30 banks had their trading halted Monday morning. Here is the list:
Had NYSE not halted the trading these banks would have crashed! Maybe not every case but most of them would have. The entire banking system has been nationalized by the Biden regime and is now held together by duck tape. How long can they kick the can down the road? This chart below from Natalie Smolenski shows $675 Billion and we have heard $700 Billion in unrealized losses on bonds, held by banks:
The fact that unrealized banking losses are this high, after 3 banks collapsed, and 6 more had their bonds downgraded by Moody’s, and put on a watch list. This is big trouble for the monetary system. We believe CPI should print higher. This chart below shows why, this averages out to 6.875%, not seasonally adjusted.
The CPI seasonal adjustment simply lowers this number, and has no financial reason to be applied. It is a metric along with the ratio back to the early 80’s in the CPI calculation, to make it drop down substantially. This makes the CPI Inflation number,not look as bad as it really is:
CPI was announced yesterday at 6%. That is better than we expected. It could push the next Fed rate increase to either 0 or 25 bps, which is next week. Here is the CPI Inflation chart:
We thought Monopoly was an easy way to explain nationalizing the entire banking system. This slide shows, in simple terms, how nationalized banks never lose!:
You see, over the next few months, or weeks. More banks will fail, likely the 6 on the Moody’s watch list. Then more after that. Some, or all, will be made whole by the Fed. This is QE, quantitative easing. If they do this, they will likely also slow down rate hikes, and print money! Thus, the reason we mentioned hyperinflation in Monday’s blog. How long this will take is anyone’s guess. The Federal Reserve, whose true leaders, control the US government, have done the following over the last year to the economy, and banking system:
- Gas prices explode after shutting down US production; just drain the oil reserves.
- Inflation; don’t include gas and food in inflation numbers.
- Crime; FBI leaves off NYC and LA in the crime stats.
- 2 consecutive quarters of negative growth; just change the definition of a recession.
- Bank collapse; close trading for banks at opening bell; nationalize US banking system.
This is a controlled destruction of the US economy and banking system. Some may disagree that it is controlled, we know differently. It’s controlled. $1 Trillion in cash has been drained out of the banking system in 8 months! This is why banks are failing all over the place. It will only get worse. This next slide, from Mark Moss, shows the Federal Reserves revenues which they pay to the Treasury monthly, droping off a cliff. The only way to backstop banks is print the money! Refer back to Monday’s blog discussing the $7 Trillion debt ceiling raise proposal, and the $5 Trillion tax increase proposal from the Biden regime.
Regardless, here is the chart of Federal Reserve revenues plummeting:
Interbank lending has frozen up. Banks that had US Treasuries at low rates, but Fed Fund Rates are now much higher. They were losing money so fast, the Fed had to create a direct lending facility, to save US banks. So, an insolvent Fed is backing up insolvent banks. Bank Term Lending, as they call it, is termed out at one year! After a year, then what?
Again, hyperinflation is coming! How else are they keeping banks afloat?
Remember, Bitcoin is the lifeboat. Bitcoin is:
- Decentralized (outside central bank control).
- Scarce (21 million Bitcoin production is capped).
- Blockchain network is secure.
- The difficulty adjustment keeps the Blockchain safe from quantum computing (51% attack).
- Blockchain is secured by all the miners and node operators on it, securing it.
- • Nuclear launch codes are safer on the Blockchain than anywhere else, better security.
Banks are insecure, unstable. Bitcoin, due to it’s proof of work (miners and node operators) is secure and stable.
Basically, it is the precise and exact opposite of a bank. Buy Bitcoin for these reasons, not price. That will come.
We are not financial advisors and this is not financial advise. Bitcoin is the lifeboat and the storm is here, right now! This is a financial war, we are a part of. No it’s not an accident. The next monetary system, whenever that comes, will be vastly better than what we have now. The fiat monetary system is dead! We have to accept that now!
401K rollovers into Bitcoin:
Levelfield Financial is working to get a Bitcoin Bank approved, soon they will have Bitcoin credit cards, OTC desk, and Bitcoin custody solutions.