3/20/2023

Bank run on America

 3 American banks failed, Silicon Valley Bank, Signature Bank and First Republic Bank, and one more coming. Not sure how many more on the way. This is only just the beginning of the collapse of American banks. Many depositors are queuing to take out their monies from American banks. The bank run on American banks is starting, slowly, not reported in the main media, but would gather speed.

To bail out each failed bank would cost the US a few hundred billion dollars. The bailout of the two failed banks is said to be about $400b. How much more money must the US print if the dominoes start to fall?

These are relatively small, yes, relatively small bank runs. The biggest bank run on America has started and would follow the same pattern, starting small but would increase in speed and the slow depositors would end up getting nothing when there is no money left to return to the depositors.

The biggest bank run of the century, the selling of US Treasuries, has begun, ...bank run on the Fed. Initially it was Russia, China  and Japan selling. Russia has practically sold everything and holding no American Treasuries. China and Japan combined have sold a more than US$700b over the last few years with the bulk in 2022. 2023 would definitely see the amount at least double.

The selling by China and Japan is manageable and with the Fed raising interest rates, this may slow down the decline. But the raising of interest rates is hurting American banks, like the Silicon Valley Bank for starters. So raising interest rates is not a solution. The banks' collapse is planned and executed but meant to collapse countries and foreign banks with the rapid hikes in interest rates. Fortunately only Sri Lanka and Pakistan were hit. And unfortunately, unplanned, American banks were hit instead. Now at least 6 American banks are facing risk of bank runs with more expecting. This move would further undermine the credibility, trustworthiness ad integrity of the American banks and banking system. This follows the weaponising of the dollar and SWIFT banking system. The Americans have engineered their own collapse and downfall.

To make matters worse, the steam roller in dedollarisation is on the run and gathering steam. This is creating a fear in the diminishing role of the US dollar and its value in international trade. Big banks have started to trim their holdings of the dollar and buying gold. The big run is sovereign states starting to dump the US dollars. And these states are not just states on the other side of the fence, but American allies like France, Germany, Saudi Arabia and many countries all over the world. The icing is Israel. Yes Israel is also dumping US dollars and in percentage terms, is the biggest seller of US Treasuries.

Israel is not your average state but the closest allies of the US. When Israel starts dumping, it is serious. The Jews are about the most intelligent people in the world, and the most careful and prudent in managing wealth and the manipulation of wealth. The Jews must have seen something big coming and are switching to Yuan to hedge their savings and reserves.

The bank run on America cannot be kept under wrap anymore. The trickle is turning into a flow and soon the dam would burst. Any country hesitating and think it is safe to hold on to US Treasuries would live to regret their decisions. Start the sell out, run first for safety. There is not much time left before the US would close the door and freeze the selling of US Treasuries in the market, just like closing the banks from a bank run.

The BRICS nations are targetting August 2023 for the roll out of an alternative international currency to compete and may even replace the dollar. The clock is ticking. Bank run on America has started!

23 comments:

Virgo49 said...

https://www.channelnewsasia.com/business/ubs-agrees-buy-credit-suisse-swiss-assisted-bid-calm-markets-3358511

Good morning All

Not only in the UAssA, it's been a World-wide affairs by the Capitalists West and their winners takes all systems.

Across all spectrum world wide recessions and depressions soon.

All the World's Fools Ledaers just kept mum and awaiting for the Avalanche.

Saving the environment? Where even now cannot save yourselves.

Still wanted China to follow their paths to HELL.

She the PRCs are now trying to save and connect the World with their initiative of BRI and Trades and Systems that may lessen the Greatest World Wide Depression.

But the Americunts and their doggies and skunks are still looking for WARS !

Still spending spending billions in.the Arms Race because of threats that been instigated by the UASSA.

The Coming of the Revelations?

HELLJUYAH!

Anonymous said...

Dumping dollars and possible trouble for Comex?

'Now that confidence in the banking system has been put to the test, people will look to alternative means to store their wealth and get their money out of the financial system. The easiest and safest way to do this would be to own physical precious metals, as people have done for thousands of years.'

'It is likely that demand for physical metal could increase significantly in the months ahead. The futures market is already showing a massive move in the price of gold, which is knocking on the door of $2,000. It’s only a matter of time before this moves into the physical market. When it does, the Comex vault run will pick up steam.'

The current banking crisis could not have come at a worse time for the Comex system. Inventories have seen massive depletion over the last 2+ years as investors have slowly been pulling physical out of the vaults. I have previously called this a run on the vault but labeled it as a stealthy one. As though certain investors did not want to raise the alarm, but slowly take possession while inventory was still available.

'The recent discovery by the LME that some of their inventory was stones rather than nickel should only serve as another wake-up call that the supply of physical metal is extremely tight. If everyone rushes for physical at the same time, there won’t be nearly enough to satisfy demand at current prices (silver has 15 paper ounces per 1 physical ounce!).'

'Given the price of gold finished the week at $1993, the ongoing banking crisis, and general fear in the market… it seems likely that demand for physical could be ready to soar. That could drive larger outflows from Comex vaults in the near future.'

Link to article:
https://www.zerohedge.com/markets/comex-far-worse-shape-svb-if-run-physical-accelerates

Anonymous said...

Nearly 200 American banks face similar risks to those that led to the implosion and bankruptcy of Silicon Valley Bank (SVB), according to a paper posted this week to the Social Science Research Network.

The authors ( 4 economists from prominent US universities ) of the study calculated that 186 American banks do not have enough assets to pay all customers if even half of uninsured depositors decide to withdraw their money.

This tremor in the USa is showing telltale $igns of a banking industry earthquake. The scariest part for dumbass yanks is to have Biden and Yellen assuring all is well.

Anonymous said...

“As a result of these unprecedented sanctions, the ruble almost is immediately reduced to rubble,” President Joe Biden said in Poland last March.

But instead it's the fiat currency USD now in crisis . .

Anonymous said...

Robert Kiyosaki said calling American dollars as fait currency is a misnomer.
The correct terminology is fake currency. And the Americans cannot fake it any much longer.
The fakes would be exposed and dumped.

Anonymous said...

Anon 9.27:

US is in fast collapse vs China's slow burn?

OPEC, Iran and Russia are behind China making the RMB as the alternate petrocurrency to USD!

Even Israel is dumping T-bills for RMB!

World's richest folks are already betting China will replace US as the next world leader or even getting the next reserve currency status so why so negative about China?

Anonymous said...

Right, the run on the biggest bank, The Fed, by China, Japan and others is manageable. But the Fed is not able to withstand the run if smaller banks face liquidity problems and who bought their Treasuries at low interest rates earlier were to start collapsing. Banks are sitting on US$620 billion unrealised loss, most of that presumably are Treasuries bought from the Fed. Any sustained runs on smaller banks will forced them to sell those treasuries to prop up their liquidity. That was what brought down Silicon Valley Bank that suffered US$1.8 billion loss from their disposal of Treasuries that caught the attention of investors and depositors.

It is rumoured that this is an attempt to consolidate the banking system which went haywire, initiated by the Fed raising interest rates. Now, the run on smaller banks is accelerating, and depositors are switching their money into the 'too big to fail' big banks. Ironically, those switched funds from smaller banks are now being used to help the big banks to make more fractional loans, buy up smaller banks at fire sale prices like UBS buying Credit Suisse, and laughing all the way ...oops to the banks.

The other reason why depositors no longer trust smaller banks is that generally more than 90% of deposits above US$250K are not covered by the FDIC, and Yellen has admitted that continuous bailing out (they claim it is not a bailout) of depositors in failing banks is unlikely to be sustainable, if a tsunami of collapsing banks takes place. Therefore, the run on small banks is likely to continue, as depositors are now realising that bailouts in the mode of Silicon Valley and Signature Banks are not forever available, and they are taking a big risk keeping their money in smaller banks that are allowed to fail.

Anonymous said...

Many moves are now being made by many countries outside the Western influence, trying to usher in peace deals. Israel and Palestine are now talking about negotiation to calm hostilities. Iran and Saudi Arabia are now taking steps to further improve ties and development strategies, with leaders planning visits to one another, to consolidate the new peace initiative brokered by the Chinese.

And Xi Jinping is visiting Putin this week. This is a very important meeting, for cementing ties, enhance further economic and security co-operation and undoubtely about a peace initiative in Ukraine. But nothing gloatingly and openly touted about countering any country, unlike some other alliances whose prime motive had always been the countering of China, with that almost always the main narrative.

This is also a very noteworthy move. Xi is visiting Moscow, the first such visit since the Ukraine War. Xi is making this his first foreign trip after being given the mandate for a third term as President. Xi is making this visit after Wang Yi brokered the peace deal between Iran and Saudi Arabia, with many saying that Putin had played an important part in that historice deal.

What is more important is the result of Xi's visit. Besides the attempt at a peace initiative in Ukraine, it may be inserting the final nail in the coffin of the de-dollarision move, the 'coup de grace'. That is why this trip by Xi is a very closely watched event. And Xi had to make that trip in person, many discussions probably top secrets, not via teleconferencing that can be leaked by a third party.

Virgo49 said...

https://www.straitstimes.com/business/credit-suisse-says-23-billion-of-debt-now-worthless-under-ubs-deal-angering-bondholders

Anonymous said...

There are now too many holes in the USA backside. Trying to cover one but unable to cover the others does not solve the problem. The collapse cannot be avoided. The banking system crisis, the mortage crisis coming, the stock market coming collapse, the debt celing problems are all happening. Civil war is coming if they arrest Trump. Preventing a run on the Fed in itself is already going to lead to a banking collapse with bank corpse littering the USA.

What are the problems that they were saying were all overblown? China and Japans dumping of treasuries were overblown until Yellen goes begging for buyers. The effect of BRICS is overblown, until more and more countries wanted to join. The USA is going to support Ukraine as long as needed, until they realised Russia is not going to collapse after all. The problems in the economy is overblown, the economy is doing fine, job creation robust, the statistics don't lie, so they say. But in the end it is they who are lying.

And we are not even talking about the retirement fund ponzi scheme that is going to explode as well very soon.

Anonymous said...

2013 vs 2008 Lehman subprime crisis - this time round, China won't go to the rescue of the Americans ! They die their business hahahha . .

Anonymous said...

eee 2023 vs 2008 .. sry

Anonymous said...

These central banks are coming together to boost liquidity for USD. So USD is facing a bankrun? Is it that bad already?

https://www.ecb.europa.eu/press/pr/date/2023/html/ecb.pr230319_1~8d62af24ac.en.html

Coordinated central bank action to enhance the provision of US dollar liquidity
19 March 2023

ECB and other major central banks to offer 7-day US dollar operations on a daily basis

New frequency effective as of 20 March 2023 to remain in place at least through the end of April to support smooth functioning of US dollar funding markets

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve and the Swiss National Bank are today announcing a coordinated action to enhance the provision of liquidity via the standing US dollar liquidity swap line arrangements.

To improve the swap lines’ effectiveness in providing US dollar funding, the central banks currently offering US dollar operations have agreed to increase the frequency of 7-day maturity operations from weekly to daily. These daily operations will commence on Monday, 20 March 2023, and will continue at least through the end of April.

The network of swap lines among these central banks is a set of available standing facilities and serves as an important liquidity backstop to ease strains in global funding markets, thereby helping to mitigate the effects of such strains on the supply of credit to households and businesses.

Anonymous said...

The more they print, the faster they go under.

Anonymous said...

War Is Peace actually makes sense if the yanks from Rep and Dem declare war on each other with no quarters given and no rules.
99.99% assurance of peace for rest of the planet.
Zelenskyy will plead with Putin for time out, Tsai ing-wen and her DPP stooges will ask China for conditional pardon, India and Pakistan will meet for tea to wager on the outcome, Norway will own up to its participation in the NordStream sabotage and make good on repairs....

Anonymous said...

Today, all the media, social and main media, are no longer telling the truth when politics is concerned. Everyone is engaged in a propaganda war, dishing out disinformation, fake news and lies. Only the gullible would still believe that they would be reading about truth in the media.

It is war, information war. It is a very serious matter, not for boys and girls to think they could debate for fun and get a kick out of making clever statement to win an argument.

You are a combatant in a way for everything you posted in the media. Or you can be the naive and gullible ignoramus thinking everything is so fine, so innocent.

All the killings and destruction are just on paper, never affect anyone. Tomorrow is another day to talk cock and pretend you are clever and wise.

Anonymous said...

Even those ignoramus and gullible may believe some fake news from the media. But where money is concern, their thinking is different, like everyone else. They are not going to wait for their bank to report failure and hope for a bailout. That is a risk that even the 'stupidity has no cure' type would want to take. That is just human nature.

Anonymous said...

All the killings in and destruction by the USA are just taken as collateral damage. Not in their conscience to reflect upon or replace.

They will however provide loans via the IMF or World Bank for rebuilding, which will keep the recipient country forever tied to financial slavery and be beholden and obedient to the Western camp. And those countries may even see those help as being from a heavenly and saintly power doing good.

So many countries in Africa, Latin America and South Asia, like Sri Lanka are in this state. And yet in Sri Lanka, they are trying to push the blame onto China for the debt crisis, when China only holds about 10% of those loans to Sri Lanka.

Anonymous said...

The reason the USA is in this state today is due to years of unrestrained money printing and cheap, low interest rate free money used to fuel the economy, propping up the stock market and property market most of all. Now, trying to raise interest rates to soak up liquidity to fight inflation caused all these problems.

Japan went through this too, with cheap, low interest rate money, fueling the stock market and property prices went through the roof during the boom years. The eventual collapse of the Japanese economy lasted until today, without reprieve. Any collapse of the USA economy and particularly the US$ hegemony will be the same, making them unable to stand up again for decades.

Russia and China knows the US$ hegemony is the Achilles Heel of USA power, not its military power, which they do not choose to target. The former Soviet Union competed with the USA on military terms and failed, being not on par in financial power. Not to say that China and Russia are neglecting completely their military strategies. That would be a mistake if the USA thinks so.

Anonymous said...

Remember the days of Ben Bernanke printing money galore and portraying him throwing money out of a helicopter, earning his nickname 'Helicopter Ben'? That was the start of the printing frenzy, and they thought this could go on indefinitely.

There was no need for the USA to produce anything in exchange for foreign goods, just printing fiat money in exchange and let the rest of the world provide the USA with free loading on their hard work.

And they shifted manufacturing big time to China to take advantage of the cheap wages and reaping all the benefits. Turning around later, Trump accused China of stealing USA jobs, as if China put a gun to the heads of Steve Jobs and others to relocate their manufacturing to China. That started the trade war.

But China still exported even more to the USA even by today. Now they are saying that China actually wanted Trump to return to the White House. Wonder whether that is possible now that they are so desperate to put him out of service. Tomorrow we shall see what happens if they do arrest him.

Anonymous said...

Over a period of time, going through the interviews and speeches made by African leaders, I am convinced that Africa is changing fast and moving away from the imperialist Western countries.

This is quite a stunning change, and the West, in my opinion, has totally lost its influence in Africa to China and Russia for good. What they are attempting to do now is, as always, just by offering token monetary help, which the Africans have seen through, as hiding a fake motive to recolonise Africa.

African leaders loathe Western leaders demonising the presence of China in Africa every time they meet. Western leaders take every opportunity when they visit Africa, always talking about China threats and trying to push their agenda about human rights, gay rights to the Africans. The West have no sense of focus on what Africans really need, which is infrastructure and housing above all others, and certainly not about digital transformation. That can come after poverty is taken care of, which can only come with development. Simple to understand.

The USA and Europe are in effect making Africa great again. By the way, MAGA now stands for 'Make Africa Great Again' not America.

Anonymous said...

Sino-Russo strategic moves to break the hegemony of the US dollar will weaken the Americans' ability to fund their overseas military bases.

The United States has approximately 800 formal military bases in 80 countries. This number could exceed 1,000 if you count troops stationed at embassies and missions and so-called “lily-pond” bases, with some 138,000 soldiers stationed around the globe, according to Bingchat.

Anonymous said...

China has studied very carefully to identify the weakness of the American Empire. Everything is built on the dollar hegemony. Once the dollar is killed, the Americans would not be able to support the massive military and would not be able to wage wars any more.

It would have no money to pay the soldiers, no money to pay for the weapons and bases.