Posted on 05/08/2023 4:19:29 PM PDT by C210N
Hendry says a further decline in the M2 money supply, which in part tracks money in liquid checking accounts, could convince the US government to step in and prevent citizens from taking their capital out of the banking system.
“Sometimes it’s kind of relevant to panic. I would recommend you panic… You’ve seen the biggest waterfall decline in M2 right now. M2 is deposits, not loans. That’s the deposits fleeing the system and going into money market funds.
That could reach a crescendo where the Treasury and the Fed may have to come in and actually restrict your right as a US citizen to pull money out of the US banking sector.”
Hendry says capital flight from US banks is not solely about fears on whether the FDIC will insure deposits above $250,000, and a blanket guarantee on deposits would not solve the problem.
“There is capital flight, deposit flight from the banking sector seeking yield. I fear that, I don’t say this lightly, but in 1934 the Federal Reserve Act confiscated gold from US citizens.
We’re at the point where the Fed and Treasury officials I’m sure are having to consider a gate a lock on US bank deposits.”
(Excerpt) Read more at dailyhodl.com ...
So, after more than ten years of almost 0.00% interest rates in the USA, people are moving their cash savings into investment grade debt that actually pays 4%-5%.
Why should that surprise anyone?
USA investment grade interest rates are STILL below the inflation rate in most cases, so it is just cash sloshing around the financial system.
Want further ruin confidence in the US banking system?, Just do it and find out.
No Big Deal!
Our communist masters know that the pathetically servile and indolent Aamerican people will just continue to roll over and spread their collective cheeks...
> If a company has payroll of over $100,000 in a week, it probably has done due diligence already.
Except for all those tech companies that had hundreds of millions in Silicon Valley Bank.
Or the banks can pay depositors a higher interest rate. They could do something called ‘compete’.
It’s already on the way:
The zero rate period was wallpaper of the fact we never left the 2008 recession. No reason to keep rates that low except to try to force consumers and companies to spend our way out of recession. Remember boys and girls that government deficit spending counts as GDP. The 12 years leading up to the scandemic was a giant hide the depression. It worked at the time when politics became more important, they decided to steal an election. For a potato !
Now it’s off the rails. When it turns it will be amazing fast. One day you will leave work early in order to beat the news and to get food and money and poof it is over. You will get neither. Police and military will be on the streets 72 hours later. That is how quickly it will turn. Be prepared, stock up on canned food. V
“So, after more than ten years of almost 0.00% interest rates in the USA, people are moving their cash savings into investment grade debt that actually pays 4%-5%. Why should that surprise anyone?”
exactly ...
Outstanding point.
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