“Economic and Financial Catastrophe” – Yellen Issues Stark $31.4 Trillion Warning
Bitcoin is right below $28K – expect that to move way up as the hours and days go by and the weight of what is going on in this fiat-controlled society sinks in on the general public – those who actually think, that is
‘Economic And Financial Catastrophe’—Yellen Issues Stark $31.4 Trillion Warning After Bitcoin, Ethereum And Crypto Price Boom
“05/8 update: U.S. Treasury secretary Janet Yellen has warned the U.S. hurtling toward a “constitutional crisis” that risks ‘economic and financial catastrophe’ if the U.S. $31.4 trillion debt limit isn’t raised. ‘If Congress fails to meet its responsibility, there are simply no good options,’ Yellen said in an ABC interview.
U.S. lawmakers have come to an impasse over lifting the debt ceiling, which Yellen warned could be broken through as soon as June 1. This week, Biden is scheduled to meet congressional leaders for talks to try to resolve the stalemate.
‘If they fail to do it, we will have an economic and financial catastrophe that will be of our own making, and there is no action that president Biden and [the] U.S. Treasury can take to prevent that catastrophe,’ Yellen said.
In March, sudden deposit flight from Silicon Valley Bank and Signature Bank forced the Federal Reserve to step in with emergency measures but panic spread to Switzerland’s Credit Suisse, which had to be rescued by rival UBS.
This week, regulators seized First Republic BankFRC +8.5% and sold its assets to JPMorgan, the largest U.S. bank by assets.
‘Our government invited us and others to step up, and we did,”‘said Jamie Dimon, JPMorgan’s chief executive, who played a key part in the 2008 financial crisis. JPMorgan, which already held over 10% of total bank deposits in the U.S., will see its net deposits increase by 3% as a result of the deal, according to Wells FargoWFC +3.3% analysts.
‘What’s going to happen is ‘too big to fail’ is just going to lead to bigger institutions,’ Hoskinson said. ‘We’ve seen this story in 2008. And this is the rerun. I don’t think anybody wants to watch it.’
The 2023 banking crisis has been partly triggered by the Fed’s rapid series of interest rate hikes over the last year, with rates this week climbing to levels not seen since before 2008 in an attempt to rein in soaring inflation.”