The Kali Whrite Boi


The US’ $8 Trillion Dollar Consumer Cash Shortage

Banks have been and are using our deposited funds, assets, and investment securities for their investment purposes. This is called both comingling and [financial] desegregation. While we are usually ok with this because our funds are ‘insured’ by the FDIC, the banker craze has only increased exponentially since the 2008 crash. Ok, maybe I got a little descriptive on exponential, but those ‘Too big to fail’ banks that were supposed to reduce their risk of failure have only increased in size by 40%.

But all is good, right? Money is insured. However, there is both a scary and stark contrast in this mis-conception.

When funds are deposited into the bank:

Here’s how the dots connect . . .

  1. Each bank has its own ‘assets’ (cash & (not-so-liquid) securities).

    1. The total value of commercial banks’ liquid-able (cash) assets as of 11/4/15 equals: ~$2.75 Trillion.

      1. See H.8; page 3, line 34 “Cash Assets” for Commercial Banks in the US.

    2. The total value of the banks’ customer deposit liabilities in the US as of 11/4/15 equals: ~$11 Trillion.

      1. See H.8; Page 3, Line 38 under liabilities for “Deposits” for Commercial Banks in the US.

      2. The FDIC requires banks to hold only 1.35% of cash assets to its total assets.

        1. This is designed to fail.

    3. We cannot include loan assets (houses, autos, boats, machinery, etc) in the event of a crash, no repossessed securities could be purchased.

  2. Banks invests those commingled assets to leverage its investments’ (which includes derivatives investments) potential.

  3. The FDIC’s Depository Insurance Account as of 12/31/14 equals $62.8 Billion.

    1. This is the amount of the FDIC’s cash available to ‘insure’ customer deposits (remember though, up to $250k).

  4. The commercial banks and FDIC have a cash shortage for $8 trillion dollars.



The US derivatives (not including the international) market … excuse me … bubble is over $275 trillion.

Bank Bailouts Are Out–But OUR Checking/Savings/Investment Accounts are THEIRS!

Remember how us taxpayers are paying up $26 TRILLION in banker bad-decision-bailouts? What? $26 Trillion?
No, that’s not right, it was $16. I’m sorry you were listening to the news, but they were reporting what they’re told to report. The truth was $26 trillion, but hey why tell the people who are ‘paying for it’ with taxes (not to mention a world of other benefits for non-tax paying persons).

I am going to make this very short and to the point. We all remember our 2008 recession triggered by bad (fraudulent) ‘investments’ in bad real estate loans (mostly). While there were indications of the collapse some seven days prior to the collapse, Lehman Brother’s went belly up overnight tipping the first domino. And frak’n A did they tumble.

What should be disgustingly regarded as far too quick, in that same [2008] year the Dodd Frank banking reform was passed to prevent banks from creating this type of financial environment again. In their eyes, “ok, so no more creative cashing with real estate.” Regardless of which bubble is showing all the same signs of going ‘pop’ (ppssst, derivatives), plans were made to prevent such an event [lack of liquidity ‘actual cash vs digital cash’] again. Those same derivatives were also given priority for reimbursement in the event that IF they were to experience a similar financial crises then immediate action could be taken to help prevent a financial collapse like we endured before.

Sweet. Sounds all swell and dandy, right?

Nooooot so much, and here’s why.

  1. When a deposit is made into a major financial institution (CUs appear to be immune as they do not deal in derivatives) that money legally becomes property of that bank.
  2. In 2011 a BIS (The HEAD bank of ALL banks-globally) established the ‘template’ to prevent a liquidity collapse that changes their [the banks’] depositor liabilities into unsecured debt (make sure you really let that sink in—unsecured, as in liable to REPO).
  3. In 2012 the 7th Circuit Court of Appeals ruled that banks can use their “unsecured debt” to create capital, thus instantly creating liquidity to satisfy their debts with their creditors (like the derivatives).

That’s it. Those three simple steps allows the banks for forgo a congressional approval to get bailed out, they literally and most certainly LEGALLY can just take whatever money you have in:

  1. Savings Accounts
  2. Checking Accounts
  3. Safety Deposit boxes
  4. Investment Accounts
  5. IRAs
  6. Brokerage Accounts

P.S. The derivatives is the next [$505 Trillion] bubble] that’s on a lot of the radars right now. In fairness, it has been mentioned in (from some research) various articles for some years now-but they need to be hunted down.

This is the article that opened my eyes to StopListeningStartLooking and down the scary Govt rabbit hole I went. It is a very long read and one MUST follow all the links it provides to better understand, evaluate, and interpret what the massive article reviews.

Matt on Not-WordPress

Stuff and things.

Canadian Cinephile

"I don’t have a moral plan. I’m a Canadian" - David Cronenberg

Drew Avera, Author

Writer of fast-paced thrillers for the attention deficit

HarsH ReaLiTy

A Good Blog is Hard to Find

Full Disclosure

Eve capitalism, fully disclosed

Stuff with Games dot com

We have games and stuff...

Decent Ventriloquists

Genre writers based in and around Adelaide, South Australia

Splatter: on FILM

My view on films as I see them. Take it, laugh, share it, leave it. Above all, enjoy!


Get every new post delivered to your Inbox.

Join 172 other followers

%d bloggers like this: