By: Brad Morgan
Dr. Fauci is to blame
SVB Bank went under because it bought ‘safe’ Government Bonds that resulted in losses when the Federal Reserve raised interest rate, making the bonds worth less now than what they paid for them.
For those people not versed in how Bonds work, when you buy a bond that pays a low interest rate (because that was the market rate at the time) and the Fed raises rates, the only way can sell those bonds is to sell them at discount, making the effective rate of return for the asset competitive.
This has NOTHING to do with Dodd Frank deregulation – Govt Bonds are safe. SVB was not involved in risky speculation – in fact, one could argue they were too conservative. The collapse of SVB has everything to do with the Fed raising rates and the Risk Management folks at SVB being caught flat-footed. Perhaps they were caught flat-footed because their Head of Financial Risk Management was far more focused on things like Diversity, Equity, Inclusion and Climate Change then on actual risk management.
That said – SVB would still be around to brag about its ESG score today if the Fed had not raised interest rates. Today – SVB can celebrate the pinnacle of ESG achievement as it now has a Carbon Footprint of ZERO. Well done SVB Greta is proud.
Why did the Fed raise rates? Because when the only tool you know how to use is a hammer – EVERY job looks like a nail. Inflation was getting out of hand and they did the only thing they know how to do – raise interest rates in an effort to slow the economy – which in theory, would reduce inflation.
The problem is – the record breaking inflation is not currently being caused by an overheated economy – it is being driven by an insane government policy to print more money in an effort to stimulate the economy that was damaged by COVID.
Except COVID did not damage the economy, insane and irrational Government COVID Policy in reaction to COVID is was tanked the economy – not COVID.
Who determined these insane, irrational and damaging COVID polices that wrecked the economy, stunted the academic growth of our children, ruined livelihoods (except for the laptop class and government employees) and caused millions of people to die alone or even commit suicide under the surreal strain of it all? The Government Health Authorities – under guise of “science’.
Who sat at the top of the Government Health Policy decision making apparatus? Dr Fauci and Anthony Collins. Their insane policies drove the economy into a ditch and created a collective hysteria that opened the door for a global dystopian nightmare the likes of which the world has never seen before.
Dr Fauci, Francis Collins and their masters in Big Pharma, bolstered by the Davos Clique elites basked in the glow of the power and control most citizens willingly gave to them in order to keep them safe from COVID.
Where did COVID come from? It came from the Wuhan Lab, illegally funded by tax dollars via the NIH where none other than Dr Fauci’s own wife is the chief of the Department of Bioethics. You can’t make this up.
So how did we get here to a very real Banking Crisis:
- Dr. Fauci illegally funds Gain of Function research at the Wuhan lab in China
- The engineered virus escapes
- The threat of COVID is used as cover to create disastrous economic and public health policy
- Those policies damage the economy, and they were ineffective as well .
- The Government prints money to stimulate the economy to try to undo the damage
- The money printing drives-up inflation
- The Fed raises rates to combat inflation
- Regional Banks that invested in safe government bonds get crushed as the bonds lose billions in value – creating an estimate $620 Billion unrealized loss
We need to hold Fauci, Collins, Bourla et al fully accountable for their crimes against humanity.
#Nuremberg2
Harrisburg100 