(RoyalPatriot.com )- 19FortyFive notes that Joe Biden’s Bank Term Financing Program (BTFP) has virtually nationalized the US banking sector.
The Fed is allocating $25 billion from the Exchange Stabilization Fund (ESF) to protect itself from potential losses from propping up failing banks. The Federal Deposit Insurance Corporation (FDIC), funded mainly by the banks themselves, would shoulder most of the cost of the program proposed by the Biden Administration. The Biden administration is resorting to extreme measures, such as using FDIC funds or taxpayer money to bail out a bank to guarantee the economy continues to run normally.
Thus, the U.S. government is nationalizing the banking industry by guaranteeing the financial security of all depositors as part of the bank’s bailout.
Since many bigger banks rely on business with SVB and other smaller banks, the whole banking industry will be impacted by this issue. By allowing a wider variety of assets to be used as collateral for loans to financial institutions, the BTFP will assist in stabilizing markets. There is a high probability that the financial crisis of 2023 will result in the nationalization of the banking system, the consolidation of banking power, and the eventual merging of banking and political power.
Small firms, which create 48 percent of U.S. jobs, would be hit particularly hard.
The “innovators” of Silicon Valley want to petition Congress for a bailout next week, but lawmakers should ignore their requests.
The United States government cannot afford to pour more resources into failing industries. SVB failed because it could not offset its losses brought on by the government’s economic stimulus program. The billions of dollars in anticipated new expenditures by the Biden Administration will exacerbate the financial crisis.
The latest federal budget plan from the Biden administration proposes billions of dollars in new expenditures. Biden’s budget was not taken seriously. The plan was a test balloon to initiate Biden’s anarchic class war by starting a discussion about taxing the affluent.
If his budget is approved in any form, it would add to the current economic catastrophe. More banks will be in trouble if Powell continues hiking interest rates.
Each year that Biden is in power, the United States moves closer to being like the European Union, which is a benefit for crony capitalists but a nightmare for entrepreneurs.