Bank Crisis Deepens By the Day

18 Mar

Bank Crisis Deepens By the Day

Sampling Notable Observations During the Calamity…

A quick sampling of opinions about the fast-developing global bank crisis, beginning with tweets from our friend Robert Kiyosaki:

“Biden says bailout of SVB Silicon Valley Bank will not costs taxpayers anything. What is he smoking?”

“BAIL OUTS begin. More fake money to invade sick economy. Still recommend same response. Buy more G[Gold], S[Silver], BC. Take care. Crash landing ahead.”

Robert Kioysaki

More from the author of Rich Dad Poor Dad here.

As usual, the Washington bailout of SVB and Silvergate Bank is a windfall for Washington’s cronies, and will destroy the heartland’s banks as you can see in this congressional questioning of the clueless Treasury secretary Janet Yellen:

There is more pain ahead for Wall Street.  Michael Harnett, Bank of America’s chief investment strategist, warned Friday about a deep fall in stock prices.  The market could fall all the way to its October lows, about nine percent from here.

“Stock lows to be tested one last time in the coming months [due to] no equity capitulation and market too greedy for rate cuts – not fearful enough of a recession.”

Michael Harnett

Jeffrey Gundlach, the widely followed bond market icon says Fed inflation is back in play:

“The Fed is broke. The Fed’s balance sheet is negative $1.1 trillion. There’s nothing they can do to fight any problems except for printing money.

They have nothing left. The Fed used to send money to Treasury. Now Treasury sends money to the Fed.

We’re at this point in time where we don’t have any road left to kick the can on our mismanagement of finances and monetary policy.”

Jeffrey Gundlach

“I think gold is a good long-term hold,” says Gundlach, “Gold and other real assets with true value.”

The Federal Reserve’s policies have made clear once again that “there is no such thing as a free lunch.”  Its major policies initiatives all have major costs, from years of unconscionable money-printing and interest rate repression to the past year of interest rate hikes.  

The gold market, which spent February concerned with just how high the Federal Reserve would raise interest rates, now no longer many cares.  With the damage, Fed policies have done to banks and other bond portfolios now out in the open, gold appears to be making up for lost time.

We have warned repeatedly that US policies, from the Fed’s monetary mismanagement to a sanctions-driven US foreign policy, are going to mean the end of the US dollar’s special privilege, the global dollar reserve privilege.  Now billionaire Sam Zell, the chairman of Equity Group Investments, says we are becoming the Weimar Republic, referring to one of the modern industrialized world’s most famous and destructive inflation episodes.  Losing the dollar’s reserve currency status will mean a 20-25 percent reduction in our standard of living, says Zell.  

We at Republic Monetary Exchange are dedicated to helping as many of our friends and clients as possible take refuge from this widening calamity.  No one needs any encouragement to protect their assets from banks, so we are experiencing record volume and your precious metals professionals are returning calls just as quickly as possible.  Thanks for your understanding during this demanding time.