Posted BY: Bill | NwoReport
(Natural News) Three US banks collapsed last week (Silvergate, Silicon Valley Bank and Signature). Contagion took hold and quickly began to spread to other banks.
The entire US banking system would have collapsed starting today if not for the FDIC jumping in and offering to rescue even non-insured depositors at SVB. Normally the FDIC covers only $250K in deposits per person or institution. To try to avert a total systemic collapse, they announced in an emergency session yesterday that they would cover all deposits for these banks.
The problem is that the FDIC only had slightly over $100 billion in funds to carry this out.
Yet the total bank deposits held across America are approaching $10 trillion. (Nearly 10,000 billion.)
In effect, the FDIC only has enough funds to cover about 1% of bank deposits in America.
Even worse, banks in America have over $300 trillion in derivatives liabilities. That’s thirty times larger than the $10 trillion in deposits. The FDIC has only a tiny fraction of a fraction to even think about covering these losses, should derivatives begin to unwind.
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The claim that the FDIC is bailing out depositors without using “taxpayer money” is a lie
Mathematically, what all this means is that the Treasury and Fed are going to have to print money to prop up failing banks, especially as contagion spreads and more banks crater as the Fed raises interest rates — a kind of “controlled demolition” of the US economy and stock market.
This is going to dilute the value of dollars and cause huge inflation increases across all the products you normally buy, such as groceries, housing, clothing, fuel and so on.
All this printed money is created as debt on the shoulders of US taxpayers, and the government will move to confiscate more and more money from the American people to try to shore up the financial nightmare that it created. Joe Biden is already pushing much higher taxes, even as the USA is on track (with new spending programs) to hit over $50 trillion in national debt by 2030.