The endgame of the banking crisis?

Into the centralization of the banking system

From Tuomas Malinen’s Forecasting Newsletter.

Issues contributed:¹

• What happens, when a banking system collapses?

• Are we heading into a modern version of the Great Depression?

• How central bankers are trying to obtain near-total control of our economies through their digital currencies (CBDC’s).

As we warned, First Republic Bank was first taken over by the FDIC and the most parts of it were sold to J.P. Morgan. The collapse of First Republic was the second largest bank failure in U.S. history and the bank was the 16th largest bank in the U.S. currently, based on the assets.

What is truly worrying with the this ‘merger’ is that effectively:

1. J.P. Morgan bypassed laws against acquiring bank, when controlling 10%+ of US deposits.

2. The FDIC will share loan losses of up to 80%. 

The second one tells us a lot of the potential loan losses of First Republic, but the first one worries me more. This is because it implies that the authorities are willing to bypass the laws prohibiting the centralization of the U.S. banking sector. This is because the worst-case scenario of the current banking crisis is not that we will face a collapse of the global financial system, which would be enough by itself, but what hte authorities may do to “fix” it.

The true danger lurks in the form of central bank digital currencies, or CBDC’s, as I explain below. You find a more detailed explanation of what CBDC’s are from our newsletter.  Those looking for banking safety in the U.S., I urge to check our latest list of U.S. banks to avoid.

However, in this post I want to speculate a bit, where we may be heading, and the picture is not pretty.

When the banking system crumbles