BREAKING: 3 American Banks Have Failed
What Does It Mean For You?
Do you think it’s weird that Biden allowed ONE political conservative, among his cabinet and appointees?
Jerome Powell. Chairman of the Federal Reserve.
He is doing what you’d expect an actual conservative to do. Raise interest rates to stop the crack addiction.
By “crack addiction” I mean the almost-free lending that governments and households took advantage of, and got addicted to, for over a decade.
This year, 70% of American businesses have debt that “rolls over”--meaning they must seek new lending at higher interest rates.
This will have wide-ranging effects on small business, who would have gone under, en masse, in 2020, if not for the PPP loans and later, the ERC funds that allowed businesses to “claw back” their payroll taxes, as they were harmed by “Covid policies.”
Think the Bidenistas didn’t KNOW Powell would raise interest rates?
Powell has raised interest rates 10 times, now, and says he’s not done, and won’t be lowering interest rates anytime soon — and now things are breaking.
Three bank failures, the three S’s: Silvergate Bank failed last week, Silicon Valley Bank failed Friday, and Signature Bank failed Sunday. This week is likely to be a bit of a bloodbath.
And there’s no reason to line up outside your bank. That’s not how it works–this isn’t 1934, where the first depositors in line get their money. There’s a process, once the FDIC takes over a broken bank.
I’ve been saying since 2020 to have some cash on hand. In fact, when the American small businesses were iced, and unemployment soared to 14%, I thought when I went to the bank, that there would be a line out the door.
There wasn’t. I was alone in there. But still, my branch didn’t even have the 1% of my Wells Fargo holdings on hand I was asking for, and they had to order more. I drove around to three different bank branches, to collect the cash I was seeking.
Speaking of Wells Fargo, they are doing some very strange things. Like not paying employees last week, and deposits not showing up in many accounts.
Wells Fargo said, don’t worry, we’ll fix it, they’re just glitches. But Silicon Valley Bank said the same, the day before, the day before they folded.
Interestingly, the founder of Signature Bank, Barney Frank, also went on to be a U.S. Congressman who co-sponsored the Dodd Frank Act of 2010.
Which became law, making it totally legitimate to use your funds to “bail in” the banks–so that government doesn’t have to “bail out” the banks like Obama did in 2008.
When you deposit your money in the bank, it’s no longer your money. You are a creditor, with an IOU. The bank then invests your money. Much of it is illiquid: for instance, long-term government bonds.
“Bail-ins” can take many forms. Banks can declare long “bank holidays,” and shut ATM machines and branches down.
Many people are under the impression that all the money they deposit is there in vaults, in cash, waiting for them to draw on it.
But that’s not how it works. Small banks have to keep 3% cash reserves, and larger banks ($110M and larger) have to keep 10% cash reserves.
The business model of the banks, which is very simple, is that they invest your money, and the “spread” belongs to them, which keeps them profitable. It all works fine, as long as we all trust our banks, and keep depositing our money.
Signature Bank had $110B in holdings, making it a large bank, and Silicon Valley Bank had $209B, making it the second largest bank, in history, to go under.
This will have sweeping effects on tech companies, with 90% of their holdings uninsured. That cash was needed to run their businesses, and pay their employees.
We are interviewing a gold/silver expert and author Weds night in our Mastermind. EB Tucker wrote WHY GOLD? WHY NOW? that I read in 2021, and he’s a great interview.
Per FTC guidelines, please assume links on this newsletter may be affiliate links that benefit us, though if so, the price is not marked up. Thank you for supporting our mission.
Get a free month in our Mastermind right now, join our Weds night classes, and join the ranks of those who are prepared.
Remember the parable of the Ten Virgins? Only one was prepared. If your lamp is lit, you’ll be needed, to help care for those around you.
I have been saying for two years since founding the TAFF (TakeActionForFreedom) Insiders Mastermind, that gold/silver are a hedge against the rapidly deflating dollar.
With other professionals doing extensive research as I have, I’ve been teaching preparedness, “thinking past the dollar,” and very recently, permaculture organic gardening, and indoor vertical gardening.
All our previous Weds night classes are recorded, for any new members this month to review them, in your Mastermind membership site.
I even debated another of our coaches who claimed that gold and silver have seen their day and it’s all digital money from here on. (The fact that sovereign nations bought more gold in 2022, than in history, gives you an idea of why that isn’t true.)
I honestly wonder if the plan is to let Powell break the economy, to have someone to fire, and to blame, by the Leftists all around him in Washington.
(As if the answer to the longtime crack addiction that Powell is trying to solve—is his fault.)
I have never seen anyone, including 100+ financial analysts whose content I review, discuss any hypothesis that Powell was set up here, to be the stooge. So take that as my own personal hypothesis–I may be a lone voice in this.
Because globalists want the dollar to break. They want Americans to be leveled to the circumstances of most of the rest of the world–crime, division, powerlessness, and a failed dollar. To usher in their “great reset.”
A growing number of sovereigns are joining the “BRICS” nations, and making moves to detach from the dollar as the world’s “reserve currency.”
Much of why you enjoy a first-world lifestyle, despite the incompetence of our leadership, is due to the “petro dollar,” in which anyone in the world had to own dollars, to buy oil and gas.
So, flooding the market with dollars, as the money-printer machines revved up in 2020, were absorbed, to a large extent, by the rest of the world that had an insatiable appetite for dollars. This kept our inflation from running out of control.
Those days are rapidly coming to a close, as the US has posed over 10,000 sanctions on Russia, and it appears we are about to inflict a financial war on China, as well. China supplies your electronics, appliances, and most of your manufactured products.
Powell is just playing his part. Saying it’s all to “bring inflation down.”
The idea that interest rates alone can bring inflation down is ridiculous, since trillions in bank bailouts, if your government employs this strategy–and they’re saying they’re not going to–now they have bank “bail-ins” with your money, in their toolbox, as things “break.”
But let’s say there’s another bailout. This alone will send inflation soaring, making your dollars worth much less. You’ve already lost about one-third of the buying power of your dollars, since 2020!
Why break the U.S. hegemony intentionally, and make the dollar deflate? They’ll get a lot more compliance in the “great reset,” if we are broken and desperate!
You can’t afford not to learn about gold and silver and other ways to prepare and protect yourself.
The last time they taught gold/silver as “sound money” in the schools was in 1974
But the governments of the world have been buying it up at a higher rate in history, throughout 2022.
Do you wonder WHY? Why do the elites disparage any individual buying gold or silver (which have intrinsic value, for thousands of years, and are needed in manufacturing), while buying it up, themselves.
And yet—the price of gold and silver is still down! Which is a good opportunity for us.
There’s lots to unpack here, so join us Weds night in the Mastermind where we have a great opportunity to learn from an expert in precious metals. Let’s learn what our schools stopped teaching us, 50 years ago after Nixon detached the dollar from the gold standard.
The only folks teaching gold and silver are those who sell it.
I am a researcher and teacher. I just educate; I give no financial advice. But gold and silver have been an important part of my strategy to “hedge” against the dollar.
Bring your questions–this is a great opportunity to ask a legitimate expert how to buy–as there are many options.
I make no money when you invest in “hedges” against the clearly failing dollar. I just seek the truth, spending now over 3,000 hours studying the macro economic issues the last three years, and I share my research with those who have ears to hear and eyes to see.
Making a “run on the bank” isn’t the answer–because that’s what creates the unsolvable crisis in the first place. And “waiting for the rapture” isn’t the answer either, as people often say to me on social media. God expects us to do all we can to prepare and to provide for our families.
Next week, I will teach you step-by-step how to invest in short-term bonds, because the “yield curve” is inverted more than in 40 years right now, making the yield on 6-month and 12-month short-term bonds higher than longer-term bonds, such as 3-year, 10-year, and 20 year!
The week after? We’ll show you short training videos we’ve been making, for a few months now, on everything you need to know about blockchain, crypto, and investing in Web 3.0.
And the last two weeks, we’ve done classes on (a) permaculture, regenerative, organic gardening; and (b) vertical gardening in any space, including how to grow a greens, veggies and fruit garden indoors, in any space!
Join us here and get a free month.
Thank you for supporting our work, if you have found value here. While only 7% subscribe for $10/month, every bit helps keep our work alive. A one-time donation is also much appreciated! Affiliate links in our content may also compensate us.