The “Deposit Drain” Is Coming and It’s Not Good

May 11, 2017

OPINION/COMMENT

JP Morgan is telling Banks that they had better “partner up,” as a U.S. “Deposit Drain Looms.”

We have been expecting that big bubble to burst. This time it’s going to be much worse than 2008. We won’t be rescued by the big banks this time. After the financial crisis of 2008, our economy was propped up by the Federal Reserve, they are pretty much broke now, keep in mind it’s attached to the German Deutsche Bank, among other failing banks. (Interesting read on this situation Here)

President Trump cannot fix this, he has to plan how to get us out of it once it does occur. The dollar will be completely null and void. Many sites have been trying to get people to prepare with food, gold, silver, water. They are correct in informing people to be aware and act to help themselves. The nations such as China will stop sending goods to this country. Not a good outlook/picture for us. Without money to pay for goods, we are in trouble.

It is thought that we may start feeling the start of the financial crunch in December, 2017. This would be a good idea to have some money stashed –  not in your bank, this would help for only a short term. It would take a little while before the dollar would not help you at all.

Scary to think about a “deposit drain.” Here is an example that was used in explaining how the “deposit is destroyed.” As reported by Bloomberg and presented by JP Morgan titled “Core Deposits Strike Back:” -“illustrates how this process will sap bank deposits using the example of a couple who pays off a mortgage that was bundled with other mortgages and sold to the Fed. Right now, when that couple takes that money out of their bank account for that payment, the Fed uses that cash to buy another mortgage bond, recycling it back into the banking system.”

“A “deposit is destroyed” if the “Fed does not reinvest,” the presentation states.”

“JPMorgan estimates that a quantitative easing-related deposit-drain could result in loan growth lagging deposit growth by $200 billion to $300 billion a year.”

This in my opinion is definitely a deep state, from the playbook event that makes you wonder, is this part of why they are pushing the EU? This will not only affect America, but across the pond also.

As reported by mishtalk.com on April 29, 2017, “Nearly Every Regional Bank Missed Lending Estimate:”

“Bank stocks have climbed since Donald Trump was elected president as investors bet his pro-growth agenda and rising interest rates would help lenders generate huge profits. But this month, executives at some of the country’s largest regional banks said customers, especially corporations and small businesses, are instead waiting for details on the new administration’s proposals and results before seeking financing for expansion.”


“Total loans at the 15 largest U.S. regional banks declined by about $10 billion to $1.73 trillion in the first quarter, compared with the previous three-month period, the first such drop in four years, according to data compiled by Bloomberg. All but two of those banks missed analysts’ estimates for total loans, as a slump in commercial and industrial lending sapped growth.”


“The optimism and the willingness is there, but it has not yet translated into actions or behaviors,” Beth Mooney, chief executive officer of KeyCorp, said of the Cleveland-based bank’s small and middle-market business clients. “We did not see ‘flip the switch’ sort of behavior that led to loan demand or making different capital decisions or investment decisions.”

So, we definitely see something with borrowing, investing that still doesn’t look good. X 22 Report, which I have sourced at the bottom has almost a whole page which lists condos and the likes being bought up by speculators, but they can’t resell them! They are dead in the water, not moving!! Now, we have a big real estate slump, reminicient of 2008. 

President Trump has met with several foreign dignitaries in the last month, most of them were from Asian countries. I wondered myself what is Trump doing? Does his meetings have to do with only North Korea? Yes, it has to do with them, but maybe not in the way our deep state would like you to believe. The deep state would just love to push war with Korea, Russia. But, Trump is not going to let that happen. He knows our economy is getting ready to collapse. He maybe trying to figure how to keep us independent from the deep state and other countries that are economically collapsing as they are tied to the Central Banks, Federal Reserve. He has signaled that the economy will not hit that 3.0% GDP mark.  He knows that the deep state will never die off as long as they and the central banks have a never ending supply of the almighty dollar. Now, if the economy collapses, which it looks like it will, this will definitely bring the deep state to its knees. That’s why the deep state, which are even comprised of some Republicans are losing their cool, wanting to impeach our President, continuing to push the Russian collusion scenario. 

Now why has he met with all the Asian dignitaries? After the firing of Comey our President met with the Russian Foreign Minister, Sergey Lavrov. They most likely talked about Syria, cooperation in ending ISIS, trying to build a better relationship with Russia. After all we are not suppose to be in a Cold War with Russia since Reagan’s era, like the deep state would have you believe. Soon after, Trump met with Kissinger, most likely he told him what is happening with the economy and reinforcing to him that the deep state is done.

The new South Korean President Moon-Jae has signaled they want to smooth over tensions with the U.S. and North Korea. Even to go as far as saying he wants to meet with Kim Jung Un. This is good, it will possibly open an avenue with China, and their “Silk Road,” nicknamed One Belt, One Road. Actually X 22 Report has reported that China wants to extend an invitation for them to join the Silk Road. This would definitely help the very poor North Koreans. As reported by Reuters on May, 9, 2017, North Korea will be sending a delegation to the Silk Road Summit. There will be one western nation attending also, but none of the articles I have read are disclosing who the Wstern nation is.

Bloomberg reported in November 2015, about the Silk Road and what it means for their neighboring countries:

“China’s plan is to construct roads, railways, ports, and other infrastructure across Asia and beyond to bind its economy more tightly to the rest of the world. The scheme was honored with a prominent place in the country’s latest five-year plan, released in late October, and has become a favorite subject of top leaders, who sell it as an international initiative to foster peace and prosperity. The program will “answer the call of our time for regional and global cooperation,” President Xi Jinping proclaimed during a speech at the Boao Forum in March.”


Last December, 2014 the country inaugurated a $40 billion Silk Road Fund to invest in One Belt, One Road projects. China’s state banks are already lending big to countries along the new routes. The expansion of China-backed finance could propel Beijing’s quest for greater international stature for the renminbi, which it’s promoting as a global reserve currency.

If and when we do economically collapse what will be our new currency? Would we join the Silk Road too? Well, some people think we will. Only time will tell, but it sure is interesting to see our President meeting with all those diplomats within such a short span of time. I think something really big is about to go down.

This [VIDEO] is an interesting video by the X-22 Report, titled, The Plan Has Been Revealed and Everyone Needs to Brace for the Impact, Episode 1276B

This [VIDEO] interesting to watch – Belt and Road forum for International cooperation will be held in Beijing on May 14  – 15 

Excellent read about USA possible participation in the Belt and Road Forum, its open to many nations – https://larouchepac.com/20170313/us-must-play-its-part-belt-and-road-symphony

Sources:

https://www.bloomberg.com/news/articles/2017-05-08/jpmorgan-tells-banks-to-partner-up-as-u-s-deposit-drain-looms
Regional Lender Loan Crash: Nearly Every Major Regional Bank Missed Lending Estimate
http://x22report.com/the-plan-has-been-revealed-and-everyone-needs-to-brace-for-the-impact-episode-1276/

http://mobile.reuters.com/article/idUSKBN1850VH

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