[Skybird]

^ You beat me to that story.

One can only pray that this is not the beginning of another landslide. Just short time ago the Silver Gate Capital Bank learned that it maybe is not a good idea to exclusively focus on financing cryptocurrency- and cyberdeals for its customers; now Silicon Valley Bank, ranked on 16 amongst US banks. SVB is the second biggest fincancier of startups in Silicon Valley with over 30,000 of such starting - or non-starting - customers. The HighTech sector lost feathers in recent weeks and months, and many startups had to withdraw their cash form the bank therefore, consuming it. The bank suffered immense loss of liquidity, trying to counter that by selling bonds worth 21 billion, but under value, since the bank is in an emergency and needed cash at any cost. It now has a deficit of 2 billion dollars. Customers empty their bank accounts in a rush to leave the ship before it sinks. Thats why the bank'S hope to save itself by selling its stocks did not work: it did not generate cash, but cash holders - customers - started to flee in droves. SVB stocks lost 60% value yesterday and was not traded today at all. Its fate now has been sealed by the authorities.

The fear is that this fate will be shared by other banks soon, too, because the economy is such that companies need money and thus emptying their bank accounts, bringing their banks into trouble that way. Banks thus need to sell bonds, but with now raised interest rates it means these bonds get assessed newly and their value is being reduced. This could lead to losses for the banks that mount even further the higher the need for cash by companies becomes: making them emptying their bank accounts even faster. Needing the banks to sell more bonds under value. Rising their losses. The changes in the Fed'S and ECB's interest rates may make sure that although the banks today probabaly would no "infect" each other like 15 years ago, banks individually and independently from each other could get caught in a maelstrom, due to the above explained mechanism.

If we would have a real money, then we would not have this criminal abuse called fractional reserve banking, and these things would not be possible neither in event nor in destructive reach and follow-on effects.

Core inflation is in meltdown mode since three quarters now, showing climbing inflation even in times when the normal inflation seems to stagnate or drop. Not good. Absolutely not good.

Trying to collect the currency units they flooded the market with by raising interests, will soone ror later cause collapse. Not doing so will sooner or later cause collapse. There is no way out anymore. They will sooner or later trigger what harmlessly is called a currency- reform, which means replacing the old one with a new one, a paper FIAT currency of course. It comes at the cost that most people will suffer expropriations not seen since several generations.

I am very, very pessimistic on all this, but that is probably no surprise for anyone here. To me the question is not if, but when.

Bonds should not even be a trading item. They should not even exist. There are so many abstract paper-and-ink inventions they call a "financial product" that are nothing but fraudulent schemes. But the fractional reserve banking madness is at the core of all evil.

"Credit is consumption in advance, which will be omitted in the future." For an intelligent person, this one sentence, written by Ludwig von Mises, is already the content of everything important to know about sound economic principles. That it is not understood shows how completely broken our "money" system and our way of credit-driven economy really is. Alles kaputt. Using credit in an economic cycle can only then not cause desaster if the credit is based on somebody else not consuming and so saving what he is not consuming. Then he actually has something in excess which he can lend to somebody else. But today we allow cretaign credit beign created from nothing, and wiohtoiut consumption renunciation. This is where the system starts to derail. The FIAT "money" and the fractional reserve system were created by states to spend more than their economies could support. And then we are stunned by the desaster that is homing in on us? There is not a single place in the world, not a single country, where peopel actually pay with actual money. We have no money worth that name, nowhere in the world. Bonds, dollars and euros, all that paper bits of leaflets: nothing of that holds a value, nothing of that is "money". Its state-sponsored fraud.