Witnessing people's behaviour in the middle of the current crisis, particularly the banking problem, which is being eclipsed by the global financial crisis, is discouraging. This is cause for concern, and I believe the current crisis is worse because it is eroding our society's foundation. Despite criticism from Bitcoin aficionados, Mark Yusco is convinced that fractional reserve banking is a critical component that adds to our society's greatness.
Multiple bank failures, both domestic and international, have put significant strain on the banking system in recent months. First Republic Bank, for example, has been on the edge of bankruptcy, with its shares falling from $122.50 to $3.00 as of Friday. By the end of the day, the Federal Deposit Insurance Corporation is expected to seize the bank's deposits and assets.
Yusco expressed his thoughts on the matter. According to him, the current banking scenario is considerably worse than the financial crisis of 2008-2009. While many Bitcoin and cryptocurrency enthusiasts advocate for a more equitable and fair system, Yusco believes in the value of the fractional reserve system and disagrees with their viewpoint. He contends that eroding faith in the banking system is akin to chipping away at its base. Without trust, the system devolves into a confidence game or a con game. It's all about making capital operate without banking institutions since capital will otherwise sit inert in mattresses, leading to country collapse.
Greece is a great example of this, with residents withdrawing their money from banks and putting it in mattresses, causing the Greek economy to collapse and finally being purchased by China. This is the terrible scheme unfolding right in front of our eyes, and it is critical that we save our Sunday from it. My guess is that First Republic Bank will merge with JP Morgan this weekend in order to erode trust in the banking system, drive deposits into the largest institutions controlled by the government, and eventually eliminate the need for financial institutions altogether. The government will propose a CBDC to replace the banking system, arguing that it will alleviate people's anxieties and protect their money. This proposal, however, has a different objective, and people should not fall for it. Despite First Republic Bank's problems, there are people who can help, but they have a different agenda. JP Morgan takes over and executes their strategy by altering the letters from FRC to JPM.
Revenue increased by 3% during the equity market manipulation cycle, which was less than expected given that it had been dropping for several quarters. Even minor improvements, like Netflix's 1.7 multiple, are welcomed in this market. Microsoft also saw a significant increase of more than 8%, which was greater than the total change of several S&P 500 businesses. The excitement surrounding these improvements, however, might be deceiving because they are not as large as people may believe. For example, the GDP only expanded by 1%, which is not a bad sign in the short term, but it is not a positive one in the long run. The emphasis should be on long-term profits rather than short-term advantages, which will eventually catch up.
Furthermore, channeling money to large banks and corporations benefits only them, not the general public. Berkshire Hathaway's smart strategy of investing in solid firms that pay dividends and buybacks does not make a stock a good value. Believing authorities' assertions, such as the benefits of CBDC or lockdowns, is not necessarily in the best interests of the individual.
Source:
Only The SAVVY, 30 April 2023, "Most Bitcoin Maxis Are Not Going To Like Me Saying This | Mark Yusko",
