5/2/23: BANK STATEMENT – OH THE HUMANITY W/ ALAN JOHNSON

On May Day, First Republic Bank became another casualty of the over spending and carelessness of the war hawks and those who wish to create artificial scarcity.

Monday’s shutdown marks the nation’s second-largest bank failure — First Republic Bank had nearly $230 billion in assets last month, eclipsing the Silicon Valley Bank collapse. Three of the four largest bank failures in U.S. history have taken place over the last two months.

The FDIC took control of the San Francisco-based regional bank and brokered its sale to JPMorgan Chase. The deal will protect deposits, likely wipe out shareholders and make the nation’s largest bank even bigger.

First Republic’s fate was set when the bank revealed that it lost $100 billion in deposits after SVB’s collapse led to panic among wealthy clients. Its stock plummeted 75 percent last week.

It’s unclear whether First Republic Bank is the final domino to fall in the recent banking crisis. That could hinge on whether depositors will pull their money from other institutions.

Other banks that may be close to effective insolvency include the Bank of Hawaii and the Banco Popular de Puerto Rico. The Bank of Hawaii’s hypothetical shortfall as of the end of 2022 already exceeded 60 percent of its capital. The BPPR has over double its capital in assets held to maturity. All three banks—Bank of Hawaii, BPPR, and Charles Schwab—have lost between one-third and one-half of their market capitalization over the last month.

It is difficult to say with certainty whether they are indeed secretly close to insolvency as they may have some form of insurance that could absorb some of the impact from a loss of value in their assets, but if this were the case it is not clear why they would need to employ this questionable accounting technique so heavily. The risk of insolvency is currently the highest it’s been in over a decade.

Central banks can solve liquidity problems while continuing to raise interest rates and fight price inflation, but they cannot solve solvency problems without pivoting monetary policy or through blatant bailouts, which could increase inflation expectations, exacerbating the problem of decreasing valuations of long-term assets. In the end, the Federal Reserve might find that the most effective way to preserve the entire system is to let the weakest fail.

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’s 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 into the Kyiv regime, an action that is proving increasingly unpopular in the country as well as Europe.

Throwing away $2.24 trillion is a mighty amount. It’s also a sickening figure when considering the object of what is happening. The tease of war, the promise of bloodshed, and an increasingly large butcher’s bill are inevitable suggestions from such a figure.

The scenes are so clear: well-paid suits coming up with theories of the next world war; policy talking over mock war games. A huge amount of money is being pushed into the venture, and the skeptics are being held at bay.

Is it so wrong to say enough is enough? Is the strategy to bankrupt The U.S. while doing whatever is necessary for victory over Russia?

Do Americans have a say in this? Or are they afraid to say anything and stand accused of being Russian assets?

Clearly, the Good Ship USA that has been buffeted by a global pandemic, raging inflation, a European war, and bank failures is taking on water. We are hoping that the ship doesn’t sink, there are some serious alarm bells going off and I wonder if people are hearing them.

I can’t believe that Americans are happy with what is happening — I can’t believe that we want to continue going in the direction we are going.

Promises form the white house and the number-crunching economists assured us that the cavalcade of price increases battering household budgets was only temporary, due to disruptions in global supply chains caused first by the pandemic, then by the war in Ukraine. Those promises were made over two years ago.

And here we are again witnessing another bank failure.

The question is How many more bank failures will it take to shake Americans’ confidence in the ‘full faith and credit’ of the U.S. government?

We all can get a dark feeling of paranoia as we wonder if the American banking system is safe.

The data shows that the three American banks that have failed so far this year represent more deposits than the 25 banks that collapsed in 2008.

Financial experts are urging calm, suggesting everything will work itself out if we just trust the system. But you really have to wonder if this isn’t all happening by design.

The Fed is coming out in July with its new FedNow product, which will provide the platform for a central bank digital currency — a currency nobody really wants.

So, how do you get Americans to want a CBDC? You trash the existing fiat currency, that’s how. Create fear, even panic among the masses. Then you promise a way out through the launch of the new CBDC.

Federal regulators no doubt would love to see bank runs, as long as those bank runs are focused on the smaller and mid-sized banks because that means more money flowing into the top-tier largest banks. When the dust settles the Fed would love nothing more than to see a handful of large banks left standing. It will be much easier for them to deal with half a dozen big banks, as opposed to hundreds of small, medium and large ones, when making the historic transition to a truly cashless society.

A government that is not accountable to its people has got a lot of problems–especially when we see that we are in the midst of a liquidity crisis.

We have reported that we are seeing a de-dollarization process that has been taking months — you can compare it to the clouds gathering before the hurricane comes.

The Federal Reserve will likely raise interest rates again in May, further increasing the cost of newly incurred debt.

And why would inflation ease when consumers are still rushing towards Armageddon by continuing to tolerate price increases?

Harkening back to my Economics teacher and Big Mac economics I was reading that McDonalds customers are now balking at the higher prices they are seeing for Big Macs and fries.

McDonald’s said it’s seeing “pressure” on its key units per transaction measure. That means the typical cost-conscious McDonald’s customer is walking away from higher menu prices.

Even something as cheap as a Big Mac meal is now being avoided.

McDonald’s is bracing for a financial hit,

Proctor and Gamble, one of the global economy’s biggest consumer-product monopolies (Tide, Charmin, Gillette, Crest, etc.) have raised prices by 10% with little loss in sales volume and with growing dollar revenue. P&G has no incentive to stop or slow price increases as long as revenue and profits continue to grow. In fact, why would they? They are in business to make money.

Historically, the pain of a crisis is borne excessively by poor and working people, but the rich and powerful and the corporations are set back as well. The more severe the downturn, the less able the elites are to push all of the consequences onto those less powerful and more vulnerable. And the worse the downturn, the greater the political resistance to business as usual.

You see all over the world riots in the streets over cost increases from gasoline to Food — and we see in France riotous behavior over Emanuel Macron’s pension reforms.

Tear gas and riot guns were deployed against Molotov-armed protesters venting their fury over Macon’s tyranny.

Pictures show a policeman on fire after being hit with a Molotov cocktail and one protester lost his hand after a grenade went off. It sounds like a civil war brewing — because of financial hacking and false promises.

It makes people wonder why the United States is so passive. Do they really believe that everything is going to work out as we throw billions of dollars to The Russian- Ukraine war?

Why is this continuing –and how can any Americans believe that starving your family is worth this campaign of blood shed — how are we so blind to what could be the unthinkable. Starving the people for a depopulation agenda and a possible nuclear war to take out more?

We are completely off the rails if we are hoping for another showdown between Trump and Biden — this is insane. The media seems to ignore what is happening and is doing nothing to help people prepare for what is coming.

The effort to forego controlled demolition of our banks is failing and global institutions know and recognize that failure with their dire projections.

We can see that we are entering a period of growing uncertainty and conflict.

American concerns at the moment are certainly being distracted by the culture wars and whether a transgender waif is wearing sports bras and drinking beer.

Dylan Mulvaney has had her 15 minutes — now we need to get serious about oir survival.

Before we have a world Order we must have disorder so that we will beg for a reset — we will beg for convenience — Give me convenience or give me death.

Unfortunately, there’s no effective political pressure to change it. How could there be, if many of the same people who are profiting from this are also controlling one or more of the mainstream news media,

It is left up to the independent media reporters to spread the word– even in the face of being called alarmist conspiracy theorists.

Two cornerstones of democracy—freedom of expression and freedom of information—are under concerted attack, in the United States and around the d the world. Those who criticize the government and try to warn the masses are either de-platformed or shut down — and the ennui from the people is palpable.

They claim in polls that they do not trust the media and yet they still thrive on the division and ignorance the media has created about just how we are doing as a country.

It is an all-out spraying of Febreze on a turd– and it cannot be challenged without a hate-filled and arrogant retort.

Of course who do they blame? Donald Trump.

Keep in mind that the Biden Administration and the left-leaning media have been pumping out propaganda asserting that all our fiscal problems including our national debt are somehow rooted in conservative policies.

This is nonsense.

It takes two to tango.

At bottom, the majority of our economic threats can be traced directly back to the Federal Reserve as well as large international banks, and these institutions enact policy regardless of the political party that is in control of the government.

But, if we’re going to talk about the political group that has most helped the central bankers set the calamity in motion, this administration new passion for war throwing money at Ukraine has won the prize..

It is Deja vu if you remember that it was Barack Obama and Joe Biden that doubled the US national debt from $10 trillion to $20 trillion in the span of 8 years.

Trump didn’t help matters and did not institute spending cuts at the level he should have, but the bulk of his debt contributions occurred because of the covid response. There are a number of issues to criticize Trump for, including the kinds of people he brought into his cabinet, but the current economic chaos is not rooted in anything Trump did.

But of course, Trump is now the convenient scapegoat; in fact, he is all we hear about — and not about the stumbles of Biden both past and present.

You see, all they need is a scapegoat to complete their crisis formula. War seems to work well in distracting the masses from the true culprits behind any financial calamity, and numerous institutions are hard at work to convince the public that countries like Russia are to blame for ongoing stagflation problems. Of course, the stagflation crisis started well before the war in Ukraine and one hopes that many Americans are not buying the spin.

China, a dedicated partner to the globalist project, has shown consistent fealty to the IMF and is a key player in the move towards a one-world currency system. Because they are the largest importer/exporter on the planet and have considerable leverage over the US dollar, they have the ability to strike the final blow against the dollar’s world reserve status. A heightened conflict with China would be a perfect cover for the dumping of the dollar , making way for the IMF’s new global currency, called the Universal Monetary Unit.

I am sure that this was new utility mentioned at the World economic forum summit in Davos.

You should also keep in mind that it was the Biden White House that pressed for covid lockdown policies to stay in place for years when they should have been ended within months as soon as it became clear the covid virus was a non-threat to 99.8% of the population.

Biden and the Democrats made it impossible for the country to continue functioning without trillions in covid helicopter money, and it was those fiat measures that finally broke the camel’s back.

Prices on everything skyrocketed under Biden, not Trump.

Can this administration take any responsibility for what is happening?

Hating Trump is not going to make our problems go away — and reelecting Biden or Trump as a solution shows just how ignorant we are and how dumbed down we have become.

No one in the mainstream criticizes the Democrats for wanting to spend more because most people don’t understand how inflation works. All the Democrats have to do is agree to reasonable budget cuts, but they refuse. When they don’t allow cuts, the Republicans are forced to either cave in, which makes them look weak, or, they’re forced to stand their ground and be accused of reckless disregard for American debt obligations.

But we continue to suffer and it is the really sick and twisted political cultists that are the problem in this country — how can they be so proud of what they have allowed to spread?

It is a virus that will infect everyone — and it has to be curtailed or we will suffer the consequences.

In the meantime, we can stand and watch the banking Hindenburg explode and shout “Oh the humanity” which does nothing to save what is left of a burning bank statement.