We’ve printed money into a fractionally reserved ponzi scheme for decades. Government hubris got so great, they shutdown the economy, and paid people to stay home, with printed money, during Covid hysteria. $13 Trillion was printed to cover Covid relief, quantitative easing, and infrastucture. See this chart below:
Production stopped, scarcity was exposed, the excess capital in the system, and the consequence of counterfeit dollars, chasing fewer goods, is inflation. Now the Fed in its hubris thought they could slow inflation, by increasing interest rates.
However, raising the Fed Funds Rate means the Fed and Treasuries can offer higher rates than banks can. This causes them to fail. This is where we are now. The smallest, most levered banks fail first, but this problem effects ALL fractionally reserved banks. To make matters worse, the Biden regime has proposed a 30% tax on Bitcoin mining. Bitcoin, Gold, and Silver are the assets that can be used to hedge inflation, and the inevitable (semi) hyper inflation that is coming to the US. True hyper inflation may be decades away. However, 50% real inflation, or more which is nearly 3 times present real inflation. This will have real world impacts on everyone. Felt everyday. We are not predicting when this kind of inflation will arrive in the US. Simply, that bank failures like we are now seeing regularly, will force the Fed to print massively in order to backstop the largest banks, and keep them financially whole.
This headline is a perfect example of what is to come:
“US Treasury is mulling defacto deposit insurance on all accounts, including those above $250K to stem the regional banking crisis.”
If that type of deposit insurance was instituted on all accounts. The money printing from that alone, would dwarf the $13 Trillion from Covid!
In Roman times they would debase the Denarius by diluting the Silver in each coin. See the chart below:
Currency debasement is not new. It is as old as human civilization. Now through the monetary system, debasement is getting centralized with fewer banks everyday, and banks like JP Morgan Chase benefit from that, thanks to the FDIC. Eventually, there will be a few MEGA banks left. That is when the CBDC roll out will begin.
Lyn Alden made a great point today on her substack, that the 1970 bank secrecy act established FinCEN and the anti money laundering legislation stated $10,000 was the threshold whereby the Government could begin monitoring transactions. In 1970 that was a years earnings. Today, that is a very cheap used car. In 5 years that may be a bycicle.
Thus, the financial war connects the bank secrecy act of 1970, and AML regulations, with the 16 months of rising rates from the Fed, with the sanctions against the Russian ruble, and much more. This is a global financial war. Sudan, Sri Lanka, Lebanon, Argentina, Turkey, SVB, First Republic Bank, France, Ukraine are ALL connected in this war. It has even gone so far as to bifurcate WTI Crude from Brent Crude Oil prices. See this article below:
The US is actively bringing down banks and collecting US dollars from offshore (foreign countries), while CBDC’s are rolling out. These are tools for financial surveillance, they cost people their freedom. All of this is part of the financial war. Why? The USD is failing, inflation is much higher than the media lets on. By sanctioning the Russian Ruble, the US let BRICS form an alliance and challenge the dollar. The USD WILL lose global reserve currency status! When? We don’t know, but not that long. The attacks are now levying against Bitcoin, because it will be used for international settlements, and the Fed knows it! However, Gold, Silver will also be involved in this, as a backing from BRICS reserve currency. The monetary system, when this is all over with will be unrecognizable from where it is now! This is the best news. Perhaps someday, who knows when. Bitcoin will be the reserve currency, not sure I will live long enough to see that. For now though, Bitcoin being international settlements would be a huge step up from where it is now. We are not financial advisors, and this is not financial advise. What we do know is Bitcoin will come out on top eventually, from this financial war. Be on the right side of the war. Learn about Bitcoin. Store it offline. Use these companies to store it offline.
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