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US bank-collapse - you pay !

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Dutch Josh View Drop Down
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    Posted: March 13 2023 at 5:45am

[url]https://www.zerohedge.com/markets/first-republic-shares-crash-60-regional-bank-crisis-confidence-spreads[/url] or https://www.zerohedge.com/markets/first-republic-shares-crash-60-regional-bank-crisis-confidence-spreads ;

First Republic Bank's stock crashed in premarket trading in New York following a statement issued on Sunday night that sought to ease investor worries about its liquidity situation in the wake of the failures of Silicon Valley Bank and Signature Bank.

Shares of the regional bank are down 60% in the premarket. The lender said in a statement late Sunday that it had more than $70 billion in unused liquidity to fund operations from agreements that included the Federal Reserve and JPMorgan Chase & Co

DJ, PRofits=PRivatee...losses are -of course- tax payers costs...If not direct then -via creating extra fiat money- via inflation...[url]https://www.youtube.com/watch?v=kr_cwi1IluI[/url] or https://www.youtube.com/watch?v=kr_cwi1IluI trader university; Who will bail out the bail-outers ? Answer; You and me...

Some numbers; US GDP=26 trillion per year, debt however over 31 trillion, long term debt 128 trillion...[url]https://www.usdebtclock.org/[/url] or https://www.usdebtclock.org/ 

US debt/GDP ratio = 133,96%..

Global [url]https://www.usdebtclock.org/world-debt-clock.html[/url] or https://www.usdebtclock.org/world-debt-clock.html ;

US public debt/GDP ratio 94,74% (US debt 31,6 trillion-GDP 26,2 trillion)

Russia public debt 421 billion-gdp however 2,184 trillion = ratio 19,3 %

(DJ...I do not understand completely these statistics...however US debt is higher then its GDP...Russian debt less then 20% of its GDP...). 

Creating money to "save banks", fund wars and "pay debts/interest" is a dead end street...The US is in an economic swamp...

With de-dollarization [url]https://www.zerohedge.com/geopolitical/india-takes-leading-role-de-dollarization[/url] or https://www.zerohedge.com/geopolitical/india-takes-leading-role-de-dollarization only increasing-so lots of US$ returning to the US from the global market-replaced with other currencies-US may be "beaten" by inflation...

We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: March 13 2023 at 6:19am
Silicon Valley Bank paid out hefty bonuses to their top people MINUTES before an engineered "collapse". The board of SVB includes Mary J. Miller, a former Under Secretary of the Treasury. Sweet, innit?

DJ, By making losses public, profits private "neo-liberalism" is simply destroying the public sector...from public healthcare, public transport, to public housing, education....

[url]https://halturnerradioshow.com/index.php/en/news-page/world/bank-stocks-free-falling-credit-suisse-trading-halted[/url] or https://halturnerradioshow.com/index.php/en/news-page/world/bank-stocks-free-falling-credit-suisse-trading-halted

Trading of the stock in Credit Suisse was HALTED overnight after another 15% plunge in its stock value.  Commerzbank dropped 11%. In the USA, Federal Republic dropped another 66%, with Western Alliance Bancorp down 52% and PacWest down 37% in pre-market trading.

Despite a staggering loosening of credit available to banks from the Federal Reserve over the weekend, Investor confidence is still plummeting for most of the same banks that saw this trouble late last week.

DJ, US "creating" another 25 billion to "save the banks" is not enough to "do the job"....

We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein
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Post Options Post Options   Thanks (0) Thanks(0)   Quote KiwiMum Quote  Post ReplyReply Direct Link To This Post Posted: March 13 2023 at 12:20pm

At least the people of America are insured for deposits up to $250,000 in banks, which means that if you have less than that in the bank, the government will guarantee it in the event of a bank failure. Here in NZ the government removed our insurance on bank deposits in 2008. I was the only customer who noticed in my bank in my town - i know because the bank manager told me. They are planning on reintroducing it this year but keep putting it off. The upshot for us it that it's not safe to leave large amounts of money in the bank. 

It's only a matter of time before the world sees another Cypriot banking crisis like the one in 2012. I think that Cyprus still hasn't recovered from it, nor have the investors been fully refunded on their losses. Scary times.

Those who got it wrong, for whatever reason, may feel defensive and retrench into a position that doesn’t accord with the facts.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: March 13 2023 at 11:43pm

DJ, In an economy the essential basic factor is trust....

The US guaranteed all savings in US  banks...but not investments in those banks (So NL retirement funds already lost over 400 million €). The way to guarantee savings-but also stocks-and not doing that from tax money-is by creating even more US dollars out of thin air...

The US did invest trillions in endless wars...from Afghanistan, Iraq to Ukraine, Syria...The US made billions of payments to "big pharma" twice...first for developing vaccines at "warp speed" -then also providing billions of profits for big pharma share holders...

The US -once- was "exceptional" in the way the rest of the world wanted US$ for global (not only energy) trade...

-------------

So...the US may have chosen to save banks and stocks at the cost of the value of the US$...The FED did raise interest rates not only to try to slow down inflation but (doing so) also to "save" the US$....It was raising short term  interest rates that did bring problems for banks investing in long term US bonds with lower interest rates...When savers asked for their money the banks had to sell long term US bonds at massive losses...

--------------

The pandemic link here is there was no demand for investment money from companies during the peak of the pandemic. So banks had to make secure investments...US bonds in itself was safe...but long term. We may -for now- be out of a pandemic peak...Companies need money from banks for investments...savers can get "more for their money" when they take their savings elsewhere...

----------------

The wider perspective worldwide will be more companies moving to Asia...more pressure in the EU (etc) for keeping doors to Asia open...DJ-Many countries try to limit/block direct investments in Russia-Iran-China....so a lot of money may move to Türkiye, India/Pakistan, Malaysia, Indonesia...there that money will be used for doing bussinesses with Russia-Iran-China...

----------------

[url]https://en.wikipedia.org/wiki/Hyperinflation[/url] or https://en.wikipedia.org/wiki/Hyperinflation ;

In economicshyperinflation is a very high and typically accelerating inflation. It quickly erodes the real value of the local currency, as the prices of all goods increase. This causes people to minimize their holdings in that currency as they usually switch to more stable foreign currencies.[1] When measured in stable foreign currencies, prices typically remain stable.

-

In his book, Cagan defined a hyperinflationary episode as starting in the month that the monthly inflation rate exceeds 50%, and as ending when the monthly inflation rate drops below 50% and stays that way for at least a year.[7] Economists usually follow Cagan's description that hyperinflation occurs when the monthly inflation rate exceeds 50% (this is equivalent to a yearly rate of 12974.63%).[5]

DJ, based on monthly-inflation of +50% it is very unlikely the US will run into such a collapse...

The U.S dollar has no intrinsic value, but people want it so much because it is a medium of exchange. The primary purpose of a currency within an economy is to act as a medium of exchange to facilitate exchanging goods and services among people in a particular economy.

DJ, One of the limits for US$ collapse is that US$ are the most used currency -still- in the world...US military spending "secures" the US$....[url]https://en.wikipedia.org/wiki/United_States_dollar#International_use_as_reserve_currency[/url] or https://en.wikipedia.org/wiki/United_States_dollar#International_use_as_reserve_currency 

but all of this has limits....The rest of the world no longer wants to pay for US debts-those debts are made because the US is spending trillions of US$ on weapons, wars...to maintain a status quo in the interest of a small US/western elite...

If you define "hyper inflation" as +100% year-to-year fiat currencies-not backed up enough by gold, oil, infra structure do run a very real risk...The major shift will be in countries, major companies "dumping the dollar"...India, China are doing major trade with Russia, Iran, Saudi Arabia...why would they still use a US$ ? 

---------------

Companies can "buy back" shares...Less shares increases the value of those shares...The US could decrease the the total number of dollars in the world-trying to "protect" the $...but it may only increase US debts...Another way is [url]https://www.zerohedge.com/political/biden-gives-go-ahead-giant-alaska-oil-project-greens-furious[/url] or https://www.zerohedge.com/political/biden-gives-go-ahead-giant-alaska-oil-project-greens-furious increasing intrinsic ("real") value of the US$....

"Trust arrives on foot but leaves on horse back"...The US is NOT the major global power any longer...the sooner the US gets that the better...Asia-by far-is the dominating global factor...neither wars or the US$ can change that....

We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: March 14 2023 at 2:49am

[url]https://www.youtube.com/watch?v=9ky7a19Ij7w[/url] or https://www.youtube.com/watch?v=9ky7a19Ij7w ; Unrealized losses among US lenders have been growing rapidly under the Federal Reserve’s aggressive rate-hike regime, even before the Silicon Valley Bank’s collapse. David Ingles reports on Bloomberg Television.

DJ, Over 206 billion US$ because banks invested in US bonds...when interest on those bonds was 0%....Lots of pension-funds, other larger investors also did seek secure investments now learning US bonds at 0% -new US bonds interst 5%- are losing value....

Some of the comments;

What's actually pretty frightening about this is that many of these banks are considered indentured trustees to other larger and medium-sized banking institutions for many loans and other securities which means if any of these big ones fail, you will a domino effect within 30 days.

-

"Its a good thing that the population does not understand our banking and financial system. For if they did? I believe there would be a revolution before morning." -  Henry Ford.

DJ-The US will simply not be able to pay its endless wars...

[url]https://nltimes.nl/2023/03/12/inflation-remain-high-economic-growth-will-slow-economists-say[/url] or https://nltimes.nl/2023/03/12/inflation-remain-high-economic-growth-will-slow-economists-say ;

DJ, Most consumers want to "play it safe" so less spending...Also inflation in 2022 higher then pay-rise simply means less spending...Energy prices very likely to increase later on...

Uncertainty does not encourage investments....but also investing in US bonds now-with interest rates higher later on-is problematic...

We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: March 15 2023 at 12:44am

DJ, I do not agree with a lot of HT-views but he has a good story on the US-still-financial crisis [url]https://halturnerradioshow.com/index.php/en/news-page/news-nation/the-bank-crisis-the-big-picture-inevitable-collapse-less-than-1-year[/url] or https://halturnerradioshow.com/index.php/en/news-page/news-nation/the-bank-crisis-the-big-picture-inevitable-collapse-less-than-1-year ;

We are in a credit/debt crisis loop.

Banks are undercapitalized.  They need more cash as capital, but to get the cash, they need to borrow it.  More borrowing causes higher interest rates, which means more debt, for which they will again have to borrow . . .  and on and on and on it would go.  Until it collapses.

When the government passed out all that free money during the COVID pandemic, that money flowed into bank accounts. With BASEL 3 banking requirements, banks had to have a percentage of Tier 1 assets that could be liquidated pretty darn quick in case the bank needed to raise money fast.

"Tier 1 assets" means government treasuries . . . and at that time, when banks HAD to buy government treasuries to have Tier 1 assets, the yield on those Treasury bonds was pretty much 0.

Now, with the federal reserve raising rates at such a furious pace, all those bonds the Banks bought . . . have lost value. Why would I want to buy your bond yielding almost nothing, when the current 2-year Treasury Bond is yielding 4.10%?  A week ago it was 5%.

So the banks can't sell it at face value. They would have to sell the bond at a loss in order to make it sell at all.

Silicon Valley Bank (SVB) did this to raise capital due to the outflows of cash, and took an almost 2 billion dollar loss. This is called "unrealized losses."

As you read this story, the total of unrealized losses in the banking system is 620 billion dollars.

Now, the federal reserve is saying  if a Bank needs capital, the Bank can borrow against their Treasury bonds and Mortgage Backed Securities, at "par"  (face value) because if they did it mark-to-market, the sale would be a loss and not help at all.

DJ, US debt already record high...lots of western countries have financial interests in US banks...so it may spread further...

Morgan Stanley, MS, says sell any bounce on this government intervention, next leg of bear market has begun.

On March 2, Morgan Stanley's Mike Wilson gave his thoughts on the current state of the stock market, saying it is now in a "death zone" with predictions of its potentially massive drop. Wilson estimates that the S&P 500 could drop down to 3,000 points within the month, which is a 26% slump.

Wilson said that US stocks have reached "unsustainable heights" and that investors were like climbers who were pushing towards the top without being able to consider the risks properly. The move by investors was likened to "blindly" pushing toward the top of Mount Everest.

DJ, US government did create money to buy up US stocks....


You’re witnessing the accelerated fall of an empire. This year expect major escalation with Russia and China for driving global de-dollarization. When the US can no longer fund its debt with money printing it will collapse under the weight of its current debt. It’s happening now

DJ, It is not only Russia, China...it is BRICS, SCO, OPEC+ moving out of the US$....

The 2008 failure of Washington Mutual Bank is what triggered the 2008 Great Financial Crisis, when the $307 Billion dollar bank, failed.

This week, the two banks that failed, Silicon Valley and Signature Banks, are together, BIGGER than Washington Mutual.  So that puts into perspective how destructive their failures will prove to be in the days and weeks to come.  

This is, without doubt, a financial and economic catastrophe. The unraveling can happen in an instant.

They only "solution" is creating more dollars to save the banks...(and stocks etc.) at least to give the "elite" time to save themselves...

DJ-Western politics is serving a very rich elite...NOT public interest !

[url]https://halturnerradioshow.com/index.php/en/news-page/world/flash-inter-bank-liquidity-almost-completely-frozen-they-won-t-lend-to-each-other[/url] or https://halturnerradioshow.com/index.php/en/news-page/world/flash-inter-bank-liquidity-almost-completely-frozen-they-won-t-lend-to-each-other  a basic need for an economy is trust...and that trust is "damaged"....

DJ-A "correction" to get US/western debt based finance/economy more in "contact" with reality could be just as bad as a crash....

When you look at healthcare, climate problems demand for money is only growing...we may need much more public healthcare, a switch to much less fossil fuels...(riding a bike, public transport is good for health & climate...saves a lot of money...Eat less meat, stop smoking, alcohol...preventative healthcare-sugar tax (did a good job in South Africa !) ...there are lots of steps governments fail to take...

"Blind capitalism" -profits above human well being-is killing us...

We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: March 15 2023 at 5:43am

[url]https://www.zerohedge.com/markets/credit-suisse-sparks-global-de-risking-after-top-investor-bails[/url] or https://www.zerohedge.com/markets/credit-suisse-sparks-global-de-risking-after-top-investor-bails ;

As we detailed earlier, Credit Suisse Group AG's shares reached their lowest point ever, dropping by as much as 10%. This is the eighth consecutive session of decline, which comes in the wake of restructuring issues, delays in submitting its annual report due to 'material weakness' flagged by the SEC last week, and a broader industry selloff following the collapse of Silicon Valley Bank. In addition to these challenges, the troubled Swiss bank now faces a new problem: its top shareholder has said they will not invest any further due to the sharp decline in valuations.

"The answer is absolutely not, for many reasons outside the simplest reason, which is regulatory and statutory," Saudi National Bank Chairman Ammar Al Khudairy told Bloomberg TV in an interview on Wednesday.

That was in response to a question about whether Credit Suisse would receive fresh injections if another liquidity crisis emerged. 

Saudi National Bank, which is 37% owned by the kingdom's sovereign wealth fund, is Credit Suisse's largest shareholder as of late 2022 after acquiring a 9.9% stake. Al Khudairy said there are no plans at the moment to take the stake over the 10% threshold because of regulatory hurdles. In the last several months, since the bank's equity has been on a waterfall lower, the Saudis have lost more than 500 million francs on their position. 

The news the Saudis are perhaps done supporting the troubled Swiss bank sent shares down as much as 25% to a new record low in Zurich. 

DJ [url]https://en.wikipedia.org/wiki/Credit_Suisse[/url] or https://en.wikipedia.org/wiki/Credit_Suisse #45 in [url]https://en.wikipedia.org/wiki/List_of_largest_banks[/url] or https://en.wikipedia.org/wiki/List_of_largest_banks Top 10 is China 4 banks, US and France each 2, Japan, UK 1...

Bloomberg TV; [url]https://www.youtube.com/watch?v=BEDI5cKLbBY&t=131s[/url] or https://www.youtube.com/watch?v=BEDI5cKLbBY&t=131s

Sam Zell: This is the Weimar Republic

Sam Zell of Equity Group Investments on how to weather the economic storm, whether he'll be making purchases any time soon, and the financial conditions across the US. --------

DJ, Still a western "elite" keeps pushing for more war, not only against Russia, also with China, Iran (etc)....however finance for such wars is collapsing...

We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: March 15 2023 at 11:09pm

[url]https://www.zerohedge.com/markets/credit-suisse-sparks-global-de-risking-after-top-investor-bails[/url] or https://www.zerohedge.com/markets/credit-suisse-sparks-global-de-risking-after-top-investor-bails ;

Summary: 

  • Saudis fold - refuse to throw any more money at Credit Suisse
  • Credit Suisse stock hits record low
  • Credit Suisse 1Y CDS explodes as counterparty risk hedging soars
  • Credit Suisse execs urged a "show of confidence" from the Swiss National Bank
  • ECB quantifying exposures to Credit Suisse
  • US Treasury monitoring situation, talking with other regulators
  • Fed working with UST to quantify exposures
  • One major govt is pressuring Swiss to intervene
  • Systemic risk threat spreads globally
  • Swiss authorities seeking to stabilize bank
  • Swiss National Bank and Finma issue statement of support
  • Credit Suisse said it’s planning to borrow from the Swiss National Bank up to CHF50 billion under a covered loan facility.

Update (21:00ET): And so, the "bailout" arrives just a few hours before the Europe open, Credit Suisse said it’s planning to borrow from the Swiss National Bank up to CHF50 billion ($54 billion) under a covered loan facility which is "fully collateralized by high quality assets". It wasn't immediately clear what high quality assets CS has left to pledge but in a time of BTFP, we are confident they found something. 

DJ, Credit Suisse ran a.o. in problems due to large investments in US companies [url]https://en.wikipedia.org/wiki/Credit_Suisse#Controversies[/url] or https://en.wikipedia.org/wiki/Credit_Suisse#Controversies Greensill Capital and Archegos Capital, damage over 10 billion in 2021...sanctions against Russia did see Russian investors/oligarchs also pull out billions...A lot of banks become involved in a role for financial transactions of criminals/terrorists...(banks may not always be aware of that...also criminals/terrorists somehow need a sort of income...). 

So to summarize: Credit Suisse effectively just took out a priming DIP loan, pledging its last remaining assets with the SNB, to shore up some $54BN in emergency liquidity, probably how much the bank has seen in deposit outflows. It will be very interesting on what terms those assets were pledged.

Another way of saying it, is that this is a last-ditch liquidity infusion, and all it does is prevent forced asset liquidations (a la SVB). Meanwhile it does nothing to halt the depositor flight because once trust is broken, it rarely returns.

The news sent Euro Stoxx 50 futures 2% higher, and pushed Emini S&P futures to session highs of 3946; 2Year yields moved up by about 20bps to 4.00% before fading the move.

DJ, to stop/slow down inflation central banks increase interest rates...further worsening the position of "non-central-banks" ...So-as a non-expert- I expect we are only at the start of a major financial/banking crisis...

The "big story" is Asian economy is booming, west is in/near recession (or worse)....so lots of money goes from western banks to Asian/BRICS banks...using both the US$ and SWIFT as a US weapon also increased pull out of western banks....

Pandemic link; in the west inflation further will increase...There are strikes in health care in many countries. health insurance costs go up....in other words; capacity to deal with more healthcrises is further decreasing...(sick leave in HCW-ers 5-10%+...). 

We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: March 19 2023 at 11:55pm

Maybe short the pandemic link; Due to restrictions during the "peak" of CoViD (pandemic is not over !!! WHO) consumer spending went down so banks did get more money with less investors trying to get a loan...Governments offered security at low interest rates-bank money was used to keep the economy going...

With all pandemic restrictions gone lots of countries tried to stimulate their economies-increasing inflation. Interest on "pandemic" state bonds was low...new investments offered higher interests...but banks had lots of money (trillions ???) in low/no interest investments-they decreased in value high speed...

DJ-Monday march 20,

[url]https://halturnerradioshow.com/index.php/en/news-page/world/whoa-ubs-buys-credit-suisse-for-only-3-2-billion-less-than-1-a-share[/url] or https://halturnerradioshow.com/index.php/en/news-page/world/whoa-ubs-buys-credit-suisse-for-only-3-2-billion-less-than-1-a-share since it may describe the crisis;

There must have been very big and very nasty details on the books of Credit Suisse; UBS has agreed to buy its rival for only $3.2 BILLION.  Prior, Credit Suisse has a Market Capitalization of about $7 BILLION.   So the UBS buy is less than $1 a share!

UBS agreed to buy its embattled rival Credit Suisse for 3 billion Swiss francs ($3.2 billion) Sunday, with Swiss regulators playing a key part in the deal as governments looked to stem a contagion threatening the global banking system.

“With the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation,” read a statement from the Swiss National Bank, which noted the central bank worked with the Swiss government and the Swiss Financial Market Supervisory Authority to bring about the combination of the country’s two largest banks.

The terms of the deal will see Credit Suisse shareholders receive 1 UBS share for every 22.48 Credit Suisse shares they hold.

“This acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue. We have structured a transaction which will preserve the value left in the business while limiting our downside exposure,” said UBS Chairman Colm Kelleher in a statement.

The combined bank will have $5 trillion of invested assets, according to UBS.

Hal Turner Opinion

Saudis are not going to be happy about this at all.

Considering that shareholders didn't even get a vote (against the law?), I would think that they see the writing on the wall and begin selling off assets as quickly as possible.

I suspect they are going to instigate a run for the exits, and with their size they will not wait to do it slowly.

Tomorrow is going to be a very, very interesting day.

Assuming that UBS Credit Default Swaps (CDS)  don't jump 100bps and nullify the deal... and I suppose even if they do, the Swiss National Bank will just change the contract and force it down their throat any way.

This was ugly!

Credit Suisse is no more. It technically collapsed, then the govt. changed the laws in real-time and made UBS buy it with a bailout. They broke the law and refused to allow the rightful owners (shareholders) to UBS to vote, and dictated the sale... rule's and law be dammed.

The entire western system is now a joke and fraud. They rig the rules to their favor, no one goes to jail, and all the shareholders just got robbed for billions.

You know what I think?   I think what we're all NOT seeing is the chess moves. These banks are ALL interlinked with derivatives and counter-party risk. All these banks have been cross-trading and leveraging against each other. One goes down, they all go down.

UBS is the hatchet man for CS. They need one bank to absorb the toxic debt, and UBS needs to present a mask of safety for capital and investment holders when CS is officially retired.

All the banks are cutting off one finger at a time. It’s all misdirection. Europe will burn this summer.

P. S. The credit default swaps are already crushing!  CDS for UBS is going through the roof now - over 300BP at moment and rising like rocket.  Stock market will be fun tomorrow.

UPDATE 6:09 PM EDT--

JUST IN: About 16 billion Swiss francs ($17.3 billion) of Credit Suisse, $CS, bonds have become worthless after takeover by UBS.

This announcement from the Swiss Financial Monetary Authority (FINMA):

"Credit Suisse has been informed by FINMA that FINMA has determined that Credit Suisse’s Additional Tier 1 Capital (deriving from the issuance of Tier 1 Capital Notes) in the aggregate nominal amount of approximately CHF 16 billion will be written off to zero."

 

HT REMARK:   I don't want to be seen as some sort of "Chicken Little the sky is falling" but do all of you realize what this has done?   The rules are no longer the rules in the West.  The law is no longer the law.   The Saudis and other investors have just watched the rules and the law go literally out the window in this situation, and they are left holding the bag of almost worthless stock and literally worthless bond paper.

If YOU were the Saudis/Arabs and YOU had hundreds of billions of your oil profit money sitting in western banks, what would YOU do right now?   Yep.  Pull it all.   Because it's clearly no longer safe.  It can be grabbed by the West, with no notice and no recourse, within seconds.  On a weekend, even!

If the Saudis and Arabs come to the same conclusion that I just did, then this is now realistically what we can all expect: A real-life rendition of the 1981 movie "Rollover" starring Kris Kristofferson, Jane Fonda and Hume Cronin.  In that movie, Arabs pulled all their money from western banks, and the entire monetary system collapsed.  All the money gone.

DJ, Saudi Arabia (KSA) investors have a lot of investments in Credit Suisse -and many other western companies. KSA is preparing to join the non-western BRICS and SCO working on an alternative for the western financial system...

Russia, Iran, China (a.o.) are "in conflict" with the west...The western financial sector is the western weak spot...Crashing the west can avoid a war over Taiwan...may end the US-Russia war in Ukraine...DJ-Or the US -biden- could go even more crazy ...go for nuclear war ? 

-Of course rumours on a possible arrest of trump -to avoid trump getting elected as a next US president, also does not restore trust in "the west"...DJ-In Europe/UK I think there is a growing trend to "move away" from the US....US interests are not always European interests...The US-biden-may have no idea of what he is doing...

[url]https://www.zerohedge.com/markets/fed-panics-announces-coordinated-daily-us-dollar-swap-lines-ease-banking-crisis[/url] or https://www.zerohedge.com/markets/fed-panics-announces-coordinated-daily-us-dollar-swap-lines-ease-banking-crisis DJ-Central banks going to "create" trillions to avoid a stock market crash ? Pushing towards hyperinflation....

We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: March 24 2023 at 11:21pm

The Duran [url]https://www.youtube.com/watch?v=szSpZYtnkEI[/url] or https://www.youtube.com/watch?v=szSpZYtnkEIForcing UBS to swallow Credit Suisse


DJ, Swiss central bank doubled security for USB to take over Credit Suisse....to over 100 billion $/€...so (western) worldwide bank shares are -again- under pressure...

To save the banks [url]https://en.wikipedia.org/wiki/Quantitative_easing[/url] or https://en.wikipedia.org/wiki/Quantitative_easing and lower interest rates...Lots of central banks did increase interest rates to (try to) limit inflation...

But rwo major factors behind increase of inflation;

-1. Less spending/more saving during the pandemic...banks did get a lot of money they had to "park" at low interest rates...So when interest rates went up investments in low interest safety (US bonds, other government securities) decreased in value...pushing lots of banks into problems...

-2. The main reason for the increase of prices is the -insane- sanctions war against Russia, China, Iran etc...Energy prices going up means ALL prices go up...

(DJ-Local production means less transport costs-could control price increase...but not always an option when "open markets" is the ideology...)

DJ-Lots of banks have lots of bad (long/short term) investments...still "politics for sale" claim "no problem"..."economists for sale" claim inflation will NOT increase when you create more money out of thin air during a supply problem for the west....Will they blame trade unions for their demand of compensation for price increases ? 

Both the pandemic and endless US/NATO wars have been very expensive...the basic discussion now who has to pay...The expected outcome is "let the poor pay" ;

-Poor countries are no longer under western control...Move towards SCO/BRICS+ =Russia, China...

-Poor people in western countries-number is growing- do not have the money to "save the western financial system"...

-Rich non-western countries; OPEC+, Russia, China...are dumping western debts/bonds...to at least get some money for it...

[url]https://www.zerohedge.com/news/2023-03-24/dirty-secret-about-bank-bailouts[/url] or https://www.zerohedge.com/news/2023-03-24/dirty-secret-about-bank-bailouts ;

Politicians are self-interested creatures who are constantly looking for ways to stay in power, irrespective of the consequences of their actions.

They routinely pass policies that are designed to help them achieve re-election with no concern for the long-term consequences of said actions. Short-term thinking is the order of the day in politics.

The funny thing is that politicians claim to be independent and above the fray, but in reality, they’re total slaves to interest groups. Every election cycle they must placate these interest groups.

Among these groups are banking interests. Banks practically run major economic affairs in the nation. Anytime the banking sector experiences a major financial crisis, they’re among the first to receive taxpayer-funded bailouts at Middle America’s expense.

These entities are truly privileged. While we at the Rebel Capitalist community are opposed to all forms of bailouts, it’s truly perverse that lucrative institutions such as commercial banks receive such taxpayer handouts. Even worse, they receive these handouts for making poor economic decisions.

In a real free market economy, these banks would be punished for their bad business decisions and possibly be allowed to go under. With time, they would be replaced by competing banks with more competent management.

Alas, we don’t live in such sane economic conditions. Currently, there’s talk of new bailouts to be doled out to banks as economic conditions in the United States deteriorate.

However, there might be a more nefarious endgame at play with these bailouts.

DJ, Money is power...even with money based on thin air or-even worse-debts...negative value...The US$ is a "share in debt"...when countries realize that they will further "dump dollars"...it is NEGATiVE value...The US could play its dominant-financial-role because of its military role...Enforcing the rest of the world to pay for US debts...

You can not de-link de-Dollar-ization from banks collapsing....The Ukraine, Syria, wars are "defending western "values" based on endless debts"....

NATO is in a war to save its financial blackmail and extortion scheme...presented as "democracy"...and it is going very bad..more on code black/latest news...

We cannot solve our problems with the same thinking we used when we created them.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: March 27 2023 at 12:32am

The Duran [url]https://www.youtube.com/watch?v=NPr77FCCxS8[/url] or https://www.youtube.com/watch?v=NPr77FCCxS8 ;Deutsche Bank, too big to fail

DJ, NOT linking the bank-crisis to the international "situation" is ignoring elephants in the room-a "western specialization"....

-Sanctions war on a.o. Russia

-stealing bank accounts from Russia(ns), Venezuela, Afghanistan

-Using currencies as a weapon

-De-Dollarization 

All increase pressure on "the west financial system" allready based on debts/QE...So lots of non-western companies, persons take money from unsafe western banks, higher energy prices reduce economy/profits...banks in the "west" are not "the best investments"...

Inflation in Russia now lower than inflation in EU-UK-US for the first time since the end of the Soviet Union...1991...

And all the west can think of is more escalation, more war, more sanctions...

[url]https://halturnerradioshow.com/index.php/en/news-page/world/covert-intel-israel-on-verge-of-political-social-collapse[/url] or https://halturnerradioshow.com/index.php/en/news-page/world/covert-intel-israel-on-verge-of-political-social-collapse no doubt related in many ways...

[url]https://www.zerohedge.com/geopolitical/us-tensions-iran-reignite-dollars-petro-currency-status-under-threat[/url] or https://www.zerohedge.com/geopolitical/us-tensions-iran-reignite-dollars-petro-currency-status-under-threat 

The Dollar as global reserve currency is over...it will have its effects on western banks...

We cannot solve our problems with the same thinking we used when we created them.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: April 25 2023 at 1:40am

DJ, 

[url]https://halturnerradioshow.com/index.php/en/news-page/news-nation/first-republic-bank-goes-zombie-loses-40-of-deposits[/url] or https://halturnerradioshow.com/index.php/en/news-page/news-nation/first-republic-bank-goes-zombie-loses-40-of-deposits

For what it's worth, FRC is the eighteenth (18th) largest bank in the United States.  The fact that banks in the top 11-20 are now going "Zombie" means the contagion will likely spread to the top 1-10 banks within 3 months.  The reason: Even with the FDIC, people in the general public are no longer trusting the banks.

Proof that people have lost trust in the banks is typified by the Twitter posting, today, from Rob Kientz who reported to the world that he knew of a single Investor who asked him to source $150 MILLION in DORE gold/silver bars, immediately.


HT also publishes a lot of garbage...[url]https://www.wionews.com/business-economy/first-republic-bank-to-cut-up-to-25-workforce-as-deposits-tumble-585828[/url] or https://www.wionews.com/business-economy/first-republic-bank-to-cut-up-to-25-workforce-as-deposits-tumble-585828 (India) ;

What is happening at the First Republic Bank?

Last month, the United States government took the "receivership" of the collapsed Silicon Valley Bank, after a sale of available-for-sale securities stokes a massive outflow of the depositors.

The crisis put a spotlight on banks sitting on large piles of unrealised and often unreported losses on their balance sheets, First Republic Bank one amongst them.

Bloomberg reported that the First Bank executives considered a sale of the entire bank. The large unrealised losses have caused some buyers to not consider a buyout of the bank at all, the report added.

Founded in 1985, First Republic has expanded its wealth-management services and related offerings for the ultra-rich over the decades.

But in recent weeks, a number of its advisers have left for the rivals, Bloomberg reported. 

DJ, De-dollar-ization means US banks have very major problems...the west financial system is highly connected...so if US banks have problems it will influence (further) UK/EU banks...

We cannot solve our problems with the same thinking we used when we created them.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote judeusx Quote  Post ReplyReply Direct Link To This Post Posted: April 25 2023 at 9:57pm

According to Clif High,the usd will crash 80%,starting in first week may. https://clifhigh.substack.com/p/heavy-metal#details Newest episodes scroll down ,press" NEW" . ( Clif developed predictive language analysing webbots,and can see coming events years before they happen. Only not when !. But when certain event happen he knows which one comes next,and how soon. He calls them markers. For ex. Trumps legal case/mugshot,or the cow mutilations he predicted years ago,and happened now. He predicted covid-19 years before,and millions dying. Only he thougt it was sun related because of CORONA word.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: April 26 2023 at 12:41am

[url]https://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic[/url] or https://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic ;

Hyperinflation affected the German Papiermark, the currency of the Weimar Republic, between 1921 and 1923, primarily in 1923. It caused considerable internal political instability in the country, the occupation of the Ruhr by France and Belgium, and misery for the general populace.

Background[edit]

To pay for the large costs of the ongoing First World War, Germany suspended the gold standard (the convertibility of its currency to gold) when the war broke out. Unlike France, which imposed its first income tax to pay for the war, German Emperor Wilhelm II and the Reichstag decided unanimously to fund the war entirely by borrowing.

The government believed that it would be able to pay off the debt by winning the war and imposing war reparations on the defeated Allies. This was to be done by annexing resource-rich industrial territory in the west and east and imposing cash payments to Germany, similar to the French indemnity that followed German victory over France in 1870.[1] Thus, the exchange rate of the mark against the US dollar steadily devalued from 4.2 to 7.9 marks per dollar between 1914 and 1918, a preliminary warning to the extreme postwar inflation.[2]

This strategy failed as Germany lost the war, which left the new Weimar Republic saddled with massive war debts that it could not afford, totalling 132 billion gold marks (US$33 billion, 1914 exchange rate), later revised under the Young Plan to 112 billion marks (US$26.3 billion, 1914 exchange rate). The debt problem was exacerbated by printing money without any economic resources to back it.[1] The demand in the Treaty of Versailles for reparations further accelerated the decline in the value of the mark, with 48 paper marks required to buy a US dollar by late 1919.[3]

Afterwards, German currency was relatively stable at about 90 marks per dollar during the first half of 1921.[4] Because the Western Front of the war had been mostly fought in France and Belgium, Germany came out of the war with most of its industrial infrastructure intact, leaving it in a better position to become the dominant economic force on the European continent[5] after an Allied ultimatum to impose economic sanctions that would force Germany to meet payments.[6]

The first payment was made when it came due in June 1921,[7] and marked the beginning of an increasingly rapid devaluation of the mark, which fell in value to approximately 330 marks per dollar.[3] The total reparations demanded were 132 billion gold marks, but Germany had to pay only 50 billion marks at the time, as the reparations were required to be repaid in hard currency, not the rapidly depreciating Papiermark.[8]

From August 1921, the president of the Reichsbank, Rudolf Havenstein began a strategy of buying foreign currency with marks at any price, without any regards for inflation, and it only increased the speed of the collapse in value of the mark,[9] meaning more and more marks were required to buy the foreign currency that was demanded by the Reparations Commission.[10]

DJ Fight a war based on debts...not new...The US "needs" to win a war with Russia, China etc. to get out of debts...

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: May 03 2023 at 12:19am

[url]https://southfront.org/first-republic-the-latest-victim-in-us-banking-crisis/[/url] or https://southfront.org/first-republic-the-latest-victim-in-us-banking-crisis/ ;

California-based First Republic Bank was seized by US financial authorities on May 1 and sold to JPMorgan Chase in a desperate effort to alleviate the two-month banking crisis that has gripped the US. First Republic became the second-largest bank by assets to collapse in US history after it announced a loss of more than $100 billion in deposits in the first quarter and failed to produce a satisfactory rescue plan. The federal government believes a total of $13 billion will have to be forked out to cover the bank’s losses.

-

Although First Republic seemingly appeared to be strong because of its wealthy clientele who deposited large sums, the banking defaults across the US scared customers. Because most First Republic loans were fixed-rate mortgages, a financial meltdown was guaranteed when the fixed-rate mortgages lost value due to soaring interest rates

First Republic is the second-largest bank in US history to collapse when not including investment banks, such as Lehman Brothers. With assets standing at $233 billion just days before the takeover, First Republic still only comes in second place due to Washington Mutual’s collapse during the 2008 financial crisis. Just like First Republic, Washington Mutual was ultimately acquired by JPMorgan.

Before the JPMorgan takeover, Nicolas Veron, an economist at the Peterson Institute for International Economics, said: “First Republic was identified as a problem bank as early as mid-March and the announcement of its closure is not a new reason to worry. If another bank proved to be fragile, that would be another problem.”

In trying to alleviate concerns despite the evident banking crisis, the US Treasury said: “The banking system remains sound and resilient, and Americans should feel confident in the safety of their deposits and the ability of the banking system to fulfil its essential function of providing credit to businesses and families.”

The crisis also comes as the Federal Reserve struggles to counter inflation through massive interest rate hikes, which they will expectedly do once again in May.

The latest bank collapse was followed by Treasury Secretary Janet Yellen warning that the US may not be able to meet its debt obligations “as early as June 1” if Congress does not raise the debt limit.

“After reviewing recent federal tax receipts, our best estimate is that we will be unable to continue to satisfy all of the government’s obligations by early June, and potentially as early as June 1, if Congress does not raise or suspend the debt limit before that time,” Yellen wrote in a letter to Congress on May 1.

The letter also highlighted that “federal receipts and outlays are inherently variable, and the actual date that Treasury exhausts extraordinary measures could be a number of weeks as more information becomes available.”

“Given the current projections, it is imperative that Congress act as soon as possible to increase or suspend the debt limit in a way that provides longer-term certainty that the government will continue to make its payment,” Yellen urged.

This once again demonstrates that for all the brave talk by the Treasury, there is immense stress on the US financial and banking system, something that is only worsening as Washington continues to pump billions of dollars to the Kiev regime, an action that is proving increasingly unpopular in the country as well as Europe.

DJ, again I am NOT an expert....[url]https://halturnerradioshow.com/index.php/en/news-page/news-nation/uh-oh-three-more-banks-stock-trades-halted-plunging[/url] or https://halturnerradioshow.com/index.php/en/news-page/news-nation/uh-oh-three-more-banks-stock-trades-halted-plunging will be related...

People may take money from banks for lots of reasons;

-Increase of prices faster than incomes means using reserves to make ends meet

-Loss of trust or better perspectives for the international market...Finance has become a high-speed-market...with a press of a button money could go from the US to the UAE...

-Also money switching from currencies to "real goods" like oil, gold, real estate even...

The financial crisis however is a risk for real estate, even energy demand...If people have to do with less income they end up spending more for food, water, essentials-less for housing, cars, travel if possible

US debts going up with now even less in assets as a balance is pushing the US to self destruction...with western banking very interlinked it may affect lots of non US banks...(see also de-dollar-ization...BRIICSS+ -my view- trying to unable the US/west to run more wars via economic/financial warfare...). 

We cannot solve our problems with the same thinking we used when we created them.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: May 08 2023 at 9:59am

[url]https://southfront.org/us-banking-crisis-in-a-new-stage-of-contagion/[/url] or https://southfront.org/us-banking-crisis-in-a-new-stage-of-contagion/ ;

After years of trade protectionism, the global pandemic and depression, the net effect of the high-cost US/NATO-led proxy war against Russia in Ukraine has been a lethal mix of a global energy crisis and the meltdown of the global food system.

The spread effects

The elusive calm until the demise of First Republic Bank did not reflect the end of the crisis, but its steady progress. As Mohamed El-Erian, chief economic advisor at Allianz, put it last week. “Now we have stage two, where banks that are not particularly badly managed they have issues but they’re not particularly badly managed – are suddenly vulnerable.” In other words, “the cancer within [these banks] is starting to spread.”

As credit conditions are tightening, the risks of further contraction rise with banking contagion. Structural vulnerabilities remain huge. In parallel with the demise of SVB in March, one consequential study indicated that almost 200 more banks may be vulnerable to the type of risk that caused the collapse of SVB. These banks across the US could fail if half of their depositors quickly withdraw their funds. Even insured depositors — those with $250,000 or less in the bank — could have problems getting their cash if these institutions face the kind of run that SVB experienced.

According to the co-author of the study, a banking expert at Stanford University, half of US lenders are underwater: “Let’s not pretend that this is just about Silicon Valley Bank and First Republic,” he said recently. “A lot of the US banking system is potentially insolvent.” Presumably, some 2,315 banks across the US are currently sitting on assets worth less than their liabilities.

Still worse, the lingering banking crisis occurs at a time, when the White House is engaged in the largest war funding in decades and the Congress has wasted half a year failing to agree on a debt limit.

U.S. default risk as an “economic and financial catastrophe”

A week ago, US Treasury Secretary Janet Yellen warned that the US will run out of cash by June 1 if Congress fails to raise or suspend the debt ceiling. She urged Congress to act “as soon as possible” to address the $31.4 trillion limit. President Biden has called a meeting of congressional leaders on the matter on May 9.

The US hit the statutory limit already last December. Since then, Yellen has repeatedly warned that “failure to raise U.S. debt ceiling would lead to “economic and financial catastrophe.” Unsurprisingly, the Biden administration is under mounting pressure to reconcile the conflicting demands.

Historically, the debt ceiling has been raised, extended or revised 78 times since 1960. If this time is different, it will have significant and adverse global repercussions. If, however, a new debt limit arrangement will be achieved, it can only happen by taking more debt. In this case, Washington will delay its default by buying time, which will make the eventual US debt crisis worse.

The economic fundamentals and safety nets that prevailed in 2008 have been largely exhausted. The West is navigating in perilous waters with leaking lifeboats.

DJ, de-dollar-ization only making US banks more vulnerable...The US is destroying itself by its endless wars...so lots of countries may only have limited interest in peace...(and that is bad news for Ukraine being destroyed for political "goals"...).

We cannot solve our problems with the same thinking we used when we created them.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: May 18 2023 at 12:44am

A very good article comparing debt based Roman empire with the present debt based US [url]https://sputnikglobe.com/20230515/pepe-escobar-us-empire-of-debt-headed-for-collapse-1110374196.html[/url] or https://sputnikglobe.com/20230515/pepe-escobar-us-empire-of-debt-headed-for-collapse-1110374196.html 

So “what’s happening in the banking crisis today is that debts grow faster than the economy can pay. And so when the interest rates finally began to be raised by the Federal Reserve, this caused a crisis for the banks.”
Prof. Hudson also proposes an expanded formulation: “The emergence of financial and landholding oligarchies made debt peonage and bondage permanent, supported by a pro-creditor legal and social philosophy that distinguishes Western civilization from what went before. Today it would be called neoliberalism.”
Then he sets out to explain, in excruciating detail, how this state of affairs was solidified in Antiquity in the course of over 5 centuries. One can hear the contemporary echoes of “violent suppression of popular revolts” and “targeted assassination of leaders” seeking to cancel debts and “redistribute land to smallholders who have lost it to large landowners”.
The verdict is merciless: “What impoverished the population of the Roman Empire” bequeathed a “creditor-based body of legal principles to the modern world”.

DJ, you end up with a legal system serving the rich...everything "public" given up for "private interests"....The big question is who runs countries....

In combination with expensive wars, not solving climate, health-crises (not in the interest of a rich-often "(old)royal" elite...not their problem...) modern states erode...Banks for the rich survive (since the global rich have more then one nationality they welcome international banks...Regional (US) banks have limited use for that elite...). 

So-yes-the bank-crisis/financial crisis is far from over...De-dollar-ization only worsens the situation for US banks...

Prof. Hudson shows how Greek and Roman economies actually “ended in austerity and collapsed after having privatized credit and land in the hands of rentier oligarchies”. Does that ring a – contemporary – bell?
Arguably the central nexus of his argument is here:

“Rome’s law of contracts established the fundamental principle of Western legal philosophy giving creditor claims priority over the property of debtors – euphemized today as ‘security of property rights’. Public expenditure on social welfare was minimized – what today’s political ideology calls leaving matters to ‘the market’. It was a market that kept citizens of Rome and its Empire dependent for basic needs on wealthy patrons and moneylenders – and for bread and circuses, on the public dole and on games paid for by political candidates, who often themselves borrowed from wealthy oligarchs to finance their campaigns.”

History repeats itself...Debt-based economies and democracy ends up in "democrazy"...political puppets for sale, science-for-sale etc. 

A bank crisis may be part of a "system reform"...but countries are often not able to "reform themselves" in a "friendly way"....

We cannot solve our problems with the same thinking we used when we created them.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: October 02 2023 at 11:22pm

Another good video from Lena Petrova [url]https://www.youtube.com/watch?v=pThaVJrzZO0[/url] or https://www.youtube.com/watch?v=pThaVJrzZO0 ;

THE BANKING CRISIS IS BEGINNING: Hundreds of Banks Face MASSIVE Deposit Outflows,BILLIONS In Losses

DJ, some of the problems-very likely also with European banks;

-loss of trust-so banks keep a lot of cash to deal with "limited bank runs"

-Debts not being repaid...

-"Unrealized losses"...banks did buy shares, values at a (much) higher price than they now can get if they would sell it...So-as long as you do not sell those values in bookkeeping those "values" can remain overpriced...

A major part of bank problems have links to central banks increasing interest rates...State bonds with an interest-income of 1% per year are "decreasing in value" when central banks sell state bonds giving 4% interest per year...

Unlimited creating of fiat-currency-and debts-to "fight Russia and China" is destroying western economies...Lots of countries in the west now also face much higher energy costs...Inflation=destruction-for now...You simply have to pay more for less...

So -yes- spending may go up...consumers expect higher prices later on, governments put money in the war-industry....but debts also go up...with interest rates also going up you move high speed towards recession even economic depression....

The way out of this downward spiral has to be diplomacy-normalization of US/NATO-BRICS+ relations...But we see things moving the other way with now even India-NATO tensions growing...

A further "unexpected" CoViD-pandemic wave, more climate disasters, only increase (US) banks-collapse...YOU PAY !!!!

We cannot solve our problems with the same thinking we used when we created them.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: October 22 2023 at 11:50pm

Lena Petrova [url]https://www.youtube.com/watch?v=zLtUl2SyOn8[/url] or https://www.youtube.com/watch?v=zLtUl2SyOn8 ;

National Debt Emergency: Interest Expense On Debt To Surpass Defense, Medicare, Medicaid Spending

DJ, a "model" predicts the US may see interest payments as the #1 expense by 2051...However-with the US going into more wars less countries are willing to give the US any credit...So interest rates for the US government (now sometimes already 5%) will go up...So will inflation...

Tax income may drop-resulting in more loans needed, interest rates going up even higher...an economic downward spiral...

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Poverty has been increasing in many western neo-liberal countries...With only a few getting -very- rich....Fiat-currency may have already peaked...could "drop" into hyperinflation pulling with it (private) banks...

Those banks see people unable to repay debt, decrease of value of assets, so profits are destroyed...Since banks also had to -often buy- parts of national debts also that part of the balance is "sinking"...

Increasing national debts simply means destroying most households, smaller companies...International banks, companies, can shift activities and debts...So US, German/EU, UK companies may stay US, EU, UK companies in name only...seeking survival in other countries with maybe only a P.O.box remaining in the country of origin...

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With increase of major public health risks, climate disasters etc. and "politics for sale" making the costs of those "public" (vaccine profits are private...war profits are private...) we are in a downward spiral. 

We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein
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