The Banking Crisis is here: First Republic seized and sold by FDIC

Does a banking crisis seem to be on the horizon? Or is it already here? And to what future does it portend?

Capitalism — particularly in the sense of the investment class — has always resembled a game of musical chairs. Everyone is having a good time walking around the chairs until the music stops and someone is left without a seat.

To put it into context, capitalism roars on with the express goal of always growing year over year. This typically happens unimpeded, usually as a result of some obvious — or not-so-obvious — bubble that artificially buoys the bottom lines of big businesses, usually as the result of overzealous trading in the finance sectors of our economy.

When the economy is so heavily predicated on money changing hands to maintain growth and create the conditions that result in a boom, that naturally puts us at risk. Shuffling around debt obligations to make the numbers work doesn’t seem like a sustainable model. And what happens when those obligations can no longer be met?

The system collapses, plain and simple. What goes up must come down.

By now we’ve all heard about the collapse and subsequent seizure of First Republic Bank by the FDIC, who brokered a deal (With $50 billion of their own money) for JPMorgan Chase to acquire First Republic Bank and all its assets.

The FDIC is effectively using JPMorgan as a proxy to purchase First Republic Bank. The reason being is because it is a situation where maintaining appearances is required, but the government can't afford not to act. So to obfuscate the very obvious notion that the U.S. Government effectively nationalized First Republic Bank, JPMorgan Chase is the private cover option. Optics matter, in this case. Especially as a large contingent of Americans already believe that the Biden regime wants to usher us closer to a socialist society model.

As CNN was quick to point out, the FDIC stands to lose $13 billion on this whole situation with First Republic Bank. To run cover, they offer placating assurances in the form of stating that the $13 billion bill will be absorbed entirely by premium paid in by banks to support the FDIC itself. They are essentially trying to pretend that this isn't a bailout paid for by the taxpayers.

Technically true for now, but it's a rather poor attempt at running cover.

You see, while the FDIC IS funded by those premiums paid in by the banks to insure their deposits, We The Taxpayers are still on the hook. It's no different than the 'too-big-to-fail' concept put forth during the 2008 housing crisis that nearly destroyed the world economy. The FDIC is just another entity that We The Taxpayers would be forced to bail out, should it become insolvent as a result of the actions it is taking to rescue banks at this current juncture in history.

Here's an excerpt from the FDIC's website to explain:

"FDIC deposit insurance enables consumers to confidently place their money at thousands of FDIC-insured banks across the country, and is backed by the full faith and credit of the United States government."

The full faith and credit of the United States government. Do you know where that 'credit' comes from? Your tax money.

Just because the money isn't coming out of your pocket right now, doesn't mean it won't be extracted from you in the future. Let’s say all these actions by the FDIC work out and a crisis is averted, do you really think the banks won't pass the increased cost of those premiums onto consumers? And do you really think that banks — who profit off of putting their depositors' funds at risk — won't take on even riskier bets to cover the newly imposed costs of doing business as well? And those bets will likely bring about another scenario of much greater severity, because banking crises often tend to behave like a domino effect.

And when those dominoes fall, the people panic and demand a solution. A solution that the government already has ready and waiting, but more on that later.

First Republic Bank’s collapse comes on the heels of a string of similar bank collapses such as Credit Suisse, Silicon Valley Bank, and Signature Bank.

Credit Suisse, inundated by scandals, torpedoed the trust of their wealthy investors — resulting in a bank run that saw $119 billion in outflowing deposits in the last quarter of 2022 — the eventual result being that they pilfered over $50 billion from the Swiss government before being acquired by UBS.

Silicon Valley Bank’s collapse was the result of funding shady tech startups and other shaky business ventures, as well as having no concept of maintaining adequate reserves to serve outflowing deposits. They instead elected to put much of their liquidity into Treasury bonds. A sound investment — if everything stays stable — but those bonds are typically meant to be held to maturity, e.g., a 10-year bond is meant to be held for 10 years. You can cash them in early, but cashing in bonds before maturity results in penalties.

For SVB, the bottom line is that they ruined their investors’ trust, saw way too much cash flowing out, and not enough coming in from those silly startups they funded to cover the cost of the shortfall resulting in their money being tied up for years in Treasury Bonds. Their business model demanded perfect economic conditions and simply couldn’t withstand anything else. Silicon Valley Bank was purchased by First-Citizens Bank.

Signature Bank’s collapse was an unfortunate side effect of its predecessors, whose own respective bank runs may very well have caused runs on Signature Bank’s deposits as well. The domino effect would have naturally tanked any banks not adequately equipped to shoulder the burden imposed by such frantic withdrawals. Signature Bank was purchased by Flagstar Bank and is now a subsidiary.

I find it interesting, though, that Credit Suisse isn’t being held in the same regard as these others by the media, even though the circumstances very much turned out the same way as all the rest, with UBS swooping in to purchase them at the behest of the Swiss government to attempt to avert a crisis. But I won’t get too much in the weeds about them.

Suffice it to say, a rather comical account I saw of their collapse was at least partly the result of chairman Antonio Horta-Osorio — who was brought in to help quell investor concerns over a string of scandals the company was plagued by — violating covid protocols.

Yes, someone actually inferred that Credit Suisse, one of the largest banking entities on earth, collapsed because of covid. But I digress.

I don’t know about you, but I’m seeing a pattern here.

Finally, we come to Monday’s deal for First Republic Bank.

As stated previously, the FDIC used $50 billion of its own money - normally intended for insuring deposits for us regular consumers - to pay for the acquisition of First Republic Bank by JPMorgan. Will JPMorgan be held liable for that money? If Blackrock's practice of using Federal funds to buy things they otherwise could not afford is any example, it won't be paid back for a long time. And if JPMorgan collapses before then, We The People are on the hook for it. Especially when you consider that JPMorgan now controls ALL of First Republic Bank’s deposits. Including the uninsured ones. And what happens to that money if JPMorgan happens to get into trouble themselves? Well, it either goes up in smoke or We The People get handed a bill. The latter is the usual recourse.

What is even more frightening is that we are seeing the consolidation of our entire banking industry into the hands of very few people. That is extremely dangerous. And it's meant to be dangerous.

Remember that solution I told you the government had up its sleeve? You shouldn’t be too surprised by it if you’ve been reading the latest rumblings.

Some banks are getting too big, and other, smaller banks keep failing. Consumers are worried that their bank accounts aren’t as secure as they have been told. But fear not! Big Daddy Government has a solution! Central Bank Digital Currency!

Is this all really an intentionally fomented crisis to allow the powers that be to present CBDCs as the solution? After all, it would be much easier to implement a CBDC if there weren't many conscientious objectors in position to actively oppose its implementation. When the entire purview of the economy is under only a few extremely powerful entities, it is under these conditions that drastic and world-shifting policy changes are enacted.

In fact, the only way I know to measure the scope of what the implementation of CBDCs would look like is to look back in history at how the Federal Reserve Act was created. And it all started with the banking crisis in 1907, also known as The Panic of 1907.

The Panic of 1907 was a financial crisis that occurred in the United States, and it was caused by a combination of factors. Those factors include a loss of confidence in the stock market, a run on the banks, and a shortage of currency. The crisis was triggered by the failed attempt to corner the market on United Copper Company shares by a group of investors led by F. Augustus Heinze, which caused a chain reaction of bank failures and stock market declines.

Of course, it is then that you see why it is said that history is written by the winners.

In all historic accounts, you’ll find people like the real JP Morgan held in high regard as they’re credited with issuing loans that averted a depression as a result of the Panic of 1907. But those of us who are students of history, but also make sure to look behind the curtain, will know that the people being held up as heroes in this scenario are really the villains who caused it in the first place. And there was a very specific reason.

The Panic of 1907 was used as a pretext to establish not only the Federal Reserve, but the practice of charging a Federal income tax as well. Problem, reaction, solution. The Hegelian dialectic at play.

But back to our modern reality. What is a Central Bank Digital Currency, again?

Central Bank Digital Currencies, or CBDCs, are digital forms of currency that are issued and backed by a central bank. CBDCs are intended to serve as a digital alternative to physical cash, allowing for faster and more secure transactions while also providing greater control over the money supply. The key word? Control.

Financial anonymity under a system using CBDCs will not exist in any form. As a result, all your actions with your money will be intensely scrutinized. And what better way to keep track of you and your money than the implementation of a social credit system similar to that used in China?

For a better explanation on what a Central Bank Digital Currency is, refer to the article below.

Worse still, imagine your financial autonomy getting curtailed because of your interactions with society. Imagine if everyone can rate every interaction they have with you like you’re an Uber driver? Were you rude to a cashier? 1 star. Did you tip generously, but act creepy toward a waitress? 1 star. Did you complain about your accommodations at a hotel, or even at work? That’s a paddlin’.

The video above is satire, but it may not be too far off the mark of what the world might look like when the control matrix meant to quell any semblance of resistance to the World Economic Forum’s schemes and plans for humanity.

Here’s one thing I can tell you for sure — when you give governments an inch, they take a mile. CBDCs have to be stopped. And if they can’t be stopped, they must be implemented in ways that ensure financial autonomy. It is absolutely vital to stop the incremental power creep of government overreach that ensures there will come a day
where we wake up and find ourselves disarmed, helpless, and at the mercy of the few who have appointed themselves as the new aristocracy.

Things are becoming bleak. Wake up everyone you know before it’s too late. Angry masses can’t be subjugated that easily.