Earlier last month was the beginning of the end. When the markets started crashing we were entering a new kind of crisis. I’m not talking about the obvious one: The Corona Virus. I’m talking about the Liquidity Crisis.
What is Liquidity? In simplest terms it means cash. But how does cash effect the markets? If people are selling an asset with low liquidity it is much easier for the price of said asset to fall in value or when theres some buying to go up drastically. In this piece, I’ll be referring to the US Stock Market.
The Fractional-Reserve banking model that the world is currently on is dependent on the amount of physical cash they carry on hand. For example, for $100 in deposit the banks can lend out $900. This 10% reserve requirement leaves so much currency that could be created from thin air in the system for the banks to play with. They could even play with…. the stock market!
The Stock Market ballooned to a point where the market caps of the 2 biggest companies in the world reach over a Trillion each! With many criminal politicians selling out of their stock positions and possibly many former CEOs (check out how many stepped down from their company roles in the recent months), it popped the bubble in the stock market.
Is it possible these elitists selling their stocks are the same depositors creating the bank run? I believe so. Most of the severe cases of the current bank run are centered in New York City. Strangely, it’s also the epicenter of the CV.
So of course with all this in mind, when depositors started to withdraw cash en masse from these banks it created a crisis in the form that banks can no longer lend out and use cash they had created, thus creating the liquidity crisis.
Check out this clip from the Jimmy Dore Show recorded 3/30
Jimmy perfectly explains the government’s reasoning for their use of term "Liquidity Crisis." If they were say it like it is, it would be chaos at all banks… or perhaps they are waiting for the perfect moment to tell us the truth to ensure they are safe when the real panic begins…
