Buckle Up Part 3: US Studies How To Guarantee All $18 Trillion In US Bank Deposits!?!?!

[John Stark]

ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

Some Highlights:

"US officials are studying ways they might temporarily expand Federal Deposit Insurance Corp. coverage to all deposits, a move sought by a coalition of banks arguing that it’s needed to head off a potential financial crisis."

"Treasury Department staff are reviewing whether federal regulators have enough emergency authority to temporarily insure deposits greater than the current $250,000 cap on most accounts" without formal consent from a deeply divided Congress... and goes on to note that "authorities don’t yet view such a move as necessary, especially after regulators took steps this month to help banks keep up with any demands for withdrawals" which is an important caveat"

"Well, there's always printing. According to Bloomberg, one legal framework under discussion for expanding FDIC insurance would use the Treasury Department’s authority to take emergency action and lean on the Exchange Stabilization Fund. The same magical Exchange Stabilization Fund which the Treasury is already using to backstop its latest bank bailout facility, the Bank Term Funding Program, or BTFP.

Here too there is a small problem: that ESF pot of money is used to buy or sell currencies and to provide financing to foreign governments. A bigger problem: the ESF only has $25 billion currently in it as parts of its BTFP backstop.... but it has to do, as it is the only pot of money under the full authority of Janet Yellen, with other spending and financing under the jurisdiction of Congress."

"Any mechanism using the ESF as a bailout mechanism uses the cash from the fund as a first-loss equity tranche to which the Fed then applies leverage. LOTS of leverage, because if authorities plan on backstopping the $18 trillion in total US deposits, the Fed will need to cover the difference... of some $17.975 trillion (unless Congress reaches a bipartisan deal to infuse more capital in the ESF, the same way the ESF was expanded to $500BN during the covid crisis..."

"Finally, such a program will likely have to also be the result of an executive order since it has little hope of passing in Congress where members of both the left and right will be vehemently against it."

“Any universal guarantee on all bank deposits, whether implicit or explicit, enshrines a dangerous precedent that simply encourages future irresponsible behavior to be paid for by those not involved who followed the rules,” the House Freedom Caucus said in a statement, "and we are confident most of the progressive wing will not be too excited about bailing out billionaires and corporations with orders of magnitude more in the bank than the FDIC limit."

---------------

There is no doubt that the House controls the purse strings, even though our "representatives" have proven themselves over the last number of decades to be nothing more than carnival barkers when it comes to wielding their power for the good of our nation. This a fundamental, game-breaking point of Constitutional and governmental order that would smash our system of government forever.

The very notion that the Fed (a criminal banking cartel) and the Feds (our so-called national government composed mostly of corrupt "officials" and "public servants") are "studying" (read: seriously considering) the idea of guaranteeing EVERY deposit of EVERY depositor in EVERY bank, to the tune of $18,000,000,000,000 (Yes, 18 TRILLION), indicates several things:

-The "contagion" is worse than they want to admit.

-That these people are freaking nuts.

-That we're looking at inflation WAY beyond what we're already seeing, given that the only way to do this will be to hit print 18 trillion times on the printing press, of have someone in the Federal Reserve hold their finger on the zero key for awhile.

-That the "powers that be" might finally and irrevocably break the US Constitution if (probably when) they do this by an executive order from President Pudding Pop, rather than an Act of Congress. We would in essence be nothing more than a dictatorship, with all vestiges of what our Founders designed and passed on to their posterity blown away in a hurricane of despotism.

-That EVEN IF Congress "properly" voted to do this, everyone would have to finally admit that our Nation is not just insolvent, but is a complete and total banana Republic with absolutely no moral or political authority at all.

The FACT that this is even being "studied" is crazier than having a shit house rat for your family pet!!!

If they do this, FUSA turns into Venezuela in very short order.

If that is not game on for the average American citizen, I don't know what is.

 

[SomeSoldier]

 

[FP1201]

If I were going to die (soon) or plead Bankruptcy, I'd have all the credit I could get and max it out, knowing that someone else is going to get fucked for it...Perhaps this IS what the American Government is doing?

America is the ONLY Country that borrows money to give away.

I've been warned and told the stock market is going to crash, the economy is going to collapse, and the Dollar will become worthless since the 70's and despite some ups and downs, it hasn't happened yet...then again, we've never been this far down the rabbit hole before.

Buying Gold and Silver was a good idea as it's value has risen.
Copper-lead-brass has also gone up, and the common end product of the three has gone wild.
Trick is getting someone to trade the inedible for the edible might be harder than you think...all those metals, no matter how precious, will not satisfy the primal need to eat.

 

[spat]

ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

Some Highlights:

"US officials are studying ways they might temporarily expand Federal Deposit Insurance Corp. coverage to all deposits, a move sought by a coalition of banks arguing that it’s needed to head off a potential financial crisis."

"Treasury Department staff are reviewing whether federal regulators have enough emergency authority to temporarily insure deposits greater than the current $250,000 cap on most accounts" without formal consent from a deeply divided Congress... and goes on to note that "authorities don’t yet view such a move as necessary, especially after regulators took steps this month to help banks keep up with any demands for withdrawals" which is an important caveat"

"Well, there's always printing. According to Bloomberg, one legal framework under discussion for expanding FDIC insurance would use the Treasury Department’s authority to take emergency action and lean on the Exchange Stabilization Fund. The same magical Exchange Stabilization Fund which the Treasury is already using to backstop its latest bank bailout facility, the Bank Term Funding Program, or BTFP.

Here too there is a small problem: that ESF pot of money is used to buy or sell currencies and to provide financing to foreign governments. A bigger problem: the ESF only has $25 billion currently in it as parts of its BTFP backstop.... but it has to do, as it is the only pot of money under the full authority of Janet Yellen, with other spending and financing under the jurisdiction of Congress."

"Any mechanism using the ESF as a bailout mechanism uses the cash from the fund as a first-loss equity tranche to which the Fed then applies leverage. LOTS of leverage, because if authorities plan on backstopping the $18 trillion in total US deposits, the Fed will need to cover the difference... of some $17.975 trillion (unless Congress reaches a bipartisan deal to infuse more capital in the ESF, the same way the ESF was expanded to $500BN during the covid crisis..."

"Finally, such a program will likely have to also be the result of an executive order since it has little hope of passing in Congress where members of both the left and right will be vehemently against it."

“Any universal guarantee on all bank deposits, whether implicit or explicit, enshrines a dangerous precedent that simply encourages future irresponsible behavior to be paid for by those not involved who followed the rules,” the House Freedom Caucus said in a statement, "and we are confident most of the progressive wing will not be too excited about bailing out billionaires and corporations with orders of magnitude more in the bank than the FDIC limit."

---------------

There is no doubt that the House controls the purse strings, even though our "representatives" have proven themselves over the last number of decades to be nothing more than carnival barkers when it comes to wielding their power for the good of our nation. This a fundamental, game-breaking point of Constitutional and governmental order that would smash our system of government forever.

The very notion that the Fed (a criminal banking cartel) and the Feds (our so-called national government composed mostly of corrupt "officials" and "public servants") are "studying" (read: seriously considering) the idea of guaranteeing EVERY deposit of EVERY depositor in EVERY bank, to the tune of $18,000,000,000,000 (Yes, 18 TRILLION), indicates several things:

-The "contagion" is worse than they want to admit.

-That these people are freaking nuts.

-That we're looking at inflation WAY beyond what we're already seeing, given that the only way to do this will be to hit print 18 trillion times on the printing press, of have someone in the Federal Reserve hold their finger on the zero key for awhile.

-That the "powers that be" might finally and irrevocably break the US Constitution if (probably when) they do this by an executive order from President Pudding Pop, rather than an Act of Congress. We would in essence be nothing more than a dictatorship, with all vestiges of what our Founders designed and passed on to their posterity blown away in a hurricane of despotism.

-That EVEN IF Congress "properly" voted to do this, everyone would have to finally admit that our Nation is not just insolvent, but is a complete and total banana Republic with absolutely no moral or political authority at all.

The FACT that this is even being "studied" is crazier than having a shit house rat for your family pet!!!

If they do this, FUSA turns into Venezuela in very short order.

If that is not game on for the average American citizen, I don't know what is.

Watch, they will implement this.

Then roll out the central digital currency as an "alternative" option.

Then they'll use that exclusively for reimbursing people when the FDIC covers the collapse of their bank.

"Sorry your bank collapsed, here's the full value of your deposits in FedCoin, you can thank us later".

 

[John Stark]

If I were going to die (soon) or plead Bankruptcy, I'd have all the credit I could get and max it out, knowing that someone else is going to get fucked for it...Perhaps this IS what the American Government is doing?

Shush now, you'll give people ideas on how to become banksters themselves in the "new economy!"

/wink

Trick is getting someone to trade the inedible for the edible might be harder than you think...all those metals, no matter how precious, will not satisfy the primal need to eat.

Well if we're counting guns and ammo as precious metals to hold on to, those do have the power to "satisfy the primal need to eat."

That might mean eating your neighbor though, after all of the local animals have been devoured.

 

[Acer-m14]

That might mean eating your neighbor though, after all of the local animals have been devoured.

just saying lol

 

[spat]

Shush now, you'll give people ideas on how to become banksters themselves in the "new economy!"

/wink

Well if we're counting guns and ammo as precious metals to hold on to, those do have the power to "satisfy the primal need to eat."

That might mean eating your neighbor though, after all of the local animals have been devoured.

Eh, I'm not planning on eating any looters.

But, my dogs need to eat too, and I'm sure properly cooked and seasoned they would love some medium rare scumbag.

 

[Deplorable Me]

Easy. Just ask Ukraine for a refund.

 

[TEOTWAWKI inc.]

Does this mean we finally get to mint some of those magical trillion dollar coins the fed has proposed?

 

[Saltwater60]

Well if all money will be backed up by the feds why would the banks be conservative or not make risky moves/loans/investments? This seems like a real bad idea and I thought Janet Yellen just said another financial crisis can’t happen in our lifetimes becuase she and her colleagues did such a great job is 2008 that a 21/22 financial crisis couldn’t happen.

 

[John Stark]

Does this mean we finally get to mint some of those magical trillion dollar coins the fed has proposed?

Sure. And they'll nationalize the $34 Trillion sitting in retirement accounts to do it.

 

[spat]

Does this mean we finally get to mint some of those magical trillion dollar coins the fed has proposed?

Sure, 3 of them will get you a Big Mac.

 

[SomeSoldier]

Sure, 3 of them will get you a Big Mac.

Too expensive, Costco hotdog. No drink no chips.

 

[John Stark]

Finger in a dyke, and too little too late:

ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

Spend some time trying to figure out the Repo Market. If you're still as confused as I am on how this generates wealth, that confusion is a strong indicator that we understand the problem better than we think we do.

 

[Drinkthekoolaid]

Can't imagine what nefarious reasons the .gov/fed is being motivated by to ram this through.

It's either extremely cunning, calculated and nefarious in intentions and what their end goals are 5 years from now using this as a tool to achieve, or it's an incredibly stupid and short sighted plan by people who have no idea of the unintended consequences they are going to be creating.

Frankly, I can't really tell if they are evil geniuses or complete obtuse ignorant dumbasses who don't comprehend how things work they vote on. Recently those lines of distinction have become quite muddled.

I tend to think .gov knows exactly what they are re trying to accomplish and will do so using any means necessary even if they have to cause some pain to get to their desired end state goal

 

[Jmac00]

easy fix ~~~~ eliminate the Federal reserve, refer all banking back to the state or local level. Stop trying to regulate every penny, ( eliminate the digital currency ) Let people have their garage sales, yard sales. Let us sell our old vehicles and then bend the rules on the tax.

But most important, the Government MUST STOP SPENDING ON COMPLETE BULLSHIT.

 

[Drinkthekoolaid]

easy fix ~~~~ eliminate the Federal reserve, refer all banking back to the state or local level. Stop trying to regulate every penny, ( eliminate the digital currency ) Let people have their garage sales, yard sales. Let us sell our old vehicles and then bend the rules on the tax.

But most important, the Government MUST STOP SPENDING ON COMPLETE BULLSHIT.

They tie in critical things into bills on page 1753 where the first 1752 pages are for absolute bullshit and crap.

There needs to be line item accountability not these gross misappropriations of resources deliberately playing games to get pet projects approved and voted on.

 

[prambo]

Paying the Piper: Time to Clean Up the Latest Malinvestments | Doug French

"The Austrian business cycle theory teaches us that low interest rates manipulated by the central bank lead to malinvestments, which are cleared when the central bank lets rates rise, reflecting a truer cost of capital. A real-time example is happening in the United States commercial office real estate market. Combine that with the government’s covid lockdowns, which forced employees to work from home."

Looks to me like the "financial types" have been smoking some powerful shit...

Did they really think their stupid spending was going to end any other way?

They deserve to take the big falota up the ass - too bad the rest of the country will have to supply the K-Y.

Frankly, I think it's fucking funny - couldn't happen to a nicer bunch of brain dead morons.

And yeah, old fucks like me will be swept to the side rather quickly, but...

 

[Mr. terzmo]

This would turn all the banks into a giant credit card and the Feds holding the bag. Misappropriate bank funds in a way that benefits a bank CEO, finger a fall guy and then go bankrupt/fail.

And speaking of money, isn't it obvious to most that China is already at war with the US through trade and attacking the dollar. Not a shot fired and the dollar goes down the crapper. And Brandon's Pal's the Saudi's, are jumping on the bandwagon along with South American Countries...not to mention Russia and Iran. I have zero confidence at this time, in the survival of the Country in the near future.

 

[DoOver]

 

[DoOver]

 

[Cavalry]

View attachment 199542

Magic money. This is no different than printing a trillion dollars, its just a workaround through the mint. Yeah, that coin is worth a trillion, just like a piece of paper is worth $1.
Didnt we learn our lesson in the last 3 years about printing money?

 

[John Stark]

easy fix ~~~~ eliminate the Federal reserve, refer all banking back to the state or local level. Stop trying to regulate every penny, ( eliminate the digital currency ) Let people have their garage sales, yard sales. Let us sell our old vehicles and then bend the rules on the tax.

But most important, the Government MUST STOP SPENDING ON COMPLETE BULLSHIT.

I agree with eliminating the Federal Reserve and getting rid of a very large swath of Federal (and state) spending.

Not that it really matters any longer, but I do think FedGov has a role to play in banking given our Constitution.

One step that I think would go a long ways would be to go back to something like Glass Steagall:

Glass-Steagall Act of 1933: Definition, Effects, and Repeal

The Glass-Steagall Act was established in 1933 and repealed in 1999. It was designed to separate commercial banking and investment banking.

www.investopedia.com

Depositor (commercial) banks should not be allowed to speculate at all in any paper markets, whether its stocks or bonds or whatever. Alternatively, depositor banks would be allowed to only invest in things that actually exist, like real estate, and other forms of property such as real manufactured goods. In other words, commercial bank investment would have to be backed up by real assets, not the paper trading scams. If the bank gets in trouble, there are real assets backing the deposits, and customers would have a right to not allow their funds to be invested in such a manner, paying a premium to opt out and have their money secured and untouchable. A pipe dream, I know!

Investment banking should not be allowed to do retail banking at all. Their depositors know that they are putting their money into investments that are NOT secure, and accept that risk. No FDIC, no Federal Reserve backstop. There would have to be heavy penalties for fraud, very heavy penalties. You invest, you know your money is AT RISK.

I also think that we should go back to 5 business days for all banking; banks of either type by law would be closed saturday and sunday. The onset of digital trading is bringing about a 24/7 need for anyone in the market to ride their portfolio and wonder when the next bankster/government crime wave is going to wipe them out because they wanted to spend a day with their family. To make up for the banks being closed on the weekends, I would make the banks open at 6am and remain open until 6pm, so most people can get there sometime during the day. I believe a 24/7 wide open market, where billions and trillions are being shuffled around, and currency speculation (money changing) is wide open, can not only lead to extreme volatility and rapid bankruptcy, but to rampant fraud and criminal schemes big and small. Further, I think a 24/7 cycle of bankster bullshit gives in to human oversight of their own wealth, and puts everyone at the mercy of banking programs and AI that no one can keep up with.

I know its a moral point I am making that a 24/7 banking/trading window is not healthy for people or society, but I stand by that. People need to get out of the bubble once in awhile and breathe some fresh air.

Also, I reject Fiat Money, digital currency, and money that is not backed up by tangible assets like precious metals and other commodities.

 

[John Stark]

Didnt we learn our lesson in the last 3 years about printing money?

More like the last 100+ years. 1913 to be precise.

 

[John Stark]

This would turn all the banks into a giant credit card and the Feds holding the bag. Misappropriate bank funds in a way that benefits a bank CEO, finger a fall guy and then go bankrupt/fail.

No disrespect intended towards you, but that is how the system already works. When in trouble, the government prints money for the banks, and the banks buy government bonds and make "right" investments to keep the shitshow going. Its been happening since 1913.

 

[fresch]

Guys, they are just numbers.
The west and the east will just talk/fight it out, over control of the earth. The "money" is your labor; the west pays too much for labor. That is why Nixon opened Chi-na.
The communist have seen mixing communism and capitalism still gives them control and now money.
The west has now figured it out too. It is a race to see who captures the most "labor" and we are trying to do it by letting the 3rd World move here; the communist party is both buying and taking land and getting the labor for free.
The "money" is who will have the best military with the most captured labor.

 

[prambo]

View attachment 199542

Directed at the original article.

 

[RedBreast21]

Well their plan is working.

CBDC to save the day and most will welcome it.

The human mind is most powerful part of us and the most weakest, all at the same time.

No funny emoji. We are a pathetic species and clearly not of this planet.

 

[DoOver]

Genevieve Roch-Decter, CFA

@GRDecter
·
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[DoOver]

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Last edited5:37 PM · May 3, 2023
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