"Financial Assassins"
From bank runs to CBDCs and the
controlled demolition of American finance...
By Joel Bowman
Buenos Aires, Argentina - “Does the Fed’s bailout of Silicon Valley Bank bring us closer to a Central Bank Digital Currency?” It’s a subject we’ve covered before in these weekend pages... and one BPR macro analyst, Dan Denning, posed in last night’s research note to paying members. We’ll get to that, and what it might mean for your money, below. But first, a quick look at the markets...Let’s start with the bad news... and work our way back into the light.
Weekend Wrap: Concerns over systemic risk in the banking sector had traders on edge this week and sent stocks into the red in Friday’s session. The Dow Jones Industrial Average fell by more than 400 points during the day to finally end the session down 384 points, or 1.2%. The S&P 500 and the Nasdaq closed lower by 1.1% and 0.7% respectively.
For the week, the three major indices were mixed. The Dow finished slightly lower, -0.2%, while the S&P 500 ended higher by 1.4%. The Nasdaq, meanwhile, put in its strongest weekly performance since early January with a 4.4% rally. For the year, the big three are as follows: Dow -3.85%, S&P 500 +2.4% and Nasdaq +12%.
Meanwhile gold, that go-nowhere, do-nothing, barbarous relic, had a decidedly go-somewhere, do-something kind of week. The Midas Metal popped $60/oz in Friday’s trading alone to break through the psychological $2,000/oz threshold. It was last seen trading right around the $2,010/oz mark, up around $150/oz, or 8.9% for the year. Gold also took out fresh all time highs in Aussie dollars (AUD$2,965/oz) and pound sterling (£1,570/oz).
Impressive as that looks, it’s nothing compared to the runs posted over in the crypto world. Top dog, Bitcoin, stacked on a massive $4,600 this week. At BTC $26,800, it’s up a whopping 60% year to date. At least, it was last we looked. It could be anywhere by the time you read this. One recalls the great Friedrich Hayek’s prophetic words from an interview he gave at the University of Freiburg back in (wait for it...) 1984. “I don’t believe we shall ever have good money again before we take it out of the hands of government,” he told the interviewer. “But we can’t take it violently out of the hands of government. All we can do is by some sly, roundabout way introduce something they can’t stop.”
Of course, there’s a world of difference between a free market digital money – which lives and dies to the extent that it prioritizes and meets real world demands like privacy and security – and a government issued Fed Coin, which is little more than a tool of direct state oppression and control in the hands of financial assassins.
Yellen at Banks: Which brings us back to the question of what our mate up in Laramie has called the “controlled demolition” of the financial system... and the CBDC “solutions” proposed by Big Gov. Here’s Dan with some context..."Silicon Valley Bank and Signature Bank became the second and third-largest bank failures in American history in a matter of days. SVB had assets of $209 billion at the time. Signature Bank had assets of $118 billion. The largest bank failure in American history was Washington Mutual in 2008 at $307 billion (it would be around $386 billion in today’s money, adjusted for inflation)."
The bad news is that there is a lot more fake wealth to be destroyed. And you’ll only be protected if you’re part of the too-big-to-fail Washington/Wall Street/Silicon Valley class. Treasury Secretary Janet Yellen made that clear earlier this week when she testified in front of Congress that depositors in community banks would not be bailed out or ‘made whole’ with government guarantees because those banks are not ‘too big to fail.’
For reference, here’s Senator James Lankford from Oklahoma, pressing Ms. Yellen on why the Federal government is incentivizing large depositors to move their funds away from community banks and into the concentrated hands of “approved players.” "Sen. James Lankford Presses Janet Yellen on FDIC Special Exceptions Which Are Accelerating Big Bank Consolidation": "We have seen the mergers of banks over the past decade. I'm concerned you're about to accelerate that by encouraging anyone who has a large deposit in a community bank to say 'we're not going to make you whole but if you go to one of our preferred banks we will make you whole'"
Once you’re in the system, then comes the digital currency, the CBDC. And that, as we’ve written about before, is nothing more than permission based money that gives the Feds the power to control how and when you spend money or receive government benefits." This is the direction we’re heading... and all road signs indicate there’s danger ahead."
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