Globalization means that no country is all powerful in exclusion of others. If you thought that the Russia-Ukraine war and the USA Trade war with China are not related to the crash of one of the biggest banks in the USA,means you don't study the world economy. let me explain. Russia and China sinking US economy as Run on US banks deepen! Okay, remember when I reported that Russia and China were de-dollarizing & have ordered other BRICS member states to De-Dollarize as well? De-dollarizarion is the process of substituting the US dollar as the currency used for trading oil and other commodities in the international market. Until now, nearly every international oil & commodity trade has been carried out with US dollar. This is why Dollar has remained powerful due to high demand in the currency by different countrieswho use it to pay for oil as the preferred reserve and international trade currency. Many countries also had US bonds - China and Russia are said to be holding much of the U.S. bonds issued to date. What has now happened is that as soon as China & Russia began dumping the dollarand started using Russian Ruble, Chinese Yuan for their international oil trade, the dollar began to go through hell. As if that was not enough, they all began to dump their US bonds and started buying up gold & backing currency with gold. And many other countries aredumping the dollar too & this is the reason Silicon Valley Bank crashed. In a matter of days, two more banks have also crashed - First Republic Bank & Signature Bank. As at this moment, one ounce of gold is said to have exceeded $1,900 by 2% as creditors anxiety mount. With goldthere is no increase in interest rate, so investors are moving heavily on gold right now - China & Russia leading the pack. The cost of supporting the Zelensky regime against Russia has begun to bear fruits, analysts say. As a result, the US Federal Reserve has to raise interestrates in order to support the US economy. It’s been reported that the rate at which China is getting rid of its US bonds is unprecedented! And at the same time, they’re buying up so much gold to strengthen their Foreign Reserve which by the end of 2022 had about 2,011 tons ofgold! This is why I tell Africans who borrow paper money and give up their gold to please go borrow sense. Paper money is fiat. Nations that will survive store up their reserves in gold. It withstands virtually every crash. As of December 31, 2022, Signature Bank had $88.59billion in savings! It’s now the 2nd US bank to crash. It’s a similar situation for First Republic Bank. Trump didn’t waste time to take a swipe at Biden. He said “Based on what is happening with our economy & based on the suggestions made for the biggest & stupidest taxes in UShistory, Joe Biden will become Herbert Hoover (American president from 1929-1933) of the modern era. We will have a Great Depression, much stronger than 1929! As a proof, banks have already begun to collapse,” he concluded. The future looks bleak, analyst say but, pray for the US.
Silicon Valley Bank in the USA has collapsed. This is one of the biggest banks in the USA with a cash reserve of over 200 Billion Dollars.
They secured their cash with the US bonds which the value of the bonds crashed with high interest rates and inflation.
It was reported that Startup companies and other customers withdrew over 24 billion dollars within 24 hours from last week Thursday to Friday.
Currently, the bank doesn’t have cash to pay many depositors. A particular company is unable to pay staff salaries because SVB cannot pay the company its deposit.
