The backdrop behind the ongoing made-for-television reality show we're all living right now is a major banking crisis. Now that we're a week and a half into this mess, it's becoming clear that the scale and breadth of the problem is staggering. The repercussions of today's Fed decision will be be profound: Do they hike more right in the face of the meltdown? Maybe. That would indicate to me that they are doing this on purpose since it could not be clearer that the higher interest rates are the knife in the gut of all the banks right now. Raising rates now would be akin to twisting that knife for maximum pain.
"As he does eight times a year, Jerome Powell will stroll in front of a podium on Wednesday afternoon and discuss the latest decision of the FOMC and answer softball questions from reporters. This is always an interesting event, but I daresay that the press conference this week will easily rank in the top five of the past decade in terms of importance and consequence."
As many of you already know, I have been clear about what I think the motivation for the Fed rate hikes actually are: A controlled demolition of our current economy which will consolidate complete control over all money transactions into the hands of the Federal Reserve (not a government agency) fully managed by a handful of preferred banks. In order to achieve this first, all smaller, regional banks and any alternative forms of money must be eliminated or marginalized. In other words, I believe they are purposefully breaking the system in order to "reset" it with them still in charge and with far more control. To me, there is no other explanation to why they are hiking rates into an economy already in recession. If they hike again today, that would be an exclamation point to my hypothesis.
"So, if the Fed hikes tomorrow, they WIDEN this spread even further. And the yield-seekers will have even more incentive to leave. The banks will bleed, and bleed, and bleed deposits.Why should the yield-seekers stop moving their money? The already downloaded the app, they reset their password, they figured out how to move money. They are not going to unlearned it."
Yesterday I was speaking with one of my clients who asked me "what's the end game here Nick? - I'm thinking this is all meant to issue in the new era of Federal Digital currencies, (CBDC) while using the color of law to ban all other forms of "money". The evidence points in that direction: They are already beta-testing digital currencies in Nigeria, it's not going very well but that's why they test first. Both Red & Blue States are moving legislation at light speed to "reform" UCC (Universal Commercial Code) in order to legally make CBDC's the ONLY form of sanctioned money (the bills also make Bitcoin illegal, why?)
"Governments will probably mandate CBDCs as the “solution” when the next real or contrived crisis hits—which is likely not far off. That’s why you must pay attention to what is happening in Nigeria. That way, you can know what to expect and take preventative action."
Fortunately a lot more people are catching on:
"The message to the financial world is crystal clear: Your money isn’t safe in any western bank, not in Europe, America, Canada or anywhere. It’s not even safe in “systemically important” banks, because governments will simply change the rules without notice, completely outside the law, and they will steal your bonds, your deposits and your shares to keep their own authoritarian regimes in power while gutting investors."
"A week-and-a-half after the second-largest bank failure in American history ignited uncertainty throughout the global economy, experts warn bank failures and the stabilization measures taken by the Federal Reserve and Wall Street are creating even greater bank consolidation — and might further pave the way for a central bank digital currency (CBDC)."
You might ask how will they achieve something so ambitious? The answer is: They already have done so many times before! In 1933 Gold was money and the Dollar was Gold's bitch. The government was forced by law to have Gold on hand because Dollars were legally required to be immediately convertible into Gold by the US Treasury so, when things got bad what did they do?? They changed the law (moved the goal post) and made owning Gold ILLEGAL:
Presto, chang-o! Now Uncle Sam's back in charge. Believe it or not this wasn't the death of the Dollar, that happened in 1971 when Nixon unilaterally defaulted on US Bonds which had been issued with the agreement they would be convertible into Gold according to the Betton Woods Agreement. You see, when you're the largest military power in the world you can do as you please.
There is no question in my mind that those currently in charge will do WHATEVER IT TAKES to remain in charge. At the day of reckoning if they're faced with failure they would prefer to set off a nuke in the center of New York before giving up even a small portion of their privilege and power.
There's a saying: "Those who ignore history are condemned to repeat it".
I also have a saying: "Those of us who know and respect history are condemned to stand by powerlessly and watch all the other idiots repeat it".