these days.
Look at how the Ruble as gone from from rags to riches in 30 years because the leadership in Russia did some housecleaning and secured their natural resources for the state’s well being. Americans need to do the same.
As long as their are Jewish and other businessmen alive , we will be able to trade gold, silver, jewelry diamonds etc. for local currencies , not excluding some good old fashion horse trading – I believe this. On with the next chapter .
“Paper gold” was made possible in 2011 when they allowed “naked shorts,” so that fast talkers could sell contracts in gold they did not actually own. My concern is that some day there might be a run on this tulip-bulb paper gold, and the price will crash. Therefore, buying paper gold is out of the question, and I would need to purchase physical gold.
Then I would have only two problems. The first is verifying that a scamster will not, and then has not, sold me diluted good. The second problem is storing it someplace where future dystopian authorities would not be able to find it. I have some cool storage ideas for unfindable places, but I am not sure how well I would hold-up under torture: for example solitary confinement, which we have already witnessed in the cases of the January 6 mildly guilty people.
Bankers: Yes We Are Going to Steal Your Money, Pointing this Out Ahead of Time Would Be a Bad Idea:
Video Link
It is an arithmetic impossibility for the US to repay its current debts. It has two choices, inflate the debts away or outright default. Every nation in this situation has chosen the inflation route. I suppose you consider that a non default but anyone that is honest will say it is a default and done in a manner even worse than doing it outright.
You want punishment for an opinion? See the first amendment.
Credit Suisse has been a criminal or at least a disreputable enterprise for quite some time depending on how you perceive criminality.
Well, SVB (Silicon Valley Bank) went BANK rupt. It looks like the executives had a rollicking time partying, skiing etc. They even put on a magic show where billions disappeared into a black hat but a rabbit was pulled out for the audience. A lot of executive time was spent not in managing the bank but writing up procedures and media releases touting inclusivity, adversity, climate change, women’s achievements, diversity and transgenderism. Its a good thing they corrected our misconceptions about the number of genders there really are. We are at 73 and counting !
For a cup of coffee, pick the identity of movers and shakers at the bank.
..Whites
..Afro Americans
..East Indians
..Eskimos
..Jews
..Chinese
..South Pacific Islanders
..Congolese
..Russians
Response on comment five. ‘not, ‘can’t, ‘how it is’. Am aware of facts on probable power and the record of selfish dupes sitting, however the consequence of sitting today is total, and what’s missing is people not knowing what’s actually on the line and is more than fraud money. Though late, determination can be per effort of each person, or semi collective actions, Not big fake ‘group’ but sporadics, each person effort and small groups, etc.
Supposed ‘currency’ can be what we say it is. Everything could be what we say. The question is if people are willing to make effort and fight for our freedom, ability to speak and fight, and our earth infinity, which is at stake, more important than scum fake money. there is destruction people aren’t seeing.
The problem is decades of selfish breeders refusing to be serious. The cons owe people for thousand years of fraud and death and torture, yet instead of take revenge people are letting them spew ‘hate speech’ bs to shut everyone’s mouth. They scribbled kelo v. new london to take everyone’s property. private to private. ‘court cons same as ‘bankers and media and others.
Supposed grocery ‘stores’, the scheming of land last two hundred years, can mean no one is an owner, or people can do takeovers the same way the cons did. The cons after scribbling their bogus ‘con stitution’ dictated themselves fake ‘authority to hand millions of acres to themselves and their co-cons including scheming irish cons in ‘homestead act’ bs. And forests and trees to ‘weyerhauser’, all of it a con. Same with takeovers by false ‘depression’ stealing mass farms land in the 1930’s. Over a milion people died from starvation instead of wipe out bankers and cons claiming to be state or govt. Where’s the revenge, or on covid. People have to backlash against con labels, ‘great’ depression’, ‘great’ reset, fraud words brain twisting.
Selfish ‘preppers’ can get off their butts and share info and do their part, or hand over the food to the hundred milion in-migrants they let swarm and continue as they ‘prep’ and ignored instead of do something to stop destruction of their spawns future.
I was at the protests in 2010 where was everyone else.
Point, seeing the whole, and there can be choices, not only phony options of the cons, if more difficult because dupes let them get many weapons. Its on each person to make effort. For instance if people make action and cons threaten with drones, supposed state and city cons are part of every con so protesting and exposing them also an option. The false money con is tied to every other con. And selfish ignorance. More people have to change that. People who ignore are same as the cons.
The answer isnt more false money shifting fakery, the answer is effort, focus local, postal mail also.
comment nine.
The ‘climate’ isnt natural. example operation popeye.
.
The thing that most of your posters miss is that when the SHTF, anyone with serious money will leave this country. Gone to Israel, New Zealand, Patagonia, etc. , and they will take their money with them – if they haven’t already. They are not about to be taxed to provide Double Bacon Whoppers for the fat, dumb citizens in the ghettoes and trailer parks. And those fat, dumb-bunnies will turn to crime as soon as the pink slips go out, and the welfare checks stop.
America will become a jungle immediately. So forget your gold and silver – everyone better learn to grow their own food – forget about hunting – there is probably about a million white-tailed deer living East of the Mississippi River and about 200 million people – the deer will disappear about as fast as any “generous soft touches” will.
The most absolutely guaranteed thing to disappear will be the old capitalist rip-off system – everyone hurting will definitely be voting socialist.
‘the “full faith and credit of the United States” … is actually quite solid backing, something neither gold nor cryptocurrencies can claim to have. You can’t pay your electric bill or your credit card bill with gold or cryptocurrency. People are willing to accept dollars in payment because they know vendors will take them, and so will the IRS.’ — Ellen Brown
Ellen Brown, who inhabits the far left spectrum of economists, is indirectly invoking a couple of doctrines here, without explicitly saying so.
One is legal tender laws. These are much beloved by MMTers, who theorize that forcing citizens to pay their taxes in a designated fiat currency gives it some sort of intrinsic value which it otherwise lacks.
The second doctrine could be categorized as government worship: that the currency emitted by the state is far more secure than fringe assets such as gold and crypto. This glosses over the fact that Federal Reserve notes are a liability of the Federal Reserve, whereas gold and crypto are no one’s liability, and therefore incapable of defaulting.
Ellen Brown’s factual citation above is competent and straightforward. But I’m still crouched and wary, waiting for her wild-eyed MMT flakery to come spewing out in Part 2. Caveat emptor, comrades: our venerable commentator has a large ax to grind, as you can confirm by searching for some of her other essays.
‘Gold and silver it is. At least for the States.’ — Hang All Text Drivers
HATD makes an excellent point: the US constitution is exceedingly poorly drafted, regarding monetary matters.
The Founders left a giant hole, which the 1913 Federal Reserve Act proceeded to drive a truck through.
Now serial Bubbles, punctuated by hair-raising Depressions, are the only economic policy we’ve got.
And this coming Depression’s gonna be a doozy … followed by an inflationary supernova after Big Gov’s Final Bailout in 2024.
Sorry for shouting … don’t want to wake up senile old “Joe.”
One has to wonder whether America is undergoing JUDGMENT for all its crimes,
especially THIS ONE http://wp.me/p4OZ4v-19
Yt can’t run a solvent banking system now? Y’all used to be kangs wtf happened? Dindoos?? Hebes???
Butt-Tucker on SVB wokery
In the whole history of the human race, no paper currency has done other than revert to its intrinsic value……ass wipes. Slowly through inflation or suddenly through collapse, the result has always been the same….ass wipes. No exceptions. None.
May 21, 2013 Why the whole banking system is a scam
Godfrey Bloom MEP • European Parliament, Strasbourg, 21 May 2013 • Speaker: Godfrey Bloom MEP, UKIP (Yorkshire & Lincolnshire)
NATIONAL DEBT BY COUNTRY
National debt is the amount of money owed by a national government. This is different to public debt, which include money owed by all levels of government and also publicly owned institutions.
https://www.nationaldebtclocks.org/
“It is easier to rob by setting up a bank than by holding up a bank clerk.” Bertolt Brecht
Let’s see. Bank runs and chaos combined with no police protection and cities full of violent black savages ready to kill you and take your stuff. What could go wrong?
So if I hit lotto jackpot of one billion dollars and choose the cash option which would leave a half billion dollars before taxes and after paying half of that amount in taxes end up with 250,000,000.
Now I can’t be walking (more like trucking) around with that kind of dough thus would have to deposit it in one of the SIFIs and if, let’s say Chase Bank with almost 55 trillion in derivative exposure, goes under then my quarter billion dollars is worth only a quarter million dollars per Dobbs-Frank and FDIC. What a fraud!
I would rather give that money to mafias around the world (Sicilian, Italian, Albanian, Chinese etc but not Russian because they’re actually Jewish) to assassinate the banksters on Wall Street and their capos in the City of London. That would be money well spent!
I am sure Vlad the Impaler, Xi, Modi & Saudi King read this Alan Greenspan article:
“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold.
If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government‐created bank credit would be worthless as a claim on goods.
The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”
Alan Greenspan, managing partner of “Greenspan & Townsend” consulting firm, in the article “Gold and Economic Freedom”, New York City, 1966
Bottom line: gold for those with nuclear weapons to protect it from sanctions, bail-ins, civil asset forfeitures etc.
For the rest of us FedCoin, Bitcoin, wampum, cowry shells, 1lb bricks of pressed tobacco, glassine packs with fentanyl and similar BS.
https://www.jewishpress.com/news/israel/silicon-valley-bank-tanked-dragging-down-500-israeli-startups/2023/03/10/
Total control started after 911 .It started with flying at airport.Soon it was on Amtrak, post office, school, hospitals, and obviously that power is chiseled in the attitudes of the security staffs anywhere .
Its a society that is paranoid false, lacking any sense of connection, unforgiving and un-neighborly .Thanks to the ambience developed after 911.
Control means control of all sorts of behaviors – each and every .
Could you fill out a survey ? That is what you get after post office visit , phone call to credit card company ,doctors visit, visit to the clinical labs for simple blood tests . It’s not so much to improve the quality as to surveil and keep employee on the toe . Fear psychosis .
People don’t offer help to victims of street crimes because when police will come ,the helper will find himself in violation of some sort of laws or become the new victim of the offender’s right .
America has foreign friends who are criminals . They are celebrated as freedom loving LGBT loving liberty loving creature . At home the nation is now turning to the citizen criminal to survive . Some are clothed in suits and ties and some are in hoodies and sagging pants .
The following excerpt [Reason #2, below] is directly on point. The antecedent “smoking gun” is an 1848 decision of the House of Lords (emphasis added):
So which is it? By what right is a banker entitled to ownership of a depositor’s money? Why does the Court / judge(s) state clearly that such money becomes owned by the banker to do with as he pleases, while later stating in the same decision – that the money is “to all intents and purposes” the money of the banker?
The reason is that the judges know intuitively that if the money becomes the legal property of the banker, then the law behind it becomes a general law of apartheid and a fraud against equity.
Apartheid occurs when the substantive purpose of a law is to maintain one class of people or persons subservient or superior to others for its own sake
Imagine the often decade-long process of taking the case all the way to the House of Lords to answer one simple question, only to be told in express terms:
Prima facie irrationality / non sequitur reasoning is how the appointed judiciary broadcasts “policy” to its broadly-defined administrative superstructure.
Here is the broader issue and phenomenon:
[Reason #2]. The Deposit function (excerpt from “My Top 7 reasons why All of this is unreal – Reason #2”)
Assume, for the sake of exposition and argument, that some force, divine or otherwise, makes me the winner of $1 billion in cash in a super-multi-state powerball-type lottery. That $1 billion would bestow upon me some quantifiable and very substantial socioeconomic power.
By whatever means, fate will have selected me for such power, and about 100 million people would have each paid an average of at least $10 in cash buying tickets to make it happen.
Also further assume, just to keep track of it, that the typical / average lottery-ticket-buyer earns $14 per hour, and nets $10 after nominal taxes, such that the $1 billion jackpot represents the product of an aggregate 100 million hours of taxable / tax-paid labour already performed (plus whatever percentage the government keeps from total ticket sales[6]).
But the cash would be mine regardless and I would own it in fact (possession) and in law.
Yet the next day, if and when I deposit the cash in a private bank, the cash henceforth belongs in fact and in law to the bank, and I (henceforth) have an unsecured liability of the bank (an unsecured deposit credit) that I own and which I can trade with or assign to others (by cheque / check), but which did not cost the bank anything of substance to produce.
Now the private bank also has $1 billion of new socioeconomic power by my decision to so favour it – a systemic gift of the equity and financial product of 100 million hours of labour already performed.
Now apply the same process to the (say) $5 trillion-plus of earnings from new broadly-defined labour services annually in the U.S. economy.
Assume that you work for a year to earn a cash payment of $100,000 in exchange for your labour and other skills and talents that others find useful in that amount. You too will have earned a certain amount of socioeconomic power.
But the instant you deposit the money into a bank account, it is no longer your legal or actual money, and you have unwittingly made the private bank an equal partner in the product of your year’s labour. Same with cheques / checks (and anything that is deposited) – the bank literally and legally owns your paycheque the instant you deposit it.
The same goes for all the illegal-vice-and-drug-money globally. Even if the drug dealers, etc., could obtain every last coin and banknote currency on Earth (in normal circulation)[7], there is still only about the USD-equivalent of $1 trillion, or about a one-year supply for the world’s broadly-defined vice-and-substance-abuse industries. So if it has been going on for 40-plus-years-in-fact, then you know with certainty that virtually every last dollar of such vice-and-drug-money is being laundered-in-fact (converted to deposit balances / credits) through private banks. It can’t go anywhere else. They are partners-in-theory, and they are partners-in-fact.
Then if and when you participate in the financial markets, you find that your local bank, as with virtually all banks individually and in the aggregate, is not just a scorekeeper, but an active participant on the economic and financial playing field. So even if you beat it, you give your gain back to it when you deposit it. When your opponent scores a point, it scores a point. When you score a point, your point is forfeit to your opponent, but you get a different kind of point as a consolation, so it is kind of alright.
And since at least my great-great-great-grandfather’s time, our global army of financial and economic analysts, with more troops worldwide than Napoleon and Wellington combined at Waterloo, cannot figure out that unearned and unjust conveyance of rights of property in money itself, via deposits and the custom and practice of private bankers, is a multi-hundred-trillion-dollar annual business of itself, and a defining reality of our entire system. It has just never occurred to anyone that it might be important?
Just as the words “application fee” or “loan fee” or “commitment fee” excite a different area of your brain, than do the words “Cross-leveraged-double-counting-fee” or “True-principal-amount and real-interest-rate obfuscation and concealment fee” or “Accounting-fraud concealment fee”, so too does the word “deposit” evoke a very different reality than the more conceptually accurate “gratuitous-wealth-transfer”. As in: “Hi Bob, I just got my paycheque, and I am on my way to gratuitously assign the legal right of property in my earnings to the bank. I’ll meet you later for pizza.”
Since the founding of the privately-owned Bank of England, for that matter; for 323 years our international army of bloodhound economists have failed to grasp the significance of this one all-encompassing and game-defining rule.
Now let’s see, why would an economist concern themselves with something as arcane as rights of property in money itself, in a global system that processes $98 of financial / money transactions for every $2 of actual GDP [as at 2016]? They witness $3 quadrillion of financial transactions annually to support global GDP of $60 trillion (2%) and, with a few notable exceptions, these economic analysts can’t think of a single reason why rights of property in the $3 quadrillion might have some effect on human socioeconomic relationships?[8]
Assuming that there are about 7,000 substantive private deposit-taking institutions globally, then there would be one such special-player per million human players (labour units). Assume also that each special player is substantially and beneficially owned and / or controlled by one vested-oligarch-family-unit, with the most senior (and largest by far) units having been in place for over 300 years.
In this game, all seven billion human players perform labour each day for wages and 90% of them, by amounts, deposit those wages into deposit (gratuitous-wealth-transfer) accounts at one of the 7,000 special-players / family-units, at which point the wages become the legal and actual property of the special-players / families. The special players call their special advantage a level playing field and which is their inherent right by the longstanding custom and practice of private bankers.
And for 323 years our inter-generational global army of economists cannot figure out “What’s wrong with this game?”
Computer! End program!
The full Top Seven Reasons piece [since revised and renamed “A General Theory of Financial Relativity] is at: http://werex.org/a-general-theory-of-financial-relativity/
The most essential point is that the issue is not an economic issue – it is a psychiatric issue. Both the lawyers / judges and the bankers are certifiably insane by existing legal, medical and psychiatric standards, and we allow them to continue at our existential peril.
What if you’re already overdrawn, and then the bank goes under, asking for a friend.
I am retired, but if things get deeply ugly enough that the deep arm of the state is irrelevant I plan to be putting up an unregulated and illegal shack trading cigars for everything else.
“This glosses over the fact that Federal Reserve notes are a liability of the Federal Reserve, whereas gold and crypto are no one’s liability, and therefore incapable of defaulting.”
Let us reword this:
“Chief Ooga-booga notes that Zimbabwe Federal Reserve notes are a liability of the Zimbabwe Federal Reserve…and therefore incapable of defaulting.”
We are ruled by witch-doctors these days.
“ deposits under $250,000, which are protected by FDIC insurance. That is true in theory, but as of September 2021, the FDIC had only $122 billion in its insurance fund, enough to cover just 1.27% percent of the $9.6 trillion in deposits that it insures. The FDIC also has a credit line with the Treasury for up to $100 billion, but that still brings the total to just over 2% of insured deposits.”
We’ll look on the bright side, lots of big money peepooz who funded this illegitimate regime that gave them unlimited power to censor, ban and dox citizens are gonna lose dey shitts.
I suspect physical gold, silver and heirloom seeds are going to skyrocket.
Better get out before the gold rush.
As a White American I am frightened at how my country became controlled by dual passport holders whose loyalty is to another foreign entity, the illegitimate state of Israel.
First of all, my money or what’s left of it after taxes, inflation and overhead, is devalued and controlled by a Jewish Secretary of Treasury Janet Yellen who freely prints unlimited US dollars at the whims of her warmongering tribal elders for endless wars.
Secondly, my safety is now compromised by Jewish DOJ Attorney General Merric Garland, and Jew Secretary of Homeland Security who refuse to defend our sovereignty, our inalienable rights and rule of law by opening our borders to millions of criminal invaders, then allow militant blacks, Hispanics gangbangers, CultMarx communists (((Antifa))) and drug cartels to ravage our cities with burn loot murder rape and drugs with impunity.
The list is long but you get the jest of it. As the great sage and ‘The Talk’ author John Derbyshire wrote, “We Are Doomed”.
So… Stocks are terrible right now (I foolishly lost money investing on AMZN, and my GAZPROM stocks were stolen by the government with the sanctions against Russia).
Savings accounts are not even covering inflation, and the banks can go bust anytime, or the government can simply freeze your account if they don’t like you.
Bitcoin is also not doing great.
The dollar may crash and the euro as well.
Gold is very nor practical to carry around.
What to do? Where to invest? HELP!
Pay off your loans with any money in the bank. They can’t bail in a paid off loan balance
My maternal grandfather’s parents were immigrants from Cologne in Germany. He told me that during the massive inflation under the Weimar Republic, his cousins back in the old country used sealed bottles of booze to buy things. Bottle of fine cognac = $100, bottle of ordinary bourbon = $20, bottle of beer = $1, and so forth.
Pretty awkward system, but had the advantage of being able to drink your ex-currency once things got back to normal.
“I have stocked up on durable goods–enough to last a lifetime.”
Well don’t let the niggras know where your stash is.
It’s Fiat because the USA_Govt says they are.
Lefty/Righty – doesn’t matter here.
No Worship, just a Fiat imposed on the World by WashingtonDC and Rentier-Bankers of the FEDRSV.
The U$Ds are FEDRSV Notes – IIRC (from GoldMoney+Others?) loaned out to the USA_Govt on a 6% Annual Interest.
IIRC, both Lincoln and Kennedy were allegedly working on introducing Debt-Free/Silver-Backed Currency Projects when they were Assassinated.
Author and Doctor(JD) Brown has published some good quality work covering Public Banking – especially North Dakota’s; and introduced some innovative suggestions like the “Trillion U$D FedCoin” to write off the Debt.
I say innovative – since much of the Debt are Recorded Entries of a flawed Interest-Bearing Scheme.
Far more than having an “Axe to Grind”. And You? What have YOU Produced? Published? Suggested? Have you written Theses on these Matters? If you have, let us know.
IIRC, you haven’t written any counterproposals nor argued points as to “WHY” her Article+Arguments are so Flawed.
You’re entitled to your Opinions; but if you’re planning to belittle Philosophers+Analyst who actually Published into the Professional/Public Discourse, you’ll need to do better than that.
Otherwise, you’re simply Trolling here.
Murica’s Currency appears to be a Multi-Layered Debt Exchanging Scheme where the Operator Oligarchs and their Master Plutarchy see no need to make major revisions.
Nasty Scenario; and the Hegemony have been Weaponizing their Currencies, Trade, and Trade Settlement Systems.
Crypto2PmtCards are out there; and there are plenty of people willing to buy the “popular” Cryptocurrency. However, it’s unstable. The Tech is interesting.
Precious Metals are convertible now in the USA; but Gold has been confiscated/blocked from U$D conversions before. My Opinion is that those who want to hold some PM may wish to Read Up and seek Professional Services – especially looking outside the USA+GBR, who have been Stealing Currency+Assets+Gold belonging to Nation-States, Businesses, and Persons around the World.
The collapse of the SVB yesterday started ~6,000 years ago with the Phoenicians when the grain-brokers began raping grain-growers with fractional reserve grain storage and banking.
It was then codified in 1694 with the inception of the Bank of England.
Then further codified with the creation of the Federal Reserve in 1913.
The collapse yesterday was a long time coming, but surely, it was in the stars, foreordained to happen.
Cancel infestors aka “investors”!
Only invest in the business, where you are the chairman, the CEO, the employee and the cleaner; that is a clean bill of interests.
Have your own bank, your bench in your house and no other house.
Kill the greeds and scum like Trump & Cons stinking they can “own” thousands of houses and “corporations”, while they can only sleep in a single bed under a single roof at the time (and have never built anything).
Jewmerica aka “America” is the biggest mistake in known human history.
The biggest and most violent “shareholder” – America – should be split into 8 billion shares and one share given to each human soul. 350 million Americans should be exported as slaves around the world, except for the special ones – the beloved Jewjews. They should be allowed to remain: as milled bone flour to fertilize the sucked out cottonfields.
Fuck the biggest sucker ever – Jewmerica, the investors, the infestors of the world (with negativity)!
So SVP was apparently invested in longer term fixed rate instruments, treasuries and mortgages, and got caught with its pants down when the Fed kept hiking, and that led to big trouble when it had to sell them to meet current obligations…Its reserve ratio was obviously too low…The question is, how many other banks are in a similar situation?
I visit my local farmers market every weekend to stock up on vegetables and fruits, I give them dollars, they give me goods.
That tells me that farming is the best natural form of asset management there is, until floods, droughts and radioactive waste appear.
There’s always that risk factoring in the background.
Buy land and precious metals, God ain’t making anymore of it, until space fairing mining operations find diamond planets, gold and other high prized elements in far distant worlds.
Even the elements have fiat built into them.
“The full “faith and credit of the United States is backed up by its military and it’s resources which are vast”. “Deal with it”
I’m guessing that you are a Federal government bureaucrat because not many other Americans would speak so confidently, and condescendingly, about a matter that could spiral out of control come Monday morning.
Yes, the United States has vast resources available to it, and yes I think our Treasury Department and FDIC will find a solution to this problem before it morphs into a full blown bank panic.
But the arrogance you display is not confidence inspiring.
Just as our Treasury officials are going to be working overtime this weekend the same can be said about hundreds, and perhaps thousands, of CEO’s and CFO’s of large companies throughout the United States which routinely have 100’s of millions of dollars in their primary bank. Those very people are likely looking closely at their financial institutions financial statements as I type this.
And one last comment: what the he’ll does our military have to do with a banking matter?
“””Therefore, buying paper gold is out of the question, and I would need to purchase physical gold.
Then I would have only two problems. The first is verifying that a scamster will not, and then has not, sold me diluted good. The second problem is storing it someplace where future dystopian authorities would not be able to find it.”””
Don’t buy gold – buy the gold mining stocks. Newmont mining is a good one since it is based in america. Many miners are based in canada and C is turning into a dictatorship.
“”””It is an arithmetic impossibility for the US to repay its current debts. It has two choices, inflate the debts away or outright default. Every nation in this situation has chosen the inflation route. I suppose you consider that a non default but anyone that is honest will say it is a default and done in a manner even worse than doing it outright.””””
The fed wants inflation and all this talk about hiking interest rates to fight inflation is a lie. The rate hikes are done to entice foreigners to buy our T-bonds. No one trusts them anymore after biden cancelled the ones held by russia.
“”””there is probably about a million white-tailed deer living East of the Mississippi River “”””
A million??? HAHAHA. Many eastern STATES have that many.
https://wildlifeinformer.com/deer-population-by-state/
Silicon Valley Bank COLLAPSES.
Could Mean the Destruction of Neo-Conservative / Neo-Liberal Systems.
True. My liquor store does not accept gold or bitcoin. Neither does Walmart.
For Chrissakes, get a hobby.
Greetings, Bill!
I haven’t posted a comment to you in a while. I hope this message finds you well.
As usual, I agree with everything you’re saying in this comment thread. I am, however, under the impression that the natural silver/gold ratio is 16 to 1, but that’s just a minor quibble, and I could be wrong.
For reference, the ratio was set at 15:1 by the U.S. government from 1792 to 1833 and increased to 16:1 in 1834. The US Geological Survey claims that silver is 17.6 times more abundant in the earth’s crust than gold, for whatever that may be worth.? Since 1687, the gold-to-silver ratio has ranged from 14.14 (in 1761) to 99.76 (in 1940).
I mean, who wants some stupid bar of silver when you can have a yummy, yummy Hershey’s Bar?
Thanks for the thoughtful comments, Bill.
Happy Saturday! I hope you have a great weekend!
☮
maybe for not too much longer. I’ve got an investment account (cash + SLV) @ JPM, my regular electronic pay-ins go to a local credit union…..and I’ve got a half-paid off mortgage + a small cash in/cash out account @ Wells Fargo – which I use for meal money and the like, and about which I have since heard some angry rumblings. So this is what happened as long ago as last monday (3/6), a couple days before SVB blew up: first thing I notice is all the computers are down, so they are doing everything the the old-fashioned way: pencil and paper. Good news is I got my weekly $100; thanks, WF. Also, here’s a cool write up on SVB:
http://zerohedge.com/news/2023-03-10/lulz-svb-website
silver eagles. They can’t fly,
but they sure can roll.
“I bank at two credit unions, which are owned by the depositors such as myself. They are solvent.”
A blanket statement that credit unions are solvent is misinformation. Yes, credit unions are owned by depositors (members) but in many respects they are similar to banks. They take in as much short term low cost deposits as they can and generate their income with longer term loans at rates at least twice as high as their cost of deposits.
Like banks, credit unions have their industry deposit insurance company subject to the same economic risk as the FDIC. In fact, the National Credit Union Insurance Fund (NCUSIF) went belly up several decades ago and required a Federal government bail out of some type. I believe that was doing the Jimmy Carter years when interest rates went up very, very quickly and like SVB, credit union investment portfolios declined in value.
I’m not taking a position on which type of financial institutions are safer, just stating that there are more similarities than differences.
“You want punishment for an opinion? See the first amendment.”
A tactic: via misrepresentation evade the point.
I of course never said I wanted someone to be punished for an opinion. I said there is no punishment for the habitual use of the prophetic mode. Perhaps you cannot grasp the difference or perhaps you’re disputing in bad faith.
In any case I’m a true believer in the 1st amendment. It’s enshrinement in the constitution is the greatest political achievement of the USA.
But I’ll go further. The 1st amendment refers to govt limits of free speech, but I’m all for no limits for free speech anywhere including the corporate space. So I certainly would never promote squelching the speech of those addicted to the prophetic mode. As I stated clearly, my advice is to not waste one’s time reading opinions of those who peddle prophecies.
It’s a rather banal fact: in general there is no downside for the poltical pundit class amateur or professional to play the prophetic mode game. And the rubes apparently love the prophetic mode. A good midwit match one could say.
looks like about 1/3 of the top 12 are kosher. Actually, a few less than I expected.
Fear mongering.
The jews that run the financial system know all too well that they will be blamed for
a collapse.
So….no matter what, no matter how much money they have to print, they will keep the system going…..even if the currency gets inflated into toilet paper (which is entirely possible)
And once they install digital currency it won’t matter because they will simply crush all dissent.
You can come from India with dollars to China and use it by converting locally .But you cant try same with millions of dollars .Neither a country A can go to country B and use its surplus dollars in millions or hundreds of thousands of units to conduct business without bypassing US . Those dollars will have to be cleared through NY Bank Actually unless you are bartering or swapping currency ( Ruble to Dinar or Ringit ) ,no nation can trade internationally without getting the finances cleared at NY Bank . Because 90% of the times those business are conducted in dollars.
Capitalism croaked decades ago.
What we got now is CENTRAL BANKER SHYSTERISM.
The Federal Reserve Bank’s balance sheet must be whittled down immediately in an extreme form of quantitative tightening. The Fed’s balance sheet should be imploded to less than a trillion dollars. Do it in a month. Fire sale the Fed’s balance sheet now!
The federal funds rate should be raised two more times in 2023. The first increase should get the federal funds rate to 6 percent. The second increase should take the federal funds rate to 10 percent. The asset bubbles in stocks, bonds and real estate will implode in a few hours or days, maybe a week.
Young people should refuse to pay the unpayable government debt. Corporate debt will soon go belly up too. Private debt must be repudiated as much as possible.
DEBT REPUDIATION NOW!
DEBT JUBILEE FOR YOU AND ME!
IF YOU BENEFIT FROM THE DEBT, TOUGH COOKIES!
George Washington got pissed off about his scumbag money man factor in London profiting off Washington’s debt servicing. Andrew Jackson famously told the bankers and the East Coast wankers in Boston, New York and Philadelphia to go phuck off. Debt and demography will be the two things that combine to topple ruling classes in many nations.
The political energy will flow to the political leader who financially liquidates the money-grubbing scum born before 1965. Most intelligent people understand that it has been debt conjured up out of thin air by the CENTRAL BANKER SHYSTERS that has been used to buy off the greedy scum born before 1965. Young people will be energized and rejuvenated once they begin to pull the plug on the greedy money-grubbers born before 1965.
ZERO INTEREST RATE POLICY and the bailout of American International Group so they could bailout Goldman Sachs is proof that the globalized financial scam must be obliterated by mass debt repudiation.
Silicon Gulch
Silicon Prairie
Silicon Hill
Silicon Valley (Bank)
You better wake up
It’s late
It’s late
It’s late
I’ve never been to Hewitt, Texas; I hear it’s pleasant, if a bit too hot for some. Hell is hot, and that’s where the central banker shysters go when they croak.
Puzzling Evidence from the movie TRUE STORIES by David Byrne:
I agree with your assessment. The other reason for hiking rates is to give the banks a profit. They are holding gov’t paper with little to no yield.
Inflation is always and everywhere a monetary phenomenon.
Milton Friedman
Most people don’t realize that interest rate manipulations can’t fix inflation. The only thing that can is removing currency from the economy. Interest rate increases can slow demand for goods and services and in that respect have a minor impact on the velocity of money and a short term decrease in the rate if inflation, but interest rates alone can’t fix the underlying problem of the Fed going from $4,600 Billion of M2 in 2000 to $21,260 Billion today. Increasing the currency supply by almost 5X in 22 years can’t be rolled back by a few percentage points.
“Decoy” –
Let me put it this way: I am NOT going to be a part of any financial institution that launders millions (billions) of dollars of drug money or pays their “owners” exorbitant salaries and “perks.” Or engages in the derivatives racket and is basically in business to screw people out of their own money.
As William K. Black, Ph.D., wrote in his book – “The Best Way to Rob a Bank is to Own One” – they
are criminal enterprises. But their crimes are “legal.”
Thank you.
You don’t know anything. Just another pm windbag. Silver is crap and not money, gold is an asset traded for money, not money. The only thing that is TRUE money is labour. It’s quite apparent that in all of history, the most common form of money was labour and the iou being immaterial credit…not gold, not silver, not cows. Why do you think slavery was always popular? Free labour, free money. The dollar system works today because it’s easy and it just works and everybody has subconsciously agreed that they want it for the labour they commit. There’s no point in having a further debate if you spout the non-sense about gold and silver. Fun fact, most of the coin in circulation in medieval Europe was COPPER, just in the cities. In the country it was all credit. This is indisputable. Source: Peter spurford.
Silicon Valley Bank Has Gone Belly Up And The Devotees Of So-Called “Diversity” Are All Distraught
The electronically conjured up cash has turned to electronic ash at Silicon Valley Bank, and the plutocrat scum and the so-called “diversity” people are going bananas.
DIVERSITY MEANS LESS WHITES OR NO WHITES
Anyone remember that evil rat Baby Boomer scumbag US Army General Casey who thought so-called “diversity” was more important than the dead soldiers killed by that US Army foreigner skunk at Fort Hood?
General Casey, the Leprechaun asshole who started crying about so-called “diversity” before the smoke had cleared from the weapon used by one of his s0-called “diversity” pets to kill a dozen or more and wound many others at Fort Hood in Texas, and before the bodies were even cold, is a prime example of the kind of disgusting human filth that worships s0-called “diversity” like a new religion.
It is unfortunate that sleazebags such as that General George Casey guy who played the crybaby game about “diversity” possibly becoming a casualty of the Fort Hood Islamic Terror Attack are allowed to retire with full pensions. I’d like to send that General Casey scumbag into exile in the middle of Africa. Let that Casey dirtbag enjoy some real “diversity.”
Silicon Valley Bank Goes Belly Up And They Scream About So-Called “Diversity”
Pm isn’t money. Hardly anybody used gold and silver coins to transact in purchases back then. Stop spreading YouTube disinfo that’s easily debunked. Gold and silver were only ever used as money (in the minority) because people agreed back then on how pretty it looked and how it was a more efficient international and interregional trade currency than cow hides or bags of salt. Nowdays we have the dollar system backed up by the US army and nuclear weapons.
SILICON VALLEY BANK GOES BELLY UP?
NO PHUCKING BAILOUTS!
DAMMIT!
Don’t hold your breath, the vast majority of Americans are vaxxed and will die young.
But hey, she’s a colored lesbo.
I do agree that gold is a barbarous relic and it must have been quite a primitive mind set that raised this shiny piece of metal (for mostly cosmetic reasons) to the ranks of being something that could be traded as a store of wealth or in transaction. Granted it has more value today in a contemporary understanding due to gold/silver being valued for industrial purposes so that might be one reason to have it as a backing for monetary purposes but I still don’t agree that it should function for this purpose.
I would say the monetary unit should be backed by the full faith and credit of the government but what do you do when said government has become corrupt. printing money and malinvesting is not part of the agreement,. All the law functioning requirements have been torn down by acts such as glassteagal, dodd frank etc. and essentially the illegal has been made legal.
Would you say that the Eurodollar shortage is backed by the Petrodollar and the reason why Eurodollars are in short supply lately is due to the lack of arbitrage which is due to disruptions post-pandemic as well as mismanagement of and failing supply chains. Also most nations have had enough of the US sponsored sanctions and coupes so they are coming together such as what we are seeing currently with the BRICS where they plan to trade their own currencies amongst themselves for oil and other essential commodities?
Bartering with PM’s for essentials is just stupid in my opinion its much more convenient to go down to the store and get what you need so people who shout about PM’s I have no use for and they are just as primitive as those original ancient ones who saw gold as nice shiny stuff to decorate their bodies with. But if the government doesn’t care about about impoverishing the masses by what it is currently doing which can only described as “evil” ? then who knows, maybe gold and silver will be forced back on us all at some point, as much as that would be so many steps backwards
Do a bailin and forcibly take the money from all rich people who have enough to sustain themselves over 2 or 3 lifetimes. That might work?
They needn’t worry – Uncle Schlomo will be induced to write a check to cover it.
You forgot a third choice Bill. A world war. That will wipe your debt clean….if you win.
Don’t underestimate these crazies.
>The US will default on its debts a second time
The US is a sovereign nation with its own currency — it can create as much of that currency as deemed necessary; any ostensible barrier to that, e.g. the so-called ‘debt ceiling’, is a statutory contrivance that can be easily eliminated — so there will be no default — in fact, the notion of the US defaulting is nonsensical.
How many dollars exist and what one will buy, including its exchange rate versus other currencies, are different questions.
The phrase ‘full faith and credit’ nominally refers to the coercive taxing power of government — more cynically, it refers to the ability of the US, as a sovereign entity, to create its fiat currency at will.
Regarding any creditors of the federal government, it’s best to remember the adage that goes something like this: if I owe you one hundred dollars, I have a problem — if I owe you one hundred thousand dollars, you have a problem — so creditors of the federal government, caught up in its never-ending debt rollover Ponzi scheme, are the ones who have a problem, because the federal government could, theoretically, create enough dollars to pay off all of its creditors, but as a medium of exchange those dollars would now be worth far less.
You can pay anywhere with US gold coins. The one oz one is worth $5o – it says right on there
Well shit! Why didn’t she say so?
Where do we put our money that is in bank savings account? I certainly don’t think Bitcoin is worth the risk at this point – never know when that’s crashing. Gold/silver are nice but they don’t pay the rent – because you have to cash them in.
So, what to do? Where are all the smarty pants around here when you need them?
How do the rich leave with their money?
You’re splitting hairs, but in the absolute you are correct.
Default, to some extent, is in the eye of the beholder. If the gov’t pays off their debts with near worthless currency, technically they haven’t defaulted, but to any unbiased observer their actions would be the equivalent of a default and the reaction would be as though an actual default happened. No one would lend the US another dime.
That the Fed can print to hyperinflation is, of course, possible and probable since the amount of debt is beyond honest repayment. Actual default is always an available choice and would erase the debt while possibly not creating internal hyperinflation. Given the US’s penchant for throwing its military weight around, it may decide to stiff foreigners and necessarily scale back international operations. Although doubtful, it is an option.
Don’t worry about it; you’re happy with where your money is now; keep your money where it is.
DO NOT THINK about GOLD – that dirty, shiny, heavy, ugly, useless stuff.
DO NOT.
“”””DEBT REPUDIATION NOW. DEBT JUBILEE FOR YOU AND ME!”””
———————————————————————-
Hell with that. I have never bought anything on credit in my life. Everyone should live that way. Your debt problems are YOUR fault.
Diversity is our greatest strength!!! After her meetings on equity, inclusion, queerness, protected minorities, evilness of White imperialism, and trans rights… she was asked by a reporter what internal & external factors might be a danger to Silicon Valley Bank’s day to day operations, her response was “Like literally O-M-G, the B in SVB stands for bank?! That’s like so cool OMG. Um, like bank robbers, are a threat I think? Oh, and definitely not having enough diversity in our workplace!”
“”””Where do we put our money that is in bank savings account? I certainly don’t think Bitcoin is worth the risk at this point – never know when that’s crashing. Gold/silver are nice but they don’t pay the rent – because you have to cash them in.””””
————————————————————————————————-
Under a gold standard we would still have the coins and bills like we have now but they would be convertible into gold and at a FIXED rate. That last point is important. You can today exchange your money for gold but the rate of exchange varies day to day.
Bitcoin already crashed about month ago.
Buy stocks in utilities or buy real estate.
If I need to buy something first I check the dollar store. But they should be called now four dollar store. Dollar now looses its purchase power so rapidly that is unbelievable. But it does not mean that the dollar will loose position of world currency. People these days know basic arithmetic’s.
Totally qualified, I’m sure…..
When the dollar ceases to be a reserve currency, the US will default on its debts…
FDIC – Fictitious Deposit Insurance Corp; many will soon discover…
Would you consider a trade I have an Antimony mine, a bridge, and a pop tart farm?
Well The JEWS do it AGAIN….just like 1930s,,,Confiscate all savings/checkings/pensions/foreclosures/gold…etc. and the jews will walked away with all the money..
Not sure what planet you live on but gold is certainly legal tender in the state where I live. I can buy anything from livestock to toothpaste .
That’s a fantastic site and somewhere on there is a great explanation of why our banking system is the way it is. I’ll try to find it. It essentially speaks to the notion that those that serve mammon are the rulers over the money in this world. It was very interesting.
As to judgment, judgment is somewhat of a self-fulfilling prophecy. When we forsake God/Christ, particularly for money/mammon, we create our own woes. That’s essentially what happened.
What’s mind-boggling to me is how so many people claiming to be Christian, blather on about how those that “bless Israel will be blessed,” but that there’s been no bigger “blesser” of Israel than the US over the past 60+ years. Do they believe that our nation has actually been blessed during that time period?
And if not, they never question why not.
No article or even discussion of banking etc. is complete without the mention that the Federal Reserve, along with its many counterparts underneath the umbrella of the BIS (Bank of International Settlements) are all privately owned corporations that serve their owners first and foremost.
In light of that, this should be absolutely no surprise what’s going on today and what happened in 2008. They were acting in the Central Banking Syndicate’s interests to the exclusion of anyone else’s.
The entire goal here is to usher everyone into digital currency where audits won’t matter, where true economic principles go out the window.
Once that happens, what people have will be taken, and “credits”/currency assigned with limitations placed upon how one can use it. Fear will keep everyone in place and they won’t care if you don’t want to live, it’ll merely get rid of a “useless eater.”
People cannot see what’s coming, it’s mindboggling. It’s not complex.
I have to agree, and a whole lot of people are going to learn the hard way, unfortunately.
Some communities in New Hampshire just exchange Gold amongst themselves for goods and services.
How cool would that be. Fuck the Banks and their Fractional Lending.
Imagine a community of 500 people who all shared their resources. John needs five acres cleared. Pamela needs a house.
Tom has a chainsaw and Tim is a carpenter. Hmmmmm…..We clear John’s land, mill the trees into lumber and build Pam’s cabin.
In exchange Pam raises chickens and hogs and supplies Tom and Tim food for a set time.
The barter system. No money needed. Just a handshake.
Banks only thrive because all of America is glutenous gelatinous fat fucks trying to fill some void with food and useless shit from china.
Imagine if we all just stopped buying useless shit. Imagine if we all started canning our own food, raising chickens and hydroponic gardens sucking nutrients from a closed-loop tilapia pond.
The 15 minute cites and digital currency, Credit Scores, Social Media Scores and cars with RF kill switches is just fucking Slow Motion, Soul Sucking Death.
The entire banking system is a dishonest house of cards, run by the usual suspects! Strike at the root of corruption! See http://www.LetJusticePrevailThoughTheHeavensFall.com and scroll down for a proposed Constitutional Amendment wresting control of our fraudulent monetary system from the craven hands of Ashkhenazim financiers!…..or continue to live as glorified serfs (at least for now!) in an ever-more impoverished neofeudalism. These SOBs want us dead or in their lie!
Thanks for that link.
http://zerohedge.com/news/2023-03-10/lulz-svb-website
Supposedly we’re going to be saved by black women with afros wearing glasses. But I’m not personally convinced – especially after seeing the SVB stock price chart at the end of the Zerohedge article. Compare it to the current S&P chart and it looks like time to head for the exits.
>You’re splitting hairs
Perhaps — but theoretically, it is possible for the US to create as many dollars as needed to pay off all existing obligations (making the USD a ‘near worthless currency’), while at the same time creating a ‘new dollar’, maybe a species of CBDC, and then offering to exchange old dollars for new dollars at some rate highly favorable to the government — it’s widely thought that ‘inflation is a debtors best friend’.
I haven’t read all of your comments on this, but from what I’ve seen we would probably largely agree about most of what’s going on — see my earlier comment here.
Personally, I hope all the BRIC and other interested nations are working behind the scenes to create a viable, widely accepted alternative to the USD — this would be the best way to bring down the malignant US empire.
The “bail-in” concept is interesting. As I understand it, a failed bank isn’t shut down in the normal way with its assets liquidated to pay off creditors (partially).
Rather, a depositor is informed that he can’t withdraw his money and that he is henceforth a part owner of the bank itself. IOW he has become an involuntary shareholder in a failing enterprise.
This isn’t inflationary. In fact it’s the opposite. Money is removed from circulation because you no longer have access to it. Your wealth (bank deposit) has evaporated (converted into worthless unsalable shares). It prolongs the life of the bank and maybe entitles you to receive a government mandated minimum cash payment each day sufficient to buy food.
If all banks switched to the same system then we’re back to feudalism. The peasants receive the minimum required for survival, and any “ownership” they have is blocked since it can’t be transferred (no functional bank account).
The aristocracy would of course have their own – by invitation only – elite bank. It would function normally for property transactions/ international business etc. in this “National Emergency”.
The end game here would NOT be hyperinflation. It would rather look like the old Soviet Union where the mass of the population lived at a minimum level while the Communist elite enjoyed their own private gated communities, well stocked stores, exclusive rights to travel, foreign currency etc.
Your missing the option of the US purposely wanting to default instead of being forced to default by circumstances, which, as you say, doesn’t actually apply to a State with its own currency factory.
With $31+ Trillion in debt, much of it to the rest of the world, the US could default on all foreign debt on purpose because there’s next to nothing they can do about it. I doubt the Chinese would invade since they can manufacture funny money too. This would reduce the debt remaining only to US citizens / resident, a much smaller number, that also have no option except to complain as they get paid back in FedCoin valued at 1:10000 Dollars. Pick any number of trailing zeros you like.
This avoids the currency failure in the short term as dollars are converted to FedCoin. Internal to the US, there’s nothing the peasants can do. As the link to your post explains, any debt owed to US tax cattle is of no real consequence.
I’ve recommended to student debt slaves that they default 100% on their debt if they ended up with a bullshitology degree from the humanities or social sciences that don’t lead to a reasonable job. Since all higher education costs have climbed through the roof in recent decades, none of that debt was reasonably priced. Yes, the students took it on, but they were coaxed into making the bad decision by social pressure. The institutions that handed out nonsense degrees in economics, gender studies, philosophy and other rubbish should be closed down for fraud and their assets used to reimburse students for the time they wasted.
Where to invest?
Well, first thing to do is invest in your continued existence.
First, pay off your debts. A creditor is an enemy held in abeyance. In a financial crisis, your payments to this enemy may not be possible, or may be simply used as a pretext for legal actions. You want no relations with creditors.
If you think you are not safe, or will not be safe, where you are, then move to some other place. Standard Army move: if ambushed, first move out of the kill zone. Makes sense for civil life, also. That’s how the Blacks take over neighborhoods (http://www.lagriffedulion.f2s.com/hood.htm) and subsequent Hispanic re-capture, so at least you’re not breaking with social norms.
The main problem would be assuring your income after the move. After all, severe trouble may not happen, as in the Y2K false alarm, or may be of short duration, as in 2008. If you can get an income in a safe place, move there. If you’re in a safe place, congratulations.
Once you arrive at a new place, buy a house, preferably avoiding a mortgage so that it can’t be repossessed. Get a local lawyer. Form a small corporation and deed the house to it, along with your car. That insulates you from some legal attacks. Ask your lawyer how that works.
Since the place will be in the countryside, outfit it to be habitable during long power-outages. Rural electric grids are deteriorating along with all the other capital stock.
If you have investment money after that, emulate the Mormons and stock up on staples, for use during bad weather if nothing else.
Put in an alarm system and some kind of physical barrier to home invasion, which happens rarely but happens sometimes. Develop a reaction plan for various physical challenges which you develop using Red Team methodology (see _Sheep No More_).
Once there, put some effort into integration into the community. Not easy, and remember that there are always several communities, so pick one that will tolerate you.
At that point, your physical safety is secured, and you might try financial investing. Avoid institutions that will try to track you. You might also try for some firearms training, so that you can at least carry a firearm safely. Also, try for a local license if such is necessary or beneficial. A wireless (satellite) Internet link would also be a good idea, preferably one with telephone service.
Variations on the above plan is put into practice by a surprisingly large number of people. It is the basic plan for “migration from Democratic to Republican (Blue to Red)” that the news occasionally mentions.
As for specific recommendations for investment — You might want to keep your powder dry (your assets intact) and buy, as Rothschild used to say, “when there is blood on the streets”. That’s been known to work out.
Thanks for the video. These two are very good.
There has to be some major fallout from what’s happening here.
Video Link
Defaulted on the greenbacks before that, and continentals before greenbacks.
I put my money where my mouth is, do you? If the shtf, I’ll have a tradable good, if not I’ll have a tradable good. You save however you want, I’ll save my way. BTW, I’m an Xr so my info comes from books not some yt video like your info. Not to say all yt videos are worthless but the best video can’t hold a candle to a decent book.
A huge portion (if not all) of the biological life on the planet is doomed. Very near term, a massive human die off is in motion. It is inescapable. Long term, there is no hope of the planet being able to support biological life, the planet is undergoing sterilization by the sun. Sterilization by anthropogenic sources of ionizing radiation. Sterilization by a multitude of human activities. KYAGB.
“Personally, I hope all the BRIC and other interested nations are working behind the scenes to create a viable, widely accepted alternative to the USD”
I’m certain that that is occurring and with more urgency as each month goes by. An alternative to the USD would be a big positive for non western world countries and even, in the long run, for citizens of the United States. It’s nothing short of a miracle that the United States, from 2009 through 2021 could go from $ 8 T to $ 30 T of debt while interest rates and inflation remained below historic levels. The “miracle” ended in 2022.
At the top level of government, China, Russia, and India are currently governed by men far smarter, more capable, and more pragmatic then our top level. I think those 3 countries need to hold together with the result being a multi polar world and and a long overdue reduction of US military action across the world.
Most people don’t know about this, but real estate note investing and private lending is very lucrative (and more secure than other types of investing). You can earn 12-18% annual returns easily, or more if you source your own deals. And they are all backed by real property. So if your loan to value (LTV) is low, you are quite secure. It is much better than speculating on stocks going up and down without your control.
Some banks are may be better than others.
Per Katherine Austin Fitts :
https://home.solari.com/how-to-find-a-local-bank/
Pay down debt and make sure you have enough money on hand to last a few months .
The FDIC insures some accounts up to $250,000 per depositor, per institution and per ownership category.
Accounts covered include: Checking, Savings, Money Market Accounts, Certificates of Deposit.
https://www.nerdwallet.com/article/banking/fdic-insurance
U.S. Treasury bills, bonds and notes also aren’t covered by FDIC insurance, but they are backed by the full faith and credit of the federal government.
You can buy U.S. Treasury bills directly and hold them to avoid counter party risk.
https://www.treasurydirect.gov/marketable-securities/treasury-bills/
There is also a service that banks offer their gilt customers where they shove all your money into Money Markets.
I’m sure most of us here laugh when we hear the MSM repeat that we are 30 Trillion in debt, but if you look at the total world dollar investment , the loss from all of the dollars in the world, would be closer to a scam covering a Quad Trillion. Now, if that ever got out in the MSM – things might get more interesting. lol.
According to the following guest, total debt is $300 Trillion with $2 quadrillion in derivatives (2×10^15). US corporate debt is at 24 Trillion. Fed Gov unfunded liabilities are in the order of $100 Trillion.
Somehow people expect this system to continue and most have taken no action to even attempt to protect themselves in any meaningful way.
The stupidity of many of the US populace is staggering. Tomorrow may be very interesting, if not tomorrow soon.
No one has had the time to measure market sentiment, so I’m expecting the announcement of a banking holiday. If they let the banks open Monday as usual, TPTsB may face bank runs from Joe & Jane Sixpack along with business accounts that can’t take a chance of having their payroll disrupted. If they do announce a holiday, that will signal that banking SHTF time has arrives and the exact same scenario will play out. Either way, tomorrow is likely to start an avalanche.
From the controller’s perspective, the holiday buys time to attempt a propaganda effort, so I think the holiday or some form of braking action will be implemented tomorrow. Further, I expect a quiet backroom deal to secretly inject a measly few trillion into the banking system by guaranteeing that banking bond holders won’t get hurt by the rise in interest rates. It’s their gov’t paper that they bought at near 0% that has declined in mark to market value, so selling those super duper gov’t bonds can only be done at a huge loss in case any bank needs to do so for liquidity. Any promises for no more banking bail-outs is just bullshit.
>all the BRIC and other interested nations are working behind the scenes
Just like the “Out of Africa” talking apes theory, they tell us the universe was created by a theoretical Big Bang, which could also have been a theoretical supermassive black hole supernova that appear throughout the universe. Mother galaxies impregnated with creation juice and giving birth to stars systems that come and go for eternity.
The cosmos is as ancient as it is mysterious, always evolving, creating new life forms and elements from which new life and elements are created for all eternity.
We humans are but one of many life forms that have gone extinct throughout our ancient past.
Maybe a few bankers will lose their jobs, maybe not.
But will it be good for gold?
A sneaky bail-out ($25B) has already been established. Lots of moving parts so plausible deniability can be used as cover for not calling it a bail-out. Another bank went bust a few hours ago and the bail-out is supposed to cover that as well. Fat chance! This is going to multiply with more banks and the non bail-out bail-out figure is going to grow by adding trailing zeroes.
As far as gold goes, central banks are buying gold hand over fist. That means they will suppress the market to get a better deal. It’s going to be a wild ride for a while. Silver is being ignored but the little people are going to start buying once they realize the SHTF. There’s little physical left but they can manufacture paper silver all day long. I hope people are smart enough to get allocated or physical possession. Soon both physical gold and silver will become unobtainium.
>There has to be some major fallout from what’s happening here.
Maybe.
But when COVID hit and lockdowns began, financial markets initially reacted negatively — but that didn’t last long; no more than a few days, really — then, during a time when we were being told COVID was going to ‘devastate’ the world economy, financial markets around the world soared to new highs.
Few people seem to appreciate how the willingness to intervene using basically unlimited numbers of fiat dollars has fundamentally altered the financial landscape — online trading, which allows money to be immediately ‘invested’ somewhere else, also has an impact (‘gig investing’).
As long as the world seems able and willing to absorb these dollars, to accept this kind of corruption, nothing will change — they can and will do the same thing again and again.
>cover for not calling it a bail-out
It’s all bullshit, something for the rubes — just like saying ‘taxpayers will bear no losses associated with the resolution of Silicon Valley Bank’ (link) — they’ll say whatever they think the retards want to hear — yeah, ‘taxpayers will suffer no losses’ while we create unlimited numbers of fiat dollars and impoverish you by making everything much more expensive.
>Your missing the option of the US purposely wanting to default
I didn’t explicitly exclude anything.
>they’ll say whatever they think the retards want to hear
link
>making everything much more expensive
At the risk of sounding argumentative, I do not subscribe to any of your statements. In my opinion, the biggest danger to humankind is nuclear war. I do not know the ramifications of the “covid” vaccines; that remains to be seen.
Mankind’s biggest enemy is not “nature” or “climate change.” It is HIMSELF, with his insatiable greed and lack of empathy for his fellow beings. I do not “buy into” this climate change crap whatsoever. Many years ago, there was some weekly news magazine that had on its cover a depiction of the earth, half covered in ICE. The caption that accompanied the image stated “Ice age coming!” Well, it was “global cooling then; now it is global warming.
Also, in my opinion, this entire “climate change” nonsense is just one of the latest efforts to control, tax and enslave mankind. Nothing more.
Thank you.