Silicon Valley Bank - Bail in
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SVB was deep into financing Chinese CCP tech money in USA, hence it was shut down.
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SVB was deep into financing Chinese CCP tech money in USA, hence it was shut down.
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This is quite similar to bailing in the Bank of Cyprus in 2013.
Russian money was seized in the same way that Chinese money is seized with SVB bail in.
It's a bail in, not a bail out.
FDIC definition of bail in is using existing money to pay creditors first in line.
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Russian money was seized in the same way that Chinese money is seized with SVB bail in.
It's a bail in, not a bail out.
FDIC definition of bail in is using existing money to pay creditors first in line.
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Bail out would be like with AIG and Goodman Sachs in 2009.
Federal Reserve created fresh money to bail out AIG so Goldman Sachs could get paid and avoid collapse. GS is still insolvent, but that is a separate topic.
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Federal Reserve created fresh money to bail out AIG so Goldman Sachs could get paid and avoid collapse. GS is still insolvent, but that is a separate topic.
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In this case we have money seized from Chinese investors, bondholders and shareholders to pay for depositor money, along with maturing US Treasury holdings.
This is exactly the job of FDIC, to bail ins.
Job well done.
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This is exactly the job of FDIC, to bail ins.
Job well done.
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Something similar for Signature bank, linked to Crypto.
Bank was shut down to seize crypto money, bail in.
This is all per Pentagon strategu which assigned China as Danger Number 1 few days ago.
Also Crypto is clearly defined as national security in USA as well.
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Bank was shut down to seize crypto money, bail in.
This is all per Pentagon strategu which assigned China as Danger Number 1 few days ago.
Also Crypto is clearly defined as national security in USA as well.
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We have now clearly Washington DC prioritizing Production over Finance.
Up until now Washington DC had prioritized Finance over Production.
Finance and Production are two enemies of each other.
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Up until now Washington DC had prioritized Finance over Production.
Finance and Production are two enemies of each other.
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If Finance is defended, then production is unstable.
If Production is defended, then finance is unstable.
Same as with US Dollar.
USD is unit of account. When I send money from Canada to Albania, Canadian dollars get converted to USD first, which then are converted to ALL.
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If Production is defended, then finance is unstable.
Same as with US Dollar.
USD is unit of account. When I send money from Canada to Albania, Canadian dollars get converted to USD first, which then are converted to ALL.
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A stable unit of account is needed to have a functional supply chain of goods and services.
The Dollar is the enemy of Finance as well, and friend of Production.
Steady Dollar = Steady Production, as suppliers can budget for the future.
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The Dollar is the enemy of Finance as well, and friend of Production.
Steady Dollar = Steady Production, as suppliers can budget for the future.
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From 2008 to 2022, 15 years, we had Finance being the steady unit of account by Washington DC via 0% rates and QE and supply chains.
That led to break down of supply chains now.
But, Governing is trial and error (quote by #krisonomics )
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That led to break down of supply chains now.
But, Governing is trial and error (quote by #krisonomics )
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Now the error is being rectified by making the USD and Production unit of account, and allowing Finance to compete for Dollars and Production.
The lie you have been told is that when a Factory goes bankrupt, it shuts down. BIG LIE!
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The lie you have been told is that when a Factory goes bankrupt, it shuts down. BIG LIE!
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The truth is that when a factory goes bankrupt, new owners buy the operations from bankrupt owners at cents on dollars.
To reiterate:
When a factory goes bankrupt, new owners buy the operations from bankrupt owners at cents on dollars. It doesn't shut down.
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To reiterate:
When a factory goes bankrupt, new owners buy the operations from bankrupt owners at cents on dollars. It doesn't shut down.
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That is why investing is supposed to be the risky part, not the operations.
Operations never stop, investors come and go.
Saint Jerome Powell is NOT making decisions of his own. He is simply implementing Washington DC consensus, by taking bad wrap for it now.
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Operations never stop, investors come and go.
Saint Jerome Powell is NOT making decisions of his own. He is simply implementing Washington DC consensus, by taking bad wrap for it now.
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History will be very kind to Saint Jerome Powell for taking over the public "blame" for what is essentially a Washington DC Consensus to prioritize Production against Finance.
10% rate.
$10 oil.
10 thousand DOW points.
All coming.
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10% rate.
$10 oil.
10 thousand DOW points.
All coming.
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Production is everything, as Pentagon has stated clearly, publicly and forcefully.
Disclaimer:
Anybody can use this material and pretend it's his or hers. #krisonomics is for free. This material merges knowledge obtained from hundreds of people globally.
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Disclaimer:
Anybody can use this material and pretend it's his or hers. #krisonomics is for free. This material merges knowledge obtained from hundreds of people globally.
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