I yesterday’s Rant I discussed Jim Willie’s podcast in which he said the U.S. Government has already defaulted on repurchasing it’s Treasury Bonds by not redeeming them.
He said China stopped shipping to the U.S. because the US Treasuries were dropping in value and China couldn’t unload them without taking huge losses on them. China feared the US might never redeem those treasuries.
This morning Jim Rickards posted this article Remember the Banking Crisis? He said:
By March 11, the FDIC reversed course and said all deposits would be insured. The Federal Reserve intervened and said they would take any U.S. Treasury securities from member banks in exchange for par value in cash even if the bonds were only worth 80% of par (which most were).
China holds too much in US Treasury Bonds, and wants to unload them before the US collapses into bankruptcy, it might have to take have to take a 50% or 60% loss on them to save themselves.
This only bolsters Willie's insinuation that the US Dollar is quickly becoming Confederate Dollars. Now for the scary part. Neither Willie or Ricards mention that the U.S. banks have always been forced to purchase and hold US Treasuries! They can't unload them without the Federal Reserve's permission, and the Federal Reserve will never allow that because they don't want the real street value of the Dollar to be known.
Ricards ends by saying this:
Is Stage II Here?
Either a single bank failure or a systemic crisis could happen at any moment. The actual trigger is a bit mysterious and mostly psychological because the fundamental problems have been there all along.
Well, it seems that the quiet period is over and we are entering Stage II of the banking meltdown.
New York Community Bancorp (NYCB) had taken huge losses of over $2 billion in February on its commercial real estate (CRE) portfolio. It had been teetering on the brink ever since.
On March 6, it was bailed out with $1 billion of new capital raised by former Treasury Secretary Steven Mnuchin and Ken Griffin’s Citadel hedge fund. NYCB may have been bailed out, but it’s the canary in the coal mine.
Its failure means billions more in CRE losses are buried on bank books all ovehttps://beforeitsnews.com/movies/2024/03/let-my-people-go-full-movie-freely-given-sg-anon-2440463.htmlr the country.
The bottom line is Stage II of the crisis is here, and the effects will be devastating to financial institutions and the stock market as a whole.
We may not be able to prevent the crisis, but we can see it coming and prepare accordingly to preserve our wealth. Step one is to get gold. That will see you through the storm.
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