Authored by Mark Jeftovic via BombThrower.com,
The Elites are bailing out their own banks, not yours
The systemic banking and financial crisis I’ve been warning about for years has arrived. (In fact, the report I put out in January seems to be playing out in spades).
The printing of 37 trillion dollars out of thin air over the pandemic widened the wealth inequality gap – and they followed that up with the most drastic and rapid interest rate hiking cycle in Fed history.
What did they think was going to happen?
Now the banks are failing – Silicon Valley Bank went from passing its KPMG audit with flying colours and getting their debt rated “A” by Moody’s mere weeks ago, to the executives frantically paying themselves bonuses and selling their shares in the hours and days before the bank failed and was taken over by the FDIC.
98% of the deposits in SVB were uninsured, meaning that those deposits
wouldn’t shouldn’t have been covered by FDIC insurance. That means any accounts with balances above $250K were facing the loss of their funds.
But this is Silicon Valley Bank – this is where the elites place their bets on Silicon Valley unicorns. So we can’t have that.
In a hastily convened meeting between the FDIC, the Fed and the US Treasury, it was decided that all deposits would be covered, insured or not.
Crisis averted, right?
Wrong. It turns out that only SVB and Signature banks would be covered; if any other banks fail, like your bank, your community co-op in your hometown or state, or any other bank in flyover America far away from the Coastal elites – if they get into trouble (because people are moving their money into “protected” banks), then that’s not covered.
… That’s tough titties for you.
Here it is folks – from the mouth of the US Treasury Secretary herself:
Silicon Valley (mostly profitless unicorns incubated with printed money) are anointed and protected.
But your community bank can go fuck itself, and so can you.
Eat cake pleb. pic.twitter.com/o6rBFGghFi
— Mark Jeftovic, The ₿itcoin Capitalist (@StuntPope) March 17, 2023
In a stunning admission, when asked point blank by Rep. James Lankford (R-OK) whether a community bank in his home state of Oklahoma would have uninsured depositors made whole the same way the Silicon Valley Unicorns did, Yellen had to come clean:
“A bank only gets that treatment if a super-majority of the Fed board, and I, in consultation with the President conclude that failure to protect uninsured depositors would create systemic risk to the banking system”
In short “not necessarily”.
While Yellen was bobbing and weaving around the question, Lankford stated it clearly:
“If you’re a depositor with a Big Bank, preferred by the Fed, you’re fully insured no matter what. If you’re a depositor with a small bank, you aren’t”.
Once again, the government is picking winners and losers; just like under lockdowns, when they shut down small businesses and forced everybody into Costco and Wal-Mart.
“It’s called stakeholder capitalism”, I’ve mused, “and you’re not a stakeholder”.
Well, this time they’ve blown up the banking system real good – and this time they may not be able to kick the can down the road.
They may not even be able to save the “Too Big To Fail” banks by the time this is all over.
This could be the early innings of the final breakdown of the financial system I’ve been warning about for almost two years, when I released The Crypto Capitalist Manifesto.
Since then, we’ve been in a crypto-winter, and starting a few months ago I started to sense a thaw.
In fact, the way things are playing out right now are so closely resembles what I put out in my most recent report, that it’s downright eerie.
What to look for in the breakdown of the financial system
Why Bitcoin was poised to break out of its slumber (written before it exploded 65% higher year-to-date and became the best performing asset of 2023)
What the narrative would be from the establishment shills when it all came unglued, and
Which stocks would be the leading sector in the next Bitcoin super-cycle
It was written in early January and when I compare it to what’s happening now, I kinda scare myself…Read The Bitcoin Bottom Report here.
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P.S I’ve mentioned previously that after the crypto winter was over, I would be doubling the price of The Bitcoin Capitalist Letter. With Bitcoin up 65% YTD, I think we’re there. When I get back from Costa Rica, I’ll be plugging in the new website and that’s when the price doubles. But you can still lock in the old rate, for life – right here.