The powers of financial capitalism had a far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. – Carroll Quigley
A bank's primary source of income is the endless flow of interest payments made on loans. Many loans are made with money instantly created out of nothing at all while charging interest to the borrower for decades in the case of home loans.
Rising interest rates, raging inflation, and deflation in real estate and automobiles are the worst-case scenarios for banking profits. Banks profit even more with long-term mortgage rate increases, but inflation and rising interest rates are destroying demand for loans. This is not an unexpected trend but the result of a deliberately engineered plan to wipe out the middle class.
Mortgage demand plunges 13.2% to end 2022, as interest rates head higher again.
Meanwhile, real estate property values fall, and mark-to-market accounting exposes bank insolvencies caused by asset depreciation as market values drop significantly lower than collateral values on bank books.
These issues have created another banking crisis, worse than 2008, and the mainstream media, collectively controlled by the same people running the central banks around the world, are saying nothing about this problem.
Recently a meeting of the FDIC's Systemic Resolution Advisory Committee (SRAC) was recorded and leaked, revealing a conversation regarding the solvency of the FDIC in the event of a sudden loss of confidence in the banking system.
A video was recorded during the SRAC meeting, discussing how the next market crash would occur and what steps would need to be taken to ensure only some people try pulling their money out of the financial system simultaneously.
Important comments from the video
[…] it's important that people understand they can be bailed in. But you don't want a huge run on the institution. But they have – I mean, they're going to be – that's, and it could be an early warning signal to the FDIC and the primary regulators when these things happen, and there may be some other prices. This is similar what Jay was saying in the market, that you can tell whether people understand how the who's going to be protected, who isn't going to be protected. [emphasis added]
[…] It's – I think you've got to think of the unintended consequences of taking a public that has more full faith and confidence in the banking system that maybe people in this room do that. We want them to have full faith and confidence in the banking system. [emphasis added]
[…] I completely agree with that. I almost think you'd scare the public. If you put this out, like, why are they telling me this? Should I be concerned about my bank? […] But I would be careful about the unintended consequences of starting to blast too much of this out in the general public. [emphasis added]
From the sentences above, you can see that central bankers are not worried about the collapse of the banking system and its effect on people. Bankers are concerned about the people realizing they are insolvent and the FDIC's deposit insurance account is nearly empty.
The bankers would rather be silent as they work the plan; close down the banks for a banking holiday to prevent bank runs while they loot deposit accounts and call it a bail-in.
It will all be done legally and with impunity.
Market Summary
We are told the inflation rate is below the rate measured last month. These comments and the accuracy of the inflation measure are part of the deception to keep the public calm as key prices continue to rise (dollar purchasing power falling) and the Fed continues to raise interest rates.
Inflation is rampant and will continue to rise because the dollar debt-based-currency scam has reached its end-of-life behavior.
Congress and the government continue to pour money into the economy around the clock. Watching the 10-year yield rise and fall week over week indicates massive bond purchasing in the background.
Congress just approved another $1.7 Trillion spending bill that provides enormous amounts of wasted money to be used further to restrict the rights and activities of the people while protecting the controllers from legal attempts to expose corruption – such as election fraud.
Here's what's in the $1.7 trillion federal spending law:
The legislation includes $772.5 billion for nondefense discretionary programs and $858 billion in defense funding. That represents an increase in spending in both areas for fiscal year 2023.
The bill contains billions of dollars that represent binge spending gone wild. A few examples of this Caligula-style spending are listed below.
[…]The bill allots $750,000 for fire alarm modernization at the metropolitan opera. There's $3 million for an LGBTQ museum in New York, more than $3.6 million for a Michelle Obama Trail, and authorization for the creation of a Ukrainian Independence Park.
The bill sets aside $200 million for the Gender Equity and Equality Action Fund and $7.5 million for studying “the domestic radicalization phenomenon.”
The word salmon appears in the bill 48 times, Rep. Dan Bishop (R–N.C.) noted, and $65 million is allotted for Pacific coastal salmon recovery. There's also an additional $5 million for studying the impacts of culverts, roads, and bridges on salmon populations, and $65.7 million for international fisheries commissions.
But it's essential to understand that continuously pushing money into the financial system is paramount in keeping the bond and banking system liquid.
Cost of Living Rising As Dollar Purchasing Power Falls
Study shows surge in credit card debt as consumers battle rising costs of living, goods
Credit card and household debt are rising in proportion to inflation. Total household debt is now $16.5 Trillion or $165K per household.
That average household debt has pushed the national total to $16.5 trillion, a 7.65 percent increase from a year before. […]
Study crafters also found that the credit card balances carried from month to month have gone up over the past year, now totaling roughly $460 billion. […]
The average U.S. household owed about $222,000 in mortgages, $17,000 in credit card debt as well as $29,000 in auto loans last year. IBID
A Presidential Executive Order has been written to raise federal salaries for 2023. Here are the actual pay raises federal employees will see in 2023, depending on their location
Social Security Cost of Living Increases goes into effect this year.
In 2023, Social Security Will Enjoy Its Largest Raise in 41 Years. Is It Enough?
While most Americans will not get a cost of living adjustment increase in their salaries, we can count on the government using borrowed money to raise the wages of government employees.
Regardless, wage increases are inflationary, and for federal employees: more than the social security increase is needed to keep up with the present (at this moment) cost of living increases.
Related notes:
Freight & Shipping Demand is falling, leading to layoffs of transportation and shipping workers.
Automobile prices are still holding too high and will fall significantly in 2023.
Car Sales on Car Gurus are now averaging 60 days and rising.
Automobile floor plans are causing dealership problems as automobile prices begin to fall.
Wells Fargo to shrink mortgage business, exit correspondent lending…(getting out while they still can)
Massive layoffs continue in the USA
Silver and Gold Market
A Commodity SUPER-SPIKE Is Coming. Are You Ready for It?
Today commodities, in general, are in massive INVERSE bubbles; therefore, when risk-on eventually becomes risk-off, and it will, the price of commodities will SUPER-SPIKE.
Silver demand reached an all-time high in 2022, according to the Silver Institute.
Demand for silver was expected to have reached a new high of 1.21 billion ounces in 2022, up 16 percent from the year before, driven by increases in industrial use, jewelry and silverware off-take, and physical investment.
Demand for Silver will continue to increase this year.
Silver Spot Price: $24.30 | 1 oz. Silver Eagle Price $37.59 | Premium 54.52%↓
Gold Spot Price: $1919.25 | 1 oz. Gold Eagle Price $2089.15 | 8.85% ↓
$50 face value junk silver $1,171.00 | 34.80% over spot price for 71.5% silver quarters↓
10 Yield: 3.45% ↓
Crude Oil Price: $79.46 ↑
Final thoughts:
The Federal Reserve is one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the international bankers –Louis T.McFadden
Banks have created the problems they are facing today. It was the same in 2008, but instead of banks being punished and closed, their actions and debt mismanagement is rewarded by our bank-controlled governments. The taxpayer will be left to hold the bag for the trillions of dollars soon to be injected into the financial system as bailouts for banks.
In addition to coming bailouts, bankers have already created contract laws that classify most depositors as unsecured creditors. Your money can be taken and used to keep their bank solvent.
The financial systems of Western civilizations are being deliberately destroyed. The time frame for destruction is related to the time schedule of Agenda 21, which envisions the United States as just a part of a One World Government and is referred to as the North American Alliance – the former United States and Canada.
To oppose the destruction of the world as we know it and to resist the CBDC (Central Bank Digital Currency) based financial system, you must prepare now. The Agenda 21 schedule plans for the USA to be part of the North American Alliance by 2030. Further information on Agenda 21 here
To prepare, you must educate yourself as to what is happening. When you understand, you will immediately know why central banking is necessary for the complete dominance of society. No other means exists of destroying all nations simultaneously. A means that is powerful and predictable, an engineered currency purchasing power collapse.
Please see my previous articles for more information on how and why this is happening.
People are free to live as a means to their own ends only if they are willing to stand against the cult that claims ownership and control of all people and property on earth.
We are all born with the right to self-defense and to survive.
We are facing a very complex crisis, and it is time for those who can understand to teach others while using the constitution as the moral and legal authority to root out usurpers and restore our way of life.
Here are a few things of immediate importance
Move out of cities
Get out of debt.
Open up multiple bank accounts (and credit unions) to avoid bail-ins and bank closures due to bank losses. You will have other options if one of your banks fails.
Convert dollars that will be held hostage in the banking system to silver (and gold).
Keep Enough cash on hand for a month of typical requirements.
Keep stocking up on food.
Purchase productive assets (farms, farmland, tractors, specialized machinery).
Make preparations for gasoline and diesel fuel shortages coming this winter and spring.
Obtain necessary components of cooking – cooking oils, flour, sugar, seasonings, etc.
Learn new skills. Fishing, hunting, food storage, gardening.
Purchase a water purification system and identify places to find flowing water for use when the power systems become unreliable
Invest in solar & wind equipment for power generation
Consider communications a priority and invest in radio equipment (shortwave receivers, shortwave radios (get your license), GMRS radios.
Please note that the so-called “Junk Silver” is a fantastic way to own fractional silver and carry and use silver in a familiar, safe manner. Please see my new article, What is Junk Silver and Why You Should Buy Some. In this article, I explain how to price and buy “junk silver” and why it is a good idea to get some – oh, and get it soon.
** Ideas and suggestions in this article are my own opinions and are not intended to be financial advice.
Jack Mullen, MBA
* Note I am not giving advice, only my opinion, I am not a financial advisor. This article represents my thoughts about the economy only.
