President Joe Biden’s political capital is deteriorating with every negative balance sheet, which could affect whether he is another one-t...
President Joe Biden’s political capital is deteriorating with every negative balance sheet, which could affect whether he is another one-term president.
The Federal Deposit Insurance Corporation’s (FDIC) board of directors allegedly warned about the impending “financial crisis and their lack of faith in our banking system and how to keep the public from freaking out,” according to a popular Twitter account specializing in banking, claiming to have footage of a private November FDIC meeting.
In the two videos posted by WallStreetSilver, the FDIC warned that economic conditions in the U.S. will worsen to the point where there could be a “run on” banks to withdraw cash deposits.
The banks’ total-loss absorbing capacity (TLAC) should adapt to the economic needs of consumers, according to one of the supposed FDIC bankers. He felt “conflicted” on whether insured institutions should publically advertise the FDIC withdrawal guarantees because “you don’t want a huge run on the institutions.”
He believes the massive number of simultaneous withdraws “could be an early warning signal to the FDIC and the primary regulators,” which members of society understand “who’s going to be protected and who isn’t going to be protected” in the case of a U.S. economic crisis.
FDIC quote:
“You don’t want a huge run on the institutions, and, and they’re going to be”.
Another major clip from the FDIC meeting showing this is going down, soon. They are expecting it.
From Nov 2022 meeting …
🔊sound …🤨 pic.twitter.com/yEb1G8sXLA
— Wall Street Silver (@WallStreetSilv) December 29, 2022
Another alleged FDIC banker argued that although Americans have a right to know the U.S. is not in a good economic position, releasing the information would likely not reach Americans who don’t have a professional need to be informed.
The argument was well received by another alleged FDIC banker who said he “completely agree[s].”
“I almost think you would scare the public if you put this out there. ‘Why are they telling me this? Should I be concerned about my bank?’ My insurance company doesn’t tell me what they are doing with my assets. I just assume they will pay my claim,” he responded.
The banker said the FDIC should consider “the unintended consequences” of informing the public of the potential financial crisis, like Americans losing “faith and confidence in the banking system.” He joked that the public had “more full faith and confidence in the banking system than maybe people in this room do.”
“They know the FDIC insurance is there. They know it works. If they put their money in, they’re going to get their money out,” he said.
The alleged banker admitted he was okay with “a select crowd of people on the institutional side” finding a way to understand the predictions for the U.S. economy but said the FDIC should be “careful about the unintended consequences of starting to blast this out to the general public.”
They don’t want the public to see this video.
The bankers don’t trust the banks.
(Nov 2022)They’re talking about financial crisis and their lack of faith in our banking system and how to keep the public from freaking out (Federal Deposit Insurance Corporation) 🚨
🔊sound 😂 pic.twitter.com/SK3iLAQ4IP
— Wall Street Silver (@WallStreetSilv) December 29, 2022
Most Americans look negatively at the future of the U.S. economy and job market, according to Gallup’s Economic Confidence index.
“From a broader historical perspective, Americans’ recent economic confidence scores have been among the worst Gallup has measured since the 2007-2009 recession, which included a record-low-72-in October 2008 during the financial crisis that exacerbated an already bad economic situation,” the survey reported.
Only 15% of Americans told Gallup they felt U.S. economic conditions were excellent or good, while almost 50% felt the situation was poor. When looking to the future, a whopping 70% of Americans believe the economy will get worse compared to just 24% who said they think the economy will improve, according to the poll.
US wage growth has failed to keep pace with rising consumer prices for a record 20 consecutive months. This is a decline in prosperity for the American worker & the primary reason why the Fed will hike rates for the 7th time this year at tomorrow’s meeting.
Charting via @ycharts pic.twitter.com/i8KlYBs5hR
— Charlie Bilello (@charliebilello) December 13, 2022
Regular Americans are suffering under the weight of Biden’s out-of-control spending, with inflation a red-hot 7.1%. Real wages are down, groceries and energy prices remain high, and Americans are taking on historical debt and depleting their savings accounts. Compounding the inflationary pressures, the U.S. Federal Reserve raised the baseline federal funds rate to a range of 4.25% – 4.5%, its highest rate in 15 years.
Economist Peter Schiff said all the evidence points to the U.S. economy’s recession after the Federal Reserve raised the rate. “The even weaker than expected Dec. manufacturing data released today, as well as the larger than expected decline in Nov. retail sales, provide more evidence of an economy already in #recession. Yesterday’s #Fed rate hike and continued #inflation will make this recession worse,” Schiff tweeted.
The even weaker than expected Dec. manufacturing data released today, as well as the larger than expected decline in Nov. retail sales, provide more evidence of an economy already in #recession. Yesterday’s #Fed rate hike and continued #inflation will make this recession worse.
— Peter Schiff (@PeterSchiff) December 15, 2022
Ignoring all the warnings, the Biden administration still believes the U.S. economy will achieve a “soft landing” in 2023. A member of the White House council of economic advisers, Heather Boushey, told the Financial Times that although the U.S. economy will see “unforeseen things” and “challenges,” the Biden administration continues to believe it will turn around.
“We remain optimistic that we will be able to see the soft landing that we are looking for,” Boushey said. “Time will tell, but I think the pieces are in place to have a fighting chance to do so.”
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