Banks at a Crossroads Is Your Money Truly Secure -3

"Banks at a Crossroads: Is Your Money Truly Secure? Unveiling the Risks of Commercial Real Estate, Zombie Loans, Digital Currency, FDIC Gaps, Debanking and Insolvency" Ensuring the safety of your money is a paramount concern to Swiss America, especially in a rapidly evolving financial landscape. The presence of commercial real estate and heavily indebted zombie corporations loans of over $1 trillion each coming due, the potential introduction of a central bank digital currency, a surge in bank term funding programs where banks have borrowed a record high $107 billion from the Federal Reserve to keep daily operations going, limited coverage provided by FDIC insurance of $116 billion to cover $17 trillion dollars of bank deposits, and the increasing closure of thousands of bank accounts due to debanking have raised questions about the security of your funds within traditional banks. We will explain the problems and give you the solution to protect, preserve and privatize your wealth with physical gold & silver coins.

Is Your Money Truly Secure?

We need to do some critical thinking:

The Next Crisis to Drop on Banks Will be Commercial Real Estate and Zombie Corporation Loans.

1.) $1.5 trillion Debt Crisis about to hit the Real Estate Market: A crisis is building in the commercial real estate market, with $1.5 trillion in loan maturities coming due over the next three years. Many of these loans will turn into defaults and foreclosures in 2023, 2024, and 2025 as landlords hand back the keys on failing office buildings and retail strip centers. Morgan Stanley estimates that commercial property values could fall as much as 40% in the process. This commercial debt crisis and credit crunch will have massive knock-on effects on the US Economy and Housing Market, with aggregate real estate demand declining as deflationary forces overtake the economy. Small banks are about to get crushed by Defaults This is especially true for small banks, who hold $1.9 trillion in commercial real estate loans in 2023, which is more than two times the number of large banks. Even more concerning, small banks have been increasing their exposure to commercial real estate loans over the last five years. https://www.reventure.app/blog/commercial-real-estate-defaults-are-increasing-is-this-t he-next-crisis Commercial real estate market facing price crash that rivals 2008 financial crisis Complicating the matter is the fact that small and regional banks are the biggest source of credit to the $20 trillion commercial real estate market, holding about 80% of the sector's outstanding debt. Regional banks were just at the epicenter of the upheaval within the financial sector, and there are concerns that the turmoil could make lending standards drastically more restrictive.

https://www.foxbusiness.com/economy/commercial-real-estate-crash-looming-us-ec onomy

2,) ZOMBIE CORPORATIONS: - The $1 trillion of high yield debt that's piled up in the last 5 years is about to have a 'day of reckoning,' Bank of America says ● Zombie Corporations - A zombie corporation refers to a financially distressed company that continues to operate despite being unable to cover its debt obligations and generate sustainable profits. These companies rely on external support, such as government bailouts or continued access to credit, to stay afloat. They often have weak cash flows, high debt burdens, and lack profitability. Zombie corporations can hinder economic growth by tying up resources that could be better utilized by healthier companies. ● There's over $1 trillion of private debt that's headed for potential trouble, Bank of America warned. ● Most of that debt has been created by below-investment grade companies through high yield loans or bonds. ● Around $400 billion assets are considered to be in "pre-distress," while $150 billion assets are "deeply distressed." https://www.newsbreak.com/news/3127855455975-the-1-trillion-of-high-yield-debt-thats-piled up-in-the-last-5-years-is-about-to-have-a-day-of-reckoning-bank-of-america-says?noAds=1&_ f=app_share&s=i3 Bank of America says recession and credit crunch could lead to $1 trillion in corporate debt defaults https://biz.crast.net/bank-of-america-says-recession-and-credit-crunch-could-lead-to-1-trillion in-corporate-debt-defaults/ 3.) CBDC Privacy Concerns and Bank Accounts and Deposits: The biggest problem with implementing a central bank digital currency (CBDC) in the United States is the potential impact on privacy and financial surveillance. It raises concerns about extensive data collection, monitoring, and the loss of financial anonymity. There are also operational challenges and potential exclusion of those without digital access.

There has been a massive move towards a central bank digital currency: Monica Crowley https://www.foxbusiness.com/video/6324158732112

The Risks of CBDCs By The Cato Institute https://www.cato.org/study/risks-of-cbdcs

4.) BANK DEPOSIT INSURANCE “DIF”: - A deposit insurance fund “DIF” is a financial mechanism established by governments to protect depositors in case a bank fails. It provides insurance coverage to depositors up to a certain limit, ensuring that their funds are safe even if a bank becomes insolvent. Its main purpose is to maintain public confidence in the banking system and prevent financial instability. We are at the current level of $116 billion dollars of “DIF” to cover $17 trillion dollars of total bank deposits with $10.45 trillion being insured. That is only 1.11% of all insured bank deposits being insured!! There is no insurance!!! What happens if your bank becomes insolvent? Such a disaster would trigger orderly liquidation authority protocols. In short, a “bail-in.” 1. The bank is in default, or in danger of default. A bank is in danger of default when it is likely to file for bankruptcy, has debt that will deplete all or most of its capital, has greater debts than assets, or will likely be unable to pay its debts in the normal course of business. 2. The bank represents a systemic risk to the banking sector. The likelihood of systemic risk is based on the negative effect of default on financial stability; low income, minority, or underserved communities; and on creditors, shareholders, and counter-parties. Forget bailouts. Here’s how a bank “bail-in” works https://fortune.com/recommends/banking/what-is-a-bail-in/

4,) Bank Term Funding Program: The banks have borrowed over $107 billion dollars from The Feds since March 2023!!! The banks are exchanging collateral like their insolvent bonds for cash to stay afloat with the Federal Reserve for one year and then they have to pay it back!!! The banks are insolvent.They are kicking the can down the road, More banks are going under!!!

What Is the Bank Term Funding Program (BTFP)? In the aftermath of the collapse of Silicon Valley Bank and Signature Bank in March, 2023, the Federal Reserve created a new program to help troubled regional banks with the hopes of averting bank runs and more widespread financial contagion. The Bank Term Funding Program, or BTFP, is a new form of one-year emergency funding available to eligible financial institutions. These institutions must pledge collateral that the Fed can purchase through its open market operations, such as Treasury securities and other debt obligations. Why Was the Bank Term Funding Program Created? The 2023 collapse of Silicon Valley Bank, quickly followed by the collapse of Signature Bank, spooked the markets. Investors sold bank stocks and flocked to safer investments like bonds. But perhaps the greatest threat was to the regional banking system as a whole, because if depositors had begun withdrawing their funds from banks in unison, they could have triggered bank runs. This would be felt through the economy like a set of falling dominoes, effectively crippling entire parts of the country since rural counties rely on a small number of financial institutions for their deposits and credit.The Bank Term Funding Program is one way the Fed attempted to inject confidence into the banking system and assure depositors that their money is safe. On its website, the Fed confirmed that the Bank Term Funding Program was designed “to help American businesses and households to make sure banks have the ability to meet the needs of their depositors.”

What Is the Bank Term Funding Rate? How Long Is It Available? The interest rate for Bank Term Funding loans is published daily on the Fed’s discount window website.It is a fixed rate consisting of the one-year overnight index swap rate (OIS) plus 10 basis points. As of April 21, 2023, that rate was 4.95%. According to the Fed, this special interest rate began on March 12, 2023, and is set to continue “at least” through March 11, 2024. https://www.thestreet.com/dictionary/b/bank-term-funding-program-btfp

Bank borrowing from fed rises in latest week, Fed data show

https://finance.yahoo.com/news/bank-borrowing-fed-rises-latest-165750761.html

5.) Banks Are Now Closing Thousands of Accounts Daily - DeBanking: Debanking based on political, social, and geopolitical views refers to financial institutions denying services or terminating accounts of individuals or organizations due to their political beliefs, social activism, or involvement in controversial activities. It raises concerns about freedom of speech and can create financial exclusion based on ideological or geopolitical positions. The total has increased every year since, climbing to just over 343,000 accounts in 2021-22 – representing well over 1,000 for every business day of the week,” says The Guardian .

https://franknez.com/banks-are-now-closing-thousands-of-accounts-daily/

A US Bank Is Denying Access To Funds And Freezing Accounts, Leaving Customers in Dire Financial Straits: Report https://dailyhodl.com/2023/08/19/a-us-bank-is-denying-access-to-funds-and-freezing-acco unts-leaving-customers-in-dire-financial-straits-report/amp/

Summary: Your best option for privacy, preservation and protection is “Physical Gold and Silver .If you don’t hold it, you don’t own it!!!” The banks are insolvent. There are trillions of dollars of commercial real estate and zombie corporations loans coming due. They are borrowing money from the Feds for daily operations. FDIC insurance covers 1.11 % of all insured deposits. There is a potential for bank accounts to be converted into a Central Bank digital currency due to a manufactured crisis and if that happens all your privacy is out the window. Debanking is happening in banks where based on political, social, and geopolitical views refers to financial institutions denying services or terminating accounts of individuals or organizations due to their political beliefs, social activism, or involvement in controversial activities. It’s time to be proactive not reactive. 1. Tangible Asset: If you don’t hold it,you don’t own it. Pre-1933 US gold coins are physical, tangible assets that you can hold in your possession. Unlike digital assets in a bank account, which are merely numbers on a screen, gold coins provide a sense of security and ownership 2. Financial Privacy: Pre-1933 US gold coins offer a higher level of privacy compared to bank accounts. Ownership and possession of physical coins can be kept private, offering confidentiality in your financial affairs. They have no 1099-B or Social Security number taken upon the purchase or sale of the coins. They are also non-confiscatable. 3. Protection against Bank Failures: Holding pre-1933 US gold coins provides a safeguard against potential losses due to bank insolvency. In times of financial instability or bank failures, physical gold coins can maintain their value and act as a secure store of wealth. 4. Independence from the Banking System: By holding pre-1933 US gold coins, you reduce your dependence on the banking system. This mitigates the risk of frozen accounts, restrictions on accessing funds, or other limitations imposed by banks. 5. Hedge against Inflation and Currency Devaluation: Pre-1933 US gold coins have intrinsic value derived from their gold content. They act as a hedge against inflation and currency devaluation, preserving and protecting the purchasing power of your wealth over time. Pre-1933 US gold and silver coins offer several reasons why they can be seen as a means of protection, preservation, and privacy compared to keeping money in a bank account: