3/13/23: BITE THE BULLET SWALLOW THE MONEY W/ ALAN JOHNSON

Just when you have figured out what you’re going to talk about at the start of the day, the news has another plan but I guess it is a bit snarky to say that we all saw this coming.

There have been many shows that I have done in the past where we have warned you that the legacy system known as cash is doomed to be replaced by CBDCs.

We are now witnessing the restructuring process in action.

Out of the blue, serious problems emerged in one of the nation’s top-twenty banks — Silicon Valley Bank, which grew exponentially during the tech craze in stocks.

The collapse of Silicon Valley Bank, for a period of time the preferred bank for start-ups, is the bitter fruit people have to eat -during the restructuring process of how we spend our money and how we the legacy systems of banking are being retailers to fit the needs of a cashless and digital token world.

The run on SVB started as venture capitalists urged their clients to quickly withdraw their funds in order to save themselves.

Three days prior to the second-largest failure of a US financial institution since the implosion of Washington Mutual in 2008, lobbyists for the banking sector had reason to gloat. They had the ears of a number of GOP lawmakers and were pressing the case that Federal Reserve Chair Jerome Powell had little reason to sharpen regulations in the industry.

Economists such as Peter Schiff are even more damning, claiming that the entire US banking sector is set for a cathartic clean-up that will be greater than that following 2008. US banks were holding “long-term paper at extremely low-interest rates. They can’t compete with short-term Treasuries.” In such an environment, depositors, in the pursuit of higher yields would initiate mass withdrawals, resulting in a tidal wave of bank collapses.

This morning Joe Biden tried to reassure the nation about the banking segment of the economy as his Administration announced over the weekend that it was bailing out two banks – Signature Bank and Silicon Valley Bank.

Biden looked exhausted as mumbled through his short talk about bailing out these two banks. While he was speaking Western Alliance Bank dropped in value.

Other banks also were dropping in value.

This is to be expected as confidence in the banks is now in question undefined it is terrifying to think that you can lose your bank account and be reduced to zero overnight.

To be honest the news is happening so fast I can hardly keep up.

As you may have already guessed bank stocks are failing.

Even too-big-to-fail bank stocks — as contagion fears build around the ongoing crypto crisis that began last summer that is refusing to settle down, but especially as it suddenly appears became a fact that Fed interest hikes have reached the point of suffocating speculative tech companies and taking out banks.

Silicon Valley Bank is a major player in the venture-capital realm where companies with promise but no profit financed their way along, covering their expenses with ultra-cheap credit that is no longer available.

These players are rapidly depleting the cash “burn” they raised and have stored in banks like SVB, leaving Wall Street to now worry that the run on SVB crash of SVB, as other tech companies try to protect what cash they have left, may be the emergence of something more ominous than what happened in 2008.

Numerous VC funds, including major players like Founders Fund, Union Square Ventures and Coatue Management, have advised companies in their portfolios to move their funds out of SVB to avoid the risk of being caught up in the potential failure of the bank. Having funds frozen at SVB could be deadly for a money-burning startup.

That is why in just one day we are already hearing cries for bailouts. Yes, once again, the big money is running to the Fed and Feds for bailouts- ever remember the movie It’s a Wonderful life?

Except in the modern 2023 version, George Bailey would be hiding under his desk asking the feds for a bailout.

Joe Biden and his administration acted quickly and this is commendable undefined but the question is whether or not the band-aid will hold everywhere else.

On Friday, a computer glitch left irate customers with incorrect and sometimes negative — balances and missing transactions.

Some customers started their Friday morning routines hoping to see their latest paychecks directly deposited in their accounts. Instead, they had negative balances, a number of customers reported on social media, and a message from the bank: “If you see incorrect balances or missing transactions, this may be due to a technical issue and we apologize. Your accounts continue to be secure and we’re working quickly on a resolution.”

This should be a warning that going completely digital is a recipe for disaster. There always has to be a paper-trail and something physical to refer back to.

The issue is one more reason people should keep cash on hand and invest in precious metals.

In the blink of an eye, a computer glitch or whatever, your funds are inaccessible. In a token Digi-dollar world you could wind up biting the bullet and swallowing your money.

Enter central bank digital currencies (CBDCs). It seems likely that these will eventually be brought in as part of a new monetary system. When people have lost almost everything- we will again will be told that we will own nothing and be happy.

But this – in the longer term – would lead to a digital prison: your carbon credit score and social credit score are linked to your ability to use your digital currency, your freedom of movement and so on.

The fiat currency system is dying. De-dollarisation is now underway and the US’s longstanding partner – Saudi Arabia – is turning to China and accepting non-dollar payments for oil.

The world is increasingly trading in currencies other than the US dollar. Global US hegemony rests on the dollar being the world reserve currency. This is coming to an end.

What CBDCs will base their value on remains to be seen.

COVID was an accelerator that saw entire populations cajoled into submission thanks to a crisis narrative. Integral to the plan is the eventual imposition of digital IDs.

Whether it is immigration, war, food shortages, fear of pandemics, potential cyberattacks, climate emergency or some other crisis narrative, one way or another, circumstances will be manipulated to engineer the introduction of digital IDs – precursors to CBDC servitude. A servitude linked to ‘smart’ city surveillance technology, net zero ideology and 15-minute de facto lockdown cities.

Central Bank Digital Currency is the most comprehensive, far-reaching, authoritarian social control mechanism ever devised. Its “interoperability” will enable the CBDCs issued by various national central banks to be networked to form one, centralized global CBDC surveillance and control system.

Should we allow it to prevail, CBDC will deliver the global governance of humanity into the hands of the bankers.

CBDC is unlike any kind of “money” with which we are familiar. It is programmable and “smart contracts” can be written into its code to control the terms and conditions of the transaction.

Policy decisions and broader policy agendas, restricting our lives as desired, can be enforced using CBDC without any need of legislation. Democratic accountability, already a farcical concept, will become literally meaningless.

CBDC will enable genuinely unprecedented levels of surveillance, as every transaction we make will be monitored and controlled. Not just the products, goods and services we buy, but even the transactions will make with each other will be overseen by the central bankers of the global governance state. Data gathering will expand to encompass every aspect of our lives.

This will allow central planners to engineer society precisely as the bankers wish. CBDC can and will be linked to our Digital IDs and, through our CBDC “wallets,” tied to our individual carbon credit accounts and jab certificates. CBDC will limit our freedom to roam and enable our programmers to adjust our behavior if we stray from our designated Technate function.

The purpose of CBDC is to establish the tyranny of a dictatorship. If we allow CBDC to become our only means of monetary exchange, it will be used to enslave us.

Be under no illusions: CBDC is the endgame.

Today, we use “fiat currency” as money. Commercial banks create this “money” out of thin air when they make a loan In exchange for a loan agreement the commercial bank creates a corresponding “bank deposit”—from nothing—that the customer can then access as new money. This money exists as commercial bank deposit and can be called “broad money.”

Commercial banks hold reserve accounts with the central banks. These operate using a different type of fiat currency called “central bank reserves” or “base money.”

We cannot exchange “base money,” nor can “nonbank” businesses. Only commercial and central banks have access to base money.

Prior to the pandemic, in theory, base money did not “leak” into the broad money circuit. Instead, increasing commercial banks’ “reserves” supposedly encouraged them to lend more and thereby allegedly increase economic activity through some vague mechanism called “stimulus” .

Following the global financial crash in 2008, which was caused by the commercial bankundefineds profligate speculation on worthless financial derivatives, the central banks “bailed-out” the bankrupt commercial banks by buying their worthless assets (securities) with base money. The new base money, also created from nothing, remained accessible only to commercial banks. The new base money didn’t directly create new broad money.

This all changed, thanks to a plan presented to central banks by the global investment firm BlackRock. In late 2019, the G7 central bankers endorsed BlackRock’s suggested “going-direct” monetary strategy.

BlackRock said that the monetary conditions that prevailed as a result of the bank bail-outs had left the International Monetary and Financial System “tapped out.” Therefore, BlackRock suggested that a new approach would be needed in the next downturn if “unusual circumstances” arose.

Well again we are seeing those unusual circumstances happening undefined and the fear of a domino effect is now keeping people on the edge of their seats.

Banks across America are sitting on $620 billion of undefinedunrealized lossesundefined - assets whose value has decreased, but which have not yet been sold - the head of the Federal Deposit Insurance Corporation warned.

The revelation about the undefinedunrealized lossesundefined will only serve to raise concerns about the U.S. banking industry.

The ticking time bomb is due to U.S. banks buying Treasuries and bonds while interest rates were low, but, with interest rates now rising, finding these bonds have declined in value.

When interest rates rise, newly issued bonds start paying higher rates to investors, which makes the older bonds with lower rates less attractive and less valuable.

Most banks and pension funds are affected.

Many institutions — from central banks, commercial banks and pension funds — sit on assets that are worth significantly less than reported in their financial statements.

The Federal Reserve statement said no taxpayer money would be involved. The Federal Reserve is not funded by taxpayers. Instead, it is funded directly from its own financial operations, via interest.

The cash will come from a Deposit Insurance Fund. The DIF is funded by fees from banks and interest earnings from DIF investments in government obligations.

The Federal Reserve Board yesterday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.

A move to make Silicon Valley Bank’s depositors whole without a buyer would probably require Congress to pass legislation drawing on an insurance fund paid into by all banks and backed by U.S. taxpayers — a fund that typically only covers deposits up to the Federal Deposit Insurance Corp.’s limit of $250,000.

But more than 90 percent of SVB’s accounts were over that limit. Critics of using the fund to help larger depositors argue that it would establish a troubling precedent, leading other banks in similar circumstances to expect federal authorities to swoop in and save them as well.

That could lead to a backlash, in an echo of the fury directed at government rescue measures for Wall Street during the 2008 financial crisis. But this time It WILL be the taxpayers bailing out the would-be lords of tech rather than the lords of finance.

Another possibility is that larger Wall Street banks, fearing wider contagion, acquire what’s left of SVB and make all of its depositors whole. That could be a tricky bet, however, and bigger banks might ask for the federal government’s help before agreeing to a potentially unprofitable purchase.

We are now seeing more and more evidence of a disruptive economy undefined that no matter how the left tries to shine it up undefined it doesnundefinedt look good for the United States. Especially when we throw money at a war that really has no point- and we try to recover from a pandemic that leveled the economy.

You canundefinedt expect the milk and honey to keep flowing when everyone is mesmerized by bread and circuses.

Banks are “strange” businesses and the more you think about them the concept is not so simple. In some ways, their business model is so simple to take deposits, lend money, and make the spread in between.

But not only is that simplistic, it misses the key ingredient, leverage. You cannot take enough deposits and lend them out “one-to-one” to make a reasonable return.

We keep doing the same things over and over expecting a different result- like this recession is different to the last or the one before that one. Humans are the only mammal to trip over the same stone more than once.

Taking precautions to avoid making the same mistakes is now seen as undefinedsmarter than averageundefined.

Informing people to diversify and to at least investigate options is important as we are about to make the conversion to the Great Reset.

As long as people allow totalitarian tyranny to exist, they are giving the cabal and its controlled governments the green light to keep on increasing their oppressive impoverishing, anti-humanity agendas and actions.

At first, it is a pandemic, a proxy war we throw money at, then increased prices, food shortages, scarcity, crumbling infrastructure and now the banks.

And we all know that the legacy system of the banks is threatened.

It’s the push for digital currency, more food scarcity, and more legislation that takes away more inalienable rights. Soon it will the weaponizing of food and water. Involuntary taxing and blocking personal bank accounts for any reason they come up with.

Then it will be arresting anybody for speaking out for any reason they declare unlawful.

The indoctrination process is ongoing and we can all put a smiley face on the harassment and bullying of those that speak against the corrupt system and the new reset,

Those not redeemable will be euthanized. There will be false flags along the way of this stepped-up totalitarian anti-humanity oppression, like limited-nuclear war, alien invasion, meteor/asteroid imminent danger that people will have to give up more inalienable rights to be protected from; what rights they have left if any. There will be a national gun confiscation scenario, continued focus on the Climate Crisis and all sorts of other traumas.

I find it baffling that so many people are so brainwashed that they give the green lighting to their oppressors to keep on keeping on. They are not only coming for the few inalienable rights you may have left, they are coming for everything you own, including your dignity, and they are coming for your money and your property and eventually your lives if you become their target.

This is not a conspiracy theory- time and time again, we see each bust cause more hardship for the average American. We cannot be secure in the idea that our money is always going to do for us what it does for the rich.