You've likely already heard of the Silvergate / Silicon Valley Banks going to zero late last week. These two banks folded within two days of a massive bank run. Peter Thiel (of Paypal fame) and his Founders Fund along with Jamie Dimon, CEO of JPMorgan Chase sent out advisories in the days leading up to the bank run to pull their money out of SVB and there's speculation they're the true cause of the ban run that brought down SVB.
As I learned more, it turns out it's the FED and their aggressive rate hikes since last April that has sparked this chaos in the regional banking system that I believe is spreading to the large banks as everything is inter-connected. Greg Hunter at USAWatchDog.com has a new interview with Bill Holter in which Holter states, 'Banks are sharks. When there's nothing left to eat, they eat each other'. It seem that's what's happening now as I got word this morning that HSBC (Hong Kong Shanghai Bank of China) has purchased the U.K. arm of SVB for just 1 Pound!
Holter says the FED has a choice to either save the system or save the dollar and is 'throwing caution to the wind'. The world is entering a global bankruptcy and it's not just the little guy that will lose money. Holter reminds listeners this will affect corporations as they will not be able to process payrolls, pay rent and other obligations. This will also hit hedge funds and pension plans.
Just a week ago, consensus was that the FED will raise rates by another 50 basis points. It's amazing how much can change so fast. Now, the FED is being begged to not raise in a couple of weeks time at their next FOMC meeting. Now, we hear talk of more quantitative easing and lower rates.
There's just one problem. The FED is broke and the U.S. Treasury is running on fumes as the U.S. Gov debt ceiling was reached at the end of January. The supposed cutoff date is around June 5 but this brewing banking disaster will likely move that date up a bit. Are we to experience total financial chaos by the month of May?
Moving on to the Gold Silver Vs Banks match: Gold spiked upward about $40 per ounce on Friday while silver increased by about 50 cents. Gold came from the left and silver came from the right and punched the banks in the jaw as a result, sending two banks to the floor.
In comes Signature Bank out of New York. It didn't stand a chance against the Gold Silver Tag Team. It was over before it even got started. As of Sunday afternoon, Signature Bank is out for the count, becoming the third bank to lose against Gold Silver in a matter of days. Gold notched up its winnings to top $1,900 while silver's winnings so far total almost $2 per ounce.
Now, the Gold Silver Tag Team is eyeing even bigger venues but can't make up its mind whether to go to Europe and face off against Credit Suisse since their muscle has been so weakened by record low share prices or to face off against an even mightier opponent, the Bank of Japan! Their debt to GDP ratio is astounding According to Wikipedia (not exactly the most trustworthy site), Japan's debt to GDP ratio has hit 263% in 2022! They reached the point of no return around year 2000. Look to Japan to be one of the first of the G20 to suffer some kind of major countrywide financial crisis.
Regardless, I do expect the Gold Silver Tag Team to go on a tear over the next few weeks and months (and years?). History suggests this. Did you know that some 650 banks went under by the end of 1929? BY 1933, 11,000 of the U.S.A.'s 25,000 banks no longer existed. Are we to see a repeat? I don't mean to scare anyone but I think the answer is yes. The incredible amounts of debt incurred by governments around the world along with state / provincial / municipal and personal debts makes this scenario playing out again a mathematical certainty.
Going back to the Bill Holter interview with Greg Hunter, Holter says there will be no bail outs, only bail-ins and to start measuring your wealth in ounces, not in dollars. I couldn't agree more, Bill.
I can tell you now, if there's a run on the banks, there will be a run for gold and silver, if it hasn't started already. I recommend joining the 'Gold Silver Tag Team' as soon as possible. Also, fill up on gas, buy some extra canned / dry foods, cleaning supplies, etc., as some things may not be readily available if everything seizes up. Who knows what might happen at this point. Better to be prepared than sorry.
I've been getting prepared for years. I'd much rather be years too early than to be just one second too late. A great wealth transfer has begun and I plan to be on the winning side. What else will it take to convince people that silver and gold are real money and will never just 'evaporate' like all currencies tend to do. Their intrinsic value is zero as they are backed by nothing.
It's time to bring sound money back, period!
Thanks for your support.
Peace and love to everyone.
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