Economic Collapse Inbound
Banking centralization and transference of wealth...
Over the past two weeks we have begun to witness the incoming systematic collapse of our economy. On March 10th we saw the collapse of Silicon Vally Bank. And just two days later on March 12th, Signature Bank met the same fate.
On the Board of Directors at Signature Bank is a man named Barney Frank. He joined the board in 2015, and the interesting thing about Barney is that during the 2008 financial crisis, him, along with Christopher Dodd, created what is known as the Dodd-Frank Act. This act was then rolled back in 2018 with the Economic Growth, Regulatory Relief, and Consumer Protection Act. But there is a reason why this happened.
On March 12th, Treasury Secretary Janet Yellen told everyone that they were not going to use treasury money or taxpayer dollars to bail out these banks, but they were going to use the FDIC.
“On Friday, March 10, 2023, Silicon Valley Bank, Santa Clara, CA was closed by the California Department of Financial Protection & Innovation which appointed the Federal Deposit Insurance Corporation (FDIC) as Receiver. No advance notice is given to the public when a financial institution is closed. To protect depositors, on Monday, March 13, 2023, the FDIC transferred all the deposits, both insured and uninsured, of Silicon Valley Bank to Silicon Valley Bridge Bank, N.A. a full-service 'bridge bank' that will be operated by the FDIC as it markets the institution to potential bidders.”
Failed Bank Information for Silicon Valley Bank
“On March 12, 2023, Signature Bank, New York, NY, was closed by the New York State Department of Financial Services and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed. To protect depositors, the FDIC transferred all the deposits and substantially all of the assets of Signature Bank to Signature Bridge Bank, National Association (N.A), a full-service bank that will be operated by the FDIC.”
Failed Bank Information for Signature Bank
Firstly, who does business at big banks like these? Is it average people with a few thousand or a few hundred dollars in their bank accounts? No. They do business with people who are millionaires and billionaires, as well as the businesses of those people that are multimillion dollar businesses. Interestingly enough, Gavin Newson also held accounts at SVB for his businesses.
“Three of Gavin Newsom’s private wineries had been clients of the Silicon Valley Bank. Ken Klippenstein of the Intercept uncovered that Newsom’s involvement with SVB extended beyond his wineries after the bank’s crash.”
When Silicon Valley Bank collapsed, they told everyone that it was because there were too many deposits coming in. But they said that there would be no taxpayer bailout, that the FDIC was going to bail out every single depositor. In the history of banks, there has only been one bank that has not been bailed out by the FDIC. Typically, when these banks get bailed out, they have around $3-4 billion. The FDIC will ensure you up to $250,000 per depositor. And they will allow up to a total of $3.5 billion. So, the entire fund that they hold for the FDIC, the insurance that they hold, is $3.5 billion. But now, $128 billion is going to Silicon Valley Bank. This is far beyond the limit of insurance.
“The demise of Silicon Valley Bank is the second-largest bank collapse in the history of the United States. The bank’s collapse on Friday has sparked concerns among customers who risk losing deposits worth tens of billions of dollars. The failure of the bank is only surpassed by the collapse of Washington Mutual in 2008.”
2nd Biggest Bank Failure in U.S. History: “On the Verge of a Much Bigger Collapse Than 2008”
What you are going to see over the coming months, is the shots fired to bring down the US economy. Think of it this way, banks had to restructure their debt in 2020. They pulled out of long-term bonds and moved into short-term bonds. And because of the rising interest rate, those bonds go negative, and those banks are no longer making money.
They said that Silicon Valley Bank had put too much money into bonds. But the other side of this is that those depositors who are incredibly wealthy, they have no need for loans. So, there is no income deriving from that source. This was basically a shot across the bow. I think that this could have been a dry run. That Thursday, a lot of people didn’t get paid. A lot of people had their direct deposits held. Some of it had to do with payment processors using SVB. And some of it was due to smaller banks like Chase and Wells Fargo pulling the same move that they did during covid in 2020, where they held all of the direct deposits because they were fearful of a run on the banks.
Here is something else to note about Silicon Valley Bank:
“Silicon Valley Bank’s collapse has posed an issue for Chinese funds and tech start-ups using the bank as a funding bridge for groups operating between China and the United States.
According to the Financial Times, SVB’s sudden takeover by the US banking regulators on Friday left executives in China with little time to get their money back, with many now saying that their funds are tied up.”
SVB was especially popular among joint US-Chinese biotech groups
On March 13th, Federal Reserve Chair Jerome Powell also made a statement saying that they are going to conduct a review of Silicon Valley Bank, led by Vice Chair Michael Barr, and that we can expect to see that by May 1st.
Fed Vice Chair Barr to Lead Review of SVB Regulation
So, what else have we been seeing with Silicon Valley Bank? It is pretty easy to see that what they are trying to do is create a cover up to stop people from looking into SVB. But, if you were paying attention, one of the things that was discovered was that the Silicon Valley Bank CEO was selling shares before the collapse. And this tells you all you need to know.
We are also seeing another push towards censorship. Many people have moved to get their cash out of their accounts. And because of this they are trying to blame social media for this run on the banks.
“In the day leading up to the bank’s collapse, multiple prominent venture capitalists took to Twitter in particular, and used their large platforms to raise alarms about the situation, sometimes typing in all caps. Some investors urged startups to rethink where they kept their cash. Founders and CEOs then shared tweets about the concerning situation at the bank in private Slack channels, according to The Wall Street Journal.”
SVB collapse was driven by ‘the first Twitter-fueled bank run
Democratic Senator Mark Kelly has also shared his censorship views during a zoom meeting with the Federal Reserve, the FDIC, and the Treasury Department.
“Sen. Mark Kelly, D-Ariz., asked during a meeting about the bailout of Silicon Valley Bank whether social media could be censored to prevent misinformation going out that could lead to a bank run, according to reports.”
The information got out there quickly. People were running on the bank that following Monday after the collapse. And many made it to their banks on the previous Friday. Why did this happen? Because we can move information fast. We are the media, and we control the media. And because of this, they are trying to blame it on platforms like Twitter. Senator Mark Kelly clearly does not like this with his shouts for social media censorship. But I would not be surprised if we learned that he also holds his money at SVB.
Now we are also seeing another billionaire bank, Credit Suisse, on the verge of collapse. And this is interesting because we have known about Credit Suisse for some time now. This has been a topic of discussion for several months at this point. And with the rising interest rates, this is going to get worse for them.
“Credit Suisse shares fell five percent to an all-time low in early trading and in Europe on Tuesday after the bank confirmed material weaknesses and an $8 billion loss in 2022, just hours after a financial expert claimed it would be the next institution to fall following SVB.”
Credit Suisse shares fall to all-time low as bank announces it has found 'material weakness'
Credit Suisse is on the verge of default. They are obviously on the brink of collapse. They have bad assets, and they are underwater with their assets.
“It is looking increasingly likely that Swiss banking giant Credit Suisse will be the next big bank to fall, in which case the European economy will fall off a cliff, according to Bloomberg Markets Live reporter and strategist Ven Ram.”
If Credit Suisse implodes, it will be far worse than the SVB collapse
We are also seeing the push for censorship coming from the Credit Suisse chairman, Axel Lehmann.
“The chairman of the global investment bank Credit Suisse claimed that a “social media storm” was partially responsible for the company's recent woes that culminated in it being taken over by the multinational investment bank UBS at a heavy discount.”
Credit Suisse chairman alleges a “social media storm” was one of the reasons for its collapse
There have been many top hedge fund managers and economists speaking out, saying that everything taking place is incredibly distressing. Many of them are saying that we only have a matter of months before things get much worse and we see the full collapse happen. Carl Icahn, a financier, shareholder, and Wall Street investor made a statement on March 15th, saying that we are about to see the breakdown of the financial system.
“Billionaire investor Carl Icahn said the U.S. economic system is “breaking down” and has “a major problem” during a recent TV interview amid the fallout from the collapse of Silicon Valley Bank.”
Video: Billionaire Carl Icahn says US system ‘breaking down’
The economy is breaking down. And this is coming from a man who knows. Larry Fink has also made a statement recently. Fink is the Chief Executive Officer of Blackrock. He is also a Board Member of the World Economic Forum. Understand though, that these people like Fink are in endgame, and they do not care about collateral damage.
“The chief executive of the world’s biggest money manager has warned that more banks could collapse, as Swiss regulators were last night forced to reassure investors that Credit Suisse was not at risk.
Larry Fink, the chief executive of Blackrock, said the recent failure of Silicon Vally Bank, Silvergate and Signature Bank in the US could be the start of a “slow, rolling” crisis that may see others fail.”
More banks could go under, warns Larry Fink
Bill Ackman, founder and CEO of Pershing Square Capital Management also had some things to say about the collapse.
“Hedge-fund manager and billionaire Bill Ackman predicted that an economic meltdown is on its way Monday after Friday’s collapse of Silicon Vally Bank. The billionaire predicted that uninsured bank customers would rush to withdraw as much cash as possible on Monday morning when they can.”
Billionaire Warns Of Economic Meltdown After Bank’s Collapse
“Goldman Sachs (GS) continues to lead the charge in sounding the economic alarm bells as a fresh banking crisis rolls through markets and the economy.
The investment bank’s chief economist, Jan Hatzius, said Thursday he now sees a 35% chance of a U.S. recession in the next 12-months, up from 25% previously. The increase in odds reflects “increased near-term uncertainty” around the economic effects of small bank stress.”
Goldman Sachs Slashes Its US GDP Forecast – Boosts US Recession Odds
So, this is pending on GDP forecast results. International GDP forecast was set to come out this month, March 23rd and the week after. But preliminary GDP for the US will not come out until May 25th. If you go back to what some of the economists were saying, people like Larry McDonald and Steve Forbes, they have been telling us that we have about 2 months before the financial system crumbles. And the GDP numbers are a big factor in predicting this.
On March 16th, Yellen told us that they bailed out two of the wealthiest banks in the world, banks who own a lot of startup companies and a lot of venture capital firms, but that when it comes to the smaller banks, that bailout is not going to happen.
“Under questioning, however, Yellen admitted that not all depositors will be protected over the FDIC insurance limits of $250,000 per account as they did for customers of the two failed banks.”
Treasury Secretary Yellen says not all uninsured deposits will be protected in future bank failures
So, these smaller banks may not get bailed out by the FDIC, but it appears that many of them have made the decision to bail each other out. We saw an example of this recently with First Republic Bank.
“A group of major U.S. banks have reached an agreement to help First Republic Bank stave off collapse by making major deposits to keep them afloat amid industry turmoil.”
“A group of 11 banks, among them Goldman Sachs, Wells Fargo, Morgan Stanley, JP Morgan Chase, Citigroup, and Bank of America, will deposit a total of $30 billion, according to Bloomberg.”
Major banks to give $30 billion in bailout for First Republic Bank amid industry turmoil
This is interesting because you do not just give billions of dollars to another financial institution for nothing. It’s like the term of TANSTAAFL, there ain’t no such thing as a free lunch.
There Ain't No Such Thing as a Free Lunch: Meaning and Examples
And just like Silicon Valley Bank, we learned that First Republic Bank was also selling shares right before the collapse.
“Executives had been selling for months, the documents show. Executive Chairman James Herbert II has sold $4.5 million worth of shares since the start of the year. In all, insiders have sold $11.8 million worth of stock so far this year at prices averaging just below $130 a share. The bank’s chief credit officer, its president of private wealth management and chief executive together sold $7 million worth of stock.”
First Republic Bank executives sold $12 million in stock in months before crash
And speaking of selling, a deal has now been reached to sell off the assets of Signature Bank to another institution. And they are also working to do the same for SVB.
“The US banking regulator has struck a deal to sell most of the assets of the failed Signature Bank to another institution, the agency said on Sunday.
Signature Bank was seized by the Federal Deposit Insurance Corporation (FDIC) a week ago after it imploded in the wake of the collapse of Silicon Valley Bank (SVB) earlier in March, a failure that has sent convulsions through the global banking sector.
The FDIC is also seeking a similar deal to sell off parts of SVB, according to Bloomberg.”
US regulator sells failed Signature Bank assets to another lender
With SVB, they lost $128 billion. The people in the banks lost their money and their deposits were seized. The bank had to go good on their liabilities. That means someone received that money on the other end. This is a zero-sum game we are talking about. But who won the money that they lost? If you take the total of all the banks combined, they are upside down around $680 billion.
But to who? This is the question we have to ask. It is the same institutions at the top that are taking the negative position, hedging what they know is going to happen. And the loser is you and me, because we are not going to get an FDIC bailout. If you have a few thousand dollars or even a few hundred thousand dollars in the bank, you are not going to get an FDIC bailout. And when your bank goes belly up, that money gets transferred to the winner of that deal. And this will ultimately lead to a great depression.
Remember the Emergency Banking Act of 1933. Prior to this time frame you had legitimate legal money. You had money that you could take to the Federal Reserve Bank in exchange for gold. But in 1933 they decided that they were no longer going to allow this.
But what is happening now? They are going to do the same switcheroo, a transference of wealth. And then when it comes back up and the war machine starts racketing, all of your money will be on the blockchain on a centralized digital currency.
What you’re not seeing in the backdrop is that the BRICS nations are setting up for an economic collapse of western society. As more nations drop the dollar, and the circulation and trade of the dollar is no longer dominant, we very well could see all of these countries like Japan and China dumping their US debt back onto the market. In fact, it appears that China has already begun to do this.
“China has continued to slash its holdings of US treasury securities amid the growing threat of economic sanctions from Washington, according to data released by the US Treasury on Wednesday. The figures show that Beijing's holdings slid to $859.4 billion in January from $867.1 billion in December.
The decline in January was more than double the $3.1 billion cut the month before, though less than the $7.8 billion reduction in November.”
China dumping American debt – US Treasury data
And what would happen if these other banks like Chase or Wells Fargo began to collapse? People would do a run on the bank to get their money out. But if these countries were to do this, the dollar would become worthless. The purchasing power of the dollar decreases and it hyperinflates. Because now all of that money is coming back onto the market and there is no substantiation of that debt. That is economic collapse for the Unites States and the western nations, overnight. And this is exactly why you need to reallocate that money into assets like precious metals.
Federal Bank Chairman Powell has also made a statement saying that they are possibly going to inject 2 trillion dollars of liquidity into the markets so that this does not happen again. Because at the end of the day you are talking about a liquidity crisis. If banks are upside down and they have more liabilities than they do assets, then there is no cash to be loaned out.
So, why don’t they just print more money and give it to the banks so that they will have the money to loan out? The problem is the banks are upside down because of inflation and the rising rates. Printing more money is only going to exacerbate the situation. But also, providing that liquidity to the banks is only going to make money more expensive in the long run and cause this problem to escalate even further.
“The Federal Reserves’ Financial Services division on Wednesday announced the launch of a new instant payment system, FedNow, that will roll out in July.
The central bank says financial institutions can begin formal certification to participate in the new, speedy service starting in April.”
Fed announces July launch of new FedNow system for live transactions
Understand that this is totalitarian, and it will allow for the use of biometrics. But this is where it gets interesting, because you have to start really looking at numbers. So, the fed leant out 12 billion dollars. Then they say they might pump in 2 trillion dollars. But the problem is, we are in a recession. In this situation, you do not want economic activity. The interest rates need to be reduced. Inflation needs to be reduced. So, you have to reduce spending in the market in order to do this.
Now we are seeing the comeback of quantitative easing. What is quantitative easing?
“Quantitative easing (QE) is a form of monetary policy in which a central bank, like the U.S. Federal Reserve, purchases securities from the open market to reduce interest rates and increase the money supply.
Quantitative easing creates new bank reserves, providing banks with more liquidity and encouraging lending and investment. In the United States, the Federal Reserve implements QE policies.”
What Is Quantitative Easing (QE), and How Does It Work?
But who issues the government bonds? They do. Why did SVB go under? They bought 10-year treasury bills at nearly 0% interest on their return. They bought them a few years ago before the interest rates started to rise. But those interest rates on the T bills went up. As those bonds decrease in value, it is no longer an asset, and it becomes a liability. So, they made bad investments in government bonds. They started selling them off a few weeks ago, but nobody wanted to buy them. Then they collapsed and the FDIC came in to insure the depositors, and the federal government comes in to take over the bank. Two days later, the federal reserve comes in and adds $300 billion in assets to the fed balance sheet through QE, buying back the treasury bonds. This is a complete scam.
But here is the thing, Congress has the ability to authorize new money to be created through the department of treasury, bypassing the federal reserve. Of which, the treasury can then print the money and put it out into circulation. So why do we need the federal reserve?
We have a crisis economically. Inflation is incredibly high. And it is high because there is a lot of money in circulation. Typically, what happens when you have high inflation is you have credit cycles and debt cycles, and you go into a debt cycle, reaccumulating all the inflated currency that was put out during the credit cycle, and you have to bring it back in and eliminate it.
One of the ways to do this is by raising bank rates. They make it harder to borrow money. At the same time, the incentive is increased to put money into the banks or put it into bonds to get it out of circulation. When the Federal Reserve started raising interest rates, the banks were not raising the savings rate, which would have incentivized people to pull the money out of circulation.
Instead of spending the money it would have been put into the banks. They are also not pulling money out of circulation. When you try to reduce the rates without doing this, the rate is going to stay high because the inflation is high. So, they messed up, and they messed up on purpose. Because everything that we are seeing now is coordinated.
“The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing a coordinated action to enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements.”
Coordinated central bank action to enhance the provision of U.S. dollar liquidity
Bank of Canada joins Fed and other central banks in new liquidity measures to ease banking turmoil
What are they doing with this move? They are printing money and pumping it back into the market because there is no liquidity. They are trying to make it seem like they tried to fight the inflation and it just was not working. During covid, the Federal Reserve was printing $100 trillion of liquidity over a 180-day cycle. The banks are trying to avoid the fall into an economic depression, especially with an election year coming up. And their solution is the CBDCs. This incoming system is being sped up and is being pushed out as fast as possible. That transition is going to be made very soon and they are going to make it look like the savior.
“On November 15, 2022, the Federal Reserve of New York announced the commencement of a 12-week pilot proof-of-concept CBDC accounting platform test called Regulated Liability Network (RLN).”
New York Fed Begins 12-Week CBDC Settlement Pilot Test
Ultimately, there are two ways to go about this. You have a slow kill and a fast kill. The fast kill is continuing to increase rates and allowing the markets to decline over time, and eventually the market is going to collapse and we’re going to go into a depression. Businesses are going to fail, banks are going to fail, and there is nothing that we can do because that is how capitalism works.
The slow kill is to pump money back into the market. And if that happens, it is going to debase the value of the dollar. So, you are fighting inflation one point, as well as debasing the value by pumping in more money, and this produces a state of hyperinflation of our currency. Fighting the interest rates the way they have been has killed the economy. They just haven’t told you that. They are trying to give you the illusion that everything is going smoothly.
Put simply, this is the centralization of banking power and transfer of wealth from the American people to the institutions, along with the introduction to CBDC as the new system.
They want the big banks to gain more power by eliminating all of the smaller banks to pave the way for centralized digital currency. Alex Jones has been talking about this as well and he is spot on when he says this.
Those top banks already have the infrastructure in place. They are already in compliance with ISO 20022 and all of the measures set forth by the central banks to integrate CBDCs. Now, all the globalists have to do is centralize all the assets into these few banks. And once they have this done, they own the world. Now it is just a transference of wealth. They collapse the markets, the money transfers to the ultra-wealthy, the people all become poor and become dependent on these big banks, and digital currencies are introduced. This will be a totalitarian economic system.
We are going to see more truth leak out. We are going to see more things come to the surface. The firestorm event is coming. And I think we could be months away from a global economic collapse. And this collapse is going to happen a few weeks or a few months before a global war. Everyone is beginning to realize this now. And there is nothing we can do to stop it. But there are things that we can do to prepare and to fight back. And this is what I have always said. If you are able to, have at least 6 months to one years’ worth of cash on hand to be able to pay your bills. As well as building up your reserves with as many precious metals as possible. If you are able to get land, that would be another valuable asset to have. And of course, make sure you are prepared with all of your food, water, shelter, survival, and protection needs. The collapse is coming, but we will make it through.