The CNN panel was jaw-agape as Kevin O’Leary appeared earlier today to inform them the decision by Joe Biden to guarantee every deposit in U.S. regional banks is akin to “Joe Biden just nationalized the U.S. banking system.”

O’Leary is correct, and anyone who is holding assets like stocks or bonds in U.S. banks now needs to reconsider the disappeared line between government and the bank assets.  If the government can assume, control and backstop every single account balance within the bank, the government can assume and control all activity of the bank.  WATCH:

.

Downstream…. think about the consequences.  Remember the frozen bank accounts in Canada as a result of defining truck protest supporting Canadian citizens as domestic extremists?

Now think about the government no longer needing to ask the bank to take action, the govt has a regulatory ability to demand the bank to take action.  This takes “debanking” to an entire new level.  People are wondering why cryptocurrencies went up in value today.  There’s your answer.

Comrade citizens, at the end of this rainbow of bank nudges, we will find ourselves at the footsteps of a government controlled central bank digital currency.

(more…)

The installed occupant of the White House said something today that is just brutally false on its face.

From the words typed into the teleprompter of Joe Biden you hear, “No losses will be borne by the taxpayers. Instead, the money will come from the fees that banks pay into the Deposit Insurance Fund.” Who the hell does Biden think are paying those “fees”? Those fees paid into banks, and then out of banks, from all around the nation are paid by the people using the bank, that’s taxpayers.

The United States government does not create a single dollar of revenue. They transfer revenue from people to processes and systems of government. Charles Payne has a good perspective on this entire dynamic. {Direct Rumble Link} WATCH:

(more…)

BREAKING NEWS – The U.S. Treasury, Federal Reserve Board, FDIC and Joe Biden collectively announce that *all* depositors with Silicon Valley Bank (SVB) will have access to their funds – regardless of amount deposited.  Also, all senior bank management has been terminated.

This announced action appears to cover those under FDIC protection ($250k or less) and those above FDIC protection (deposits greater than $250k).  The only vulnerability is that SVB “shareholders and certain unsecured debtholders will not be protected.”

WASHINGTON DC – The following statement was released by Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg:

Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.

After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.

(more…)

South Dakota Governor Krisi Noem appeared on Tucker Carlson’s television broadcast last night to send a warning to fellow governors.  According to the background story, the South Dakota legislature passed a bill redefining currency and creating rules for a Central Bank Digital Currency (CBDC) that would block all other digital currencies from being used in the state.  Governor Noem vetoed the bill.

When asked why her legislature would do this, Noem responded the state politicians likely did not read the bill as it was constructed by lobbyists.  Noem is exactly correct and hits on a subject we have discussed here frequently {GO DEEP}.  However, one of the more alarming aspects to Noem’s discussion of the issue is that around 20 other states are considering similar legislation.  WATCH:

.

(more…)

The 44-hour collapse of Silicon Valley Bank (SVB) is having some reverberations amid the tech sector as companies who carried unsecured deposits with the bank are facing an uncertain future.

Tech company Roku streaming services holds $487 million in cash reserves at SVB representing 26% of their liquid holdings. Those unsecured funds are now tenuous, depending on what steps are taken next.  Additionally, Etsy an online brokering retailer for mostly independent sellers, has also run into a snag with processing disbursement payments to those same sellers.  Etsy used SVB as a depository and payment transfer provider to the merchant accounts.

According to Axios, “Circle’s usd coin (USDC), the second largest stablecoin in the world” is also in a tough position “because a portion of its cash reserves were held at SVB, which the U.S. government took control of on Friday.”  These and other ancillary issues are now part of a larger conversation about whether SVB is representative of a weakness that may impact other banks.   However, current consensus is that a contagion effect is not expected.

SVB was exclusively a tech sector bank.  Small to mid-size tech companies who relied on SVB may have some immediate issues; but the larger banking sector seems much more solid and less exposed to the long-term treasuries that SVB was holding. “People are used to having zero interest rates and easy money, and it’s gone. And there are people who will manage that well and people who will not,” former Congressional Budget Office Director Doug Holtz-Eakin said during an interview on “Cavuto Coast-to-Coast” Friday. {link}

Meanwhile, congress is meeting with treasury and FDIC officials to discuss if taxpayer intervention is needed.  {insert eyeroll here}:

(more…)

For his opening monologue Friday night, Fox News host Tucker Carlson outlined the collapse of Silicon Valley Bank and ponders the deeper story that lay underneath the sudden failure. WATCH:

.

(more…)