More and more spending…

And even more...

Progressive Communist Democrat crazies are asking the private bank-owned Federal Reserve to print up to an additional 2 TRILLION dollars to combat bank liquidity problems caused by the Federal Reserve raising interest rates to fight inflation caused by printing too much money and not increasing national productivity at the same time.

At the same time, destroy the $250,000 FDIC insurance cap on deposits to protect "small" depositors in favor of bailing out the millionaires and companies whose deposits exceed $250,000.

Lie to the average American consumer and taxpayers that this is not a "bailout" and will not raise their taxes. And these consumers and taxpayers will not pay the increased FDIC insurance fees and bailout funds with lower interest yields on deposits, higher bank fees, and grossly inflated dollars worth less in purchasing power.

Calling the bailout a "Bank Term Funding Program" does not change the fact that this is a billionaire/millionaire bailout that disadvantages the little guy that the progressive communist democrats claim to protect.

Lie to the average American consumer that the Federal Reserve will "stress test" depository institutions that ignore stress tests only work for "leveraged investments" and not the actual problem of mismatched maturities and unhedged interest rate fluctuations in fixed-income securities (aka bonds).

Déjà Vu all over again…

Like the 2008 TARP (Troubled Assets Relief Program), the new Bank Term Funding Program uses dodgy assets (under-water securities if sold for a loss in the open market)as collateral for loans that provide the financial institution good funds at the face(par)value of the securities.

This is fundamental unsound banking practice as the collateral is de facto insufficient to justify the loan -- or the institution would not need a bailout.

This also violates the "bail-in" provisions of the Dodd-Frank Act of 2010 (Orderly Liquidation Authority), which was designed to provide immediate relief to financial institutions by allowing them to use money from their unsecured creditors, including depositors and bondholders, to restructure their capital to stay afloat. Essentially, they are converting debt into equity to increase their capital requirements.

The taxpayer no longer bears the risk as risk is shifted to unsecured creditors, including depositors whose account balances exceed the FDIC limit of $250,000.

Financing our enemies...

During a Congressional hearing, Treasury Secretary Janet Yellen admitted that Chinese Communist Party-linked businesses that had deposits in Silicon Valley Bank (SVB) will be made whole by the American banking system. Considering how much U.S. debt our enemies have purchased, Yellen cannot sanction these entities without provoking a confrontation with severe consequences for our economy. Considering so many of our U.S.-based multinational companies have outsourced vital strategic functions to China, we are doubly screwed as we prop up the Communist Chinese economy.

Incompetence or malevolence?

It appears that a number of large financial institutions were prevented from intervening in the purchase of Silicon Valley Bank by the FDIC and government regulatory bodies that would need to provide waivers for the larger systemically important banks to participate in the rescue.

Of course, this would cut the need for a Fed "intervention" and a narrative pushing the Central Bank Digital Dollar ("Project Hamilton")  -- an absolute tyrannical move to control your funds and purchasing. Digital services through the Fed are here!!! CONVENIENT TIMING!

Bottom line…

Once again, Congress is holding government operations hostage as they attempt to raise the federal debt limit, the amount is set by law and has been increased or suspended over the years to allow for the additional borrowing needed to finance the government's operations. On December 16, 2021, lawmakers raised the debt limit by $2.5 trillion to a total of $31.4 trillion. Biden is requesting at least $1.8 trillion more than the government would take in. But in fiscal 2024. 

We are closer to the forced implementation of the digital dollar and absolute tyranny.

We are so screwed.

-- Steve