One of the founders of AI at Google quit. He cited multiple reasons. His biggest concern relates to the movie, Terminator. AI could get so smart that it could request more power to operate and thus, be able to control humanity. The more understandable reasons are fraud, polarization and corruption.
Citizens can be misled with information coming from unknown sources that in fact could be AI. At the moment, we still have the human version of fraud, corruption and machinations. We, at Evolution have a fear that in the near-term future, our society will end up in fractions. Each may possess a kernel of truth, but not the whole truth. This will be bad for our collective nation. The sad aspect of this point begins at the Executive branch and includes Congress. Our presidents and elected leaders continually lie to us about things. They always have an agenda and if lying gets what is wanted, so be it.
Banking Dilemma
Last week, JP Morgan took control of First Republic Bank. What is not revealed by the corrupt Federal Reserve is the details. We gathered some tidbits. JP Morgan gets a $50 billion, 5-year loan with a fixed rate. The Fed won't reveal the interest rate. Morgan gets assistance in a loss-sharing agreement. The FDIC will cover 80% of losses and will contribute $13 billion to depositors. Bottom line: JP Morgan is already up $2.6 billion for the quarter. However, I would not buy as the charts reveal huge gaps and generally, gaps get filled.
Banking Oligarchy
The Fed set this crisis up by allowing human greed to put the parts in place. Small banks complained after the Dobbs-Frank Act. The regulations were too strict, especially with banking reserves. The Fed waited. They gave the meme of complaints time as they said that they took this point into consideration. Then, they waved the reserve requirements for small lending institutions. These small banks like Silicon and First Republic grew rapidly. They built their skyscraper without a foundation. It was only a matter of time...now you know the story. Except there are many other small, regional banks that followed the same script. When they fail, "the too big to fail" institutions will gobble them up. The Fed is creating a banking oligarchy. Waiting for the day of reckoning are PacWest Bancorp (PACW), Western Alliance Bancorporation (WAL) and First Horizon (FHN). The rich get richer and we all get poorer.
Solution?
Did you know that the banking industry can create money? True. Every deposit adds to the bank's reserves. Then, they can lend your deposit to gain profits. With lower reserve requirements, banks can do this repeatedly. They are adding to the money supply. We, at Evolution, suggest this idea: Tax this new money. Use the revenue to strengthen the banking system. In fact, Congress should tax the Federal Reserve whenever they create money which dilutes the value of the dollar and our nation's standard of living. Put that money toward reducing the national debt. We agree with Milton Freidman, "Inflation is always related to the money supply."
Back to Doubt
Do you recall just two months ago that Yellen and President Biden both declared the banking system sound? If you keep yelling "wolf" eventually, the cry will go unanswered. This is what our visionless leaders are doing by lying all the time. Our nation will enter a crisis of trust. However, you can trust us because we spell out our positions and seek to do something good for our citizens. Peace.
