by Chris Black
The banking cabal ruling the world uses a very simple trick to dazzle the goyim: since they have total control over the money supply, i.e. they literally print money out of thin air via fractional reserve banking and QE, then they lend the money with interest, they are creating boom and bust cycles.
During the boom cycle, they pretty much offer free money to people and institutions, at zero or near zero interest, then the FED/world central banks, start hiking the interest rates, everything crashes, then the bankers/elites buy real world assets with fiat money for pennies on the dollar.
The same thing is happening right now.
After a very loose monetary policy which started way back in 2001, culminated with a housing market crisis in 2008 and ended up with helicopter money since 2009 onward, the FED is now tightening, raising rates, and the stock market/global financial markets are already collapsing.
Case in point: Silicon Valley bank.
Silicon Valley Bank, or SVB, has been liquidated in a shocking short time (it was over $200 just two days ago).
It’s pretty shocking if you come to think about it: of the bank’s total $212 billion in assets, $120 billion are securities (of which most or $57.7BN are Held to Maturity (HTM) Mortgage Backed Securities and another $10.5BN are CMO, while $26BN are Available for Sale with $16BN in TSYs).
And while all US banks parked some part of their money in Treasuries and other bonds that dropped in value last year thanks to the Fed’s fastest rate hiking campaign since Volcker, SVB took it to an entirely new level: as Bloomberg notes, SIVB’s investment portfolio swelled to 57% of its total assets.
Then there are the liabilities: while higher rates have made all banks fret about depositors going elsewhere, most lenders have very broad customer bases spread among individuals and companies, and thus their funding exposure was well-diversified. SVB, on the other hand, grew rapidly thanks to its focus on tech startups as its primary clients – in the end, this is what would seal the company’s fate after several prominent VCs such as Peter Thiel and others urged their portfolio companies to pull their funds, sparking a terminal bank run.
Perhaps the biggest irony in the SVB failure is that while higher rates are in theory good for banks – after all higher rates boost Net Interest Margins – what we just observed is how catastrophic higher rates can be for banks that have locked in a wrong asset structure.
And guess what happens next: other smaller banks will be affected by SVB’s failure, contagion will occur, and big banks like JP Morgan, Goldman Sachs, the usual suspects, will take over the smaller banks and will consolidate their global hegemony.
Make no mistake: the same people who own the FED (which is a consortium of private banks) also own the big commercial banks like JPM et al, and will benefit from the smaller banks going under, as they will buy their assets for pennies on the dollar.
Regional/small bank are going to get rekt soon.
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