Conversations with Peter Koenig and Dr. Jack Rasmus
As Silvergate Capital and Silicon Valley Bank were beginning to recede in the rear view mirror, the second shoe has finally dropped in the continuing financial bank crisis.
First Republican Bank has now seen its stock decline by 60% this past week following news that in the past month, depositors had withdrawn more than $100 billion. The bleed was shored up partially following the deposits of $30 billion in uninsured deposits by the big banks. [2]
The San Francisco banks intend to sell off unprofitable assets and has just laid of 25% of its workforce, roughly 7,200 employees by the end of the year. [3]
This is a signal that the failures that resulted in early March are not over. And that this latest catastrophe is probably not the last.
The banks typically have less money in their reserves than they lend out at any given time. This worked adequately except in the early thirties when financial times were so devastating that people began run-on-banks, quickly harvesting their own reserves before reserves were withdrawn by other depositors leaving the people behind penniless. Five thousand bank failures resulted then, persuading the Roosevelt administration to bring in the Glass-Steagall Act of 1933 bringing in regulation to thwart the corruption and insider trading permitting such processes. [4][5]
Of course, Glass-Steagall was repealed in 1999 under President Clinton, and other initiatives like Dodd-Frank have since been advanced leaving the board more or less back in 1930s shape again! [6]
But, what if there is more to this than ’30s style greed? What if this is setting the stage for continuing down the path of engineering the destruction of the financial systems in Asia, Latin America and Eastern Europe to the benefit of the key players within Wall Street? What if it’s continuing even within the United States itself as part of the “phase two” of the pivotal “post-COVID” 2020-2023 Great Reset? These are some of the questions we will attempt to get answers to in the latest chapter of the Global Research News Hour. [7]