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Post by kevlar on Mar 21, 2023 7:44:36 GMT -6
Ok here’s the conspiracy theorist coming out in me. A couple days ago all kind of articles on the banks and the economy and all the good and bad, didn’t even have to dig for it, it was everywhere. Now to find anything you have to dig for it and everything is sounding upbeat. How do banks fail, their shares plummet one day, have the government toss them some money and all of a sudden it’s all good and people are back investing in these same banks? I would think these people that were smart enough to have huge bank accounts in the first place wouldn’t be so dumb to throw it all into a failed business. But nothing makes sense anymore. I red something the other day that some politician had mentioned that they should be censoring the media so as not to spur a bank run. I wonder if this is occurring? These banks that screwed up should be left to run their course. Or should I maybe start running my farm like banks and other businesses that keep getting bailed out? It’s getting frustrating seeing this crap on a daily basis.
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Post by kenmb on Mar 21, 2023 10:25:34 GMT -6
Where are people taking their cash deposits too if making a bank run? They aren't taking it out as cash. Not going into stocks. Maybe buy bonds/gic's. If buying bonds or gic's then why weren't they in short term vehicles like that a long time ago. Anyone with a large cash position would do that. I am not the brightest guy in the world and I did it for dads cash a few months back. 1.5% or lower in bank vs 3.5% and higher for short term government paper.
But we are told there is all this cash just sitting in banks. Not $5000 stuff, but $millions and $Billions in individual entities. Now these people who are too lazy to do anything with $10M in a cash account suddenly decide they must do something.
My guess is that is not how people actually operate.
My guess is the "news" being created is that the bank runs crashed the system and government needs another solution. That is cbdc so the funds can be controlled in a time of crisis and save the system next time.
To support my thinking I will say once again that no one on the planet has asked the most obvious question:why were the central banks engaging in dirt cheap interest rates for 15 years when the obvious answer was interest rates would go up. Why were banks holding 2% paper clueless that is bad business.
No, no one asks these questions. It's on purpose. Because the answers would lead to solutions and peoples heads should roll for not implementing those solutions 15 years ago.
The questions aren't asked because the problem is bank runs. And the solution is controlled digital currency to stop bank runs.
Now, any solution being played out that does not talk about control of capital to stop bank runs is obviously good for us. The banks bailing out banks to stop bank runs is good. The news is it isn't the peasants pulling out $5000 in cash that is causing the problem. But apparently there are people sitting on $100M cash or whatever.
So I am watching to see how much the news talks about the need to stop capital flight. Because the solution is already planned for that. If banks can all sing happy songs, have group hugs and stop competition and bail each other out then that is good.
As for the credit card fee, I had that last week paying dad's SaskPower bill. If any business should eat the fee, it should be the government run power company. So perhaps it is making people more aware of their extra costs, and get people away from less credit card use. That would be a good thing actually. There is a plan behind this upfront fee, just need to figure out if it is good or bad.
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Post by Oatking on Mar 22, 2023 6:29:32 GMT -6
I wonder how the Chinese and Russian Banks are fairing? If well, they must be both amused of the western banks failing especially when the Americans think they are sticking it to the rusians with restrictions!
Not sure if somebody on here mentioned it , but , I heard western branded car factories that operated in Russia that were ordered to shut down are re-opening and they are producing their own Homeland car. They had blue prints to build their own car.
I do not think Canada could do this on their own!
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Post by kenmb on Mar 22, 2023 10:08:11 GMT -6
In whacky world (ie our world) that is how it works Oatking. The western countries put sanctions on Russian oil, economy, and financial system to destroy Russia and instead it is the western world going down in flames.
Almost makes you think we are fed a bunch of bogus information for such a thing to come to pass.
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Post by northernfarmer on Mar 22, 2023 16:12:19 GMT -6
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Post by shmiffy on Mar 24, 2023 17:43:22 GMT -6
Is this going to be the new norm. Another bank going tits up Friday afternoon
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Post by cptusa on Mar 24, 2023 20:20:04 GMT -6
Who bit it today?
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Post by shmiffy on Mar 25, 2023 1:21:03 GMT -6
/Deutsche Bank is saying they aren’t good. Selling class 2 bonds.
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Post by kevlar on Mar 25, 2023 7:40:02 GMT -6
I find it kind of funny how the headlines are saying economic fears are causing these bank failures, I think it should be the other way around, no? If this Deutsche bank fails, that’s pretty significant, it’s one of the top 30 lenders in the world and are held to higher standards and regulations.
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Post by Bigtalk on Mar 25, 2023 17:51:18 GMT -6
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Post by kenmb on Mar 26, 2023 11:42:47 GMT -6
Next week should be another good one for "banks are failing and we need action". So far we have been hearing this for what, 3 weeks? So far there seem to be some magical solutions.
Quite different than 1998 when Long Term Capital Management needed something like $1B and it couldn't be found so things collapsed. And then in 2008 we had a similar problem from bad lending practices (the correct term is out right fraud all over the place) and couldn't find the $50B or whatever was needed and things collapsed. But since then, our lenders have found about $100T to lend out and the Federal Reserve has found it can put out +$300B overnight and has done that many times in the ladt decade and figured out they can even do it to save an implosion.
Yes, things are different this time. Except all the problems from 1998 or 2008 were not addressed and on many fronts the laws and regulations were amended to allow even more risk. Because being able to gamble more is how things are fixed.
I suspect bitcoin may have been a good move a couple weeks ago. I wonder if one of the narratives planned is "all this capital flight went into bitcoin and we couldn't control it". Which would lead to another reason to put in controls via cbdc and also remove bitcoin.
Government still hasn't figured out how to remove bitcoin from futures trading. That would seem like the easiest first step to stop such a threat to the US financial system and capital flight. Maybe some day someone will stumble on to that one.
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Post by kevlar on Mar 29, 2023 19:17:24 GMT -6
Just stumbled across a few articles talking about the collapse of the US dollar. It sounds very unlikely but there are a few “experts “ saying it’s likely to happen. Makes a guy wonder how close this is to happening if people are talking about it? After the last few years it seems that these small stories ended up taking over our lives. This would certainly be a game changer.
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Post by OptimallyDismal on Mar 29, 2023 21:51:59 GMT -6
It sounds like BRICS is moving ahead, Russia will take yuan as payment, Mexico and quite a few countries want to join BRICS.
US is very unhappy about Mexico wanting to join.
If BRICS becomes the world currency the US dollar will severely devalue and inflation will be a huge problem in the US.
It would appear the bank failures are tied to destroying crypto, which is required to bring in a CBDC.
Actually if it wasn't for Putin we would be a lot closer to CBDC maybe?
And if BRICS goes ahead and becomes the world currency it will be hard to make the CBDC work, so Putin could be saving us from that?
I could only handle a bit of the dynamic duo babbling word salad about the new federal budget, if you can call it a budget, who would have thought a drama teacher and reporter would be in charge of Canada's finances?
Bottom line, no one can predict what will happen next, precious metals is a good hedge, lead, brass, blued steel.
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Post by kenmb on Apr 3, 2023 8:02:52 GMT -6
We keep thinking of our world based on our understanding of how it works. Problem is it doesn't work that way.
For example, yes, a competing currency adapted by at least 25% of the world in terms a trade value should see the $us loose value which should see a large jump in inflation in the US on major assets as entities look to offload $us and convert to a something of intrinsic value (land, housing, office towers, yachts, whatever). This is how we view our world.
However we consistently ignore the centrally planned world we are also told of daily. Which is odd. Why is it we are told something a thousand times but yet ignore it? We are told the central banks of the nations constantly hold/release various currencies to "stabilize" them. This is true, is it not?
Do central banks control currencies? Also known as "reserves"?
And where do these central banks get the currency to buy currency? Well, probably somewhere in the same vein that central banks create infinite currency to lend out to other institutions.
So a central bank can create currency out of thin air to acquire currency to hold in its "reserves". Or something like that because it is never actually explained how that works because there is no public body operated by the peasants to audit the central banks to see where they get their own currency to trade in the currency of other nations.
What I am getting at is its all BS.
Central banks do what they want amongst themselves and it is coordinated through the head central bank known as the BIS.
So, if the $us starts going down and we think people will start offloading $us, what happens? It won't be in the "news" and therefore it won't actually happen. If there is a need to prop up the $us, all that happens is central banks "decide" they must hold more $us in reserve. End of story. No one will ever know how these $us are obtained, where they came from, where they went. We will be told a bunch of $us are taken out of circulation and the $us is stable. End of story.
When your world is governed by the amount of currency flying around and its relation to other nations currency, and that is all controlled by an unelected, unaccountable, unaudited, entity then we really can't use our view of how we acquire currency and project it on to how things will actually play out.
Its like having a photocopier at at an auction sale to print out $$ and then speculate how much a combine will sell for.
Yes, we will be told the $us is doing something or other. But that doesn't mean it is free markets at work.
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Post by kevlar on Apr 3, 2023 8:15:34 GMT -6
What I find interesting is how we can go from the banks and economy being on the brink of destruction, the governments toss around some free money and instantly all is well again. It’s a miracle!!
I was surprised to see though that the Credit Suisse take over deal is being looked into for some illegal dealings which involved the government as well. I don’t expect much to come of it as it involves government, but at least somebody is taking notice of what’s going on.
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