In the week before it raised interest rates another 25 basis points to fight inflation, the Federal Reserve added more than $94 billion to its balance sheet. This was on top of the nearly $300 billion it piled onto the balance sheet in the first week of its bank bailout.
The balance sheet reveals that Fed has loaned banks nearly $400 billion in money created out of thin air in just two weeks.
Peter Schiff appeared on Real America with Dan Ball to talk about the bank bailout, the unfolding financial crisis, the Fed and inflation. He said this is a sequel to 2008 and like all sequels, it’s going to be worse.
On Wednesday, the Federal Reserve raised interest rates again despite the problems in the banking system. In this episode of the Friday Gold Wrap, host Mike Maharrey talks about the Fed’s inflationary efforts to paper over the problems in the financial system while still keeping up the pretense of an inflation fight. He says it’s like trying to thread a needle with rope.
The Federal Reserve is trying to walk a tightrope — in a hurricane.
After rate hikes resulted in the collapse of Silicon Valley Bank and Signature Bank, the Federal Reserve and the US Treasury stepped in with a bailout. With that hole in the dam seemingly plugged for the time being, the Fed pushed forward and raised interest rates by another 25 basis points at its March meeting.
In the wake of two major bank failures, Federal Deposit Insurance Corporation (FDIC) deposit insurance effectively went to infinity. And there is no reason to believe it will be temporary.
As Silicon Valley Bank and Signature Bank were toppling, the government rushed in to guarantee 100 percent of both banks’ deposits. It was touted as an emergency measure to maintain confidence in the banking system and prevent runs at other banks. In effect, it bailed out wealthy depositors at two failing banks.
The dust continues to settle after the failure of Silicon Valley Bank and Signature Bank, and the ensuing government bailout. Many people in the mainstream seem to think the crisis has passed. But a closer look at the condition of the banking system reveals these two banks were just the tip of the iceberg. Peter Schiff appeared on NewsMax Wake Up America to talk about the financial crisis. He said that there are more bailouts to come.
Peter Schiff recently appeared on Brighteon.com with Mike Adams to talk about the failure of SVB and Signature Bank, the bailouts and the potential ramifications. During the interview, Peter explained the difference between SchiffGold and a lot of the other gold companies out there.
The Federal Reserve added nearly $300 billion to its balance sheet in a single week as it kicked off its loan bailout program for banks.
In effect, the Fed loaned troubled banks $300 billion of new money that was created out of thin air.
In other words, we got $300 billion in inflation in a single week.
Friday gold wrap host Mike Maharrey has been saying something is going to break in the economy for months due to the Federal Reserve’s monetary tightening to fight price inflation. Last Friday, something broke when Silicon Valley Bank collapsed followed quickly by the demise of Signature Bank. It was the first crack in the dam. The Fed rushed in to plug the leak, but was it enough? In this episode of the podcast, Mike talks about the response to these bank failures and the possible ramifications.
As the old saying goes, if it looks like a duck, walks like a duck, and quacks like a duck, it’s probably a duck.
Well, if it looks like a bailout, walks like a bailout, and talks like a bailout, it’s probably a bailout.
