The Banking COLLAPSE Is Part Of The Plan (breakdown)

The Banking Collapse of 2023

In this video, Mark Moss discusses the recent collapse of First Republic Bank and its implications for the US banking system and economy. He breaks down what happened with First Republic, what will happen with depositors' money, and how it gives us clues about other banks. He also talks about the fundamental shift in banking, long-term effects on the economy, and what we should all be watching and doing.

The FED Breaking Things

• The FED has gone on the fastest rate hiking cycle in history.

• Powell said they would rather go too far and break things because they have the tools to rebuild them.

• The FED has now broken the treasury and banks are dropping like flies.

First Republic Bank Collapse

• First Republic Bank is now the second-largest banking collapse in history after Washington Mutual in 2008.

• First Republic is one of several banks that have collapsed recently, including Silvergate Bank, SVB, and Signature Bank.

• Three banks have collapsed so far in 2023 (First Republic Bank, Silicon Valley Bank, Signature Bank), dwarfing the number of bank collapses during 2008.

Fundamental Shift to Banking

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Long-Term Effects on Economy

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What We Should Be Watching And Doing

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Deposits over $250,000 are Safe

In this section, the speaker discusses the safety of deposits over $250,000 and how they are protected by FDIC insurance. JP Morgan bailed out depositors and generated a one-time gain of about 2.6 billion dollars.

JP Morgan Bails Out Depositors

• Deposits over $250,000 are safe because of FDIC insurance and JP Morgan's bailout.

• JP Morgan generated a one-time gain of about 2.6 billion dollars from the bailout.

• The bank expects to make 500 million dollars plus of profits per year.

• The FDIC covered the 13 billion dollars in losses that the bank had and gave JPMorgan 50 billion in financing.

Privatized Gains and Socialized Losses

• This is an example of privatized gains and socialized losses.

• JP Morgan got a sweetheart deal with a profit of 2.6 billion dollars, ongoing profits of 500 million dollars per year, socialized losses between other banks to the FDIC, and socialized financing.

Has Capitalism Failed?

In this section, the speaker addresses whether capitalism has failed due to JP Morgan's actions.

Technically Not Allowed

• Technically, JP Morgan is not allowed to do this deal as it violates laws and regulations that prevent monopolies from being formed.

• Despite regulations prohibiting them from getting any bigger due to having more than 10% of nationwide deposits, they still went ahead with the deal.

Centralizing Banking System

• Regulations are in place to prevent banks from becoming too big and centralizing the banking system.

• JP Morgan's actions show that capitalism has not failed, but rather regulations need to be enforced to prevent monopolies and ensure fair competition.

Understanding Central Banks and the Banking System

In this section, the speaker discusses how central banks operate and their role in the banking system. He also talks about how small banks are going extinct, leading to consolidation in the industry.

The Communist Manifesto and Central Banks

• Karl Marx's Communist Manifesto outlines 10 points necessary for a communist society, one of which is the creation of a central bank.

• The speaker recommends reading his book, "The Uncommunist Manifesto," for more information on this topic.

Consolidation in the Banking Industry

• Small banks are going extinct, leading to consolidation in the industry.

• Large banks have much more capital than small banks and can acquire them easily.

• Large banks have about 13% cash on hand as a percentage of assets compared to 6% for small banks.

The Federal Reserve and Big Banks

• The Federal Reserve is not part of the government but rather a group of private banks.

• JP Morgan is the main bank out of all Federal Reserve Banks.

• Big banks with lots of cash can continue to absorb smaller ones, allowing the Fed to keep raising rates.

Collapse of Banking Stack

• There is an effort to collapse commercial banks so that people will be more directly connected to central banks.

• There were almost 11,000 banks 30 years ago; today there are barely over 4,000. This trend towards centralization is problematic because we need a decentralized banking system.

The Future of Banking

In this section, the speaker discusses the decentralization of banking and how it is being centralized. He talks about how big commercial banks headquartered in New York do not know what local areas need and how decentralized decisions are necessary.

Decentralization vs Centralization

• Big commercial banks headquartered in New York do not know what my local area needs.

• Jim Cramer is often wrong, and there is an inverse Kramer ETF that has been created almost every time he makes a prediction.

• Rules don't matter anymore as we're moving from a rule of law to a system that's ruled by men who change things arbitrarily.

Consolidation in the Banking System

• Individual banks are merging into bigger corporate banks like Citigroup, JP Morgan, Bank of America, and Wells Fargo.

• The government finds it easier to impose their will on just four big banks than on ten thousand small ones.

• The Fed will continue to raise rates knowing that the big banks have enough reserves to weather the storm.

Impact on Small Business Owners

• It's getting harder for small business owners to get loans because they now have to deal with giant corporate banks that don't understand them.

• Goldman Sachs predicts that the economy will slow down dramatically due to what's happening in the banking sector.

Conclusion

In this section, the speaker concludes by asking viewers if they are watching out for these changes in the banking system. He encourages viewers to leave comments and join his newsletter.

Final Thoughts

• This is a fundamental transformation of the banking system that is happening on a global level.

• Viewers are encouraged to leave comments and join the speaker's newsletter.