The multinational lender keeps expanding its global reach, aiming to help member states reduce dependence on the US dollar and euro.Continue reading PetroDollar Dumping: Saudi Arabia May Join BRICS Bank
Category Archives: Banking & Finance
The Flight From the US Dollar
On March 20, Chinese President Xi Jinping met with Russian President Vladimir Putin in Moscow. In his article in the Russian media preceding the meeting, Xi enthused that “China-Russia trade exceeded 190 billion U.S. dollars last year, up by 116 percent from ten years ago.”Continue reading The Flight From the US Dollar
The Federal Reserve Cartel: The Solution
Thomas Jefferson opined of the Rothschild-led Eight Families central banking cartel which came to control the United States, “Single acts of tyranny may be ascribed to the accidental opinion of the day, but a series of oppressions begun at a distinguished period, unalterable through every change of ministers, too plainly prove a deliberate, systematic plan of reducing us to slavery”.Continue reading The Federal Reserve Cartel: The Solution
The Signs of De-Dollarization are Everywhere
De-dollarization is increasingly making headlines and you don’t have to look too hard to find examples.Continue reading The Signs of De-Dollarization are Everywhere
Over 2,000 US Banks are Insolvent
The US banking sector has recently been hit by a major crisis.Continue reading Over 2,000 US Banks are Insolvent
Trading in US banks halted as financial panic spreads
More regional lenders have seen their shares plummet, prompting regulators to intervene.Continue reading Trading in US banks halted as financial panic spreads
De-Dollarization Kicks into High Gear
The US dollar is essential to US global power projection. But in 2022, the dollar share of reserve currencies slid 10 times faster than the average in the past two decades.Continue reading De-Dollarization Kicks into High Gear
ASEAN Finance Ministers & Central Banks Consider Dropping US Dollar, Euro, Yen, Phasing Out Visa and Mastercard
An official meeting of all ASEAN Finance Ministers and Central Bank Governors kicked off on Tuesday (March 28) in Indonesia. Top of the agenda are discussions to reduce dependence on the US Dollar, Euro, Yen, and British Pound from financial transactions and move to settlements in local currencies.Continue reading ASEAN Finance Ministers & Central Banks Consider Dropping US Dollar, Euro, Yen, Phasing Out Visa and Mastercard
India’s New Foreign Trade Policy Aims to Smash Dollar’s Hegemony
The Chinese yuan may be the perfect foil for the rupee to usher in a new multipolar order for global trade.Continue reading India’s New Foreign Trade Policy Aims to Smash Dollar’s Hegemony
Dozens of US Banks at Risk of Repeating SVB Collapse – Study
Many other lenders are also sitting on unrealized losses caused by the rapid rise in interest rates.
Nearly 200 American banks face similar risks to those that led to the implosion and bankruptcy of Silicon Valley Bank (SVB), according to a paper posted this week to the Social Science Research Network. SVB, a major US lender focused on the tech and startup sectors, was shut down by regulators last week after massive deposit outflows.
In the study, four economists from prominent US universities estimated how much market value the assets held by US banks have lost due to recent interest rate hikes.
“From March 07, 2022, to March 6, 2023, the federal funds rate rose sharply from 0.08% to 4.57%, and this increase was accompanied by quantitative tightening. As a result, long-dated assets similar to those held on bank balance sheets experienced significant value declines during the same period,” they wrote.
Although higher interest rates can benefit banks by allowing them to lend at a higher rate, many US banks have parked a significant portion of their excess cash in US Treasuries. This was done when interest rates were at near-zero levels. The value of these bonds has now greatly decreased due to the rate hikes – investors can now simply purchase newly issued bonds that offer a higher interest rate. The decline in the banks’ portfolios is unrealized, meaning the value of the securities has declined but the loss is still only ‘on paper’.
The problem arises when customers request their deposits back and banks are forced to sell their securities – at a significant loss – in order to pay depositors back. In extreme cases, this can lead to a bank becoming insolvent, or as happened with Silicon Valley Bank, the loss of confidence can trigger a bank run.
The report’s authors looked into how the amount of US lenders’ funding that comes from uninsured deposits: the greater the share, the more susceptible a bank is to a run. For instance, at SVB, where 92.5% of deposits were uninsured, the deposit outflow caused the bank to collapse in a span of only two days. The authors of the study calculated that 186 American banks do not have enough assets to pay all customers if even half of uninsured depositors decide to withdraw their money.
“Our calculations suggest these banks are certainly at a potential risk of a run, absent other government intervention or recapitalization… Overall, these calculations suggest that recent declines in bank asset values very significantly increased the fragility of the US banking system to uninsured depositor runs,” the economists concluded, noting that the number of banks at risk could be “significantly” larger if “uninsured deposit withdrawals cause even small fire sales.”
SVB’s failure sent ripples across the entire US banking industry and caused the closure of another lender, Signature Bank. Many other financial institutions have seen their stocks plunge, with the six largest Wall Street banks losing around $165 billion in market capitalization, or some 13% of their combined value. Earlier this week, the ratings agency Moody’s downgraded its outlook for the US banking system from ‘stable’ to ‘negative’, citing the “rapidly deteriorating operating environment.”
How The US Banking Crisis Could Lead to The Collapse of The Western Financial System
The growing number of institutional failures is a signal that the entire economic system is under pressure.Continue reading How The US Banking Crisis Could Lead to The Collapse of The Western Financial System
Billionaire Warns of Dire Aftermath of SVB Collapse
Bill Ackman says the government made “a-soon-to-be-irreversible mistake” in its treatment of the failed bank.Continue reading Billionaire Warns of Dire Aftermath of SVB Collapse
CBDCs – The Good, The Bad, & The Downright Ugly
There has been much comment over the likelihood that central bank digital currencies will be introduced. I conclude they are unnecessary — a red herring. But it does allow us to discuss their possible relevance to a new Asian super-currency.Continue reading CBDCs – The Good, The Bad, & The Downright Ugly
Russia’s Sergey Glazyev Introduces the New Global Financial System
The world’s new monetary system, underpinned by a digital currency, will be backed by a basket of new foreign currencies and natural resources. And it will liberate the Global South from both western debt and IMF-induced austerity.Continue reading Russia’s Sergey Glazyev Introduces the New Global Financial System
De-Dollarization Accelerates in Southeast Asia
The US is facing major moves by the global community to de-dollarize their economies. The reserve status of the US dollar will eventually come to an end, maybe not anytime soon, but sometime in the future as it is facing numerous challenges not only from major powers such asContinue reading De-Dollarization Accelerates in Southeast Asia
The Global South Births A New Game-Changing Payments System
Challenging the western monetary system, the Eurasia Economic Union is leading the Global South toward a new common payment system to bypass the US Dollar.Continue reading The Global South Births A New Game-Changing Payments System
Even The Banksters are Being Forced to Admit that the U.S. Economy is Coming Apart at the Seams
It’s wake-up time. For months, there has been a tremendous amount of denial out there. So many of the “experts” assumed that the Federal Reserve and other central banks had everything under control and that things would “return to normal” before too long. But that hasn’t happened.Continue reading Even The Banksters are Being Forced to Admit that the U.S. Economy is Coming Apart at the Seams
The Rise of the Global South and the Foundation of a New Currency System
Continue reading The Rise of the Global South and the Foundation of a New Currency System
“The issue of creating an international reserve currency based on a basket of currencies of our countries is being worked out.”Vladimir Putin said at the BRICS business forum.
Proof Revolving Door Between Congress and Banks Exists
The heads of America’s biggest banks welcomed a Congressional staffer into their ranks during a public hearing.Continue reading Proof Revolving Door Between Congress and Banks Exists
US Treasury Looking for Sanctions Wizard, Not A Joke
A new position is being created to advise the Biden administration on how to avoid collateral damage from restrictions.Continue reading US Treasury Looking for Sanctions Wizard, Not A Joke
The Root Causes of the Current Unfolding Systemic Financial Collapse of the West
Sergey Glazyev’s thinking is rooted in an old and powerful intellectual current that derives from a strong tradition in Russia based upon state credit, national sovereignty, large-scale infrastructure, scientific progress, and win-win cooperation.Continue reading The Root Causes of the Current Unfolding Systemic Financial Collapse of the West
“Lehman Event” Looms For Europe As Energy Companies Face $1.5T In Margin Calls
European energy companies are facing margin calls of a total of $1.5 trillion in the derivatives market and many would need policy support to cover them amid wild swings and skyrocketing gas and power prices, an executive at Norway’s energy major Equinor told Bloomberg on Tuesday. According to Helge Haugane, Equinor’s senior vice president for gas and power, the $1.5-trillion estimate is even “conservative”.Continue reading “Lehman Event” Looms For Europe As Energy Companies Face $1.5T In Margin Calls
Triggering A Multi-Trillion Dollar Global Debt Crisis
“And thus it renders more and more evident the great central fact that the cause of the miserable condition of the working class is to be sought, not in these minor grievances, but in the capitalistic system itself.” Friedrich Engels, The Condition of the Working Class in England (1845) (preface to the English Edition, p.36)Continue reading Triggering A Multi-Trillion Dollar Global Debt Crisis
Vatican Goes Full Technocracy With ‘Council for Inclusive Capitalism’
The idea that there is an agenda for global government among the financial and political elites of the world has long been called a “conspiracy theory” within the mainstream and the establishment media.Continue reading Vatican Goes Full Technocracy With ‘Council for Inclusive Capitalism’
The Fed Just Lobbed A Financial Nuke That Will Obliterate The Global Economy
“Take The Tragedy in Sri Lanka and Multiply By Ten”. We are living in a period of mass “Jonestown” economic delusion. Just twenty months ago – central bankers were offering to buy nearly every junk bond known to mankind, dramatically distorting the “true cost of capital.”Continue reading The Fed Just Lobbed A Financial Nuke That Will Obliterate The Global Economy
Iran-Russia Interbank Agreement Soon to Be Implemented
The pursuit of inter-banking agreements comes amid efforts by Tehran and Moscow to strengthen their economies and bypass western sanctions.Continue reading Iran-Russia Interbank Agreement Soon to Be Implemented
This Financial Coup d’ Etat aka Great Reset is A Planetary Takedown by Financial “Insiders”
Catherine Austin Fitts (CAF), Publisher of The Solari Report and former Assistant Secretary of Housing (Bush 41 Admin.), contends this is what the so-called “reset” looks like. High food and fuel prices along with crushing interest rates are no accident. CAF explains,Continue reading This Financial Coup d’ Etat aka Great Reset is A Planetary Takedown by Financial “Insiders”
Beyond the Dollar Creditocracy: A Geopolitical Economy
Understanding of the dollar’s world role is dominated by the ideas of ‘dollar hegemony’ and ‘US hegemony’. In this paper, based on their extensive past work, Radhika Desai and Michael Hudson reveal how these ideas are ideologies, not theories.
They reveal an understanding that is theoretically sound and accords with the historical record, a geopolitical economy of the international monetary system of modern capitalism.
They begin with a theoretical outline of how money operates under capitalism. They then consider how capitalism needs world money and, at the same time, makes its stable functioning difficult.
They then go on to trace the fundamental instability of the modern international monetary systems based on national currencies of dominant countries, from the gold standard to the current volatile and predatory dollar-centred system, and their close connection to short-term and speculative.
“Weak growth in the global economy, low and negative interest rates, the risk of endless stagnation and rising inflation, and prospects for a prolonged recession are, unfortunately, part of the economic reality. Clearly, the globalisation-based financial supercapitalism model, of which the United States was a beneficiary for quite a long time, and which relied on endless lending and financialisation, which turned the commodity markets into financial ones, has run its course.”
– Alexander Losev from the PrefaceValdai-Paper-116
Janet Yellen Declares World Bankers’ Dictatorship
On April 13th, Treasury Secretary Janet Yellen gave a speech at the Atlantic Council in Washington. In the speech, “On the Way Forward for the Global Economy,” Yellen chillingly sketched the new “globalist order” she fantasizes will emerge from the Biden Administration’s provoked war with Russia in Ukraine—while portraying herself literally as “the world.”Continue reading Janet Yellen Declares World Bankers’ Dictatorship