Is That The Sound Of Banks Crashing?
Is That The Sound Of Banks Crashing?
Inflation + Debt + Interest Rate Hikes = Bank Collapses Started Last Week
Afternoon!
I don’t have time to make a video today, lots of messaging and group chat helping friends and relatives get ready for what may happen in the banking world this week.
However, I felt compelled to dash you a quick note, because many of you have been subscribers of mine for years.
Here’s what’s finally happening…
You may or may not be aware that the Silicone Valley Bank (SVB) - one of the Top 20 USA Commercial Banks, specifically catering to the Tech Industry, collapsed without warning last week. In addition, a big crypto bank SilverGate collapsed too. SVB had a UK branch and the Bank Of England is working out what to do - if anything - to stop the rot and try and prevent bank runs in the UK. Although everyone’s been waiting for this to happen since 2008 (because they didn’t fix things then) this was out of the blue. We’ve all been watching Credit Suisse...
The contagion may spread to Europe this week.
I’ve talked about this from time to time, most recently on YouTube here and written about it in my ‘The Money Gym: The Missing Chapter’ ebook too. If you want a copy of that, just visit https://NicolaCairnX.com and scroll down and click the envelope icon. It’s not finished yet but it will give you a good idea.
You can also find out more about what’s really going on by googling SVB or Silvergate or checking out any of the links below, there are 3-4 of my trusted, more restrained, less hysterical sources on YouTube and if you just watch their latest videos from the last few days, you’ll come right up to speed.
UK - Maneco64
UK - Neil McCoy-Ward
USA - Nobody Special Finance
International - Rafi Farber or Rafi for Arcadia Economics.
The FED (Federal Reserve) and the Bank Of England have two impossible choices. Stop raising interest rates and print some money to lend to insolvent banks and governments (which will kickstart hyperinflation) or keep raising rates, let banks collapse, governments default on their debt, and bring in CBDC’s to pay Universal Basic Income to those who have lost everything.
The ‘Least Worse Option’ it’s called in creative writing classes.
Which will they choose?
I guess we’ll find out tomorrow.
What Can You Do Right Now?
Well, there are a few simple measures to mitigate any potential fallout.
Starting today, go and get some cash out - even if you have to do it over several days starting today, get cash out to the maximum, on any card you can, and do it again tomorrow and the next day, until you have enough to cover your immediate needs as a family for a month at least. That’s food, medicine, petrol, the real basics. Worst that can happen? It’s a false alarm, the banks don’t do anything to limit withdrawals (like they did in Greece) or freeze accounts to stop a bank run and you can just pay it back in again.
If you have more than £85k in any one bank, move the excess fast. Spread it around. Although if a bank goes pop, the banking insurance will certainly not be enough to cover everyone, you’ll get something back. Anything over £85k is not covered.
Stock up on some dried and tinned food, fill the freezer and advance order any medicines you need. I’ve been doing this for at least two years now, just buying three of everything instead of one, as someone who was frequently hungry as a kid, it makes me personally feel safer if food supplies get stocked up when I’m half empty, rather than when I’m nearly empty. Ditto petrol now.
Also, it’s like a short-term investment, as I’m buying at lower prices, much lower in some cases. For example, I buy fresh salmon fillets for a quick, healthy dinner on puy lentils, brown rice and broccoli, also fresh cod loins and prawns for Tom Yum Soup and not only have they all doubled in price in the last year, but the portions have halved! What rate of inflation is that? 200%? 400%?
I’m clearing my diary for this week so if you’d like to talk to me in more detail about your particular situation or find out who I use, also find out the other way you can move your money out of the banking system but keep easy access to its value, just send an email to get ‘The Missing Chapter’ and I’ll let you know at the same time how you can set up an appointment. This will not be financial advice, just what I’m doing personally.
Have a great Sunday, things are getting decidedly interesting!
Cheers
Nicola
Inspiring & Empowering Experts, Authors & Entrepreneurs For Over 25 Years!
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