Date: March 20, 2023
Host: Jim Schneider
Guest: Alex Newman
MP3 | Order
The collapse of Silicon Valley Bank is said to be the second largest bank collapse in U.S. history. There were lines of customers waiting to withdraw from their accounts. It looked like a run on the bank until President Biden, Treasury Secretary Janet Yellen and National Economic Council Director Lael Brainerd stepped in to avert a crisis similar to that of 2008.
Alex Newman returned to Crosstalk to bring his analysis to this issue. Alex is an award-winning international freelance journalist, author, researcher, educator and consultant. He is senior editor for The New American. He is author of Crimes of the Educators and Deep State: The Invisible Government Behind the Scenes. He is founder of Liberty Sentinel.
What brought the collapse about? The approximate cause is that they were sitting on a very large number of U.S. bonds. So when interest rates rise, long-term U.S. treasury bonds decline in value. In other words, the bank was sitting on large, unrealized losses on the bonds. When depositors began trying to pull out their money, they had to sell some of the bonds and they ended up realizing some of those loses and at that point it became obvious there wasn’t going to be enough money to cover the deposits.
Alex believes that at its core, our monetary system is fundamentally unsustainable and must lead to destruction. In fact, he contends that what we’re seeing now is exactly what America saw in the run-up to the Great Depression. You’ll see this all come together as he provides the history behind the Great Depression, the creation of the Federal Reserve, the role of the FDIC, and the FedNow Service.
Alex also presents his views concerning the forces leading us toward a multi-polar world order and the message that will be sent to American citizens and policymakers should former President Trump be arrested.
Crosstalk listeners were given their opportunity to respond as well.