Wednesday, March 15, 2023

Two Truths

First Truth:

Let I, JFL begin by saying that I do not know how the Federal Reserve will help the banking industry who suffered more loses due to the collapse of two banking institutions last week, but I do know they will. The banks have also taken big losses due to the new, lower value of their past bond purchases. The Fed has many tools to play and use in their machinations. They might even create a new one? However, this will prove the point that we continuously make, the Federal Reserve is socialism for the banking industry. They cover their losses with your taxes and let them keep their profits under capitalism. 

The largest, Silicon Valley Bank had a value of $609 billion. It is vanished money. The Fed will not let their rich influencers go unaided. The second bank, Silvergate will not be as lucky. That bank backed crypto and at the moment, crypto is out, fiat still rules. 

On a side note, last week's piece mentioned that after big run-ups in the market, pullbacks expose fraud cases. You cannot even trust some of the guys who made the most money. They eventually get caught as crooks. Funny thing. A report released by Silicon Bank a few days before the collapse stated, "That the bank had $180 billion in liquidity." It throws another dagger into the American psych on trust. Not good.

There will be some contagion due to the severity of losses. Bank of America reports that last week, depositors took out $68 billion from banks. The run started with people seeking a higher yield than what banks offer. Bonds received most of the funds. This aspect will continue. Watch out for more revelations of trouble. Cathie Wood's ARK comes to mind.

How about this point that did not get reported? The central bank in the UK (Fed in England) got HSBC to buy Silicon's branch bank for one dollar. I'll say this, the crooks are brazen. Anyway...

While the Fed does their real purpose, the shills like "yellen" Yellen will use the media like a pulpit to announce that there is no financial danger. You should know the lie. You should join the meme, End the Fed!

Second Truth:

This blame goes to the greedy, arrogant money producers and owners. Their hatred of unions and disrespect for workers led them to the concept of outsourcing. Let it be known, not all producers are guilty. Many had to follow the way of outsourcing just to be able to compete in the marketplace. 

Consider all American firms got their riches, their brand known, their start from within the US. Do they appreciate our citizens? Do they show love by taking care of their workers? NO! A thousand No's!

It would take a whole book to list all the grievances against owners, but take this recent profile. Norfolk Southern will not give their help sick leave in a dangerous job. They cut safety corners and they fire workers who protest. They never invest in their business, but they do buybacks to keep shareholders happy. Amazon will fight against anyone who seeks to unionize their company. Musk follows this same format. Boeing sends work to southern states to weaken the union membership in Seattle. They also cut corners in safety. I'm tired and upset. I look around. Their greed has lowered the standard of living in the US. A large percentage of children go to school hungry. There is no money for schools. People are living in their cars, RV's or on the street. Crime results. Broken families cause more crime and burdens to society. Do I mention our internal struggles with color, religion and nationalities? A recent report says that half of our population cannot now, or maybe never, be able to purchase their own home. We know the reason. The Fed destroys the value of our dollar. Corporate destroys the middle-class by outsourcing. When, in the near future, that percentage reaches 60%, I predict a sad vision, civil unrest.

All the above and let us not forget that the original workers who helped establish our many companies, had their pensions stolen, (yes, we once had pensions) their kid's future stolen and their towns ruined. Now, years later, the seed of sin is revealed in the second truth. We read this from China who benefitted the most from outsourcing, "There will be CONFLICT if America stays on its present course by hurting the Chinese economy." We are under the threat of war due to placing tariffs on Chinese goods? The gall! The nerve! It does not get any better with the ego, fools in North Korea. They also said war is possible if we shoot down any of their test missiles? Well, are you going to let them fly a ballistic missile that reaches our West Coast? Shoot down any and every missile that goes over Japan, an island or anywhere near the US. We need a change in our military policy. Remove our troops from foreign bases and act like Teddy R. You mess with us and we will play stickball with your head! By the way, this is for the warmongering, idiot general on Russian TV who said, "Russia should attack the US East Coast with their Poseidon Nuclear Sub. It is unstoppable!" That is what Germany thought with their battleship, Bismarck. It sank! Sorry, Lord about the violent thoughts.  Peace.

Alert!    *****   Alert!   *****   Alert!   ***** --------------------------------------

Another "S" bank failed with rumors circulating about First Republic Bank, et al. The Fed is undaunted. We are also undaunted. We may not know what goes on behind the curtain, but we know action speaks lounder than words. Our call proves to be on the money. Read on...

We are not sure if we mentioned the next point before. Our weekly blog is generally written on Saturday with possible updates before publishing on Wednesday. Well, lo and behold! In this piece, we made one prediction on the Federal Reserve with another possible caveat. Dear Reader, both points came true even before this was published. The Fed created a new fund called, "Bank Term Funding Program." It will not only give loans to the banking industry, but the sneaky Fed also reassures the big boys that they will be protected with their treasury bond purchases. The Fed will purchase old bonds that are now only worth .80 cents on a dollar at a full one-dollar par value. Can you see why we are right to say, End the Fed!


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