Cryptocurrency: BANK RUN PANIC Spreads Around Globe, Crypto and Gold Demand Skyrockets, FDIC Coverup

grarpamp grarpamp at gmail.com
Mon Mar 13 20:47:53 PDT 2023


>> A fifth bank collapses...
>
> "The Times 03/Jan/2009 Chancellor on brink of second bailout for
> banks.  -- The Genesis Block, by Satoshi Nakamoto"

Crypto rockets up 25% on the news...


Democrats never ever demand to cut spending, taxes, or money printing.


The Bank Crisis Has Democrats Scrambling Behind The Scenes To Find A Scapegoat

Democratic representatives are scrambling in the wake of the
potentially contagious Silicon Valley Bank implosion, looking for a
way to divert attention away from them should the crisis expand.

One avenue for scapegoating the event that has been suggested among
Dems and the media is to blame a 2018 law that eased Dodd-Frank
capital requirements for midsize and small banks.  Republicans led the
effort to pass the law, which President Donald Trump signed, but 33
House Democrats and 17 Senate Democrats also voted for it.

No mention, of course, of the cancerous exposure SVB had to numerous
woke investments through venture capital, including money losing ESG
related projects, climate change-based companies and World Economic
Forum stakeholder capitalism projects.

The Dems have found their narrative, which is an old narrative:  “The
conservatives did it.”

What Democrats do not seem to understand is that the easing of
Dodd-Frank capital requirements was in direct response to the Federal
Reserve's announced plan to tighten liquidity and raise interest rates
through 2018.  With more expensive credit and a shrinking Fed balance
sheet, reducing requirements for bank buffers was one of the few ways
to prevent the stimulus addicted lending sector from plummeting.  The
extra capital also allowed banks to continue lending to companies that
engage in stock buybacks, keeping stock markets afloat.

With a larger capital buffer even more liquidity dries up, revealing
the true economic weakness underneath that Dems have denied for the
past few years.  So, if Biden and the Dems get what they want (more
strict capital requirements for banks), then there will be an even
swifter collapse of markets and the overall economy due to lack of
liquidity.

By the end of 2018, markets began to plunge anyway under the strain of
higher interest rates, which led to the Fed reversing course, and this
seems to be what Democrats are really hoping for.  They have called
for endless liquidity measures and have consistently demanded lower
rates and looser monetary policy.  However, when Donald Trump's
Administration called for rate cuts during his term, Dems attacked.
Once again, when Republicans do it, it's wrong; when they do it, it's
good policy.

Another issue to consider is that each successive program by the Fed
to employ bailouts and QE accelerates the inflation crisis.  While
both sides of the aisle seem to want helicopter money when they are in
power so they can boast about rising stock markets and improved
employment, the Dems are now facing a systemic stagflationary event;
the same event they originally claimed did not exist.  This means that
any pursuit of new QE in the face of a credit crunch would lead to an
immediate spike in inflation once again, crushing the middle class.

Are Democrats willing to accept responsibility for something like
that?  Not a chance.

The Biden Administration has so far taken full credit for the slowdown
of consumer inflation as well as the shrinking deficit, but these
changes are only due to the tightening actions of the central bank
which sets policy independent of the White House.  Democrats can't
have it both ways – They can't take credit for reduced inflation when
the Fed tightens policy against their wishes, and then not take credit
for the consequences of higher inflation when they badger the Fed to
inject more stimulus.

The only recourse for the political left is to somehow lay the blame
on conservatives no matter which way the wind blows, inflation or
deflation.

Emergency congressional hearings have been organized to determine the
cause of the SVB crisis and the course of action needed.  Democrats
including Sen. Sharrod Brown and Rep. Maxine Waters were quick to
applaud the backstop initiated by the Fed and the Treasury Department,
attempting to calm market concerns and reassure investors and
depositors that all is well.  Maxine Waters stated that Republicans
and Democrats needed to “work together to protect the safety of the
financial system", which is likely a thinly veiled assertion that
Republicans must support raising the debt ceiling and commit to even
more spending.

Biden took a slightly different tone, vowing to hold the people who
caused the mess responsible, specifically referring to Republicans.
Of course, to legitimately hold the true culprits responsible would
require that Biden punish himself – As it was the Fed along with the
Obama/Biden Administration that launched the ongoing stimulus bonanza
in 2008/2009.  Obama and Biden doubled the national debt from $10
trillion to $20 trillion in the span of a mere eight years.  The
normalization of fiat money creation to avoid economic consequences
has created the very inflationary crisis and banking weakness we are
facing today.

And, if banks cannot withstand even a moderate rise in interest rates
and reduced liquidity because of their addiction to Fed stimulus, then
it is fitting if the system crashes under a new Biden regime.


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