Will Crashing Banks Will Usher in Digital Currency?

Why Crashing Banks Will Usher in Digital Currency

Via Mercola

Why Bank Crashes Will Facilitate CBDC Rollout

Adding insult to injury, while the system is clearly biased and won’t protect everyone, all banks (and hence account holders) will be forced to pay this “special fee” to the FDIC that will, supposedly, insure all these uninsured deposits at preferred banks.

The most likely outcome of this bailout system is a consolidation of banks until we’re left with just a small number of mega-banks. We’re already starting to see the early phases of this, with “the big three” — Bank of America, Citigroup and Wells Fargo — reporting14 a deposit spike in the wake of the SVB collapse and Yellen’s announcement that only certain preferred banks will be covered above FDIC insurance limits.

This consolidation, in turn, will facilitate the rollout of a central bank digital currency (CBDC), as the banking industry will be a very tight-knit monopoly. Let’s say there are only half a dozen banks in all of America. All they have to do is make the switch to CBDC as a group, and anyone with a bank account in America will be automatically trapped in the new system. As reported by News Punch:

“What we are seeing is a push towards Global Government that is being camouflaged and cloaked in humanitarianism, multiculturalism, as well as manufactured threats such as global warming and pandemics in order to condition the population into accepting globalization and a One World Government.

In order for this to occur the elite are planning to create a global financial crisis the likes of which the world has never seen. Out of the ashes of this financial crisis will rise the phoenix of is a New International Economic Order. The public will be told that the new order is the only way to stabilize the world economy and save what little remains of their wealth …

People often ask why the globalist elite would collapse the world economy. Wouldn’t that mean they destroy their own wealth in the process? The answer is no. The elite have been consolidating their wealth in order to protect it for centuries … When the world financial system finally crashes the elite will be positioned to buy what’s left for pennies on the dollar.

Where does this leave the rest of the world financially? The answer is in bondage to a Techno-Communist World Governmental System led by the World Economic Forum in Davos and the hidden hands that control the public face of that cabal. If you pay attention now you can see that everything around you is being engineered towards this one goal …

The globalist elite are also forcing their vassal states to move towards centralizing currency in the form of a … CBDC, which by the way, is not currency at all – it is software designed as a tool of total social control … If they can cancel out your bank balance with a single keystroke, then you have no freedom, no autonomy. You are a slave …”

The fact that CBDCs are intended as financial shackles to control you within what amounts to an open-air prison is also noted by South Dakota Gov. Kristi Noem16 in the Fox News interview above.

She highlights a proposed Uniform Commercial Code (UCC) update that seeks to redefine “currency” to exclude decentralized crypto currencies, effectively putting the government on the path to a CBDC monopoly. Noem vetoed the bill and is urging other states to reject it as well.

The UCC Code is a set of laws that govern commercial transactions in the U.S. While not a federal law, it’s a set of laws that states agree to adopt in a uniform fashion to facilitate interstate business. So, it appears they intend to begin the financial takeover by rolling out the CBDC on the state level first, and legislators who believe in freedom must denounce all such plans.

SVB failed because they parked the majority of their depositors’ money ($119.9 billion) in US GOVERNMENT BONDS. This is the really extraordinary part of this drama.

US government bonds are supposed to be the safest, most ‘risk free’ asset in the world. But that’s totally untrue, because even government bonds can lose value. And that’s exactly what happened.

If you’re not terribly familiar with the bond market, one of the most important things to understand is that bonds lose value as interest rates rise. And this is what happened to Silicon Valley Bank.

SVB loaded up on long-term government bonds when interest rates were much lower; the average weighted yield in their bond portfolio, in fact, was just 1.78%. But interest rates have been rising rapidly. The same bonds that SVB bought 2-3 years ago at 1.78% now yield between 3.5% and 5%, meaning that SVB was sitting on steep losses.”

And it’s only going to get worse if the Federal Reserve continues to increase interest rates. The problem is, interest rates need to be raised to curtail runaway inflation, but if they go up, more banks will sink due to their holdings in government bonds.23,24 There’s just no way out.

Add to this insurmountable problem the fact that President Biden’s 2024 budget will raise the federal debt to $50.7 trillion by the end of 2033. It’s currently $31.459 trillion.25 That’s a staggering amount of debt.

From a household perspective, you have no choice but to file for bankruptcy once your income cannot even cover the interest payment on your debt, and that’s basically where we are on a national level. As noted by The Balance:

“Most creditors don’t worry about a nation’s debt, also known as ‘sovereign debt,’ until it’s more than 77% of gross domestic product (GDP). That’s the point at which added debt cuts into annual economic growth, according to the World Bank. At the end of the second quarter of 2021, the U.S. debt-to-GDP ratio was 125%. That’s much higher than the tipping point …”

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