Monday, May 01, 2023

Oh Look! Another Bank Down

 

 

Remember when Biden admin flunky Janet Yellen said that inflation was "transitory" and nothing to worry about?

Those of us who were saying that she was full of doo doo and that all that COVID spending on top of the disastrous COVID lockdowns was going to come back and bite hard; we were, and continue to be, called conspiracy theorists and the like.

"Federal regulators have seized First Republic Bank and sold it to JPMorgan Chase Bank in a deal aimed at quelling renewed weakness in the nation’s banking industry."

"Renewed weakness"? Try systemic weakness. And it's going to get worse:



"A total of 24 nations are now looking to build a strategic alliance that will challenge the US dollar’s decades-long role as the world’s reserve currency...

The group of known newcomers includes Saudi Arabia, Iran, Argentina, the United Arab Emirates, Algeria, Egypt, Bahrain, Indonesia, two unnamed nations from East Africa and one from West Africa..."

 

When the dollar ceases to be THE currency with which to do international trade, the demand for it goes down which means it loses value both abroad *and at home*. 

"Russian State Duma Deputy Chairman Alexander Babakov says the new form of fiat will likely be backed by other assets including precious metals like gold."

Why? Because the US dollar was based on "trust us". Once Biden and his team decided it would be a good idea to seize assets from Russia (and Russian citizens and associates), it became clear that you couldn't "trust us". So the world saw that it's dollar denominated and US based assets were vulnerable to political whims of whatever admin is in power, they realized that "trust us" fiat currency is dangerous. 

Biden 2024 tho'.  Right?