Does Anyone Want to Ask Why the Swiss National Bank Needed a $6.3B Bailout from the Federal Reserve?
Does anyone even care anymore?
I know what you’re thinking. This is just a doom-and-gloom post to scare and fear-monger people into withdrawing their cash deposits from their checking and savings accounts and causing a global bank-run.
No, I wish that would happen, but I’m not that optimistic. It appears the financial media DID learn something from 2008: Don’t ever admit when things are collapsing, lest you ignited another 2020-esque panic sale of equities.
The only problem is, the Federal Reserve showed its hand. A recent disclosure from the Fed showed an approximate $6.25 Billion “loan” to the Swiss National Bank. Yes, THAT Swiss National Bank. Now, for anyone who knows anything about global finance and how the so-called “Globally-Systemically-Important Banks” function, they are ALL connected on the back-end.
What does this mean? It means that if there is a problem at one of the 13 member banks, any of the other banks can step in, provide liquidity (aka cash bailout) to the flailing member, and all things are good on the front-end. The financial media, in 2007-2008, had a habit of deflecting any concerns and instead, claiming that “everything is okay. Go about your business as normal, no bank is going to fail, stop spreading fear, uncertainty, and doubt.”
If this were actually FUD, you would see a lot of people with big public profiles commenting on the collapse of the European banking system, but you don’t have that. Why? Because they’re all paid actors. Why would they admit things are bad when they don’t even recognize the systemic problem, themselves?
If, on the front page of the New York Times or Wall Street Journal, the editors printed the headline, “SWISS NATIONAL BANK BAILED OUT BY FED TO THE TUNE OF $6.3B,” there would be global panic. As one of the centers of financial power in the world, Switzerland has long enjoyed a relatively stable fiat currency, the Swiss Franc, outside of the Euro-Dollar system, despite being a member of the EU. The Franc has persevered as a “safe haven” fiat currency, much as the Japanese Yen had for years before it took off vs the Dollar this year.
The Swiss National Bank has liquidity issues. Credit Suisse has liquidity issues. Deutsche Bank has HAD liquidity issues for more than 15 years. Banco Santander (Spain) has had liquidity issues. The Bank of England has liquidity issues.
Do you see common theme here? That’s some of the largest banks in Europe, all experiencing what they label “liquidity shortfalls” simultaneously. The most nefarious aspect of the 2007-2008 banking collapse, was that most people were unaware it was even taking place, until they had lost everything. The so-called “Global Financial Crisis” or GCF, broke the back of the middle class in the US, and I can see what will happen with the Greatest Depression we’ve ever encountered.
Never before has the US had such high rates of inflation, interest rates, AND employment all together. The Federal Reserve has shown its hand. Powell said the quiet part out loud.
To loosely paraphrase, the Fed wishes to “destroy demand,” which for those of you not able to read between the lines of “Fed-speak” means that they want to destroy the ability of the American consumer to purchase goods and services. Since we will always need to buy (and pay for things) such as food, energy, and housing, demand will always exist. The mere fact that the Fed chairman, himself, publicly came out and said that the goal of the Fed is to break the markets is telling, to say the least.
When the chairs of the Fed got caught insider trading of equities that their policies directly impacted, they all got away with it. Not a single member of the Federal Reserve was ever held accountable or punished for their crimes.
After the Fed employees exited their US equities positions in November of 2021, the stock market sold off in brutal fashion, taking everyone else down with it. High-growth tech stocks including the so-called “FAANG” (Facebook-Amazon-Apple-Netflix-Google) lost trillions of dollars of market capitalization value (the value of the total number of shares of stock in the company).
The not-so-dirty-secret (as I alluded to in my video about BlackRock and America’s Pension System) is that those five previously-mentioned companies above make up the vast majority of the stock market’s gains since 2008. Yes, less than 10 companies are responsible for the majority of the Everything Bubble dating back to the market bottom put in on March 6, 2009, when the S&P500 hit 666 points.
As of the time of writing this article, October 17, 2022 at 2:45pm CT, the S&P500 is trading at 3645, up a staggering 447%. As Apple and Microsoft go, so goes the S&P500. If Apple tanks, so do America’s pensions, the same applies to Microsoft stock, which is heavily-bought by pensions and passive index funds which have proliferated the global markets since 2008.
If we do not wake up to the instability in the banking system now, there will be hell to pay, and this time, the solution that is going to be forced upon the world isn’t something we can go back from. Central Bank Digital Currencies are in various stages of development in more than 100 countries around the world, including the US, UK, Australia, China, Russia, Japan, Canada, Germany, and the rest of the European Union.
This is the penultimate moment, we are at the precipice of a great cliff. The post-WWII era promised us tremendous progress and economic growth. That promise was broken many generations ago by greedy people who did not, and continue to not, care about the future or the consequences of their actions. The younger generations will be the ones who will be forced to pick up the pieces of a broken financial system that their grandparents and great-grandparents’ generations failed to stop.
In 1913, the Federal Reserve was created. In 1967, silver was removed from legal tender in the US. In 1971, Richard Nixon defaulted on the US federal government’s debt and removed Gold from money forever. Since then, we have been in a downward spiral, spurred on by irresponsible globalist interference in financial markets and poor governance.
The 20th century was a case study in how NOT to promote growth and opportunities for development. The 21st century is shaping up to be no better. The “Great Depression” was ended by WWII. Immediately after the war was halted, The US government used taxpayer money to rebuild Western Europe and Japan, at the expense of the American consumer. Since then, prices for imports have universally increased from those countries.
The banking system is broken, and it’s obvious to anyone paying attention. The only question remains, what are we going to do about it?
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