A New World Order is Emerging as the Davos Banking System Collapses
With the collapse yesterday of the world’s first SIFI (systemically important financial institution – “too big to fail”) bank, Credit Suisse, the reality that the financial system of western culture is now on the brink of collapse is starting to sink in with Americans.
While still not headline news in the American corporate media, financial headlines were notably pessimistic today, even with the stock market posting gains.
The more dire outlooks are still being published as “opinion pieces,” but it appears that more and more Americans are starting to face the reality that life as we have known it, is about to radically change.
Here is an article that was featured on the Home Page of Market Watch for most of the day today, while the markets were open. And while it is listed as an “opinion” piece, it sure reads like a news article to me.
Opinion: The end of the ‘everything bubble’ has finally hit the banking system. Credit Suisse and SVB might be just the first of many shocks.
The Fed and other central banks face a difficult choice: Keep rates high to control inflation or loosen monetary policy to stabilize financial markets.
by Satyajit Das
Market Watch
Excerpts:
Major financial market regime changes typically take place in stages. The crypto meltdown in 2022, for example, incurred about $2 trillion of losses. The technology meltdown followed, with losses of about $5 trillion, the U.K. government bond (gilt) crisis ($500 billion in losses), plus an ongoing emerging market debt crisis.
These problems have now reached the world’s financial system, with U.S., European and Japanese banks losing around $460 billion in market value so far in March alone.
The immediate cause is the rapid increase in official interest rates in the U.S. and other major global economies. The true cause is the unwinding of an economic and financial structure built upon an artificially low cost of money, which gave rise to the “everything bubble” and its leveraged speculation.
The banking system’s problems may not be over. The collapse of Silicon Valley Bank SIVB, highlighted the interest-rate risk of purchasing long-term securities financed with short-term deposits and the susceptibility to a liquidity run. Banks globally face falling customer deposits (projected to decline in the U.S. by up to 6%) and losses on holding of securities ( (unrealized losses at FDIC insured U.S. banks exceed $600 billion at end of 2022). A 10% loss on bank bond holdings would, if realized, decrease bank shareholder capital by around 25%.
When other interest-sensitive assets are included, one estimate puts the loss for U.S. banks alone at $2 trillion. Globally, the total unrealized loss might be two to three times that. The fact is that higher rates and losses on securities have significantly weakened the global banking system. (Full article. Subscription required.)
The independent financial alternative media, without needing investors and editors’ approval to print anything, was much more apocalyptic. Here are a few headlines from ZeroHedge News today:
A New World Order is Emerging, and it is NOT Led by the Davos Crowd and the World Economic Forum
It is ironic, or perhaps even prophetic, that the first “too big to fail” bank to collapse was from the banking industry out of Switzerland, with the entire Swiss economy now on the brink of collapse.
For centuries now, Swiss banks have held the deposits of some of the wealthiest people on earth, as well as some of the most notorious criminal cartels, often providing a tax shelter from deposits in U.S. or other European banks.
Switzerland, of course, is also home to the World Economic Forum, part of the United Nations.
And while every major country usually attends the meetings at the World Economic Forum, it is run by western nations, mainly the United States and NATO members.
This is who I am referring to as the “Davos Crowd.”
It includes the Bank of International Settlements (BIS), which is closely related to The World Bank, and the International Monetary Fund (IMF), which are both located in Washington D.C.
The “Davos Crowd” is dominated by the two most powerful families in Western Culture, the Rothschilds in Europe, and the Rockefellers in the United States.
They are the ones who created the U.S. Federal Reserve, which is quickly losing its influence as the most powerful financial entity in the world.
Historically, this “Davos Crowd” has been controlled by eight families. See:
But as the wealth of these family dynasties is now quickly evaporating away, and as their banking system collapses, new leaders are emerging to oppose the Davos Crowd, led by four countries that are leading the rest of the non-western world today: China, Russia…
Full Article:
https://eraoflight.com/2023/03/24/a-new-world-order-is-emerging-as-the-davos-banking-system-collapses/
