Banks and the financial sector in the United States are issues which we have discussed at length. But the ‘Silicon Valley Bank’ failure in recent days brings the issue to the forefront yet again. Thus, it is worth asking what it is that is specifically behind this one bank failure, and is this one particular bank failure a one-off? Or is this one bank failure a symptom of a bigger cause with wider ramifications and implications?
One financial expert has argued that the interest rate hikes by the Federal Reserve is the cause behind this bank failure and another bank failure which has occurred in recent days. And the idea is that the interest rate hikes can lead to even more bank failures in the future. Hence, the notion that the Federal Reserve is driving the American economy into collapse.
But we should perhaps go a step further. If interest rate hikes are behind the bank failures, then what is it that is behind the interest rate hikes? According to the Federal Reserve, inflation is the cause for the rate hikes. But then again, we have to go yet another step further and ask what’s behind the inflation? The answer is fiscal policy and government spending. And what’s behind the fiscal policy and government spending? The answer is the whole-of-government policy of global conquest and global hegemony.
Hence, everything is interconnected and interdependent. We cannot consider anything to be a one-off in this day and age, given the hyperconnectivity and deep interconnection and interdependence between all kinds of phenomena and occurrences in this day and age. The failure is not necessarily a failure of the banks, in my humble opinion. The failure is essentially a failure of a decades-long whole-of-government policy which needs change and reform. Indeed, the banks were intertwined with the policy. But the banks were not the cause of the policy. The policy was a political decision a few decades ago, not a decision by the banks. Much of what is economic is actually political.
And I do not mean to take this as an “I told you so” moment. But I have been sounding this tune for the last couple of years at the least. When the policy was set, no one was thinking about the long run effects of the policy. What we see with these banks today is just one long run effect of a decades-long policy which has failed, and there are perhaps more crises and more failures and more effects which will manifest themselves on the way unless there is an immediate change in the whole-of-government policy which is based on global conquest and global hegemony. Banks have their own intelligence assets and units, and some of the most intelligent people in the world work for these bank intelligence units. They are called “Financial Intelligence.” They can sense a crisis better than you and I can, and when the Federal Reserve signals through interest rate hikes, it is a signal that something big is not working in the big picture. I believe we have identified what it is that the Federal Reserve is exactly signaling. But then again, we will have to wait and see how the problem is addressed and whether the Federal Reserve is officially on board with a policy change once and for all.