America Just Nationalized Its Banking System
Banks are falling like dominoes. First Silicon Valley Bank collapsed and was taken over by federal regulators. Then they took over faltering Signature Bank. Depositors and investors as far away as Europe got nervous about their money. Share prices plunged in Credit Suisse, the second-largest bank in Switzerland, and depositors wondered if they’d be able to get their money. Credit Suisse was gobbled up at discount rates by the largest Swiss bank, ubs. First Republic Bank has started to teeter. A bunch of banks have loaned it billions to keep it upright, but regulators might be intervening there next.
The financial markets are in chaos, so radical leftists in Washington, D.C., are springing into action to take advantage of the crisis.
United States Treasury Secretary Janet Yellen told senators on March 17 that the financial destruction would be limited. She said that the federal government was stepping in and that it would repay the deposits that it had not insured.
Yet she specified that government refunds of uninsured deposits would not be extended to every bank that fails. Rather, about two dozen top federal government bureaucrats and politicians will outright pick winners and losers.
Americans just lost a massive amount of freedom to the government and don’t even realize it.
Yellen and Joe Biden are taking the American financial system straight into outright socialist territory. Remember, in socialism the government controls every important material aspect of your life. What better way to do that than to control the banks?
Joe Biden, who is controlled by Barack Obama, let the world know that he wanted the government to take control of your finances two years ago when he nominated Saule Omarova to become comptroller of the currency. Omarova was not confirmed. Why? Republicans pointed out the obvious fact that she was a Communist intellectual who went to Moscow State University to study economics on the Lenin Personal Academic Scholarship and was literally a member of the All-Union Leninist Young Communist League.
Back then, Obama and Biden failed to push Omarova through. Now they have succeeded in tying the entire banking system even more tightly to the federal government and effectively announced that they will pick which banks are “too big to fail” and which they will let fail. Silicon Valley Bank was big—and it was also ideologically subservient to people like Obama and Biden. Other banks with fewer minorities, sexual deviants and Democratic Party supporters might find that they are just under the threshold of what the new banking masters deem important enough to save.
Omarova actually argued in a series of papers for abolishing local banks completely and for Americans to instead have their own accounts directly at the Federal Reserve. But since people do not want the American equivalent of the Soviet Gosbank, the Biden administration is settling for the next best thing. By guaranteeing all deposits at too-big-to-fail banks, he and Obama are fundamentally transforming the American financial system. Pushing the small banks out of business gives them fewer banks to control—and they already have considerable control over some of the largest banks. The policy now in effect will lead to a system where the average American has about as much financial freedom from the government as he would have had under Omarova’s system.
If the government can control the bank and the bank can control your money—especially digitized money—what part of your life is beyond its control?
Oklahoma Sen. James Lankford represents a state with many small banks and asked Yellen whether all deposits at Oklahoma community banks would be fully insured in the way that all deposits at Silicon Valley Bank are being insured. Yellen said that “a bank only gets that treatment” under the systemic risk exception rule, which requires a two-thirds majority vote of the boards of the Federal Reserve, the Federal Deposit Insurance Corp. (fdic) and the Treasury secretary in consultation with the president. What immense central control these few banking elites are taking to themselves!
Lankford followed up and asked how Yellen felt about investors withdrawing their funds from smaller banks in order to deposit them with the federal government’s preferred banks. Yellen, less than convincingly, claimed that she was not deliberately trying to make investors do that.
Yet she is pushing the policy that gives you little choice! Why would you keep your money in a small bank that could go under during a financial crisis, when the federal government is guaranteeing deposits at big banks endorsed by the Federal Reserve, the fdic and the Treasury Department?
The government has taken all the risk out of banking with a big bank, so you can expect small banks to collapse like dominoes until there are only a dozen or so big banks left in the country. Then it will be practically the same as Omarova’s banking dream world.
The fifth plank in Karl Marx’s Communist Manifesto calls for “centralization of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly.” That is what Omarova is calling for when she says federal accounts need to replace private accounts, and that is what Yellen is fighting for when she says the Treasury will only back up accounts at big banks in bed with the federal government. Once the Fed has centralized credit in the hands of the state, federal officials will have a deciding say in whose factories get built, whose oil wells get funded, and whose mortgages get approved. If you were a little upset when Signature Bank refused to do business with Donald Trump, you are going to be livid when the Fed refuses to do business with maga Republicans.
It seems the radical left will stop at nothing in their quest to centralize power in the hands of the state. The government’s draconian covid-19 lockdowns irreparably damaged millions of small businesses while making a mountain of money for Big Pharma, Big Tech and Big Finance. In fact, some analysts are even saying that the government’s coronavirus response was engineered to kill small businesses.
Small-business adviser Carol Roth authored a book titled The War on Small Business: How the Government Used the Pandemic to Crush the Backbone of America, which exposes how the federal government is overseeing the largest wealth transfer in human history—from Main Street to Wall Street. Government-imposed lockdowns thrashed small businesses while government stimulus packages propped up huge megacorporations and Wall Street banks. And now that the inflation crisis these stimulus packages created is catching up with us, the Federal Reserve is raising interest rates to a level that will push all banks not backed up by the government into collapse and ruin.
The Bolsheviks centralized credit in the hands of the state by rising up against the czar’s regime, completely overthrowing it, and establishing a new central bank run by the Communist Party of the Soviet Union. But that is not the only way they centralized credit. Most American Communists are completely satisfied with the existing Federal Reserve and have no desire to overthrow it and establish a new central bank. Rather, their desire is to overthrow the local banks that offer an alternative to the Federal Reserve. So expect the Biden administration to exploit this banking crisis for all its worth in an attempt to nationalize the U.S. banking system.
My father, Trumpet editor in chief Gerald Flurry, highlights again and again in his book America Under Attack that many of the crises America is suffering are not a byproduct of incompetent leadership. Rather they are the deliberate result of a treasonous assault on America’s Constitution and Judeo-Christian heritage. The current banking crisis is a perfect example of this reality. The radical left has not blindly stumbled into a financial mess. Rather they are deliberately creating a banking crisis that will put small banks out of business and allow them to implement the fifth plank in Karl Marx’s Communist Manifesto on a national scale.
Yet Bible prophecy indicates that the radical left will not be successful in their attempt to transform the U.S. into a Communist dictatorship. Rather the banking crisis the left has engineered will cause conservatives to unite against Biden, and European nations to unite against America. The late Herbert W. Armstrong predicted in 1984 that a banking crisis in the U.S. would likely be the catalyst prompting 10 European nations to unite into the superpower prophesied to conquer America (Revelation 17:10-13).
Specifically, Mr. Armstrong warned that a banking crisis could “result in triggering European nations to unite as a new world power larger than either the Soviet Union or the U.S.” (co-worker letter, July 22, 1984).
We see such a banking crisis building today. Many analysts referred to the Great Recession of 2008 as economic Armageddon, yet America never dealt with this problem. They just started printing money and bailing out banks as a means of centralizing all credit in the hands of the state. This Machiavellian strategy has worked out just like the Communists hoped it would, but a reckoning is coming sooner than people think!