Ethan Huff — Natural News March 15, 2023
The failure of Silicon Valley Bank (SVB) is just the tip of the iceberg as more than $620 billion in losses across the entire banking sector looms as a financial ticking time bomb.
According to the Federal Deposit Insurance Corporation (FDIC), the banking sector is currently sitting on unrealized losses of well over half a trillion dollars that at some point will have to be realized – but when?
The answer right now is nobody knows, but one thing is for sure: the FDIC, the Federal Reserve, and the Treasury Department are doing everything in their power to plug all the leaks on this financial Titanic to avoid a contagion event – at least for now.
We are told that the reason for this predicament has to do with the loads of bonds and treasuries that banks bought up during times of low-interest rates. Those bonds and treasuries are now deeply underwater as Jerome Powell continues to hike interest rates in a failed attempt to quell skyrocketing inflation.
“This is because higher interest rates mean that new bonds accrue higher rates of returns for investors,” writes Ryan King for The Washington Examiner. “As a result, older bonds have comparatively lower rates of return, rendering them less desirable for investors and therefore triggering a plunge in the value of older assets.”
“A consequence of the $620 billion unrealized potential loss phenomenon is that banks may quickly find themselves with less cash on hand than their books might have suggested.”
If the Fed decides to start dropping interest rates once again in order to save the banks, then you can expect to pay $100 for a loaf of bread once hyperinflation inevitably kicks in. If the Fed keeps raising rates to save the dollar, then the corrupt banking system and all of its financial tentacles will collapse.
It is a conundrum without a solution, hence why a crash and collapse are inevitable. It is a matter of when, not if, this financial Armageddon takes shape in such a way that it is no longer deniable in everyday life.
(Related: The collapse of the American financial system is accelerating – watch as Andy Schectman explains.)
Will the average American still be able to afford food in 2024 – assuming food is still readily available?
We are already seeing the damage of all this financial Jerry-rigging in the form of $7 cartons of eggs – if you can even find eggs – and $5 gallons of gas – let’s go, Brandon! And by this time next year, prices will likely leap even higher.
All of this could have been avoided had American politicians from the past not bowed down to the private central bank known as the Federal Reserve, which in 1913 took over the country’s money supply and started lending its Federal Reserve fiat notes to the Treasury with interest.
This is known as usury, and because it is entirely debt-based, the final endgame is a financial disaster the likes of which this world has never seen – and will never again see, once all the dust settles.
“Biden knows that to get the CBDC into America (for the executive order he already signed in April 2022), the banking system has to crash to force the people to accept it,” wrote one commenter at Natural News about how this is all happening by design.
“The CDBC system isn’t ready yet. Might still be several months to a year out, but it’s coming. SVB caught them by surprise so Biden does what all the Bidens do: Lie, Lie and Lie.”
By this time next year, will America even be recognizable? The latest news can be found at Collapse.news.
Sources include:
Under the various Basel accords, banks are legally allowed to hide their bad debts.
What stuffs up their systems, is two things. Interest rates, and currency fluctuations. I forgot one other point, fiscal tightening, such as banks not being able to get the liquidity to grease their operations.
We’ve known the big banks have been bust for a very long time, way before 2007/8. But now, pundits are starting to think in terms of Central Banks not being able to survive, and Amerika stands out.
I watch a few US and Canadian YouTube channels, and they often make comments such as ‘This is a joke, $10 dollars for a small punnet of blueberries’!
Forget Weimar inflation rates. If we go from the current 20%, to 30/40%, 90% of sheeple will go under, and remember, your pension will be worth almost nothing.
As I go about in London, we still have rush hour, but it’s nowhere like it used to be. I recently drove into London on a Monday morning from Swindon. I have never seen such quiet roads. Not even 9/11 was this quiet.
So many sheeple are WFH, and driving less, commuting less. One can only guess the Nazi regime is rigging the tax receipts, and why the budget was such a raid on the thicko sheeple.
I am off to France tomorrow, and I plan to visit an excellent French supermarket, and film it on the sly. Might put it on YouTube.
Some say over 180 banks are at risk. Janet Yellen said some of the smaller banks won’t be bailed out and that has forced many customers to withdraw their deposits from provincial banks and put them in larger banks. The problem appears to be financial I think it’s the dollar that is failing. They weaponised it and it has backfired. Too many countries are dumping the dollar because of how the US wields it, and now trillions of those dollars in circulation around the world are heading back to America, all in the few short years after the Fed created dollars to excess. A lot of countries who could never attack the US militarily can attack it financially, and they are.
SVB took depositor money and bought US Treasury bonds, then sat on these bonds while their values fell as interest rates went up. Now even I, Yukon Jack, sitting in an easy chair, prognosticating the rise and fall and rise of interest rates KNEW that was a bad idea.
I ain’t got no accounting degree, and I ain’t got a PhD, and I ain’t got years of experience on the floor of the NYSE, and I ain’t got a six or seven figure job working as an investment banker to know that buying long term Treasuries at historical low rates was extremely risky.
Right here on The Truthseeker I told you again and again ad nauseum interest rates were going back up, I posted that infamous megaphone chart again and again, I said that interest rates were going to the moon as USA became the next banana republic.
Since 2016 I have been predicting that interest rates would bottom then skyrocket:
https://i.imgur.com/ZqXaWt2.png
I also said again and again, that the Federal Reserve had destabilized the financial system, because each time a recession hits, or the banks get in trouble, the Fed bails out the risk takers, and the Fed prints (QE). With each Fed bail, the risk takers take more risk. The waves get more volatile. The up down becomes a big UP then a big DOWN. The Fed created boom then bust is so well known, even Marc Faber’s website is Gloom Boom Doom. LOL.
https://www.gloomboomdoom.com/
So since everyone knows this, Wall Street has become a big casino, and Fed watching becomes a prime time sport:
https://www.investing.com/central-banks/fed-rate-monitor
https://www.bloomberg.com/news/articles/2023-02-08/big-bet-on-hawkish-fed-seeks-135-million-gain-on-6-policy-rate
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SVB had NO risk management in place when it failed:
https://www.unz.com/jderbyshire/as-a-former-credit-suisse-risk-management-shlub-i-ask-is-dei-bringing-down-the-banking-system/
“One variety of stuff banks particularly like to buy is bonds. The First Law of bond trading: When interest rates go up, bond prices go down, and vice versa.
The Risk Management team at SVB seem not to have known the First Law. Actual Silicon Valley tech companies, when they were swilling in money, gave scads of it to SVB for safe-keeping. SVB used that cash to buy heaps of long-maturity U.S. Treasury bonds with coupons pegged to the very low interest rates that prevailed until recently.
Then the Fed jacked up interest rates in hopes of pushing down inflation. The First Law kicked in. Those heaps of Treasuries were now worth way less than SVB paid for them.”
“So who was in charge of SVB’s Risk Management?
Until a few weeks ago the answer was: nobody. SVB didn’t actually have a head of Risk Management for the last eight months of 2022 ”
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Jews had no risk management at SVB.
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As Amerika fails, Treasury yields will become inadequate for the perceived risk, and yields will increase, as the full faith and credit don’t mean shit. Just look to your nearest banana republic to see how high yields can go.
Expect political instability, wars, revolutions, seccessions, breakups, realignments as the world churns as old Uncle Sam gets his final vaxx injection of Fed free money.
Amerika is rapidly becoming unstable. Trump’s arrest is just another shit show clown world distraction. And here are the only charts that really matter:
Fed did a huge M1 money printing: https://fred.stlouisfed.org/series/M1SL
Fed then jacked interest rates to stop inflation: https://fred.stlouisfed.org/series/fedfunds
https://fred.stlouisfed.org/series/WALCL
The Fed is now trapped by bail banks vs inflation control.
Those who own long bonds will eventually revolt and long rates will rise. I am also predicting that when mortgage rates exceed 8% the housing market will crash.