- Jim Costa
Jim’s Daily Rant. Falling Banks; We are at The Starting Gate Now. [Updated]
This week there Is very little information being delivered by the Main street News or the government. It is hushed up. In fact, it is hard to get much from the Alternative news as well, although some is getting out. So this morning I am going to give my opinion as of very early March 15th.
Assumptions And Facts:
1. The Feds required small and medium banks to hold Treasury Bonds on their books.
They inventoried very low interest yielding bonds from a few years back.
Now the Fed is raising interest rates to be paid to bond holders on new issued bonds,
to control inflation (we are told).
As higher rate bonds are issued, that causes a drop in valuation of low interest bearing bonds. This leaves banks under capitalized (by law?).
This information is now out that banks are under water and are in trouble. This is causing a Rich Run on banks, when biggies want to wire out their $15 Billion rather than stand in a line. This is how $48 Billion left SVB in one day and collapsed it.
2. Yesterday, MOODYS crediting rating agency reclassified all U.S. Banks to a Negative rating. This can also be seen as a Negative rating on the U. S. Economy.
3. Switzerland’s Credit Suisse major/big bank had it’s stock halted as they near Zero. I assume it was to put rouge on the corpse before they show it again online as they reopen the market. This bank stinks in a giant way in derivatives.
4. Monday 3 banks were bailed out. This included the second and third largest U. S. bank failures in history.
Tuesday, the Fed quietly bailed out another 6 banks. They are not announcing this fact.
Today I feel they might bail out 6 to 12 more banks as this accelerates.
5. Big depositors now know the banks are insolvent as well as the world’s Central Banks that are backstopping them. They either run on the banks or risk losing a minimum of 50% of their Billions.
6. The Fed is announcing that they will continue to raise their rates.
7. The FED and FDIC, to my knowledge, has not defined how they bail out the banks without actually bailing them out. The last I heard is Oprah may get 50% of her money back this past Monday and possibly more in 3 – 6 months.
So will this end up being a Bail-In without saying it to spook the entire herd today?
Michael Snyder is daring the Fed to define what they are guaranteeing instead of simply ”implying” comfort words.
8. Clif High is saying the banks are being pulled down to pave the way for US Central Bank Digital Currency.
He also says the Digital Coin is not ready and will flop.
He also says the banking damage will be done in April and the Corporate Government will be out of money by May.
9. It was disclosed yesterday that on Friday Iran and Saudi Arabia are now partners and are entering the BRICS. This ends their use of the Petro-Dollar. Link
10. Hyperinflation is defined as ½ % per month. Currently it is 35% annual in England and 30% in the U. S. or 2 ½ % Monthly.
With unlimited money printing to backstop the banks, this is going to skyrocket to failure in at about 6 months.
11. If Russia and China wish to collapse the Central Banks, they need to issue precious metals or oil backed currency. In Several days it may be impossible to obtain silver in the U. S. Big depositors will then flock to the Russia/China/Brics currency if it comes out. That would suck up all capital in the U.S. out of it’s economy.
Clif High projects the Banks falling down [enough to make a difference] in April.
He projects the Corp. U.S. Government becoming broke and unable to pay employees around May.
There are more assumptions and facts but you should see the direction of movement – get out of the way!
He then predicts a very scary summer, with a little calming around September as we begin a multi-year rebuilding.
Add to your emergency food supply before inflation hits it. Consider skipping a monthly house payment. If the banks fail in a few months there will be no one to pay. If the Government begins to fail there will be a near impossibility of legal foreclosure.
Get your excess cash out of the banks (except small non-Federal Credit Unions.)
Get your head right and your personal lock-down survival plan in action NOW.