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Post: The West is facing a banking crisis. Russia turns into a safe harbor

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USA flag on the New York Stock Exchange building. archive photo

US officials are trying to claim that they managed to stop the banks’ collapse in March and thus the crisis was overcome. Actually it is not. Large regional banks continue to be at risk, depositors continue to withdraw money from them. Next up for bankruptcy is First Republic, the 14th largest bank in the USA.

Regarding the successive bankruptcies, many said they were primarily beneficial to the monsters of American banking with more than a trillion dollars in capital. They deliberately bankrupt competitors so that money can flow to them. Like it or not, this time the Fed has forced financial giants to join the bailout of First Republic Bank.

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The richest banks contributed to it and donated thirty billion dollars. It soon became clear that this was not working. First Republic shares hit bottom one after another. If they were worth $147 at the top, they are now trading at 12-14. Depositors continue to withdraw money. The Wall Street Gazette While the American media is used to hiding the unpleasant financial truth from citizens, I’m pretty sure the First Republic was doomed and wrote openly about it.

The contagion of bankruptcies quickly spread across Europe. The legendary Swiss Credit Suisse has collapsed. Then the shares of giants such as Deutsche Bank peaked. Today, a large number of searches are carried out on tax evasion at the largest French banks, BNP Paribas and Societe General.

Experts explain the possibility of a massive collapse of Western banks with the huge amount of debt accumulating in the system. Financial institutions have been lending and re-lending to each other for years, and as a result about 90% of their money is in debt – it’s only a matter of time before this MMM collapses. The non-expert can see that the stupidity of governments and the greed of banks lead a dangerous line.

Inflation in the US and Europe was between eight and twenty-odd percent last year, as the authorities activated the printing press. Deposit rates practically did not rise. For example, look at the UK. There is only official inflation of more than ten percent – in real life the situation is even worse. And all the major banks in the country offer less than 1.3% for annual deposits.

Dollar bills at the Bureau of Engraving and Printing in Fort Worth - RIA Novosti, 1920, 27.03.2023

The agony of western finance crawled unnoticed

It’s the same in America, but the Fed has been raising rates there for a year. Inflation is almost ten percent. And the average “return” on an annual deposit is 1.21% – on a five-year deposit – 1.28%. The depositor who sings spades to a spade pays the bank extra to keep his money – and pays very well.

Naturally, citizens withdraw the money from their accounts and transfer it to the person they want. Individuals are poorer at spending their savings on purchases – otherwise money will still be swallowed up by inflation. Businesses and wealthier people go into stocks trying to buy gold. Here, however, there is always a fear that the authorities will suddenly seize the precious metal: in the United States, for example, private merchants were banned from owning gold in 1933 and remained in effect until 1974. But in any case, the trend is clear – depositors are trying to withdraw their money from banks.

At first, trillion-dollar banks seemed immune from this economic whirlwind. However, it is not. The reports from the largest US banks last year are incredible.

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Wells Fargo Group, the fourth largest bank in the United States, saw its revenue fall 13 times in 2022 compared to 2021. Its shares are worth 27% less than a year ago. Shares of the second-largest Bank of America gained 35% less. And so they are everywhere.

Interestingly, bank shares collapsed soon after the reports were released. Maybe that’s why USA’s biggest financial giant JP Morgan Chase is in no hurry to publish their financial statements. However, the legendary bank was involved in a big scandal. TV channel CNBC claims that the bank owners have decided to fire its permanent CEO, Jamie Dimon, a charismatic billionaire obsessed with the “big reset” who is a fanatical supporter of the Democratic Party. Meanwhile, he made the prediction of the “economic hurricane” that the world will have to endure in 2023.

It was suddenly revealed that Jamie Dimon was in a relationship with the notorious pimp Jeffrey Epstein, who died mysteriously in a New York prison in 2019. No, the banker has not yet been charged with specific violence, but the feds suspect he helped Epstein by selling underage girls to VIPs, holding that money in JP Morgan Chase accounts, and investing profitably. Jamie Dimon promised to testify on this matter.

For decades, this handsome gray-haired gentleman has been traveling the world urging us to consume less, eat and drink less, protect the climate, stop procreation and all transition to transgender people urgently. And now he will testify in the case of mass violence against minors. This is how the glory of the world passes.

US banknotes - RIA Novosti, 1920, 26.03.2023

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However, this high-profile scandal does not appear to be intended to cloud the issue with the reporting of JP Morgan Chase. Because the collapse of such a giant’s stock will reveal what officials are still trying to hide: the banking crisis is already raging in America and Europe.

But how dangerous is this for the rest of the world? After all, Americans are recognized masters at exporting their problems. Specifically, it comes down to the isolation of Russia in the banking sector. Paradoxically, the Austrian Raiffeisen became the leader in terms of revenue among European banks in 2022, precisely because it is almost alone in the Russian market. In terms of profitability, only Sberbank did better.

Naturally, European authorities are now pressing Raiffeisen to leave Russia and go bankrupt along with everyone else. This proves once again that our country is a classic safe haven in a severe economic hurricane.

NATO headquarters in Brussels - RIA Novosti, 1920, 30.03.2023

The West will be rescued by economic NATO

Source: Ria

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