The Call For a National Bank - No More Bailouts

Editor's note: The fed is in a bind. They either do something extreme by Monday morning or the US is in huge trouble.

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Source: LaRouche PAC

Banking Collapse Caused by Federal Reserve. We Need a National Bank Now!

By LaRouchePAC | March 11, 2023

An office building at 3003 Tasman Drive in Santa Clara, California; at the time this photo was taken, it was home to the headquarters of Silicon Valley Bank, September 4, 2022. (Coolcaesar / Wikimedia / CC BY-SA 4.0)

The sudden collapse of Silicon Valley Bank underscores the immediate need to get rid of the Federal Reserve and replace it with a Hamiltonian National Bank. After the 2008 financial crisis, itself caused by decades of funny money policies by the Federal Reserve, the Fed drove interest rates to zero and below and pumped the system full of free money. This accelerated during the pandemic.

Under these conditions, the Fed's free-money policy encouraged wild speculation that allowed banks like SVB to vacuum in huge amounts of short-term deposits which they invested, at the Fed's urging, into low yielding long-term bonds. Now that the Fed is raising interest rates the value of those bonds are dropping and consequently the banks like SVB are caught in a liquidity squeeze.

Most of the deposits in SVB are not insured. Hedge and venture fund vultures are already screaming for the the Fed or the U.S. Government to bailout the uninsured deposits.

LPAC says loudly and clearly: NO MORE BAILOUTS. Put the system through bankruptcy re-organization. Get rid of the Fed and re-establish a National Bank to provide credit for large scale manufacturing and frontier projects like the Freedom Cities and manufacturing powerhouse proposed by President Trump.

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Related:

What Will Happen When Banks Go Bust? Bank Runs, Bail-Ins and Systemic Risk

Bank Stocks Plummet as Bank Runs in the U.S. Gain Momentum at Federally-Insured, Non-Traditional Banks

These people are the scum of the world and a blight on humanity:

CEO of Silicon Valley Bank sold $3.57 million of stock in the troubled bank just TWO WEEKS before its dramatic collapse in automated trade planned on January 26 - and CFO ditched $575,000 the same day

Thiel's Founders Fund Withdrew Millions From Silicon Valley Bank

More:

SVB's 44-Hour Collapse Was Rooted in Treasury Bets During Pandemic