So again because they’re so focused on this ESG political agenda they’re not paying attention to the basic role that a bank is supposed to be playing they’re not doing their normal job the real cause of everything we’re watching right now which is actually fractional Reserve Banking and so this is causing what
We’re seeing now which is runs on the bank people want to get their money out of the bank while the money is still there because again because of fractional Reserve banking the banks only keep so much of your money the rest is elsewhere and seems now they put it
In bad Investments because again because of environmental social governance they’re not necessarily investing in things that are going to get you back your money a lot of it is like you know again investing in things that are not financially sound what’s happening currently because I know there’s a lot
Of noise right now it’s probably hard for people to make sense of what’s going on but David sacks says this he said the FED may or may not realize but it has created a two-tier banking system tier one systemically important banks these are the two big to fail biggest banks if you
Have money there it’s a true deposit and you cannot lose it and tier two is everybody else if you have money there it’s not a true deposit it’s an unsecured loan to that bank and you can lose it in a bank failure now tell me why would you use tier two
Just like I said earlier in this episode hypothetically speaking imagine you’re gonna they have this new insurance system you have some banks that are in it and some banks that are not why would you keep your money and the banks that are not in it everybody who wants to make sure their
Money is secure is going to take their money out of these Banks not part of this newly announced system and they’re going to put it in the one that is and your you could see unless these Banks rapidly get on the system through the Federal Reserve and the the treasury
As soon as possible you’re going to watch those Banks deal with you know potential runs in the bank frankly because people are going to are going to want to have make sure their money’s insured and then there’s a bigger issue that Banks basically can operate now with far
Less consequences remember this is part of the problem that started it all right uh one of the many problems again brought about by the Federal Reserve I should note as well and I should note as well that people are also pointing to prob part of the problem with this which is environmental
Social governance basically the the fact that banks are not making smart Investments um again you know normally there are problems inherent within fractional Reserve banking in general and again because you have these kind of fundamental problems within it where they’re taking you know basically that they’re making a bet all the time
They’re taking some of your money and they’re investing it and you could argue that that’s good because you know it basically keeps it helps the economy whatever else the problem is if for example they make bad Investments and lose all the money or they make bad Investments and you
Know basically people want their money back and there’s a run of the bank and they don’t have money to give back to people right there are inherent problems within fractional Reserve banking again only brought about I I would say by the mainly by the Federal Reserve because they can make much more risky
Investments because of the bailout system through through inflation but what this does now is incentivizes Investments that are that are less lucrative basically and this is what you were starting to see with ESG this is not Investments being made to make money this is not Investments being
Made that are going to necessarily be profitable this is Investments being made that are about politics and you know global warming or sorry climate change or whatever they want to call it or racism and things that basically support a really left-wing political agenda that don’t necessarily make money and might even lose money
Svb is being called out on this because svb the first bank to really have some really serious issues with what we’re watching right now again the Silicon Valley Bank this is what they were doing this is daily mail it says svb had no head of risk assessment for nine months before it collapsed
And that was as its woke boss for Europe Middle East and Africa was busy organizing a month log a month-long Pride campaign and a lesbian visibility day so if you’re wondering what the head of the company was doing uh they were working on gay rights stuff and lesbian visibility
It says this collapsed lender silicone Bank operated without a chief risk officer between April of 2022 and January of 2023 while the operations United kingdom-based head of risk stands accused of prioritizing pro-diversity initiatives over her actual role so again because they’re so focused on this ESG political agenda they’re not
Paying attention to the basic role that a bank is supposed to be playing they’re not doing their normal job it says svb’s former head of risk Laura is urieta who formerly performed a similar role for Capital One left the bank in April of 2022 she wasn’t replaced until January of 2023 when the
Bank hired Kim Olson formerly of Japanese Bank Sumi Tomo mitsui meanwhile Jay orespa who acts as cro for the bank of Europe that’s a risk Africa and Middle East and who describes yourself as a queer person of color from a working-class background organized a host of lgbtq initiatives it’s all the
Gay stuff including a month-long Pride campaign and implemented safe space and catch-ups for staff in a corporate video publishes nine months ago she said she could not be prouder to work for svb serving underrepresented on entrepreneurs they were focused on this ESG woke policy stuff in other words says further in Professional Network
Outstanding listed uh eraspa as the as a top 100 future sorry 100 LGBT future leader it says Jay is a leading figure of the bank’s awareness activities including being a panelist at the svb’s global Pride that’s the gay stuff town hall to share her experiences as a lesbian of color moderating svb’s
Emea Pride town hall and was instrumental in initiating the organization’s first ever ever Global safe space catch-up supporting employees and their experiences of coming out coming openly gay I guess her bio of the outstanding website States as well it adds that she is allies with gay rights Charities stone hall Stonewall
And had Authority I had sorry it authored numerous articles to promote lgbtq awareness these included lesbian visibility day and trans awareness week and so in other words as they were running into all these issues and as they were heading towards this you know the freight train hitting a dirt road is
My one of my old school teachers used to put it as the freight train was nearing the dirt road right rather than try to avert that disaster rather than try to fix the problem she was engaged in you know gay rights stuff and you know this woke policies and so
On again ESG environmental social governance and just looks like you know political activism basically while the company was running into all these problems this is the mesis Institute um I am a personal fan of uh you know Austrian economics personally I believe Austrian economics tends to be very
Reasonable and also is one of the strongest arguments interestingly at least on the economic side against communism and socialism but let me show you this this is from The mises Institute and it says the faults of fractional Reserve banking it says now let us turn further in now let us
Turn to fractional Reserve banking it means that a bank lends out money that clients have deposited with it fractional Reserve banking thus leads to a situation in which two individuals are made owners of the same thing fraction numbers in other words it’s your money you own your money but the
Bank is also basically using your money as if the bank owned your money who owns it they say it’s essentially the case where two people are made owners of the same thing fractional Reserve banking thus creates a legal impossibility through bank lending the borrower and the depositor become owners of the same money
Fractional Reserve banking leads to contractual obligations that cannot be fulfilled from the outset as we’re seeing now that’s the problem with runs in the bank there is a contractual obligation that cannot be fulfilled the bank has your money it’s your money you go to the bank
To get your money the bank won’t give you your money because the bank spent your money because the bank is treating your money as if it owns your money keep in mind some banks do charge you to have your deposits there you’re paying them to hold on to your money right
But again because of fractional Reserve banking they can use your money as they are claiming to hold it creating again this contractual issue of whose money is it it says is hot block and holsman noted any contractual agreement that involves presenting two different individuals is simultaneous owners of the same thing or
Alternatively the same thing as simultaneously owned by more than one person is objectively false and thus fraudulent a quote fractional Reserve banking agreement they say implies no lesser an impossibility and fraud than the involved in the trade of flying elephants or squared circles they’re saying this is basically fraud
Under the disguise of a legitimate business practice the truth is that fractional Reserve banking amounts to violating the nature of the law of property rights further in it states the reason that fractional Reserve banking has been around for quite some time is due to government law which of course must be
Distinguished from the natural law of property rights of course governments can make fractional Reserve banking legal in the form of in a formal sense however even government law does not change the nature of things is Murray and and Rath rothbard put it succinctly great writer by the way fractional Reserve banking creates money
Out of thin air essentially they do it in the same way as counterfeiters and I would argue this is very much basically counterfeit counterfeit and fraud in my opinion Britain I would agree with Marie and Roth but essentially they do in the same way as counterfeiters counterfeiters too
Create money out of thin air by printing something masquerading as money or as a warehouse receipt for money that’s the way counterfeiting works and the banks do the same thing they just don’t call it a crime is all at least they don’t call it a crime and Maria and rothbright said in this
Way they fraudulently extract resources from the public from the people who have genuinely earned their money in the same way fractional Reserve Banks counterfeit Warehouse receipts for money which then circulate as equivalent to money among the public there is one exception to the equivalence the law fails to treat the receipts as counterfeits
He’s arguing the only difference between fractional Reserve Banking and counterfeiting is it fractional Reserve banking is considered to be legal wherein in reality it’s counterfeiting and you could argue that they’re counterfeiting while you know claiming to increase the value of an investment but you don’t get the value of that the
Bank does the bank the bank is using your money
