You might already be aware of the fact that there is a huge financial crisis in the US involving the Silicon Valley Bank. But what this could mean for the country and the whole world is what you should be worried about. Check out the latest reports about this below.
The Silicon Valley Bank collapse and its effects
CNBC noted that the Silicon Valley Bank employees received their annual bonuses Friday, just hours before regulators seized the failing bank, according to people with knowledge of the payments.
“The Santa Clara, California-based bank has historically paid employee bonuses on the second Friday of March, said the people, who declined to be identified, speaking about the awards.” The payments were for work done in 2022 and had been in process days before the bank’s collapse, the sources said.
CNBC notes the fact that “This year, bonus day happened to fall on SVB’s final day of independence. The institution, in the throes of a bank run triggered by panicked venture capital investors and startup founders, was seized by the Federal Deposit Insurance Corporation (FDIC) around midday Friday.”
If we take a look at Wikipedia, we can see the following info about the bank:
“Silicon Valley Bank was a commercial bank headquartered in Santa Clara, California. SVB was the 16th-largest bank in the United States at the time of its failure on March 10, 2023, and was the largest bank by deposits in Silicon Valley. It was a subsidiary of the bank holding company SVB Financial Group.”
The Fed will not bail out the bank
Treasury Secretary Janet Yellen said Sunday that the federal government would not bail out Silicon Valley Bank.
APNews notes that the Federal Deposit Insurance Corporation insures deposits up to $250,000. A lot of the companies and wealthy people who used the bank — known for its relationships with technology startups and venture capital — had more than that amount in their account. There are fears that some workers across the country won’t receive their paychecks.
The same online publication that we mentioned above notes the fact that Yellen, in an interview with CBS’ “Face the Nation,” provided few details on the government’s next steps. On the other hand, it’s important to note the fact that she emphasized that the situation was much different from the financial crisis almost 15 years ago, which led to bank bailouts to protect the industry.
“We’re not going to do that again,” she said. “But we are concerned about depositors, and we’re focused on trying to meet their needs.”
Addressing the 2008 financial crisis
Sheila Bair, who was the FDIC chair during the 2008 financial crisis, recalled that with almost all the bank failures during that time, “we sold a failed bank to a healthy bank. And usually, the healthy acquirer would also cover the uninsured because they wanted the franchise value of those large depositors so optimally, that’s the best outcome.”
But with Silicon Valley Bank, she told NBC’s “Meet the Press,” “this was a liquidity failure, it was a bank run, so they didn’t have time to prepare to market the bank. So they’re having to do that now, and playing catch-up.”
Fearmongering about the financial collapse reaches Europe
According to the latest reports coming from Express.co.uk, Chancellor Jeremy Hunt there is a “serious risk” for parts of the UK economy following the collapse of Silicon Valley Bank and its UK arm. But the Treasury has claimed won’t have a serious impact on other British banks.
The finance ministry tried to ease fears of market catastrophe on Saturday after one of the US’ largest banks was shut down by regulators.
On the other hand, it’s also important to note the fact that Hunt refused on Sunday morning to confirm if the Treasury would step in to save 100 percent of deposits at Silicon Valley Bank UK.
The Treasury said in a statement that problems linked to the failure of Silicon Valley Bank were “specific to the firm” and added that the company’s collapse would have no “implications for other banks operating in the UK.”
It’s been revealed that Hunt was asked again whether he will guarantee all the money the firms have with the bank, he said: “You’ll have to wait to see the whole plan.”
He told Sky’s Sophy Ridge On Sunday program: “There is no systemic risk to our financial system, so people should be reassured on that basis.
“But there is a serious risk to our technology and life sciences sectors, many of whom bank with this bank.”
Anyway, it’s important to highlight how the government will not help the entity which is in trouble, especially following the latest crypto FTX disaster that took place recently.
An illusion warfare
As we already know by now, the world has been sinking into all kinds of crises lately, and it seems that this is a trend that we have to get used to.
We may be facing a massive financial crisis now, and unfortunately, it could also be due to fear. Fear is one of the most powerful weapons, as you can get people to do whatever you want them to with its help.
The Silicon Valley Bank in the US – the best case study of Illusion Warfare – tomorrow might be a “Black Monday” scenario, a bank run and market collapse
Illusion = Belief = Manifest – this is an extremely important issue that people have to remember.
By collapsing the SBV, they create the ILLUSION a banking crisis is happening, and the easily fooled BELIEVE this and withdraw their money from ALL BANKS, MANIFESTING an actual BANKING CRISIS.
If things happen as planned or not remains to be seen.
SBV collapse – a trojan horse for the implementation of CBDCs?
Along with the digital Id, the world elites are planning to implement CBDCs for a while as well.
— David Wolfe (@DavidWolfe) March 10, 2023
Below, you can check out the EP discussing the need to implement a digital ID.
Having a digital identity card could make life easier.
MEPs are currently working on a European Digital Identity (eID), meaning less paperwork when accessing key services, like requesting official documents or renting a car across Europe.
More: https://t.co/Q4POBcTPNg pic.twitter.com/jbl4ExVRrt
— European Parliament (@Europarl_EN) March 9, 2023
There is a massive wealth transfer taking place for a while now and the people are the ones affected.
This is just the beginning. A crack. Nothing more. But it starts with a crack. The perfect storm is brewing: end of fiat, dedollarization and a petrodollar run, stockmarket et al. Bail-outs unlikely, if not impossible, so get ready for bail-ins and bank runs. Perfect storm=shit… https://t.co/w9RzVcgQT4
— A Timber Rattler (@ATimberRattler) March 11, 2023
The dominos begin to fall, and tomorrow might be an important day in history.
— TonyG (@TonyG2024) March 11, 2023
As I said above, all this could only be the Trojan Horse for the implementation of CBDCs.
#CBDCs | “The Federal Reserve Is Considering a CBDC Digital Dollar. The Implications for Privacy & Freedom Are FRIGHTENING.” – Steve Forbes + “CBDCs Will Be Implanted Under Your Skin.” – Richard Werner (Professor / CBDC Expert) – #CBDC#CBDCs#CentralBankDigitalCurrencies pic.twitter.com/z4TDa9P7z9
— Clay Clark (@TheClayClark) March 2, 2023
CBDCs mean the end of our freedom as we know it, along with the digital ID and 15-minute cities. But I will cover these subjects the next time. Until then, remain vigilant and keep your eyes on the markets and stocks as well.