Who are the winners and losers of build back better?
A systemic crisis is underway as the global economy goes into freefall, layoffs are skyrocketing, corporate profit warnings are mounting, and cases of hyperinflation Argentina-style currency collapse fester away.
Bank failures have become breakfast conversation, for those who can still afford breakfast, with food hyperinflation hitting 50% in countries like the UK where there are shortages and rationing of some food items.
Meanwhile, the rebellious French who know a thing or two about revolutions workers’ rioters burn the streets as the French rage over the increasing pension age and cost of living crisis, etc.
“Bank failures have become breakfast conversation, for those who can still afford breakfast”
WIN INVESTING
To build back better; the jingoistic phrase of the WEF is about taking a wrecking ball to the current system
So, if you think the publicly funded gain of function lab released virus, then the global lockdowns, then the greatest money printing in history, then the fastest tightening in half a century to fight the inflation, which the very policy caused, is all unrelated and not done on purpose, we have a bridge to sell you.
So, if the ruling elite has deliberately demolished the system to build a new kind of technology dystopia, a centralized digitalization of everything in a 24 seven-surveillance state, who will be the winners and losers?
Let’s first zero in on monetary policy, the crux of a banking liquidity crisis, bank runs, and bail-ins.
The greatest monetary easing experiment flooded the financial system with liquidity. Negative, and near-zero interest rate policies collapsed bond yields and forced conservative investors, and banks into low-risk treasuries. For banks flush with liquidity any yield, even .2%, was better than paying near negative real interest on their account.
“The greatest monetary easing experiment flooded the financial system with liquidity”
WIN INVESTING
So massive Fed easing policy encouraged investors to go all in and chase yields, higher up the risk curve.
But increasing the money supply by trillions of dollars, forcing businesses to close and workers to not be productive, and stay home, is a guidebook to creating massive inflation, collapsing the bond market, and sending their corresponding yields higher.
Monetary tightening is the next stage of the controlled demolition of the system.
The banking cartel is the big winner of build back better
So central bank policy transitioned from massive easing to tightening to fight the problem their policy caused, inflation.
You’ll own nothing, and the banking cartel owns everything.
In 2022 the Fed hiked interest rates seven times, in what was the most hawkish tightening policy since the 70s, and pricked the everything bubble, which they also caused in the wake of the 2008 Great Recession with decades of the greatest financial easing experiment in the history of finance.
Fed tightening in 2022 slashed more than 30 trillion dollars off the entire asset class. The bond market was particularly affected as the Fed’s quantitative tightening crashed the bond market and sent corresponding yields higher. But as investors rotated funds out of bank deposits into higher treasury yields, which created a banking liquidity crisis, then a stampede of fear from deposit holders triggered bank runs.
“by favoring the big banks over the small community rural banks, the latter is experiencing a liquidity crisis, and banks run with capital flights into the big banks” – Win Investing
From the horse’s mouth, that build back better monetary policy benefits the banking cartel
Bank deposits fully recovered within the insurance threshold.
So the Fed board has discretion over which banks to bail out and which to let fail.
Here is US Treasury Secretary Janet Louise Yellen speaking on March 17 in congress
“Banks only get that treatment if a super majority of The FCIE board, the Fed board, and I, in consultation with the president, determine that the failure to protect uninsured depositors would create systemic risk and significant economic and financial consequences,” said Yellen.
In other words, a chosen few banks, their elite deposit holders, and no doubt, the big political campaign donors will get their money back if their bank fails. Everyone else can eat cake.
The above is an example of a kleptocracy.
So by favoring the big banks over the small community rural banks, the latter is experiencing a liquidity crisis, and banks run with capital flights into the big banks.
Smaller regional banks with depositors over the insurance limit are not insured. Signature Bank barely met that threshold. Put simply, Fed monetary policy is aiding and abetting banking cartels.
“Here it is folks – from the mouth of the US Treasury Secretary herself: Silicon Valley (mostly profitless unicorns incubated with printed money) is anointed and protecte” – Mark Jeftovic
Losers of building back better monetary policy?
“Here it is folks – from the mouth of the US Treasury Secretary herself: Silicon Valley (mostly profitless unicorns incubated with printed money) is anointed and protected. But your community bank can go fuck itself, and so can you. Eat cake pleb,” tweeted Mark Jeftovic, The ₿itcoin Capitalist.
So we are in the maturing stages of the build-back better WEF plan, and bank collapses underscore third-party counter risk and custody risk.
Precious metals and large-cap cryptocurrencies might be the best way to shelter yourself from the coming controlled demolition of the current system and transition. But if you hold precious metals, be prepared for forced sales and confiscations; they have all the guns. Lockdowns are an example of what they are capable of doing.
Our greatest fear is WWW3 escalating and ending in a nuclear detonation. The Chinese peace plan has been rejected, and the International Criminal Court has issued an arrest warrant for Putin. Russia is being snookered into war.
We like large cap cryptos and a getaway pad in the southern hemisphere. As we write this piece, the Credit Suisse bailout, the bank flagged in trouble months ago, has received the largest bailout in history, with some bondholders and stockholders virtually wiped out in a bail-in.
