2023 has begun with banks failing left & right and throughout the rest of the year….there
is major risk that hundreds more go under.
Bailouts incoming?
Nationalization of the banking system?
Stablecoins and CBDCs arrive?
Well find out in about ten minutes, because it’s time for Chico Crypto!!
Whoever thinks the economic climate of the United States is doing OK has to be kidding
themselves.
Major banks across the United States are collapsing because they over-leveraged their customers'
assets…
Looking at this table, we can see 3 of the top 4 bank failures in the history of the
United States have happened this year alone.
Signature Bank the 4th largest, Silicon Valley bank the 3rd largest and what just happened
a few days ago…first republic bank the 2nd largest.
Combined together, their failures equal over half a trillion dollars, which is almost more
than the other top 20 bank failures through 1988 to 2010…COMBINED!!!
Something isn’t right…something is very…very WRONG!!
Because the proof is right in the pudding from the latest failure, the 2nd largest in
history from First Republic Bank.
From this Reuters article we can see what went down.
Jaime Dimon and his JP Morgan bank, bailed out First Republic and the FDIC, the Federal
Deposit Insurance Corporation..whose sole job is to maintain stability and public confidence
in the US’s financial system.
The article states “In the wee hours of Monday morning, however, Jaime agreed to take
mid-sized First Republic Bank out of receivership from the Federal Deposit Insurance Corp.
It relieves pressure on taxpayers for now and should benefit his mega-bank’s shareholders,
but suggests U.S. authorities don’t have a handle on how to rescue collapsing lenders
without further entrenching a risky too-big-to-fail mentality.”
The FDIC, whose job is to stop these types of things…couldn’t do it themselves.
So they relied on the mega bank, JP Morgan, to bail them out…
Bailouts by JP remind you of something???
What about 15 years ago, 2008…when JP Morgan did a similar thing…they bailed out Bear
Streans, the investment bank in March of 2008…
But this goes further than just a bailout…this is a slippery slope which will lead to the
nationalization of the banking system!!
What do I mean by nationalization of the banking system?
Well the too big to fail banks are going to take over the entire banking system within
the United States….this of course includes JP Morgan, but also 7 others.
Bank of America, BNY Mellon, Citigroup, Goldmans Sachs, Morgan Stanley, State Street, and of
course that naughty naughty Wells Fargo….
These banks will be called upon by the government to absorb the mid-size banks who fail, like
First Republic, others will begin to drop like flies….it’s going to happen…
But these too big to fail banks, will get special rules and treatment from the US Government.
They can do whatever they want, with no fear of repercussions or failure…
All we have to do is look at the details of the JP Morgan buyout of First Republic to
see this “special treatment”...as we can see from the transaction overview, in balance
sheet restructuring….JP Morgan, received a 50 billion dollar “loan” from the FDIC
to get this deal “done”...
The government and a private bank bailed out First Republic…the FDIC just used JP Morgan
to make it “look” private when in reality…our elected officials are once again bailing out
organizations who should be allowed to fully FAIL and collapse!!!
This is all apart of the plan, the FED is going to keep raising interest rates….like
they did today at the FOMC meeting…they want these small, and mid-size banks to fail,
so the TOO BIG TOO FAIL banks can sweep them up, creating a nationalized banking system…who
“appears” private, yet is fully controlled by the government…
Just look at the stocks of regional banks in the US yesterday….plunging and plunging
further…Pacwest down 36%, Western Alliance down 31%, Metropolitan bank down 27%, homestreet
down 23% and the blood continues for others.
They are looking to privatize the gains of these banks, and socialize the losses.
That 50 billion dollar loan to JP?
It’s coming from the US Taxpayers…we are bailing out First Republic!!
And we will bail out these other small to midsize banks…
But what if I told you, things are going to get even worse because of “blockchain”
technology!!
Not decentralized blockchain technology, but the use of centralized aspects to takeover
the financial system and print even more money out of thin air….
If you didn’t know, JP Morgan has their own “blockchain” solutions under the name
ONYX..and from the products of ONYX, we can see they say “Our inaugural product solution,
JPM Coin, is a permissioned system that serves as a payment rail and deposit account ledger,
that allows participating J.P. Morgan clients to transfer US Dollars held on deposit with
J.P. Morgan within the system, facilitating the movement of liquidity funding and payments
in right time”
JPM Coin is a permissioned stablecoin, aka it’s centralized and they can do whatever
the FUNK they want with it.
Print more, delete balances, block accounts…
They would never do that Chico…the too big to fail banks are the most trustworthy in
the world!!!
Yeah fucking right…
Speaking of too big to fail banks across the world, one of them has the ability to do just
that, create money out of thin air…RIGHT NOW!
That bank is Societe Generale from France….
From this Cointelegraph article from just a couple weeks ago we can see a subsidiary
of Societe Generale has created a “euro-pegged stablecoin on Ethereum”...and from the article
it states “Societe Generale-Forge has launched EUR CoinVertible, the euro-pegged stablecoin
for qualified institutional clients.”
Wait, isn't that bullish?
Ethereum is a decentralized network…how can they create Euro’s out of thin air Chico??
Well you have to dive down the rabbit hole a little and understand Ethereum smart contracts!!
Here is the Etherscan contract for EUR Coinvertible, nothing seems out of the ordinary, …but
digging into the smart contract code for the stablecoin, and searching by approve, we can
see that this is a fully centralized coin, approvals are needed to use it…searching
by burn, we can see they can burn coins whenever they want….but the nasty details come from
the mint function….
Here we can see a normal mint of a stablecoin, USDC…scrolling down, we can see half a million
USDC was minted, and they assign a value to these tokens, a dollar value of $500,000.
Tether has a stable Euro…as we can see from a mint of Euro Tether, they also assign a
dollar value to the Euros…
Now let’s go check out a mint transaction of Euro Coinvertible, as we can see there
is no dollar value assigned to these tokens, as there is nothing backing them….they were
created out of thin air!!!
Now going back to the main page of the Coinvertible, we can see the marketcap of these 10 million
Euros, is a big fat ZERO!!!
While if we switch to Euro Tether, and USDC….they both have a marketcap based on the exchange
rates….so what is the deal with Societe Generale’s Euro stable?
Where is the value?...Something smells really fishy….
What if I told you, this is going to become the norm…centralized too big to fail banks
are going to be able to mint money on blockchains, permissioned or decentralized on a whim, with
nothing to back their stables…
And JP Morgan?
They are in on it too….like I said they have JPM coin, but guess who they are partnered
with to develop Blockchain infrastructure???
None other than Societe Generale….this will be a way for the banks to bailout each other
out, without the “goverment” intervention…even though it will be the government that will
allow them to do this…they already are.
ANd they can buy up all the crypto, without a DIME attached to it.
It’s evil, but it’s coming.
Cheers I’ll see you next time!