Why The US Banks Are Failing

(Kim Dotcom) US banks were provided with interest free money by the US Govt / FED for years to prop up the stock markets and to buy Govt bonds. The undocumented rule is that those banks which buy more Govt bonds get preferential treatment to access free money.

The US banking system has become a tool for the US Govt to create the illusion of a strong economy by pumping the markets with Govt printed money and using banks to raise more debt. That only works for a limited time because the more money is printed the higher inflation rises.

When inflation got out of control the US Govt / FED had to stop the interest free flow of printed money to US banks and increase interest rates. Banks which got used to making big profits by manipulating the market with free Govt money started to struggle without the regular fix.

The US Govt bonds that US banks bought, including with depositor funds, to qualify for more free printed money are now toxic assets with the increase in interest rates and the demand for US treasuries drying up globally. That's what created the current crisis for US banks.

In short, US Govt driven market and debt manipulation are to blame. President Biden said today that investors / shareholders of failed US banks will not be compensated because it’s their fault for making bad investments. In reality they are victims of the US Govt Ponzi scheme.

In my opinion the US financial sector is in terrible shape, US markets are highly manipulated, US Govt bonds are now considered a toxic asset with international demand drying up and the future outlook for the US economy couldn’t be more dire. The total collapse is inevitable.