Topical notes for March 18, 2023, “Financial Weapons of Mass Destruction” include:
- SVB Contagion:
- Montage of the SVB failure events. See here, here, here, and here.
- Contagion context (how bad can this get):
- Effectively the Biden administration is guaranteeing $17 trillion in US deposits.
- Bank Term Funding Program (BTFP) is set up for banks to borrow – $165bn already, effectively ending quantitative tightening.
- JPM: As the “bank run” drains $550 billion in deposits in one week – deposits going from smaller to bigger banks.
- Understanding what fast-rising rates do to bond prices. Example: US 30-year T-Bonds went from 1.75% to over 4% in a single year – this reduces the value of these bonds by nearly 50%.
- Size of the global bond market (public and private): US is $40tr, and globally $128tr – understanding banks are very international today, and overseas risk can not be ignored.
- 30 to 50% of these global bonds are potentially issued at these lower rates – leaving a potential global hole of $30tr (depending on the date of purchase, maturity, and any rate risk hedging [dervititives]) mark to market.
- The total global market cap of banks is $7.5tr, managing over $200tr in assets.
- Things to watch: a) will the Fed pause rate hikes (watch 2-year treasuries rates)? b) the BTFP usage (will banks be forced to run to the Fed indicating contagion), and c) international contagion (i.e., Credit Suisse and potentially others).
- Peter Schift may be right – many banks are insolvent, and we don’t know it yet – Morning Star’s US bank contagion watch list. However, this risk only occurs if an event triggers a global run.
- David Sacks commentary on big bank regional bank – see here.
- Ellen Brown: The Looming Quadrillion Dollar Derivatives Tsunami – see here.
- The European Central Bank (ECB) raised interest rates again – see here.
- Charles Payne Hits the Nail on the Head – The Biden Action is a Bailout for Silicon Valley – see here.
- Is there a link between Silicon Valley Bank failure and Covid/wokeism/crypto? Chart of the Day – see here.
- MAGA or Bust?:
- Latest Rasmussen poll, even a majority of Democrats admit that Republicans likely conspired with Democrats to keep President Trump from winning the 2020 election – see here.
- Republican Candidates Respond to Tucker Carlson’s Inquiry About Ukraine Policy, all responses – see here.
- Mike Pence’s stunning attack on Trump – see here.
- DeSantis clip on effectively wielding state power on behalf of his constituents – the effective candidate? See here.
- New “Late Exit” Poll Finds Eight Percent More Arizona Voters Said They Voted for Lake over Hobbs- see here.
- Quick Hits (round-up of important headlines):
- The International Criminal Court (ICC) issued an arrest warrant for Russian President Vladimir Putin on Friday – see here.
- Russia – drone attack video – see here.
- Senator Lindsey Graham floated the idea of starting world war three and called for the US to start shooting down Russian planes! See here.
- See who followed through and delivered tanks to Ukraine – see here.
- Shifting Poll numbers on America’s support for funding and weapons for Ukraine, Trump/Tucker/DeSantis Effect? See here.
- Protests erupt in France after French President Emmanuel Macron used special constitutional powers to pass a controversial pension bill without a vote – see here and here.
- Israel’s Prime Minister Benjamin Netanyahu reportedly ordered high-ranking officials and ministers of his coalition government to avoid meeting with US officials in D.C. until Biden meets with him – see here.
- Pardon Me, Have You Seen 2.5 Tons of Uranium Missing From Libya? See here.
- Smoking gun on Biden Crime Inc. Payments to Hallie Biden – see here.
- Biden’s executive order on guns – see here.
- The Federal Reserve has announced a timeline for the launch of its long-awaited FedNow payment service – see here.
- CDC purchased phone data of Americans from tracking companies to monitor compliance with lockdowns – see here.
- Senator Cassidy confronts Yellen on lies on Biden’s budget and Social Security – see here.
- James O’Keefe Announces The Launch Of His Newest Project Following Project Veritas Ousting – see here.
- The Parliamentary motive behind Jan 6 Fedsurrection – see here.
- A new body cam video emerges of Jan 6 that rebukes Jan 6 Committee and prosecutions – see here.
- New Twitter file drop – see here.
- Culture Wars:
- A ‘training video’ on gender affirmation for parents from the Medical University of South Carolina – see here.
- The transman who was featured in Matt Walsh’s documentary “What is a Woman,” Scott Newgent, silences a live press conference full of media, shaming them and calling for the media to “Tell The TRUTH!” Defending against youth transitions and hormones – see here.
By Bekah Lyons
