Last Friday, Silicon Valley Bank went under then got bailed out by the Fed. Now the banking system is in turmoil. Banks that have high exposure to SVB and comparable investments are creating stresses for those institutions, as well as the high interest rate environment. The market now sees this, and buckling is occurring in certain areas of the banking system. Investors and everyday people are worried about their money held at these institutions, which could possibly cause a contagion effect across world markets.
Over the last week, a few other notable items have occurred:
On the U.S. Debt Clock, Federal Reserve Notes have been relabeled as U.S. Treasury Dollars
FedNow service announced - A fast track to Central Bank Digital Currency (CBDC) - a centralized currency with social credit controls
Gold, Silver & Bitcoin (outside current money system) are up substantially, or you can say the health of the monetary system is down substantially against their real value.
BRICs is moving toward expansion with additional countries joining, specifically Saudi Arabia. BRICs nations are decoupling from petrodollar use, if Saudi Arabia joins the petrodollar is facing extinction.
All these issues are shifting the monetary system to become far different from how it has been. These events are building towards one of two scenarios 1) a despotic control system, enslaving the population with monitored and restricted transactions with CBDC OR 2) a sovereign free market, prosperous system with real and finite currency such as bitcoin backed by precious metals. The choice will be ours, but it looks like we will need to weather the storm before the change occurs.
