War and civil unrest: What could happen if the BANKS COLLAPSE



Before the financial crisis in 2008, Glenn Beck knew this could cause a depression. What he didn’t foresee was that the federal government would violate the free market system and make the problem bigger. Now what’s happening?

Officials are bailing banks out and making the bigger banks even bigger. Beck warns that we’re “going to end up with four banks and then we’ll end up with the Fed.”

Just last week, banks borrowed a combined $164.8 billion from two Federal Reserve backstop facilities The prior all-time high was in 2008.

Beck continues, “I am growing more cautious by seeing what’s happening behind the scenes.”

He says that “everything is interconnected. The contagion, meaning one bank falls then it's dominoes. It goes across the water and it will collapse everything.”

His message gets more ominous: “If the small banks collapse, 60% of all our loans and our businesses collapse … we are not looking at a depression situation, we are looking at a complete collapse of the West if this happens.”

If the West collapses, there will be a currency reset. It could very likely be a central bank digital currency, and this is terrifying.

He says what’s going to happen is the “government will step in and say this is too big for anybody else to handle, we’ll handle it with the Fed. We’re resetting the currency, it’s going to be a digital dollar.”

The government will essentially destroy the worth of your physical dollar, leaving you no choice but to conform to the new currency.

If this goes through, you will bank with the government.

Beck offers a piece of advice: “What I would tell my own family, we have to go shopping tonight … do not hoard, but grab some extra things and have them … take care of your family, do the right things, do not panic.”

“Panic makes this whole thing happen. So, do not panic.”


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Glenn: Prepare your family for impact



Moody’s is a major rating entity that’s been following the SVB failure, and it has now downgraded its rating of the entire U.S. banking system from stable to negative.

Great.

It’s the latest sign, among many others, that what President Biden is telling Americans is far from the truth.

Moody’s also issued warnings for several individual banks with substantial unrealized security losses. And if you don’t know what that means, Glenn Beck has a metaphor for you.

He says, “My son is collecting baseball cards, and he’s like, 'Dad this one is worth —' and I said, 'Son, it is only worth it when you sell it. You can say it’s worth anything and it can even be marked as worth this, but until you sell it, you don’t know what it’s really worth.'”

He continues, “In the case of bonds, an unrealized loss is: I’m counting on my sheet here to be worth this, but if I have to sell it today in a panic, I’ll lose 25%. That’s an unrealized loss.”

While this is all terrifying, he says if you have your money in an FDIC insured bank, do not take your money out.

If all of the banks start to fail, the first thing that will happen is the local banks will fail. And they’ll fail because people panic, and they take their money out.

Even though we are heading toward a Venezuela-style collapse, he says still — do not panic, and do not take your money out of the bank unless it’s not insured.

He adds that the “one thing you have to do is get on the phone with your local state house member, your state senate member, and your governor and tell them you must not pass the UCC legislation ... it’s flying through the House and the Senate and governors are ready to sign this stuff. It has got to be stopped. That will allow only the digital currency coming from the central bank to be considered money.”

Once the government has this, they control your life entirely.

Glenn says this is “not an overstatement.”

The financial collapse is inevitable, and paired with inflation, it is destroying our currency.

The government tells you to stop spending frivolously on things like hiring people for your small business, meanwhile it's spending money at a record unheard of in all of human history.

It is the most anyone has spent, ever. And the American government is doing it right before our eyes.

Glenn continues, “This is poison, but people haven’t been willing to stand up and say it and it is killing all of us. It will enslave our children. People will die because of the insanity that is going on.”

He says, “Exactly what they did to Venezuela is what this group of dangerous clowns are doing to us now.”

“It’s got to stop. Please prepare your family for impact.”


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Government should temporarily back all bank deposits, House Republican says



Republican Rep. Blaine Luetkemeyer of Missouri believes that the U.S. government should temporarily offer blanket insurance for all bank deposits in a bid to prevent massive flows of funds from smaller banks to larger institutions amid widespread panic surrounding the financial system.

"If you don’t do this, there's going to be a run on your smaller banks," Luetkemeyer said, according to Politico, "Everyone's going to take their money out and run to the JPMorgan’s and these too-big-to-fail banks, and they're going to get bigger and everybody else is going to get smaller and weaker, and it's going really be bad for our system."

Silicon Valley Bank and Signature Bank both collapsed recently, but while depositors who held funds at those institutions are being bailed out and will therefore not incur losses, the bank failures have sparked fears of contagion and further financial havoc.

"The thought process here is that this is a contagion that could be spread across the entire banking system if it's not contained and if people don't stop and and be calm about their assessment of the situation," the lawmaker said, according to the outlet. "This is a Chicken Little situation. You know, the sky is falling. Everybody runs around like that, the whole thing's going to implode."

Luetkemeyer, who has served in the U.S. House of Representatives for over a decade, suggested taking action by declaring that "for another 12 months here or six months, we're going to guarantee you every single deposit in this country and every bank until we get this interest rate situation resolved and these banks get back on solid footing." Politico reported that the lawmaker later altered his stance on the potential timeframe, with a spokesperson indicating that the guarantee could last "perhaps 30 to 60 days."

According to the outlet, the lawmaker claimed that "the system is sound" and "in better shape than it’s been in probably 20 years," though he also said that "we do have a few problems in it that need to be worked out."

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Glenn explains: This is how SVB collapsed



It would seem obvious that after the 2008 financial crisis, we might have learned a lesson or two.

But we didn’t.

So now, one of the biggest banks in America has collapsed, and it’s all too reminiscent of the past. The question is: How did it happen?

Glenn explains that what’s going on is “a giant shell game” caused by the Fed by raising the rates. He continues, “But if you don’t raise the rates, what happens? Inflation goes out of control. Why? Because we have printed and loaned too much money out.”

So, can you pull it back?

“The way you pull it back in is raising interest rates. If you raise the interest rates, bonds have to pay a higher yield. So, when you buy a bond, you get more money back. And if somebody gets into trouble, they have to sell their bonds exactly like Silicon Valley, and they have to take a haircut — and then the entire thing collapses.”

The most worrisome thing is that it all seems to be done on purpose. How do you make such a colossal, world-bending mistake — over and over again — if it’s not what you have planned?

Glenn says, “This is what the Fed has set out to do. They want to see risky things go away. They want to see failure. They need people who are not stable to go out of business. Stop spending money so we can suck all that money back in.”

He continues, “But when they do collapse it and our economy is in this kind of shape, you then have a domino effect because nobody’s in great shape, and the banks are playing a giant game. So, then people can’t pay the paycheck and then that paycheck fall causes you to default on your auto loan or your house loan and that makes another bank fail.”

What’s going on is that not only are we repeating the 2008 financial crisis, we’ve made the problem much bigger.

Which is obviously terrifying, but Glenn has some advice.

“Work on your spiritual health. Because this is coming, at some point.”

Glenn explains: THIS is how Silicon Valley Bank COLLAPSED


Silicon Valley Bank was shut down by regulators last week, marking the biggest bank failure since the 2008 collapse. So what happened? And what does this mea...

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'De facto bailout of the banking system': Yellen says no bank bailouts, but Big Four reportedly set to grab $210 billion as tech elites get propped up



A California bank that long served tech elites and affluent venture investors collapsed on Friday, amounting to the greatest financial institutional failure since Washington Mutual went bankrupt in 2008.

While Biden officials have suggested that there will not be bailouts comparable to those enjoyed in the late 2000s, the Big Four banks will reportedly see a bailout by another name of roughly $210 billion, while the U.S. government makes wealthy tech workers whole again.

What is the background?

The New York Post reported that Silicon Valley Bank had $209 billion in assets as of Dec. 31, 2022, and was the 16th-biggest bank in the United States. Silicon Valley tech start-ups, venture capital firms, and corporate behemoths deposited at the bank and used its services.

The bank was adversely impacted by the downturn in technology stocks over the past year as well as by the Federal Reserve's endeavor to hike interest rates.

USA Today noted that in recent years, SVB bought billions of dollars' worth of purportedly "risk-free" bonds using depositors' cash. However, the value of these investments has significantly dropped because they now pay lower interest rates as compared to bonds issued today.

Since coastal tech elites and other California customers were hit hard by the downturn, they needed cash. Many began trying to withdraw all at once, prompting SVB to sell off its assets at a loss.

The bank was unable to raise additional capital through outside investors.

Amid liquidity concerns and share losses around $52 billion, regulators shut down the bank Friday, thereby protecting insured deposits and those remaining assets at the bank.

Centralists intervene

Treasury Secretary Janet Yellen claimed Sunday that unlike the big bank bailouts in 2008, Silicon Valley Bank and Signature Bank — a New York financial institution similarly brought to the brink of collapse last week — will not receive similar treatment in the aftermath of their breakdowns. The U.S. government will, however, reportedly be helping their affluent depositors.

Citing "systemic risk" as justification for extraordinary actions, the Treasury Department, Federal Deposit Insurance Corp., and the Federal Reserve have indicated that they will use the FDIC's insurance funds to prevent tech elites and other depositors in the failed banks from losing money, reported Axios.

"Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth," wrote Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin Gruenberg in a joint statement.

According to the trio, depositors will have access to all of their money as of March 13. The trio noted that no losses associated with the "resolution of Silicon Valley Bank will be borne by the taxpayer," but rather will be funded by fees on the banks.

Similar action will be used to bolster Signature Bank.

Whereas depositors, characterized in this case by USA Today as businesses and wealthy tech workers, will be protected up to $250,000 each, shareholders and certain unsecured debt holders are on their own.

Extra to these actions, the Federal Reserve indicated Sunday that it will "make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors."

Accordingly, the Fed has introduced a new lending program called the Bank Term Funding Program, enabling banks to take out advances from the Fed for up to a year.
Ben Eisen, writing the Wall Street Journal, noted that in exchange for these advances, banks must pledge "Treasurys, mortgage-backed bonds and other debt as collateral. By allowing banks to pledge their bonds, they can meet customer withdrawals without having to sell their bonds at a loss, which is what Silicon Valley Bank did last week, sparking a run on the bank."

"The biggest draw of this facility is that banks can borrow funds equal to the par value of the collateral they pledge," wrote Eisen. "This means that the Fed won't look to the market value of the collateral, which in many cases reflect big unrealized losses due to the jump in interest rates."

"That is a boon for banks, who were sitting on some $620 billion in unrealized losses on securities at the end of last year," added Eisen.

Should the banks fail to repay their advances, the Treasury Department, with President Joe Biden's blessing, is promising $25 billion in credit protection to the Fed just in case.

'De facto bailout'

ZeroHedge reported that contrary to Yellen's suggestion, the Big Four banks are effectively getting a $210 billion bailout.

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The editorial board at the Wall Street Journal concurred, writing that the guarantees for wealthy California tech magnates' uninsured deposits and the Fed's loans to big banks are together "a de facto bailout of the banking system, even as regulators and Biden officials have been telling us that the economy is great and there was nothing to worry about."

The board noted that the legality of the depositor end of the alleged bailout is unclear, since "Congress set the $250,000 insured limit to protect average Americans, not venture investors in Silicon Valley."

As for the one-year advances, the "Fed is essentially guaranteeing bank assets that are taking losses because banks took duration risk that Fed policies encouraged. This too is a bailout."

"Democrats and the press corps may try to pin the problem on bankers or the Trump Administration, but these are political diversions. You can’t run the most reckless monetary and fiscal experiment in history without the bill eventually coming due," added the board.

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