ECONOMIC UPDATE: Banking Crash Coming
Unable to service their debt at the high rates, property owners will sell out and/or bailout, leaving the debt load on the banks… which will increase the bank failure trend
It’s summertime, and the living is easy.
Much of the world, particularly those in the northern hemisphere, is in a summer state of mind.
What in the world is going on is not on their mind, and even if they were tuned into what imbeciles and morons call “news,” they would just be hearing what the Presstitutes are feeding them. Journalism does not exist. The American media’s little boys and girls get press releases from their Washington whore masters… and go with it.
MANNARINO: Here's a Discount for The Trends Journal, and Why You Should Subscribe
Citing the continuing escalation of federal, state, and city debt and a “steady deterioration in standards of governance” since the 2001 War on Terror, two weeks ago Fitch downgraded the United States government’s credit rating to AA+ from AAA.
Ask the average person about this and their response will be, “What’s a Fitch?”
Today, Fitch warned that turbulence is shaking the U.S. banking industry which risks dozens of downgrades including the “Bigs” such as JPMorgan Chase.
And last week, CNBC reported that “Moody’s downgraded the credit rating on several regional banks, including M&T Bank and Pinnacle Financial, citing deposit risk, a potential recession, and struggling commercial real estate portfolios. The credit agency also placed the Bank of N.Y. Mellon and State Street on review for a downgrade,” from the highest possible rating. The new rating is still well into investment grade.
TOP NATO OFFICIAL: HERE’S POSSIBLE PATH TO PEACE…UKRAINE REJECTS
TRENDPOST: All this is old news to Trends Journal subscribers. When politicians launched the COVID War back in 2020, we had forecast that their pumping in several trillion dollars to artificially inflate the economy—which was dying as a result of their draconian lockdown mandates—and the Federal Reserve bringing interest rates to zero to artificially prop up equities, M&A’s, housing market, etc., would prove disastrous. Not only would inflation spike as a result of the cheap money flow, their COVID War policies had inflicted unprecedented economic damage that would not recover. And the biggest of the busts yet to come is the Office Building Bust.
Already down some 15 percent from their pre-COVID War values, the commercial property sector—from office buildings, malls and apartment complexes—will continue their decline. As we have been forecasting, with interest rates rising, not only would depositors take their money out of banks and invest their money in market funds and high-yielding Treasuries, but more importantly, the socioeconomic and geopolitical damage inflicted upon humanity by politicians who launched the COVID War, would also devastate much of the banking system.
And as borrowing costs rise along with interest rates and floating-rate debt rises higher, the commercial real estate bust will grow louder.
Unable to service their debt at the high rates, property owners will sell out and/or bailout, leaving the debt load on the banks… which will increase the bank failure trend.
Bankster Bandits
Further illustrating how the system is rigged for the Bigs and the criminality of what Americans call a political system, once again, Wall Street on Parade’s article today details the facts:
The Bill Clinton administration’s repeal in 1999 of the 1933 Banking Act, commonly known as the Glass-Steagall Act, ushered in the greatest kleptocracy America has ever known.
The Cambridge dictionary defines “kleptocracy” as: “a society whose leaders make themselves rich and powerful by stealing from the rest of the people.” In fact, the actual goal of repealing Glass-Steagall was to do just that.
Explaining in detail how the repeal of Glass-Steagall enriched the richest of “The Club,” WSoP also details how the “Bigs” got bigger and how the Feds made sure they got what they wanted: “A Government Accountability Office (GAO) audit revealed in 2011 that the Federal Reserve had secretly pumped $16 trillion in cumulative loans at almost zero interest rates to Wall Street banks and trading houses from December 2007 to July 2010.”
In summary, WSoP makes it clear who is in charge and how the Bankster Bandits are running the freak show called a “democracy.”
For more than a decade, Wall Street On Parade has reported on how this revitalized kleptocracy has plundered wealth from the little guy into the pockets of the 1 percent while simultaneously creating a no-law zone around itself with private justice systems, captured regulators, corrupted courts and a Congress that now marches to the beat of corporate campaign money instead of to the will of the people.
Pointing out that the banksters were hit with 351 legal actions with some $200 billion paid out in fines and legal settlements, they note that “Americans no longer recognize their ‘democracy’ because its soul has been crushed by the kleptocrats.”
Broken China
Tracking trends is the understanding of where we are and how we got here to see where we are going. For over a decade, The Trends Journal has forecast that the 20th century was the American century, but the 21st would be China’s.
While we maintain our forecast, thanks to Beijing’s three years of intensely fighting the COVID War, its transition to #1 world economy has been dramatically delayed. As we have noted, its three years of zero-COVID policy destroyed the lives and livelihoods of hundreds of millions. And, even before the COVID War, the nation faced a downturn being that it was massively overbuilt, saddled with heavy debt-burdens and manufacturers were leaving for cheaper labor markets.