Yes, people are stupid. But are they this stupid? Could this be intentional with a secret agenda in mind such as digital currency?
Interview of Paul Craig Roberts by the Russian Geopolitical institute GEOFOR.
By Dr. Paul Craig Roberts: There are two main avenues to a potential US financial crisis. Such
a crisis, because of US financial dominance and because of the
interconnections of globalism, which was a huge mistake for humanity,
would be international.
One avenue to crisis is the Federal Reserve’s current policy of raising interest rates. This policy follows many years of nearly zero interest rates in nominal terms, and negative interest rates in real terms. During
these many years the financial assets banks accumulated on their
balance sheets, such as bonds, pay a low rate of interest. When
the central bank (Federal Reserve) raises interest rates, the values of
the lower interest rate financial instruments fall, thus shrinking the
asset side of banks’ balance sheets but not the liabilities side. Thus the central bank’s policy is pushing banks toward insolvency. When depositors realize that
their deposits could be frozen for some time or lost if over $250,000
in size, as many corporation payrolls and some individual accounts are,
they withdraw their deposits. The
banks cannot meet the withdrawals because their assets have shrunk in
value relative to deposits and because as they sell the depreciated
assets to meet the withdrawals the prices of the troubled assets fall
further. Silicon Valley Bank
had assets heavily weighted with low interest rate US Treasury bonds,
the value of which was driven down by the Federal Reserve raising
interest rates.
