We noticed from the Media Platform on the Internet that :
1. FAILURE OF SVB - SCHOCKED GLOBAL FINANCIAL MARKET
In March 2023, the failure of SVB shocked Global Finacial Markets. FDIC was forced to take over during business hours.
Details of Resolution was only released until the Next Week end.
These events started: a series of bank intervention on both sides of the Atlantic which still is occurring at the time this brief snapshot writing.
The First Republic Bank was bought by the Nation's largest bank in the USA namely : #JP Morgan
This occurred after the FDIC (#Federal Deposit Insurance Corporation) took over the Second Biggest Bank to fall in American History.
(Note: #The Federal Deposit Insurance Corporation, is a United States government corporation supplying deposit insurance to depositors in American commercial banks and savings banks. FDIC was created by the Banking Act 1993 enacted the #Great Depression to restore trust in the American banking system. #Wikipedia Founder Franklin Roosevelt).
The original purpose was to maintain stability and public confidence in the USA Nation's financial system.
Some Analysts have the perception that The Central Bank's is destroying the US banking system since #Small Regional Banks were swallowed up by this JP Morgan corporate banking action.
The Fed are injecting funds into JP Morgan in acquiring the Small Banks.
This was perceived to consolidate and further centralize the US Banking Network
The Goal Target is to try to gain more Power and Control Over the Financial System
According to the Financial Stability Expertise, as written in a Paper made by #Andrew Metric and #Paul Schmelzing, the SVB (Silicon Valley Bank) and First Republic failures are just the Start of a Long Banking Crisis after 800 Years of History in USA Hegemony in the Global Currency.
#Andrew Metric is Professor of Finance and Management at the Yale School of Management and Director of Yale Program on Financial Stability
#Paul Schmelzing is an Assistant Professor of Finance at Boston Colledge
and a Research Fellow at the Hoover Institution, Stanfort University.
A key feature of a systematic banking crisis is the length of time it takes to be resolved.
As noted, above based on the Expertise Sources we found on the website, social media platforms quoted by an independent journalist, was #Paul SCHMELZING.
He was one of the invited speaker in the #IIMF Summit Forum 17th April, 2023, held in Washington DC.
The Heading was #The March 2023 Bank Intervention in Long-Run Context - Silicon Valley Bank and Beyond
Paul Schmelzing presented #Statistic of Increasing Interest Rate for more that 700 - 800 years, the year 1870 -
The #MS Data Base (#Metric Schmelzing Data Base) counts a total of 540 Individual Lending Policy Intervention over the Centuries of which 410 were deployed across countries es.
He observed that on average the 57 prior Banking Crisis was most analogous to the Current, will last months if not Years
That is an omnimous project since the current crisis is less than 2 months
old as Schmeltzing says :
- it's far to early for Investors to say that the Crisis is Over.
He predicts that more banking failures are on the horizon
We have not seen the :
- Tsunami of Commercial Real Estate Defaults that's going to leave a lot of Regional Banks holding the Bag.
- He states that The FED is behind it all
They Created this Crisis and are Purposely
- systematically Destroying the Economy
This Week the FED increases rates of Quarter Point and Signals a Potential End
to Hikes .
This appears to be the Deal :
- Even if the Fed Paused Interest Rate Hikes Next Time around June 2023
- (Note : which is the last month date of the President Nominated Candidate in the 2024 USA Presidential Election) this has already gone too far.
They can't avoid a crisis.
- A crisis is already taking place and these Types of Crisis does not happen all at Once.
They happen thru Process of Waves
- At the End of the Day as predicted by many Intellectual Journalists Analysis Observers as shown in several Platforms in the Social Media, is that now Undoubtedly and Abundantly Clear is happening in the USA and also in Europe.
We can observe in the Social Media that the US Senators are finally starting to say it out Loud in the Mainstream Media on Live on TV.
According to Banking Financing Observers, it's undoubtedly and abundantly Clear that Nobody Trusts the Banks.
Now Banks borrow Short to Lend Long
They use deposits which can be withdrawn at any time to fund loans
and buy Bonds which Don't get Repaid for a long time.
- Otherwise known as Sophisticated Ponzi Scheme
Question raised : How Banks are Just Sophisticated Ponzi Scheme ?
Brief Answer percieved by one of the Independent Journalist :
When we deposit our
- Hard-Earned Money Our Property into a Bank we are Unknowingly giving a free Unbacked Loan
to a Highly Leveraged Borrower
- The Bank Gambles with our Money until they Lose and then
we the Tax-Payers and Customers bail them Out
How so well Check out the way Governments Officials try to Twist reality to make it seem
- like we aren't bailing out of the Banks out Of FDIC Plans.
To hit Big Banks with Fees to Refill Deposit Insurance Fund
II The SVB spill over to Europe, on #SVB subsidiary in Germany, Britain, and #Swiss Bank.
The German financial regulator announced on March 13. that a #"Moratorium" had been placed on German Subsidiary of SVB, incorporated in German Corporate Law with EUR 789M in Assets.
The Decision falls into "Debt and Payment Moratoria" (DPM).
III. #Latest Banking Policy Actions by Asean Countries Plus Japan, South Korea &; Peoples Republic of China.
Ministers of Finance and Governors of the Central Bank for the ASEAN Region, Japan, South Korea and China
(Asian Plus Three) agreed to reduce dependence on the United States Dollar by strengthening the role of Local Currency according to the Power Lunch Program Meeting Wednesday 03/05/2023
IV. DEDOLLARIZATION ISSUE
Reduces the dependability of the US Dollar Currency.
#BRICKS created New Payment Instrument
Recently, the #BRICKS Alliance Countries, namely Brazil, Russia, India, China, and Africa, created a New Payment Instrument
This is to reduce dependence on the USD Dollar and Euro currencies.
V. #Asean Countries Plus 3 Countries Japan South Korea Peoples Republic of China uses local currencies.
Not only Bricks Alliances Countries, we noticed that a number of countries in the Asean Region plus 3 Countries : Japan, South Korea & Peoples Republic of China are also trying to increase the use of local money in trading activities between those Asean Plus Japan, South Korea & People's Republic of China.
In order to reduce the dependence on US Dollars and Euros.
#Indonesia is Not Exceptional
Indonesia Implements Local Cooperation with a number of Countries, namely China, Japan, Malaysia and Thailand
Indonesia also signed the LCT Collaboration MOU with Singapore on 29 August 2022
and is currently in Tracking for Implementation in 2023
#Bali Meeting March 2023
Not only that, all ASEAN countries agreed to carry out LCT cooperation at the meeting
Finance and the Governor of the ASEAN Central Bank in BALI in March 2023.
Senior Economist who is also the Minister of Finance of Indonesia from 2014 to 2016 Bambang Brojo Negoro emphasized that
Lots of countries are trying to avoid their Government as well as Private Commercial Transactions from using US Dollars.
The Pragmatical reason of the Stackholders who want to release US Dollars, cannot be separated from the current expensive US Dollar Condition.
This was caused by the implementation of Relatively High Interest Rates as a Policy by the US Financial Authority to Manage Inflation.
Thus, many countries are worried that dependence on the US dollar will jeopardize the trade transactions which
can create high-cost economy
#Due to Social Media Platforms Borderless Digital Era , Dedolarization was Viral ... Globally Instantly
#Jakarta, Indonesia, 8th May 2023
#AgungSupomoSuleiman
