Unipolar Hegemony Imploding from Within
The collapse of the Silicon Valley Bank highlighted that things in the US and the West are heading to disaster.
This bank, which caters to the Silicon Valley Tech sector, invested deposits variable rate into long-term fixed government bonds, and it was forced to sell these bonds at significant loses ($1.8 billion loss) to return money to depositors, and in process failed...
Today a number of other banks had massive shareholder loses including Western Alliance, First Republic, Finance Bankcorp, First Republic Bank, PacWest Bankcorp ADR... trading was haulted...
The Biden Administration via Janet Yellen claimed that depositors will be protected, and Biden claimed that the taxpayers will not bail out the banks... yet, where is the bailout money coming from? Ultimately, the taxpayers will be on the hook.
As I warned this banking crisis is a warning of what is coming in terms of financial recession and even depression.
Fundamentals.
The US and Western based financial system is rooted fiat currencies that are not backed by real wealth. Over decades Western establishment governments have been piling up debt as they kick the economic problems further down the road...
With the dramatic rise in interest rates to combat record high inflation, cracks in the system are appearing... (the excessive money creation and resulting debt and devaluation of the dollar is inflation, coupled with supply constraints due partly to the insane lockdowns and insane Western bully sanctions on Russia... all self-inflicted...and still continues this day by the establishment puppet politicians... case in point: Government of Canada a vassal of the Unipolar Rules-based World Order bans Russian steel and aluminum, which only hurt Canadian businesses, while Russian gladly sells these commodities China, India... this is what happens when you have a finance minister aligned to Ukrainian neo-Nazis and serves the Unipolar Order...)
The decline in the US dollar reflects the cracks...
The Federal Reserve is caught: stop interest rate hikes while inflation grows... keep interest rate hikes, cause an economic crash... the growing debt is the anchor...
Fundamentals don't lie (though are manipulated):
$31.613 trillion US national debt
$94.64 trillion total US unfunded liabilities
With the higher interest rates now at 4.75%, debt service payments are over 573.64 billion in the US and growing.
In 2000, debt to GDP was 58.78% now it is 120.36%.
In terms of democracy, Western governments have created a system of multi-controlled opposition with no real opposition.
The establishment politicians and media are prostitutes to the ruling unipolar deep state.
The Unipolar West is imploding through systemic corruption and mismanagement... the everyday person is powerless because the systems are rotten and broken...
To make matters worse, the Ukraine Proxy War is another failure without factoring in the obscene profits of the military industrial complex. The Russian Federation is grinding daily the Ukrainian military and neo-Nazis into eventual surrender.
China is emerging economically, militarily, diplomatically… as a force of multipolarism... combined with BRICS+ it stands to be even more formidable...
On a positive note, gold and silver continue their climb higher with parabolic moves:
Gold increased to $1912.25 2.38%
Silver increased to $21.775 6.17%
Now you know why some central banks have been loading up on gold... the fiat money may become worthless...
Stephen.Garvey@EmergingGlobalRealities.com