Posted on 04/08/2023 7:59:17 AM PDT by Kaiser8408a
We have a seemingly never ending financial crisis.
US commercial banks deposits (red line) had been slowly declining even before Silicon Valley Bank failed. Along with Signature Bank and First Republic Bank, not to mention Credit Suisse. And The Teutonic Titanic, Deutshe Bank, is on the ropes. But the failure of SVB saw an acceleration of the decline in commercial bank deposits as banks accelerated borrowing.
But never fear! The Fed will raise rates once or twice more, then drop them again.
“The banks will never behave on my watch as US Treasury Secretary, you have my word!” And don’t worry. Biden will bail them all out … again.
(Excerpt) Read more at confoundedinterest.net ...
That's what happens when the Fed shrinks its balance sheet.
The Baby Boomers came along when the entire planet was recovering from a war that had devastated the world. The US economy grew as the US produced much of what was needed to survive and grow. But as the other economies grew they took jobs and therefore wealth from the US population. The Baby Boomers were probably the wealthiest generation in world history. They invested in everything, which made capital cheap. Probably cheaper than any in history. But now the Baby Boomers are retiring and taking their capital with them. At the same time, a host of other changes are happening. Other countries which have managed economies specifically designed to take advantage of naive American foreign policies are sucking money out of the West and into their Enron-like economies. The US government has been flooding the economy with money causing inflation which will turn us all into impoverished prolls. At the same time, along comes the anti-humanist Greens and the Environmental crazies. They want to cut your children’s sex organs off.
Good times, eh?
Specifically, that’s money we did/do not have. The Fed had to print that money and did so while setting interest rates at near zero. Near zero percent interest rates say one thing: money has no value.
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