gold news

 this again shows that they're panicked they don't know what they're doing they're flipping different things off and on like light switches where they used to very carefully dial things up and down it's been about nine months now that I've been saying the FED is going to break something here well they did they broke you so uh Silver Gate signature Silicon Valley Credit Suisse it's these crazy rate changes that have done it and then you look at the box that the Federal

Reserve is in at goldsilver.com we have a price match guarantee free shipping global storage options and phenomenal customer service thanks for making goldsilver.com your bullion dealer hi everyone this is a continuation of yesterday's video about the global financial crisis that is unfolding and how the big Banks the Federal Reserve is assisting all of the big banks in gobbling up the small Banks so uh this chart Pro that was provided by Edward Dowd here on tweet it doesn't say who made it hopefully Edward did but

uh um this shows the 2008 Global financial crisis and how it took until basically the end of 2012 to sort of unwind it actually went even further than that but it had a tail to it and if you take a look at you know the size of the Washington Mutual that was the biggest bank failure in history now Lehman was Far Far larger but Lehman was not a bank so it's not on here and it did fail I mean it went into bankruptcy and vanished but there you have uh IndyMac bank which is also Countrywide so this is the one that sort of kicked

everything off Washington Mutual I guess the dates are lined up on the center of the circles and Washington Mutual was after uh IndyMac slash Countrywide but you can see how this progressed with all of these small Banks and what we've had so far with you know signature Silicon Valley First Republic uh and if you put Credit Suisse in the mix because credit Swiss was just like a day or two from failing before they were acquired by UBS with the Swiss government uh doing guarantees uh and and providing the deal to UBS to gobble

up Credit Suisse one of the but that bank this is 229 billion uh credit Swiss was 1.75 trillion at their Peak and uh 1.4 trillion when they got acquired so it would be a circle uh bigger than all of these bigger you know as big as these put together uh and then you can stack these on top of that and you're already you know up off the top of the chart here as far as the 2008 crisis goes and so today the Federal Reserve raised rates Again by a quarter point so this is their fomc statement so they went

from five to five and a quarter percent right here uh and then the first article that came out on it was Wall Street Journal uh that they raised rates a quarter point but they also signaled a potential pause that this might be it uh which is good but it's I'm gonna show you it's still too late they're uh at 5.25 they will continue to break things uh the uh Zero Hedge article uh hikes you know fed hikes 25 basis points as expected he signals hawkish Paws warns of tighter credit standards I thought a

pause is dovish but anyway recent developments are likely to result in tighter credit conditions uh was removed and replaced with tighter credit conditions uh this is in there in the fed's statement they modified at the bottom of this article it shows how the fed's statement was modified at the last second the decision was unanimous and this chart here sort of tells it all that you know we're up to the point where the markets went into a crisis back you know we raised rates up to 5.25 and that

is when the global financial crisis started that's when they broke the entire real estate sector and all of the mortgage-backed Securities so the FED caused this crisis and and broke things but the FED uh created the uh the fundamental situation for the crisis by Greenspan taking rates down too low and keeping them there way too long so uh when we take a look at some of the uh charts on the federal reserve's website that show whether or not a crisis is happening you know I've I've

had these charts up for a while um I've been uh looking at them they're going to be updated probably tonight um some of them when they say as of Wednesday this was April 27th so this is the following Wednesday but they haven't been updated as yet but anyway this is repurchase agreements and you can see that the FED used to intervene in the repurchase agreement Market this is a market that the banks uh where their banks are all lending to each other and what happens is when a bank needs cash

they will pledge a a a U.S treasury or some other asset if it's the Federal Reserve buying it it's got to be a U.S treasury or a mortgage-backed security it's got to be something that's backed by your future taxation or your mortgage payment something where the government has guaranteed it uh and uh so this is the banks needing cash and then the Federal Reserve providing cash during the global financial crisis here so this ramps up in March of 2008 you see this we're going to get to what

happened in March of 2008 and then they just shut it off and then there was a liquidity crisis in the banking sector uh back in uh 2019 late 2019 and they switched this on and it this again shows that they're panicked they don't know what they're doing they're flipping different things off and on like light switches where they used to very carefully dial things up and down and so and then the pandemic and it hit this high of uh you know getting close to a half trillion dollars that the banks

needed short-term loans on and then Silicon Valley Bank right here uh they turned it on again it was back to zero for all of this time uh then we take a look at uh reverse repurchase agreements so this is where Banks need uh some high quality collateral and so the treasury Securities will be sold by the Federal Reserve with a an agreement that the bank is going to repurchase these the next day but they keep on rolling them over and rolling them over so this is in temporary open market operations so the

banks what's happening the banks pay with their Bank Reserves to the fed and the FED gives them high quality collateral well this is the global financial crisis of 2008 we're talking about 25 billion dollars and here we're talking about uh a hundred and eighty billion dollars uh is that let's see what that Peak is if I can get it to stop I can't get it to stop on that Peak um here we're talking about uh half a trillion dollars pretty much and then uh you know this is the pandemic and then

something started happening in uh 2021 April of 2021 so we're talking two years ago this crisis actually started happening and the Federal Reserve the banks needed 2.2 trillion dollars worth of high quality collateral that they needed from the Federal Reserve the Federal Reserve had accumulated too much of these treasuries and uh this shows up differently uh on the federal reserve's balance sheet uh this if the um Federal Reserve is taking these treasuries from they're they're selling

these treasuries to the banks the Federal Reserve is taking uh Bank Reserves from them and this is 2.2 trillion dollars worth of that the Bank Reserves should have gone down but they didn't and so it's it's uh I don't know all of the accounting that goes on behind this because it's it's difficult to figure out when you're just spending all this time looking at these charts trying to reverse engineer this this is uh liquidity and credit facilities loans primary credit

and so this is Federal Reserve loans and you can see that the Financial Credit the global financial crisis of 2008 started Brewing back in 2005. you can see there was a reason Banks started going to the Federal Reserve to take out some loans back in 2005 2006 then it starts getting a little bit more serious in 2007 and then suddenly March of 2008 bam what happened in March of 2008 so that and then this is Lehman right here but what happened in March of 2008 bear Stearns collapses this is this day in

history on the History Channel March 16 2008 bear Stearns collapses and is sold to JP Morgan Chase and uh the deal uh was at two dollars per share and that the Federal Reserve made loans to J.P Morgan to facilitate the acquisition of uh bear Stearns at two dollars per share well let's take a look at Bear Stearns price they they bought it at two dollars per share but you know you take a look it was it was up at 170. they basically got it at one penny on the dollar it was it had fallen by 99 since its peak so they got it at one

penny on the dollar from its peak and uh uh and just uh it's interesting how JP Morgan keeps on gobbling these things up JP Morgan buys Washington Mutual now taking a look again at that uh the bank failures here's Washington Mutual 307 billion so JP Morgan uh buys Washington Mutual uh for 1.9 billion dollars and acquired 307 billion dollars in assets and 188 billion dollars in deposits deposits are the liabilities so the assets here are almost twice as much as the liabilities and JP Morgan acquired that for

1.9 billion dollars then we've got Washington mutual's price so here's here's the peak up at 45 bucks a share and then JP Morgan acquires it somewhere down here uh and the Federal Reserve once again facilitated this uh there were loans involved First Republic taken over by J.P Morgan after Regulators shut it down and uh what you see in here is that again the Federal Deposit Insurance Corporation agreed to share in the losses from the transaction and would take a hit of 13 billion dollars who

pays for that you do uh and here is the price of First Republic Bank this is their stock and this is a one-year chart so it's from May of 2022 to May of 2023. it's it I I just I can't help but laugh at how uh JP Morgan is just like gobbling up the world and the FED is facilitating all of this for them uh banking sector faces tough times as Morgan Stanley becomes the latest to announce Mass layoffs and this is as of today so I would look for some time in the future tomorrow for Morgan Stanley

to be merged into JP Morgan of course so uh what was it that was causing all of this this is total borrowings of depository institutions from the Federal Reserve and you can see that in 2007 a crisis was brewing December 2 2007 this is bear Stearns in March of 2008 that's bear Stearns starts to settle down and then we've got Lehman and then here we have the pandemic and then something started Brewing uh more than a year ago this is March of 2022 we start seeing Banks needing to borrow from the Federal Reserve

something was going on and then here is Silicon Valley and then this chart is starting to go up again uh and if we go back to assets this is so you know something started Brewing back in 20 March of 2022 and it got bigger and bigger and bigger settled down a little bit and then this is Silicon Valley but this is going up again and these will be um updated uh so this is as of April 26th so um uh they'll be updated and with First Republic I would expect that uh these borrowings are going to go up higher so

uh this is the effect of fed funds rate and this one is updated monthly so we're not going to see this updated uh for a little while it was updated on May 1st at 4.83 we're now at 5.25 so this is federal funds effective rate and then this is the effective federal funds rate they got a whole bunch of these but 4.83 is uh where that is at and the thing about this you know they've they're now up at five and a quarter so it's up off the top of this chart the chart goes up to five what

we're going to see here this if you take this goes back I can I can get this to go back much further and here we are going back to Global financial crisis of 08 and so on uh and if you take that and you go you if you use this really long term one that goes back to 1954 and then do a rate of change so this is percent change from one year ago and you can see that it would you know the that nothing like this has ever happened and ever since they started doing this crazy rate of change that is now up

5312 since one year ago uh I've been saying for more than six months it's been about nine months now that I've been saying uh that the FED is going to break something here well they did they broke you so uh silvergate signature Silicon Valley UBS not UBS I'm sorry credit Swiss UBS acquired credit Swiss uh but uh it's these crazy rate changes that have done it and then you look at the box that the Federal Reserve is in this is the federal funds rate the federal fund's effective rate

going back to 1954 and we have the government current expenditures on interest payments so how much are the interest payments costing us annually and you can see with this rate change so fast with so much debt out there that we've gone from 600 billion dollars of annual interest payments to 930 billion I'm going to round that but there's more let's take this chart and zoom up on on just the these recent rate changes this is so you've got the rate change and you have which is the percent over

here and we're not we're now up at five and a quarter and you've got the interest that the that we have to pay on the national debt and you can see that the the rates started going up in March of last year and they continued going up but this stops in the uh in uh government current q1 of 2023 so they have updated this q1 of 2023 so now it's at a trillion uh dollars uh q1 of 2023 this is fiscal q1 of 2023 when it it started uh Q4 of 2022 was in October that's when Q4 was reported uh so

q1 of 2023 is actually what we spent through December uh and so what you're seeing uh is the Fed funds rate was up to 4.33 now we're up to 5.25 uh we keep on rolling over all of the old debt and rolling it into new higher interest debt the average is that there's about five and a quarter uh every five and a quarter years the US government has to completely refinance the national debt the 31 trillion dollars that we owe has to be completely rolled over about every five years but they're having treasury

auctions every single day so some of that debt is coming due they have to issue brand new debt to replace the mature debt and when they do it's at these interest rates and so we don't even know you know that you've got uh one two three more months of uh debt that has been rolled over at far higher rates and now it's at five so this is already um let me see we were at 852 now we're at 928 so we're basically at uh we've already surpassed one trillion dollars per year due and one of the big problems

is the when they make a budget there's the there's the fiscal deficit which is the real deficit and then there's the budget deficit and the budget deficit is the projection when they make a budget for the next year of how much more they're going to spend us into a hole how much more they're going to spend than what our income is going to be and this year they're planning on 1.4 trillion but this isn't part of the calculation there's going to be an extra trillion of of uh of uh debt on the

national of payments on the interest due on the national debt that they've got to come up with and so look for the uh this coming Year's budget deficit to be in the twos or three trillion dollar area because they also never plan on a recession in when they're making these budget deficit these budget projections and so they're planning on 1.4 but they're going to have less tax revenues because of a recession they're going to do emergency spending because of a recession and uh they're going to have

uh you know they they were planning on 600 billion dollars of interest payments but they're going to have about 1.2 trillion dollars of interest payments about 600 billion more than they thought so right there just that we'll take the budget deficit that the actual budget deficit that's going to happen uh for 2023 uh from their projected 1.4 trillion to over 2 trillion just with this so with the recession that is coming and by the way the FED uh oh in that um you know what I'm gonna go back to it in

the uh the Zero Hedge article wherever that was fed rates image that it was here uh okay in here uh they say that the Fed ah the fed's preferred recession rate spread indicator three months over the 18 month forward is now flashing red implying a 94 percent probability of a recession within the next year 94 that's that's pretty high so uh back to this story here the uh the payments and I I want to go back to the the JP Morgan being able to gobble up Washington Mutual Bank in a shotgun wedding that uh

where they got to accumulate all of these assets at Pennies on the dollar and then uh First Republic and Silicon Valley bank and then uh so I want to leave you with this uh Banks when they make profits my profits Banks when they lose currency not money our losses and lastly that Banks That's all folks gold I want to thank you for watching we'll see you in the next video at goldsilver.com we have a price match guarantee free shipping global storage options and phenomenal customer service

thanks for making goldsilver.com your bullion dealer