Over the weekend, the Silicon Valley Bank failure wasn’t the only crisis in California. Judge Duncan, a 5th circuit judge, was invited to give a talk at Stanford Law school. What ensued gives us a preview of the coming revolution.
This time, the central bankers, the banks, and the bank regulators have lied to all dollar holders and depositors.
This isn't your typical fractional reserve situation. The problem is that there isn't enough in the banks on a mark-to-market basis to cover withdrawals. They knew this through all of last year, and communicated it internally in their coded language.
It's obvious from the graphs (see below). The central banks, the banks, and the banking regulators all knew a huge crash was coming — the phrase is "unrealized losses" [1,2,3,4,5]. But they never notified you, the depositor.
Instead the regulators allowed banks to hide their literal insolvency in footnotes[6], until one guy figured it out[7].
It's Uncle Sam Bankman Fried. Just like SBF used your deposits to buy shitcoins, using accounting tricks to fool himself and others into using the money, so too did the banks.
They all used the deposits to buy the ultimate shitcoin: long-dated US Treasuries. And they all got rekt at the same time, in the same way, because they bought the same asset from the same vendor who devalued it at the same time: the Fed.
Specifically, as NYT admitted, banks "binged" on enormous amounts of Treasuries and other long-term bonds in 2021 when the flood of printed money cut off their typical demand for loans, and because they thought the Fed would keep interest rates low forever.[8].
And they had good reason to believe this. Powell said he'd be "patient" on rate hikes as late as Nov 3 2021[9]. Then he got renominated on Nov 22 2021[10], and hiked rates much faster than anyone had expected — which even Yellen[11] and the FDIC[12] admit caused the current banking crisis.
Why did Powell delay? Probably for political reasons. Presidents don't like rate hikes[13], especially running into the election year of 2022. And Powell thought he could wait and just be like Paul Volcker[14], who was "firm" and then defeated inflation.
But the world isn't an 80s rerun. Hiking from ten years of near zero interest rates in the 2010s was a surprise attack on every dollar holder. Economics isn't politics - the kind of insane flipflops you see in politics don't work when there are actual contracts involved.
So anyone who bet on long-term Treasuries got killed in 2021. And now, anyone who bets on short-term Treasuries is going to get killed in 2023. The absolute worse place you can be is to have large amounts of assets locked up in three month treasury bills. The ~5% interest rate offered by big banks (G-SIBs) is a trap. Most fiat bank accounts are now a trap, for those countries whose central bankers followed the Fed.
Check my references, I've provided quite a few.
If you trust US bankers and US media, ignore me.
Otherwise buy Bitcoin and get your coins off exchanges.
Good article. I concur with the sentiment. Might I recommend some pre-publication proof reading?
"The United States is in the throws [sic: throes] of it’s own cultural revolution. If it continues, it’ll lead to a type of violence and disorder never before seen in America.
And, odds are, it will continue. The students involved should be expelled. More likely, they will be loosely reprimanded at wort [sic: worst]." There are more. Just a suggestion.
These radicals will have a short run in a meaner & leaner new global economy now being born! ..In this upcoming new world reality will once more take charge & there won't be much slack for these modern "Hitler Youth"
I have been on the edge of Doug Casey's life for 20 yeas. I judge him to be an intelligent, forward thinking taker of calculated risks. I am pleased to be able to read his well reasoned thinking. CBJ
Mar 15, 2023·edited Mar 15, 2023Liked by Matthew Smith
Stanford Law School is not crafting lawyers; they are generating thugs and enforcers for [whatever your term is for Davos / The Great Reset / Global Capitalism / New World Order].
Stanford Law School Dean Tirien Steinbach told Federal Judge Kyle Duncan, "Do you have something so incredible important to say about Twitter and guns and COVID that that is worth this impact on the division of these people who have sat next to each other for years, who are going through what is the battle of law school together, so that they can go out into the world and be advocates. And this is the division it's caused. . . And I understand why people feel like the harm is so great that we might need to reconsider those policies [of guest speakers]. And luckily they're in a school where they can learn the advocacy skills to advocate for those changes. I hope that you have something to share with us that we can learn from. I hope you can learn too while you're in this learning institution. "
Jurisprudence is pivoting before our eyes, and we are not stopping it.
If they have followed the science and kept up with their necessary medical treatments-they may not be leading the country. They may not be well enough to lead.
QUOTE
(Twitter)
https://twitter.com/i/web/status/1636822077775941633
Balaji
@balajis
Just as in 2008, the bankers lied.
This time, the central bankers, the banks, and the bank regulators have lied to all dollar holders and depositors.
This isn't your typical fractional reserve situation. The problem is that there isn't enough in the banks on a mark-to-market basis to cover withdrawals. They knew this through all of last year, and communicated it internally in their coded language.
It's obvious from the graphs (see below). The central banks, the banks, and the banking regulators all knew a huge crash was coming — the phrase is "unrealized losses" [1,2,3,4,5]. But they never notified you, the depositor.
Instead the regulators allowed banks to hide their literal insolvency in footnotes[6], until one guy figured it out[7].
It's Uncle Sam Bankman Fried. Just like SBF used your deposits to buy shitcoins, using accounting tricks to fool himself and others into using the money, so too did the banks.
They all used the deposits to buy the ultimate shitcoin: long-dated US Treasuries. And they all got rekt at the same time, in the same way, because they bought the same asset from the same vendor who devalued it at the same time: the Fed.
Specifically, as NYT admitted, banks "binged" on enormous amounts of Treasuries and other long-term bonds in 2021 when the flood of printed money cut off their typical demand for loans, and because they thought the Fed would keep interest rates low forever.[8].
And they had good reason to believe this. Powell said he'd be "patient" on rate hikes as late as Nov 3 2021[9]. Then he got renominated on Nov 22 2021[10], and hiked rates much faster than anyone had expected — which even Yellen[11] and the FDIC[12] admit caused the current banking crisis.
Why did Powell delay? Probably for political reasons. Presidents don't like rate hikes[13], especially running into the election year of 2022. And Powell thought he could wait and just be like Paul Volcker[14], who was "firm" and then defeated inflation.
But the world isn't an 80s rerun. Hiking from ten years of near zero interest rates in the 2010s was a surprise attack on every dollar holder. Economics isn't politics - the kind of insane flipflops you see in politics don't work when there are actual contracts involved.
So anyone who bet on long-term Treasuries got killed in 2021. And now, anyone who bets on short-term Treasuries is going to get killed in 2023. The absolute worse place you can be is to have large amounts of assets locked up in three month treasury bills. The ~5% interest rate offered by big banks (G-SIBs) is a trap. Most fiat bank accounts are now a trap, for those countries whose central bankers followed the Fed.
Check my references, I've provided quite a few.
If you trust US bankers and US media, ignore me.
Otherwise buy Bitcoin and get your coins off exchanges.
#Bitsignal
[1]: Fed, Sept 22: https://archive.is/1QA4q
[2]: FDIC Nov 22: https://archive.is/ZBvli
[3]: FDIC Mar 6 23: https://archive.is/yxd1u#selection-2051.175-2051.280…
[4]: Fed Feb 1 23: https://archive.is/nGpgk#selection-5639.361-5639.378…
[5]: Bank CPAs, April 22: https://t.co/OlEnfFqb1N
[6]: Insolvency in a footnote: https://archive.is/0Jww3#selection-811.0-811.40…
[7]: Discovered online: https://archive.is/tfYIc
[8]: Banks bingeing on bonds, but not because they want to Aug 25 2021: https://archive.is/CtW1B
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10:09 pm · 17 Mar 2023
·
936.4K
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The most beautiful thing you will see on the internet.
It would be shocking if acts like this really took off in droves, no? 👀
https://twitter.com/_Janey_J/status/1634516408208965635?s=20
@thecommondenominator
Good article. I concur with the sentiment. Might I recommend some pre-publication proof reading?
"The United States is in the throws [sic: throes] of it’s own cultural revolution. If it continues, it’ll lead to a type of violence and disorder never before seen in America.
And, odds are, it will continue. The students involved should be expelled. More likely, they will be loosely reprimanded at wort [sic: worst]." There are more. Just a suggestion.
These radicals will have a short run in a meaner & leaner new global economy now being born! ..In this upcoming new world reality will once more take charge & there won't be much slack for these modern "Hitler Youth"
It ends immediately when people pleasing by others cease to exist.
Morpheus never gave Neo the green pill. It takes you down the money hole.
Stanford Law School is the farm team. Over in the big leagues:
https://jonathanturley.org/2023/03/13/post-decency-politics-house-democrats-used-a-hearing-to-attack-both-free-speech-and-a-free-press/
https://www.racket.news/p/in-fbi-case-the-first-amendment-takes
I have been on the edge of Doug Casey's life for 20 yeas. I judge him to be an intelligent, forward thinking taker of calculated risks. I am pleased to be able to read his well reasoned thinking. CBJ
Importantly, there is an end date on "the ramifications in China from 1966- 1980’s."
They got through it and are thriving on the other side. It was not the end of the world.
I am not saying that to downplay it but to be a little hopeful. Because, yes, I am beginning to imagine the consequences.
Stanford Law School is not crafting lawyers; they are generating thugs and enforcers for [whatever your term is for Davos / The Great Reset / Global Capitalism / New World Order].
Stanford Law School Dean Tirien Steinbach told Federal Judge Kyle Duncan, "Do you have something so incredible important to say about Twitter and guns and COVID that that is worth this impact on the division of these people who have sat next to each other for years, who are going through what is the battle of law school together, so that they can go out into the world and be advocates. And this is the division it's caused. . . And I understand why people feel like the harm is so great that we might need to reconsider those policies [of guest speakers]. And luckily they're in a school where they can learn the advocacy skills to advocate for those changes. I hope that you have something to share with us that we can learn from. I hope you can learn too while you're in this learning institution. "
Jurisprudence is pivoting before our eyes, and we are not stopping it.
Profoundly important. Thank you.
If they have followed the science and kept up with their necessary medical treatments-they may not be leading the country. They may not be well enough to lead.