2nd US Bank failure!

Just a thought regarding CBDC. If the US did introduced a CBDC, then i would imagine the total bank deposits will have to match the FEDs balance sheet first? So either bank deposits will have to reduce by half or the FEDs balance sheet will have to double.

The two charts above will be worth tracking, if we see them converge over time it might be an indicator that a CBDC is near.
 
Last edited:
mmm....shiney! said:
Pease explain your reasoning for that.
Click to expand...

If a CBDC is meant to replace bank deposits (like how the federal reserve bank note replaced private bank notes) then i would image the FED will have to realise all bank deposits first. So at some point bank deposits will disappear and the FEDs accounting/CBDC will take over. If the FED didn't match it first then you will have big disruptions amongst banks.

I know there are different interpretations on how a CBDC will function, wholesale vs retail CBDC. I'm more focused on "retail".
 
Last edited:
It's a fact is it not that Australia is the first "1st World" government to perform large scale trials of a CBC under the guise of "a tria" they say is just to see its pro's & con's, what regulation would be required, how the creation of new/more currency would be limited etc is it not?
I'm just trying to get my view of the landscape adjusted.
I would say that most Aussies are to smart to fall for another, even less representative & even more tracked currency after seeing what's happening with current fiat but sadly I don't think most Aussies have a clue about the total lack tangible assets backing their money, in fact I often have the conversation with Millennials RE what they think they're money is backed by & almost invariably it's met with completely blank looks. "What do you mean by backed" ...the mind boggles!!!
 
6tMkPhal.jpg


27JOPRdl.jpg
 
Yeah... Whatever the eventual fate of the Dollar & its global reserve status, the cultural dominance of "Anglo" isn't going anywhere. If it wasn't rooted in British culture rather than US culture, I would also put the dollar in that basket too but in order to make that case it would have to be Pounds Sterling...but it ain't!
 
BREAKING: First Republic Bank (FRC): After hours: (-22.19%)

First Republic is the 18th biggest bank in the US. First, the banks ranked 11 to 20 start failing....then the trickle up affect hits the top 10 banks.....3 months ???

The FDIC will need a bigger boat.
 
First Republic appear to be hostage to insto / Wall St investors who between them hold circa 95% of First Republic shares.

https://fintel.io/so/us/frc

In March 2023, short sellers made USD848m shorting First Republic stock.

https://markets.businessinsider.com...c-svb-short-sellers-profit-848-million-2023-4

At present it appears 29% of First Republic's stock has been shorted.

https://fintel.io/ss/us/frc

I can't find the list of shorters but I wouldn't be surprised if some of the First Republic insto shareholders (who may or may not have benefited from the flow of retail deposits from First Republic to the larger banks) are trying to extract max value by shorting the stock before they tip it over.
 
A new report from the Congressional Research Service (CRS) showed that crypto losses did not cause the collapses of Silicon Valley Bank and Signature Bank, or even Silvergate, but fear of crypto exposure was the driving force behind the bank runs.

The CRS, a non-partisan agency which acts as a trusted resource to inform members of Congress, published ‘The Role of Cryptocurrency in the Failures of Silvergate, Silicon Valley, and Signature Banks’ on Tuesday. The report contradicts the popular narrative that the banks’ failures were caused by significant exposure to FTX and other failed crypto firms, or by losses from their own crypto products, ...
Click to expand...

https://www.kitco.com/news/2023-04-...xposure-was-minimal-Congressional-report.html

From the report:
...
While the banks appear to have withstood direct exposures to specific crypto firms, some nevertheless experienced significant depletion of deposits as the steady series of failures deepened the crypto market downturn. After reaching an all-time high of around $3 trillion in November 2021, crypto lost more than two-thirds of its market capitalization by December 2022. As digital asset prices fell, centralized crypto platforms and stablecoin issuers experienced redemptions, likely causing them to draw down deposits held at these banks. To meet withdrawal demand, banks sold ostensibly safe securities for losses, affecting their liquidity and—in some cases—their solvency. In the fourth quarter of 2022, Silvergate’s deposits fell by more than half, hastening a drop that began earlier in the year (see Figure 2). Signature’s deposits fell by around 15% over the same period. So in this case, losses were not realized on crypto-related assets, but crypto deposit withdrawals caused banks to sell other assets at a loss.
...
Click to expand...

https://crsreports.congress.gov/product/pdf/IN/IN12148

Fractional reserve banking follies fell feeble financial foundations.
 
^^^
don’t USgov just keep printing when needed??

Rep also wants debt ceiling to be lifted again…this time, UNLIMITED
 
You must log in or register to reply here.
Back
Top