The passage talks about the importance of being honest and truthful in one’s life. Honesty is an important part of our character, because it can help to build trust between people. When you tell the truth and are honest with others, they will be able to trust you more on different levels. This means that other people will have faith in what you say and this could lead to greater success in areas like business or relationships. Additionally, being honest will also help us make better decisions and set clearer goals. Furthermore, being open with our feelings also helps us create stronger relationships as we build bonds through trust. So always try to practice honesty for a brighter future!
Journalist James Corbett calls the current banking crisis, involving SVB and others, as “Panic of 2023.” He believes that if nothing is done to stop it, there may be extremely strict surveillance coming our way in the future. That’s why he suggests cash, creativity and knowledge of agorism are key aspects when trying to fight against this problem. This type of economy will help us resist nasty central bank digital currencies (CBDCs) control.
The Great Bank Reset
Being 13 is a special time in life, as you will be discovering more of the world than ever before. At this age you are beginning to chart your own path and make decisions that have real-world consequences. This is why it’s important to take your time and really think through what choices make the most sense for you and your future. Asking questions and talking to mentors can also help ensure you’re getting good advice on various topics like choosing a profession or learning how to budget. The decisions we make now will shape our lives for years to come, so it’s worth taking the time to get them right!
James Corbett, a popular journalist and freedom activist, works for a news outlet called The Corbett Report. He recently talked about a troubling issue concerning banking and its connection to past events. And he tells his followers over the years that they should think twice before giving up too much of their financial right to state-created technologies like central bank digital currencies.
CryptokenTop News asked Corbett some questions about the financial crisis, what caused it and how everyday people can manage their finances during this crisis. Here are his answers.
Recently, you did some research and noticed that what’s going on right now with banks such as SVB, Signature Bank and Credit Suisse is similar to financial issues in the past like the Panic of 1907 and the 2008 Financial Crisis. So how does this moment we are living through compare?
In 1907, something really bad happened to Knickerbocker Trust, a big trust company in New York. It caused a drop of 50% in the stock exchange and became known as “The Panic of 1907”. This was called the first financial crisis of the 20th century by the Federal Reserve. The cause were some rumours saying that Knickerbocker Trust wasn’t able to pay back what it owed. J.P Morgan, who was quite famous at that time, did something special and saved the banking system from going completely bankrupt, which is why he is sometimes called a legend.
The Federal Reserve’s history of the 1907 panic doesn’t mention that those rumours started from George W. Perkins, who was working with J.P. Morgan. It also hides the fact that Morgan used the panic as a good chance to take out his banking competitors (the Knickerbocker Trust) and help his business friends (the Trust Company of America which had strong ties to many of Morgan’s clients).
In 2023, Bloomberg reported that some companies were advising startups to pull their money out of Silicon Valley Bank. Meanwhile, big banks, like JP Morgan Chase & Co., are asking customers to switch over and store their money with them instead because they think it’s a safer place for the assets.
When SVB experienced some troubles, people began to put their money in larger and safer banks like JPMorgan Chase. The Financial Times reported this as well.
In the latest episode of New World Next Week, James Evan Pilato talked about how Silicon Valley Bank and Signature Bank both collapsed recently. He thought it might be connected to something the regulators did related to cryptocurrencies. Barney Frank, a board member of Signature Bank, was even surprised by its collapse and said that he thought maybe the regulators were trying to send an “anti-crypto message”. Is this what’s happening?
JC: We need to take an extra step back to understand why the bank had some issues. There were several causes, including things like investing in “woke” ideas and movements, but the main problem was it had too much money.
It seems that many different things caused SVB’s failure, but the main reason it crashed was that they had too much money.
Banks make a lot of money by giving out loans from customer deposits. Having a high loan-to-deposit ratio (LDR) is seen as good, usually being around 80 to 90%. But SVB had too much saved up and not enough loans taken out, with only $74 billion in loans compared to their $173 billion in deposits.
The company decided to keep its money in what was thought to be a secure investment, US Treasuries, which were believed to not put the money at risk. They figured that the Federal Reserve hadn’t made major changes in interest rate for a long time. But it turned out they were wrong!
So, what happened is SVB bought nearly $120 billion of Treasuries when the interest rate was 1.78%, but after a while, this rate went up to 5%, which caused them to lose billions of dollars. In their 2022 Annual Report that came out in January, they revealed that they have total of $15 billion worth of losses related to this bad decision – and with only $16 billion in overall capital, this was a huge mistake.
The collapse of SVB happened because the Federal Reserve (also known as the ‘Fed’), attempted to get away from the huge bond bubble it created over fifteen years ago. That bond bubble was made to prevent future financial crisis, like during the dotcom period and 9/11 aftermath. To make matters worse, before that, a big housing bubble had been built by the Fed to reduce even earlier crises!
People think the current situation could be a way to bring in digital currencies from central banks faster than usual. Who do you think will gain and lose because of this? What do you think will happen?
Why is the Fed so interested in The Panic of 1907? They say that the crisis from this banking panic caused the Federal Reserve System to be created. But it’s not true – that’s just something that the “banksters” want you to believe.
The “monetary reform movement” became popular after something called “The Crime of 1873.” It included the Free Silver movement, bimetallism, and lots of famous people like William Jennings Bryan. Even though some people think it was inspired by The Panic of 1907, this isn’t true.
The Federal Reserve left out a very important part of how it was set up — the Panic of 1907 and the meeting on Jekyll Island. Even though it wasn’t perfect, that panic which changed the old money system and led to the formation of the Federal Reserve.
If a major banking problem happened today, it could potentially cause a revolution in the world’s banking system. It is almost certain that governments would use this crisis to create a new digital money system. For example, when COVID first broke out, the House Financial Services Committee attempted to make their own digital dollar during the relief bill for it. Do you think that if there was another financial crisis like COVID, governments would have something else planned to make sure people are safe?
When a crisis hits, we can expect that it will happen in the same way as The Panic of 1907 and the Global Financial Crisis of 2007-08. In both situations, some people benefited from the sudden disaster. Back in 1907, people like Morgan gained more control over banking while appearing to be good guys who could help fix things. When 2008 happened, croney-connected companies such as AIG and JP Morgan got lots of money to stay alive because of the big banking bailout. This helped big companies become even bigger and well-known like BlackRock. It’s possible that when another crisis happens, some players in the bank world will try to use it to get rid of their competition and increase their power.
Bankers may not benefit from the use of digital currencies or CBDCs. This is because using these currencies could mean that bankers are no longer needed in our monetary system, which would be bad for them.
The worst thing that could happen is that average people like us would be the ones to suffer if these central banksters try to control all money. If we don’t stop them, they might figure out a way to use “programmable money” worldwide. Will they succeed?
JC: I can’t tell you when it will happen, but if nothing is done to stop them, digital currencies (CBDCs) will be widely available all over the world.
My prediction is that we won’t all of a sudden switch completely to using only Central Bank Digital Currencies (CBDCs). We will have them together with other payment methods for some time and each country may have different kinds. Some countries can introduce full CBDCs, others can use it to just serve one purpose. In some countries, the central bank will give out wallets with CBDCs, while in others banks and other financial companies will be allowed to do the same.
The first step when governments start using Digital Money (or CBDCs) is like letting a camel in the tent – it won’t be too long before the government will be able to track and control your money. To protect yourself and keep financial privacy, adults need to think of new ways that everyday individuals can help themselves in these times of ‘banking contagion’.
JC: I have some great news! We don’t need complex plans or special gadgets to fight the CBDC agenda. We can use something that’s already in our wallets – cash!
CBDCs will probably exist alongside other payment options, which means we can still pay with cash unless people start using a completely cashless economy.
“Having cash in your wallet is the quick and easy way to stay financially independent.”
Recently, it’s getting more difficult to use cash for certain transactions. People are worried about their money being “dirty” and more likely to use electronic payment methods instead. So, we need to be aware of the businesses that accept cash and promise ourselves to use cash regularly. There are new ideas such as “Black Market Fridays” from agorist.market and “Cash Friday” from Solari.com put out there to help us with this goal.
It’s important to know that we don’t have to rely solely on cash for transactions. I suggest a “Survival Currency” approach, which is when people test out different forms of money, like community currencies, barter exchanges, local trading systems, metals, crypto coins and other methods. All of these transactions take place outside of the control of central banks.
No matter where you are, if you are surrounded by people with the same beliefs who want to share their ideas, there will always be lots of money-making options to try.
BCN: Is there any connection between recent problems with banks and the Great Reset initiative put forward by the World Economic Forum? It’s said that this initiative was planned to help with the Covid-19 pandemic, but could it be a part of some larger plan to make a worldwide financial tracking system? Do you think these ideas are true or are they just wild conspiracy theories?
JC: A lot of people are worrying that the Great Reset from the World Economic Forum will take away all our possessions and make us happy, but that’s not quite right. The idea of global control is nothing new and the World Economic Forum isn’t even a major part of it.
There is a group of people, like the Bilderbergers and the World Economic Forum, who want to set up something called the New World Order. This would create a world in which we are all controlled by powerful people without them being held accountable for their actions.
I’m talking about technocracy, which is a system where experts “engineer” society and handle all money transactions. This means that everyone needs to have a digital ID, plus there would be a special currency managed by tech-experts. All of this will be monitored and constantly tracked.
It’s now clear that it is now technically possible to have a system in place to control everything. A lot of powerful people, such as those in the World Economic Forum, are trying make this system a reality. Do you think using cryptocurrency might help?
JC: Cryptocurrency (or digital money) provides a secure way to do transactions in a hidden and private economy.
If you don’t know what the countereconomy is, or why you might want to use it, then it won’t be useful. People will just think that it is a way to get money quickly and easily, like any other investment that needs to be taxed and regulated by the SEC. But if that’s all it is seen as, then it could lead us down a path towards something very bad: CBDC nightmare.
We have the option to either learn about agorism and the countereconomy, or keep buying what the banksters offer us in the traditional economy. It’s our decision…for now. Do you have any thoughts on James Corbett’s discussions about the banking crisis, world economy, and digital money? Please let us know in the comments section below.
Pictures used in this passage are from Shutterstock, Pixabay, Wiki Commons and Rokas Tenys / Shutterstock.com as well as from corbettreport.com website.