00:00 Ch. 01 - Title Sequence
02:32 Ch. 02 - Intro to The War for Bankocracy Series
05:09 Ch. 03 - The Biden Central Bank Independence Memo: An Ill Omen
09:31 Ch. 04 - Series Schedule and Access via Solari
17:05 Ch. 05 - Central Bank Independence vs. Federal Reserve Independence
23:32 Ch. 06 - The Biden Memo Flouts the Federal Reserve Act
28:04 Ch. 07 - The Constitution as a Global Force of Central Bank Transparency
31:13 Ch. 08 - Federal Reserve Transparency vs. ECB Transparency
33:14 Ch. 09 - "Central Bank Independence" Is a Propaganda Campaign
35:11 Ch. 10 - The Aim of Central Bank Independence Propaganda Is Secrecy
37:54 Ch. 11 - Looking Ahead to Episode 2
38:31 Ch. 12 - Support BestEvidence and The War for Bankocracy Series

For a description of Episode 1 of The War for Bankocracy, please see https://bestevidence.substack.com/p/episode-1-the-war-for-bankocracy

For the War for Bankocracy series webpage, please see https://solari.com/the-war-for-bankocracy/

Footnotes

(01) "Fed Chair Powell says he won't resign, even if Trump asks him to," Nov. 7, 2024, https://www.youtube.com/watch?v=umXN8ELS98s (Bloomberg TV)

(02) "Donald Trump says he won't try to remove Fed chief Jerome Powell," Dec. 8, 2024 (NBC News); https://www.nbcnews.com/politics/donald-trump/donald-trump-says-wont-fire-fed-chief-jerome-powell-rcna183276

(03) "The Importance of Central Bank Independence," May 22, 2024, White HouseCouncil of Economic Advisers; https://audio.solari.com/john-titus/Episode_2/WHITE_HOUSE_Importance_of_Central_Bank_Independence_CEA.pdf

(04) https://solari.com/the-war-for-bankocracy/

(05) Hearing Before the Comm. on the Budget, U.S. Senate, 107th Cong. (Jan. 25, 2001), https://www.c-span.org/program/senate-committee/fiscal-policy/105347

(06) https://www.c-span.org/program/senate-committee/fiscal-policy/105347

(07) https://bestevidence.substack.com/

(08) Regulatory Restructuring: Balancing the Indep. of the Fed. Reserve Sys. in Monetary Policy With Systemic Risk Reg., Hearing Before Subcomm. on Domestic Monetary Policy and Tech. of the Comm. on Fin. Servs., U.S. House of Representatives, 112th Cong. (July 9, 2009); https://www.govinfo.gov/content/pkg/CHRG-111hhrg53234/pdf/CHRG-111hhrg53234.pdf; see also https://www.c-span.org/program/house-committee/independence-of-the-federal-reserve/209239

(09) https://www.govinfo.gov/content/pkg/COMPS-270/pdf/COMPS-270.pdf

(10) See footnote (08) above.

(11) Improving the Fed. Reserve Sys.: Examining Legislation to Reform the Fed and Other Alternatives, Hearing Before the Subcomm. on Domestic Monetary Policy and Tech. of the Comm. on Fin. Servs., U.S. House of Representatives, 112th Cong. (May 8, 2012); https://www.govinfo.gov/content/pkg/CHRG-112hhrg75727/pdf/CHRG-112hhrg75727.pdf; see also https://www.c-span.org/program/house-committee/federal-reserve-reform-economists-panel/276625

(12) John Titus
9660 Falls of Neuse Rd
Suite 138, No. 241
Raleigh, NC 27615

00:00 Ch. 2-01 - Previously on War for Bankocracy
00:34 Ch. 2-02 - Summary of Why The Biden White House Memo Is Legally Wrong
05:34 Ch. 2-03 - Factual Analysis of Fed Power - Monetary Control
17:04 Ch. 2-04 - How Central Banks Surpassed Standing Armies in Power
23:33 Ch. 2-05 - Central Banks Have Been Swindling Nations Since 1694
30:03 Ch. 2-06 - The Fed Replicated Key Elements of the Swindling Machine
35:45 Ch. 2-07 - The U.S. Constitution Is Kryptonite for Central Bankers
41:49 Ch. 2-08 - The Fed vs The Constitution: Two Kings in a Kingdom

Footnotes

(13) "The Importance of Central Bank Independence," May 22, 2024, White House
Council of Economic Advisers

(14) https://solari.com/the-war-for-bankocracy

(15) Econ. and Budget Challenges for the Short and Long Term, Hearing Before the
Comm. on the Budget, U.S. Senate, 111th Cong. (Mar. 3, 2009)

(16) Federal Reserve Balance Sheet: Factors Affecting Reserve Balances - H.4.1,
Sept. 26, 2024, https://www.federalreserve.gov/releases/h41/20240926/

(17) FDIC Statistics at a Glance - Latest Industry Trends, Sept. 30, 2024
https://www.fdic.gov/quarterly-banking-profile/latest-industry-trends-september-2024-pdf

(18) “Mommy, Where Does Money Come From?,” by John Titus, Apr. 16, 2019;
see https://www.youtube.com/watch?v=S_dBKAWHHQI

(19) Assets and Liabilities of Commercial Banks in the United States - H.8,
Oct. 25, 2024, https://www.federalreserve.gov/releases/h8/20241025/

(20) “Fed Admits Crony Truth About Pandemic QE: ‘it creates new bank deposits’,”
by John Titus, Sept. 5, 2022; see https://www.youtube.com/watch?v=n1xgQeCiu6k

(21) “Deep Diving the Fed's Killer Whale Crisis,” by John Titus, June 6, 2023;
see https://www.youtube.com/watch?v=1sCq9FJQQNA

(22) Niccolo Machiavelli, The Art of War (1520).

(23) The Works of Thomas Jefferson, vol. 11 (Paul Leicester Ford, ed., 1905).

(24) Stephen Zarlenga, The Lost Science of Money (2002).

(25) Alexander Del Mar, The History of Money in America, From the Earliest
Times to the Establishment of the Constitution (1899).

(26) Alexander Del Mar, History of Monetary Systems (1895).

(27) Federal Reserve Balance Sheet: Factors Affecting Reserve Balances - H.4.1,
Jan. 30, 2025; https://www.federalreserve.gov/releases/h41/20250130/h41.pdf

(28) Citigroup Inc. 2024 Notice of Annual Meeting and Proxy Statement
Apr. 30, 2024; https://www.citigroup.com/rcs/citigpa/storage/public/Citi-2024-proxy-statement.pdf

(29) BlackRock 2023 Proxy Statement, May 24, 2023;
https://s24.q4cdn.com/856567660/files/doc_financials/2023/ar/blackrock-2023-proxy-statement_vf.pdf

(30) Improving the Fed. Reserve Sys: Examining Legislation to Reform the Fed and Other
Alternatives, Hearing Before the Subcomm. on Domestic Monetary Policy and Tech. of the
Comm. on Fin. Servs., U.S. House of Representatives, 112th Cong. (May 8, 2012)

(31) European Central Bank, Statute of the ECSB and of the ECB, Institutional
Provisions, Protocol as annexed to the Treaty on the European Union (2010/C 83/01);
https://www.ecb.europa.eu/pub/pdf/other/ecbinstitutionalprovisions2011en.pdf

(32) Regulatory Restructuring: Balancing the Indep. of the Fed. Reserve Sys. in
Monetary Policy With Systemic Risk Reg., Hearing Before Subcomm. on
Domestic Monetary Policy and Tech. of the Comm. on Fin. Servs.,
U.S. House of Representatives, 112th Cong. (July 9, 2009)

(33) John Titus
9660 Falls of Neuse Rd
Suite 138, No. 241
Raleigh, NC 27615

00:00 Ch. 2-01 - Previously on War for Bankocracy
00:34 Ch. 2-02 - Summary of Why The Biden White House Memo Is Legally Wrong
05:34 Ch. 2-03 - Factual Analysis of Fed Power - Monetary Control
17:04 Ch. 2-04 - How Central Banks Surpassed Standing Armies in Power
23:33 Ch. 2-05 - Central Banks Have Been Swindling Nations Since 1694
30:03 Ch. 2-06 - The Fed Replicated Key Elements of the Swindling Machine
35:45 Ch. 2-07 - The U.S. Constitution Is Kryptonite for Central Bankers
41:49 Ch. 2-08 - The Fed vs The Constitution: Two Kings in a Kingdom

Footnotes

(13) "The Importance of Central Bank Independence," May 22, 2024, White House
Council of Economic Advisers

(14) https://solari.com/the-war-for-bankocracy

(15) Econ. and Budget Challenges for the Short and Long Term, Hearing Before the
Comm. on the Budget, U.S. Senate, 111th Cong. (Mar. 3, 2009)

(16) Federal Reserve Balance Sheet: Factors Affecting Reserve Balances - H.4.1,
Sept. 26, 2024, https://www.federalreserve.gov/releases/h41/20240926/

(17) FDIC Statistics at a Glance - Latest Industry Trends, Sept. 30, 2024
https://www.fdic.gov/quarterly-banking-profile/latest-industry-trends-september-2024-pdf

(18) “Mommy, Where Does Money Come From?,” by John Titus, Apr. 16, 2019;
see https://www.youtube.com/watch?v=S_dBKAWHHQI

(19) Assets and Liabilities of Commercial Banks in the United States - H.8,
Oct. 25, 2024, https://www.federalreserve.gov/releases/h8/20241025/

(20) “Fed Admits Crony Truth About Pandemic QE: ‘it creates new bank deposits’,”
by John Titus, Sept. 5, 2022; see https://www.youtube.com/watch?v=n1xgQeCiu6k

(21) “Deep Diving the Fed's Killer Whale Crisis,” by John Titus, June 6, 2023;
see https://www.youtube.com/watch?v=1sCq9FJQQNA

(22) Niccolo Machiavelli, The Art of War (1520).

(23) The Works of Thomas Jefferson, vol. 11 (Paul Leicester Ford, ed., 1905).

(24) Stephen Zarlenga, The Lost Science of Money (2002).

(25) Alexander Del Mar, The History of Money in America, From the Earliest
Times to the Establishment of the Constitution (1899).

(26) Alexander Del Mar, History of Monetary Systems (1895).

(27) Federal Reserve Balance Sheet: Factors Affecting Reserve Balances - H.4.1,
Jan. 30, 2025; https://www.federalreserve.gov/releases/h41/20250130/h41.pdf

(28) Citigroup Inc. 2024 Notice of Annual Meeting and Proxy Statement
Apr. 30, 2024; https://www.citigroup.com/rcs/citigpa/storage/public/Citi-2024-proxy-statement.pdf

(29) BlackRock 2023 Proxy Statement, May 24, 2023;
https://s24.q4cdn.com/856567660/files/doc_financials/2023/ar/blackrock-2023-proxy-statement_vf.pdf

(30) Improving the Fed. Reserve Sys: Examining Legislation to Reform the Fed and Other
Alternatives, Hearing Before the Subcomm. on Domestic Monetary Policy and Tech. of the
Comm. on Fin. Servs., U.S. House of Representatives, 112th Cong. (May 8, 2012)

(31) European Central Bank, Statute of the ECSB and of the ECB, Institutional
Provisions, Protocol as annexed to the Treaty on the European Union (2010/C 83/01);
https://www.ecb.europa.eu/pub/pdf/other/ecbinstitutionalprovisions2011en.pdf

(32) Regulatory Restructuring: Balancing the Indep. of the Fed. Reserve Sys. in
Monetary Policy With Systemic Risk Reg., Hearing Before Subcomm. on
Domestic Monetary Policy and Tech. of the Comm. on Fin. Servs.,
U.S. House of Representatives, 112th Cong. (July 9, 2009)

(33) John Titus
9660 Falls of Neuse Rd
Suite 138, No. 241
Raleigh, NC 27615

00:00 Ch. 3-01 - Previously on War for Bankocracy
00:38 Ch. 3-02 - Summary of the Fed Independence Lie
06:55 Ch. 3-03 - Presenting the Fed's Pitch for "Independence"
12:46 Ch. 3-04 - The Financial Crisis Debunks the Fed's "Independence" Pitch
17:11 Ch. 3-05 - The White House Memo Debunks Fed's "Independence" Pitch
20:45 Ch. 3-06 - The Pandemic Debunks Fed's "Independence" Pitch
26:26 Ch. 3-07 - The Bank of England Debunks Fed's "Independence" Pitch
28:57 Ch. 3-08 - Fed Chairman Powell Links Fed's Balance Sheet to Inflation
31:08 Ch. 3-09 - How the Fed Caused Inflation During the Pandemic
36:25 Ch. 3-10 - How Fear Destroys Stable Currencies and Transparency Alike

Footnotes

(34) https://solari.com/the-war-for-bankocracy

(35) "Quantitative Easing Is the Biggest Sham Ever (S3 E2)," by John Titus, Dec. 17, 2020, https://www.youtube.com/watch?v=rDtVABEzcy4

(36) "The Importance of Central Bank Independence," May 22, 2024, White House
Council of Economic Advisers

(37) https://www.newyorkfed.org/markets/pomo_landing.html

(38) "Segment 809: The Importance of Federal Reserve Independence," Apr. 3, 2017, https://www.youtube.com/watch?v=y_gId-fP5zk

(39) "Janet Yellen: Federal Reserve independence is 'critically important'," Nov. 17, 2016, https://www.youtube.com/watch?v=0y7CGI1Pi0o

(40) "Central Bank Independence and Macroeconomic Performance: Some Comparative Evidence," by Aberto Alesina and Lawrence H. Summers, Journal of Money, Credit and Banking, Vol. 25, No. 2 (May, 1993), pp. 151-162

(41) "Central Bank Independence and Inflation Volatility in Developing Countries," by Ana Carolina Garriga and Cesar M. Rodrizguez, 78 Economic Analysis and Policy 1320 (2023)

(42) "Monetary Policy Frameworks: An Index and New Evidence," by D. Filiz Unsal, Chris Papageorgiou, and Hendre Garbers, IMF Working Paper 22/22 (Jan. 2022)

(43) "A New Measure of Central Bank Independence," by Tobias Adrian, Ashraf Khan, Lev Menand, IMF Working Paper 24/35 (Feb. 2024)

(44) “In full: Former BoE Governor warns of a ‘very unpleasant period’ ahead,” May 20, 2022
https://www.youtube.com/watch?v=B6Zb_AvxT8g

(45) Hearing Before Comm. on Banking, Housing, and Urban Affairs, U.S. Senate, 117th Cong. (June 22, 2022); https://www.c-span.org/program/senate-committee/monetary-policy-and-the-economy/613729

(46) https://fred.stlouisfed.org/graph/?g=1E3Rx

(47) https://fred.stlouisfed.org/graph/?g=1EaXB

(48) Hearing Before Comm. on Banking, Housing, and Urban Affairs, U.S. Senate, 116th Cong. (June 16, 2020); https://www.banking.senate.gov/hearings/06/08/2020/the-semiannual-monetary-policy-report-to-the-congress

(49) John Titus
9660 Falls of Neuse Rd
Suite 138, No. 241
Raleigh, NC 27615

00:00 Ch. 4a-01 - Intro - How’d George Washington Get Paid?
01:46 Ch. 4a-02 - Washington Got Paid with IOU’s from Alexander Hamilton’s Bank
03:17 Ch. 4a-03 - Return to War for Bankocracy Series
05:16 Ch. 4a-04 - How the Bank of England Changed the Sovereign Pecking Order
07:26 Ch. 4a-05 - Private Credit Addiction, Not a Coup, Is Why Bankers Rule the U.S.
11:32 Ch. 4a-06 - Private Credit Addiction Began in 1789 with the Bank of NY
16:42 Ch. 4a-07 - National Scam Comparison: Bank of NY vs. Bank of England
29:39 Ch. 4a-08 - How Hamilton Saved Bank of NY from Defaulting Like Bank of England
32:50 Ch. 4a-09 - If Bank of NY Issued Paper Money, Why Couldn’t the U.S.?
36:40 Ch. 4a-10 - U.S. “Interest Payments” on Private Bank IOU’s Pure Usury
40:54 Ch. 4a-11 - Why Handing over National Credit is a Handover of Sovereignty
43:20 Ch. 4a-12 - National Private Credit Issuance Is Worse Than Drug Addiction
49:48 Ch. 4a-13 - Brief Description of Next War for Bankocracy Episode

“The United States of Addiction” traces the root of the nation’s worst ills back to Alexander Hamilton’s third day in office as Treasury Secretary in 1789.

Hamilton took office on September 11 of that year and needed all of two days to kick off the country’s 250-year plunge into debt, now at $40 trillion (and that’s just public debt). Hamilton did this by taking out a loan of $20,000 from the Bank of New York (an institution that’s downplayed in monetary histories of the U.S., which is curious given that it’s the lineal ancestor of the too-big-to-fail Bank of New York Mellon).

As all mainstream U.S. histories have it, the nation was poor in its earliest days and thus needed to borrow money from big strong lenders, whose assistance was crucial the country’s founding. Like all lies, that conventional yarn is designed to conceal the truth, which in the case of the Bank of New York is that it didn’t lend any money to the U.S. at all. Instead, the $20,000 that it “loaned” to the U.S. consisted of IOU’s—bank notes for which BNY charged the country 6% interest.

Hamilton owned shares in the wholly private Bank of New York. Moreover, the bank lacked a charter in 1789, a defect that left Hamilton, legally speaking, on the hook for BNY’s legal liabilities for problems like, say, failing to make good on its IOU’s, which were used to pay things like President George Washington’s salary.

That wasn’t just some hypothetical problem in 1789 either.

BNY’s model of lending its IOU’s to the nation of its incorporation had been started by the Bank of England in 1694, but within two years BofE had defaulted on its bank notes (as shown in Episode 2).

Hamilton found a solution to that problem, as shown in the current episode. He used his position as U.S. Treasury Secretary to legally upgrade BNY’s questionable bank notes (questionable because the bank lacked the gold to back up its notes), which were worth about 35¢ on the dollar, into full U.S. legal dollars. He thus spared his own bank from a potential bank run with the first bailout in U.S. history.

Moreover, as shown in Episode 4A, Hamilton’s launch of modern central banking, in which the nation guarantees the liabilities of a wholly private beneficiaries, created a monetary system that replicates drug addiction. In modern debt-based monetary systems, the drug dealer is the privately owned central bank (the role played by BNY in 1789), the drug is the bank’s credit (the nation’s currency) and the addict is the nation, which has to pay bigger and bigger prices (due to interest) to get the same high. The cost of that $20,000 loan wasn’t 20 grand, it was 20K plus interest.

It was this system of addition which reduced the nation to a servant of private (and anonymous) bankers and robbed the country of its sovereignty, not any coup. Hamilton got the nation hooked on private credit through legal means, whereas a coup ranks as one of the worst crimes in the book.

The sooner the country can stop fruitlessly chasing shadowy villains like coup perpetrators, the sooner it can figure out how to fix its biggest problem, which is borrowing its own “money” into existence.

As the episode shows, the U.S. could’ve simply issued $20,000 in paper money itself and been debt free. But oh no, we just have to let private bankers skim theirs off the top or the world would disintegrate overnight. Say the people who spend their lives latched on to the parasite’s teats.

This brief preview video of BestEvidence—the first in the channel’s 10-year history—briefly explains what distinguishes it over other video channels.

In short, BestEvidence follows the money whereas others merely discuss money. The channel’s forensic approach to financial matters is both unique and successful—in exposing the vast crimes in high finance, and in predicting events like the 2023 bank crisis.

For more information, see https://bestevidence.substack.com/p/247-panic-news
...
https://www.youtube.com/watch?v=aJkagesk_P8

That title is pretty self-explanatory, no?

Oh, all right. It refers to U.S. Treasury Secretary Janet Yellen's proposal to seize $300 billion of Russian assets and hand them to Ukraine without the first shred of due process, openly desecrating western legal norms all the way back to the Magna Carta of 1215. See in particular provision #39...

https://www.nationalarchives.gov.uk/education/resources/magna-carta/british-library-magna-carta-1215-runnymede/

For more information, see...

• https://bestevidence.substack.com/p/season-4-of-mafiacracy-now-premieres
• https://bestevidence.substack.com/p/please-refrain-from-urinating-on

Many thanks to my man Dave Kranzler for the epic thumbnail tweak.

If so inclined, please send cash or check contributions to:

John Titus
9660 Falls of Neuse Rd
Suite 138, # 241
Raleigh NC 27615
...
https://www.youtube.com/watch?v=jy7LaCiK0j0

The Federal Reserve adjourned its annual meeting in Jackson Hole, Wyoming on August 26, 2023 without fanfare but not without consequence.

As always, lots of Very Serious Papers were presented by established figures in the art of monetary tinkering and manipulation. Most papers amount to esoteric confetti, as rewarding as a run-of-the-mill TikTok video, only denuded of thrill. Occasionally, however, a paper turns out to be a blueprint for a tectonic shift by the Fed. That appears to be the case this year, which is the subject of this video.

As a reminder to viewers, the last time a Jackson Hole paper gave rise to a major monetary shift was in 2019, when BlackRock presented a paper entitled, “Dealing with the Next Downturn.” As luck would have it, the title downturn arrived the very next month in the form of a huge repo crisis that was shortly thereafter followed by the rollout of Pandemic!!! Crucially the Fed’s response to these shock events—creating $5T in new reserves PLUS $5T in new bank deposits, in accordance with BlackRock’s paper—represented a material departure by the central bank from its response to the GFC in 2009; back then, the Fed was acting to bail out the banks, which it did by creating, say, $2T in new reserves without any need at all for new bank deposits.

To summarize: • 2009—no new bank deposits created by Fed, no inflation. • 2020—Fed creates $5T of new bank deposits, gets big-time inflation. • HUGE difference.

This channel produced a video about BlackRock’s 2019 paper entitled, “Larry and Carstens’ Excellent Pandemic.” Just look for the video thumbnail of Larry Fink staring lustily at the Shoney's, er, BIS Big Boy, and that's the video.

Flash forward to the recently-adjourned Jackson Hole meeting. There is one particular paper that, if implemented, would cause huge inflation and indeed piggyback on and turbo-charge the inflation that’s arisen from the Fed’s implementation of BlackRock’s 2019 paper. The new paper does answer, however, the question of how the monetary powers that be appear to be planing to deal with the exploding interest payment on the national debt, and that's to print more interest-bearing pseudo debt-money. Which is to say: in the worst way possible.

You can find a more complete description of the current video here: https://bestevidence.substack.com/p/presenting-the-feds-perfect-plan

You can find links to materials covered by the video, including the 2023 Jax Hole paper and Marriner Eccles’ March 1947 congressional testimony explaining what will happen if the Fed implements that paper, in the preceding substack link.

-JT
...
https://www.youtube.com/watch?v=W0u5h579ZeU

00:00 Intro - the “regional banking crisis” label is deceptive and laughable
02:13 Solvency vs. liquidity
04:55 Visual depiction of a liquidity crisis
10:30 1st way bank liquidity (deposits) is created: bank loans
11:51 2nd way bank liquidity (deposits) is created: Fed asset purchases from non-banks
16:17 This crisis—a liquidity crisis—is caused by the Fed’s creation of whale deposits
17:15 Senate hearing confirms: whale deposits killed Silicon Valley Bank
20:46 Killer whale deposits, not apps, caused this banking crisis
23:05 Forensic evidence proves Fed created whale deposits
27:39 Shills who say the Fed can’t create bank deposits are lying
29:40 How the Fed passed trillions of dollars to the whales
32:51 The Fed passed money to legal entities, which in turn passed it to whales
37:35 Pandemic QE was designed to produce whale accounts
39:43 The Fed lied when it said Pandemic QE was for “price stability”
41:45 Why were whale accounts maintained for years if not to become killers?
43:00 Whale accounts are maintained by criminals
46:13 Red Flag Test #1 for banks
53:07 Presenting the BestEvidence spreadsheet of $100 billion banks
55:53 Red Flag Test #2 for banks
1:03:35 This crisis is nudging the U.S. closer to CBDC
1:06:06 The names of the Fed’s killer whales are a big secret—for now
1:07:15 Congress could get to bottom of this crisis in 30 days if it wanted to
1:09:13 How you can help BestEvidence

This video was originally gonna be called, “The 2023 banking crisis would rank as the most obvious crime scene of all time if pretty much the entire financial services industry didn’t have its head up its A$$ about Pandemic QE,” but that title didn’t test well in focus groups.

Alas, and from the top…

Having stood alone in predicting the 2023 banking crisis three weeks in advance, BestEvidence in the present video turns to the question of causes. Over the course of some 71 minutes, “Deep Diving the Fed’s Killer Whale Crisis” proves beyond any doubt that the Federal Reserve is to blame for this crisis and is very likely controlling it even now, while this so-called “regional banking crisis” (quite easily the dumbest name ever for a financial event) is in apparent remission.

Among many other points made in the video...

-This is a liquidity crisis, not a solvency crisis

-when just a handful of said massive deposits leave a bank, the bank gets killed, hence the name of this video

-The Fed created those bank deposits and has admitted as much (cue the chorus of feces-throwing monkeys in the financial services industry to try and screech away the Fed’s own admission on this point)

-Under the Fed’s asset purchases, the average household checking account of the top 0.1% wealthy households grew from $565,000 in 1Q2020 to $5 million in 1Q2022; this is the locus of killer whale deposits



-JT

Footnotes

(01) Debt by Design: Banking Facts and Fallacies (2017), by Joshua Maree; available as pdf at https://www.fairmoney.info/wp-content/uploads/2017/08/Fair-Money.pdf

(02) "Understanding Bank Deposit Growth during the COVID-19 Pandemic," June 3, 2022, by Andrew Castro, Michele Cavallo and Rebecca Zarutskie; see https://www.federalreserve.gov/econres/notes/feds-notes/understanding-bank-deposit-growth-during-the-covid-19-pandemic-20220603.html

(03) "Fed Admits Crony Truth About Pandemic QE: 'it creates new bank deposits,'” Sept. 5, 2022, by John Titus; see https://www.youtube.com/watch?v=n1xgQeCiu6k

(04) "Senate Banking Committee hearing on the collapse of SVB and Signature Bank," March 28, 2023, at 45:26: https://youtu.be/JpyR-Q2eiIc?t=2726

(05) Checkable Deposits And Currency Held by the Top 0.1% (99.9th to 100th Wealth Percentiles); see https://fred.stlouisfed.org/series/WFRBLTP1228#0

(06) Total Households; see https://fred.stlouisfed.org/series/TTLHH

(07) Barfly (1987); see https://www.imdb.com/title/tt0092618/?ref_=fn_al_tt_1

(08) Households; Checkable Deposits and Currency; Asset, Level; see https://fred.stlouisfed.org/series/BOGZ1FL193020005Q

(09) "Federal Reserve Actions to Support the Flow of Credit to Households and Businesses," Mar. 15, 2020; see https://www.federalreserve.gov/newsevents/pressreleases/monetary20200315b.htm

(10) JPMadoff: The Unholy Alliance between America's Biggest Bank and America's Biggest Crook (2015), by Helen Davis Chaitman and Lance Gotthoffer.

(11) U.S. Money vs. Corporation Currency: "Aldrich Plan," Wall Street Confessions!, Great Bank Combine (1912), by Alfred Owen Crozier.

(12) https://banks.data.fdic.gov/bankfind-suite/financialreporting (RED FLAG TEST NO. 1)

(13) https://bestevidence.substack.com/

(14) https://cdr.ffiec.gov/public/ManageFacsimiles.aspx (RED FLAG TEST NO. 2)

(15) To help BestEvidence per 1:09:35, or just to send a hello postcard…

John Titus
9660 Falls of the Neuse Rd.
Suite 138, No. 241
Raleigh, NC 27615
...
https://www.youtube.com/watch?v=1sCq9FJQQNA

Timestamps

1:23 - Global risk posed by U.S. banking system
2:30 - Repo crisis preceded PANDEMIC!!!
3:32 - WEF’s tote board of risk narratives
4:05 - F.D.I.C. Quarterly Banking Profile (3Q2022): real risk of banking crisis
5:26 - Chart 7 of Quarterly Banking Profile - massive balance sheet losses
8:41 - Why debt-based securities dropped in value by $690 billion
11:40 - Composite balance sheet (entire industry) in Quarterly Banking Profile
14:33 - Why assets on banks’ balance sheet are vastly over-valued
17:12 - That entire banking industry is dead broke, evident from composite liabilities
20:10 - Banks’ counter-measures to their insolvency
21:32 - FHLB advances: panic borrowing
24:57 - Repo market: more panic borrowing
26:54 - FRED’s tale of three crises
35:23 - Role of FHLB advances in last three crises
39:52 - Panic borrowing now - Fed fanning flames of new crisis
41:25 - New era has dawned: Snake Eating Its Own Tail

This video builds on and extends the explosive (but largely overlooked AFAIK) analysis done by Chris Whalen, “Is JPMorgan Chase Insolvent?” While Whalen is imo the best independent bank analyst in the business, he doesn’t have a crystal ball. (At least I couldn’t find one when I ransacked his home many moons ago.) He put out that post, which is nominally about Dimon’s bank but covers the entire banking industry, on Monday, November 28, 2022. He thus didn’t have access to the F.D.I.C.’s Quarterly Banking Profile for the 3rd quarter of 2022, which came out three days later. Whalen’s analysis focused on the dubious valuations of bank assets, which is certainly germane as far as they go and are discussed in greater detail in this video.

The real action in the third quarter QBP, though, is on the liability side of the industry’s balance sheet. There we find evidence that aside from being broke, the banks know they’re broke and are panicking about it.

But here’s the real kicker: the Fed isn’t helping the banks this go-round. It’s a new ballgame, and it goes by the name ALL. BAD.

You can find more detailed written treatments of this video and others I’ve done at my substack: https://bestevidence.substack.com/

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Links

Chris Whalen’s November 2022 (in)solvency assessment of banking industry:
https://www.theinstitutionalriskanalyst.com/post/is-jpmorgan-chase-insolvent

World Economic Forum’s 98-page global risk assessment (2023 edition):
https://www3.weforum.org/docs/WEF_Global_Risks_Report_2023.pdf

F.D.I.C. Quarterly Banking Profile:
https://www.fdic.gov/analysis/quarterly-banking-profile/index.html

Basel III regulations - Definition of capital excludes goodwill:
https://www.bis.org/basel_framework/chapter/CAP/30.htm

New York Fed’s take on Federal Home Loan Board (FHLB) during GFC:
https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr357.pdf

Uncle FREDdie:
https://fred.stlouisfed.org/

Mish Shedlock’s post on exploding interest payments on U.S. debt (Feb. 5, 2023):
https://mishtalk.com/economics/the-annual-interest-rate-payment-on-government-debt-is-850-billion-and-rising-fast
...
https://www.youtube.com/watch?v=5m75wFQiQ4c