There has been a number of recent bank failures in the US (SVB, First Republic) and Europe (Credit Suisse). This begs the question – is my money save in SA banks?
Controlled crash
The banking problems we see today have their roots in our debt based fiat monetary system. The accumulated levels of debt and interest on this debt has become unsustainable.
Governments and their rulers highly dislike uncontrollable financial events, as it often leads to public uprisings and the end of the political status quo.
In order to maintain control, politicians prefer to control the unwinding (destruction) of debt. All the money printing, lockdowns and agitating wars is mostly an effort to increase inflation and hasten the demise of the financial system. AI technologies are probably also employed to gauge population responses and timing of events.
Consolidation
I will not be spending time on the mechanics of how these banks failed or got into troubles, except to say that one outcome for politicians is to let banks consolidate. When there are fewer players in the banking market, then central bank control becomes easier. Central banks, under the auspices of the Bank for International Settlements are very keen to roll out Central Bank Digital Currencies (CBDC).
The better question
I started this article with the question: can South African banks be trusted? I think this is the wrong question. South African banks are generally in a healthy financial position. The more relevant question to ask would be: can our monetary system be trusted?
Financial Vaccine
The sick monetary system will need something to prevent the contagion from spreading. That something will be CBDCs. Financial regulators and politicians will pit fiat currencies against CBDCs. As people see their purchasing power of their local currency diminish through inflation, the public will be sold on the stability and ‘virtue’ of CBDCs. Many people will be oblivious to the fact that they will be trading their freedom for so called ‘security’ by accepting CBDCs.
Hedging
So how do you protect yourself and your family against a sick monetary system? One way would be to rotate fiat money into things with intrinsic value. Property, land, agriculture (orchards, cattle etc.), gold, silver are but a few examples.
New Monetary System
During a financial crises, elitist use the Cantillon effect to protect and increase their wealth. Most of the elite have also rotated out of fiat into assets with intrinsic value. CBDCs will not last. No central planned ideas have ever survived the test of time and to think that AI will do better is a deception.
Free banking
During the 19th century a stable form of banking, based on sound money was used. It was generally known as ‘free banking’. There was no central bank and market forces kept banks accountable to each other and to depositors. I suspect that after the ‘Great Reset’ (or rather the ‘Great Theft’) there will be an real reformation that takes place in the banking sector. It might very well incorporate elements of free banking and blockchain technology.
The focus now should be on how do you protect your purchasing value. We need to get through the next decade of crisis with capital intact to rebuild society.
