top of page
Search
  • Jim Costa

Jim’s Daily Rant. Brilliant Move By The Deep State to”Save” the Smaller Banks.

Set “em up, Knock ‘Em Down. That appears to me what the Globalist Central Bankers did yesterday to all the smaller regional banks. Before we go further, let’s see what those banks do:

“Small/medium banks account for 50% of US commercial and industrial lending, 60% of residential real estate lending, 80% of commercial real estate lending, and 45% of consumer lending.” Source

Therefore, they account for about 75% of the financing of communities, fueling their economy.

In contrast, the biggest banks (to be saved till the end) just play with money, swapping money back and forth between countries and hedge funds. If theses banks go away then the economic system goes away with them.

World wide, Bank Settlement day is every Wednesday. That night the books are closed and submitted to each country's Central Bank. These Central banks require a certain amount of cash either in individual bank’s vaults or on loan (but not held in cash) the borrowing bank from another bank. That loan is an Overnight (Repo) loan that is closed on the books the next day. It is a demonstration that if the borrowing bank needed to be liquid they already had a lender on the hooks. If a bank cannot buy a Repo from any bank they are penalized heavily by the Central bank. If the pattern continues, that bank is closed.

Yesterday all Central Banks joined forces worldwide and changed Settlement Date from Wednesday to every working day. This generates more penalties for the Central banks and makes individual banks report on their solvency daily so is a bank is about to collapse it can be done quietly.

But what concerns me is all Central Banks are holding hands and acting together. Why?

I believe the Central Banks are insolvent themselves and can’ gobble up all the smaller banks very long. I also know that the FDIC is a corporation that guarantees deposits up to $250,000 per account and they too are insolvent.

Therefore, I believe the Central banks will quietly and out of sight gobble up smaller banks until they can’t do it anymore. They will then bankrupt all deposit insurance companies and at the same time do world-wide bail Ins, keeping the loot of all depositors.

Personally, I see this is a Hail Mary play and don't believe it will work.

Note: If I am right, this week will be quiet about bank runs and closings although they will be happening.

For those interested, below is the news report of what the Central Banks announced yesterday”


... and at exactly 5pm [Sunday] the Fed announced "coordinated central bank action to enhance the provision of U.S. dollar liquidity" by opening daily Dollar Swap lines with all major central banks, in a carbon copy repeat of the Fed's panicked post-covid crisis policy response playbook.

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.
To improve the swap lines' effectiveness in providing U.S. dollar funding, the central banks currently offering U.S. dollar operations have agreed to increase the frequency of 7-day maturity operations from weekly to daily. These daily operations will commence on Monday, March 20, 2023, and will continue at least through the end of April.
The network of swap lines among these central banks is a set of available standing facilities and serhttps://www.zerohedge.com/markets/fed-panics-announces-coordinated-daily-us-dollar-swap-lines-ease-banking-crisisve as an important liquidity backstop to ease strains in global funding markets, thereby helping to mitigate the effects of such strains on the supply of credit to households and businesses.

And once the USD swap lines are reopened, the rest of the cavalry follows: rate cuts, QE (the real stuff, not that Discount Window nonsense), etc, etc. In fact, we have already seen a near record surge in reserve injections.




114 views0 comments

Recent Posts

See All

From Jeff - Tit for Tat and THEN...

Those who have been following Jim Willie for a long time should remember him reporting some 10 years ago that the planning for a LIMITED WW3 was in the works.  Is the Scare Event unfolding? ~ The 17th

bottom of page