DREIZIN EXPLAINS BANKING. Also, On March 11, Gayest Air Force In History Flew UK-Based B-52 Strategic Bomber (“Noble61”) Into Gulf Of Finland For (Likely Unarmed) Nuclear Cruise Missile Launch Approach Training Run Against St. Petersburg (Or Nearby Military Facilities), Russia’s 2nd City, Coming To Within ~200km (~124mi) Of The City, Also PROVOCATIVELY Passing Over All Baltic States AND Not More Than 95km (~59mi) From Russia’s Pskov On Its “Extended, In Your Face” Return Trip. (No, This Is *NOT* Common.)

A bunch of readers…..

…..asked me to comment on the Silicon Valley Bank (SVB) situation.

As on most other matters…..

Mainstream talk around SVB…..

…..is IDIOTIC…..

…..and OBSCURES the real issue.

The bank is accused of having made “risky bets.”

Even gazillionaire hedgefunders…..

…..such as Bill Ackman…..

…..are, in unthinking panic…..

…..carrying that nonsense.

So, what are these risky bets?

U.S. Treasury Bonds!

You see, the bank took deposits…..

…..used them to buy Treasuries…..

…..and, now that those Treasuries…..

…..have FALLEN in value…..

…..(due to rising yields)…..

…..the bank’s assets (Treasuries, and loans outstanding)…..

…..have fallen below its liabilities (deposits, plus, any outstanding bonds issued by the bank itself)…..

…..leading to NEGATIVE EQUITY…..

…..also known as, “we’re fucked.”

(It APPEARS the bottom didn’t fall out, until the bank booked an “impairment” to its equity, acknowledging the degraded value of its Treasuries by “marking them to market”, rather than keeping them on the books at original value—remember this sentence.)

Folks, I have NEWS for Bill Ackman…..

Due to something…..

…..called “double entry accounting“…..

…..which has been around for centuries…..

EVERY bank in the USA…..

…..MUST take EVERY dollar of deposits…..

…..and put it SOMEWHERE…..

…..and that SOMEWHERE…..

…..always means, either…..

…..loaning that dollar right back out…..

…..or putting it on deposit…..

…..with another bank, or with the Federal Reserve…..

…..or BUYING an asset…..

…..first and foremost, Treasuries.

In short…..

The BEDROCK…..

Of our banking system…..

Is TREASURIES.

(In fact, Treasuries were the required, defining asset of National Banks even BEFORE the Federal Reserve Act of 1913.)

And, as such…..

Not just SVB…..

But EVERY bank…..

Is at risk from these “risky (LOL) investments.”

Incidentally…..

Lesser banks are at greater risk…..

Because the “systemically important” ones…..

Such as, Bank of America…..

Have much, much more on deposit with the Fed, or with other banks…..

While, typically, smaller banks…..

…..have only a token amount, with the Fed.

But, in principle…..

All banks are “at risk.”

So, you see…..

There’s NOTHING unusual about SVB…..

Other than…..

It catered to a sector…..

…..(the dotcoms)…..

…..that’s not doing so great…..

…..and needed to draw down its deposits.

Yeah, now you get it…..

“The weakest domino!”

But now…..

The “risky bets” have become…..

…..not some crappy, circa 2005 mortgage bonds…..

…..but the BEDROCK itself!

(Now, what if EVERY bank marked its Treasuries to market? Last one out, turn off the lights! Obviously, they won’t… but, what does that do, to confidence in the banking sector?)

And…..

WHY has this happened?

Because of the Federal Reserve’s campaign…..

…..to raise interest rates, economy-wide…..

…..but first and foremost…..

…..(as Treasuries, esp. the 10-year, determine all other rates)…..

…..in the Treasuries complex.

You see…..

…..(for those who skipped Finance 101)…..

Bond yields run inverse to bond prices.

The “yield” is essentially the price…..

…..that the bond issuer pays…..

…..to “rent” money from the investor.

It is the “rent” on money.

In pushing this rent, higher…..

The Fed has reduced the price…..

…..that investors (or any buyers)…..

…..must pay…..

…..to the issuers (or any sellers)…..

…..for the bond.

In other words…..

Bonds have FALLEN in price.

So, we see now…..

…..that, in principle…..

ALL banks, are at risk…..

…..of NEGATIVE EQUITY…..

…..from rising rates…..

…..coupled with an economic “slowdown.”

SBV was NOT unique…..

And did NOTHING particularly wrong.

Again, it’s just the weakest domino.

And so…..

Where does that leave us?

It leaves us, as follows:

IRRESPECTIVE of how far “they” go…..

…..to bail out SBV’s depositors…..

…..(and right now, it looks like, they MIGHT go all the way)…..

“The Fed” will HAVE to reverse course…..

…..on its interest rate hikes…..

MORE OR LESS, IMMEDIATELY…..

Or…..

“They” will have to fully backstop…..

…..the entire banking system…..

That is, ALL deposits…..

Up to ANY value.

Even, deposit accounts…..

…..worth hundreds of millions of dollars a piece.

Which means…..

With that kind of a backstop…..

The assets countervailing those deposit liabilities for the banks…..

Could be anything!

I mean…..

They could be, loans…..

…..to REALLY lousy, crappy borrowers.

(What would that do to inflation?)

Or…..

To the maximum extent…..

…..that a given bank’s charter (or whatever) allows it…..

It could be complex option bets on oil prices!

Again…..

…..it could be ANYTHING.

And that means…..

As far as investing goes…..

It would be “RISK OFF!”

Which would…..

…..of course…..

Leave Putin and the Saudis, smiling.

On the other hand…..

If the Fed simply reverses course…..

…..on its interest rate hikes…..

That’s ALSO “risk off.”

Which means…..

Any way you slice it…..

Inflation is NOT going away.

No One’s In Charge

Or, One Last Word On The Federal Reserve

No, the Federal Reserve…..

…..doesn’t “really” control interest rates. 

Sure, like Brandon’s CIA and State Department…..

…..(with respect to the Ukraine)…..

They push the buttons….. 

But everything they do….. 

…..is to “maintain credibility“…..

…..with an eye…..

…..to what everyone else (at home and abroad) thinks….. 

….or will, or may think. 

(In short, no one in the U.S., at the national level, is really in charge of anything.  Because everyone is FOLLOWING, NOT LEADING.  This is one reason why Trump was so unique.) 

This is why, like Brandon’s people….. 

The Fed has walked into a giant trap. 

For the Fed’s “credibility“…..

There is only one possible outcome.

They will, in the end…..

Lose it.

HUGELY. 

Money Money Money

If the Dreizin Report is valuable to you…..

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Please consider doing so again… now, or soon.

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I make NO money on ads.

Yes, my blogging platform…..

Does show a few lame ads…..

And, my proceeds WOULD come…..

…..to about $100 a quarter…..

…..(that’s three months, LOL)…..

But I’ve refused to accept that money…..

Because they use PayPal…..

Which is a nasty, totalitarian-minded company…..

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I make no money on ads.

Not even $100 a quarter.

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About The Gayest Air Force Ever…..

Yes, I was referring to the U.S. Air Force.

Of course…..

I was NOT disparaging.

Under my Anglican faith…..

God is gay…..

…..(at least, for metaphysical purposes)…..

And we are ALL made in his image.

I am PROUD of the unabashed gayness…..

…..of my nation’s military.

As for the B-52 flight…..

…..of March 11th…..

It was a VERY provocative move.

I can’t be sure…..

But I can’t say I remember this happening, EVER.

(Almost certainly, it did NOT happen before 2022.)

It’s more common for Uncle Sam…..

To fly jet fighters in that area…..

NOT STRATEGIC BOMBERS.

Truly… The Gayest Army Ever Assembled

Speaking of “the gayest army ever assembled“…..

…..from my last, “headline only” post…..

A few readers…..

…..didn’t understand…..

…..where I was coming from.

Folks, I’m NOT saying…..

…..that ALL Ukro-warriors are gay.

(And if they were, I would EMBRACE them, and offer them UNCONDITIONAL ACCEPTANCE.)

In fact…..

The real proportion is probably under 50 percent.

However…..

The fact remains…..

If you take the Ukrainian alphabet…..

…..and remove all letters…..

…..that overlap with the Russian alphabet…..

…..what you’re left with…..

…..IN THEIR PRECISE ALPHABETICAL ORDER…..

……are the letters ґ є і ї …..

…..which, again in that order, spell ґєії…..

…..which literally means, “gays.”

Look, I didn’t make this up.

Also, I don’t believe in coincidences.

It is what it is.

It can’t be changed…..

…..with “Biblical linguistics” counseling, or whatever.

We just have to accept it.

Now, for those of you…..

….who want to complain…..

…..about Dreizin being so obsessed…..

…..with homeless sexuality.

Well, you geniuses…..

Speaking ONLY for myself…..

Strictly as a private citizen…..

…..who lives in the USA…..

I’m just TAKING A CUE…..

From my own government!

Duh!

DREIZIN REPORT EXCLUSIVE FOOTAGE

Folks, I was able to secure…..

…..EXCLUSIVE FOOTAGE…..

…..of Putin’s representative…..

…..desperately begging for assistance…..

…..from PMC Wagner…..

…..early last spring.

Watch it here…..

Only on the Dreizin Report:

Permanent Feature

I will repeat this in every post…..

…..(except “headline only“, quickie posts)…..

…..until it’s no longer relevant…..

…..and/or we’re no longer here.

Assuming we make it to 2024…..

…..and have an election…..

The wonderful governor of Florida…..

Ron DeSantis…..

If elected President of the USA…..

Won’t do much of shit…..

…..other than get us into a war…..

…..with our supplier of everything.

That is, China.

Because that’s the track we’re on.

Trump tried to take the rivalry in an exclusively economic direction…..

But he was removed.

And now… THE CAKE IS BAKED.

Yes, I’m waiting for another pann-de-mmick…..

But the only strictly “political” issue now that matters…..

…..is how hard the U.S. will fight…..

…..and risk everything…..

…..(including, me and my family)…..

….to hold on to its Hegemony.

And… the “public” has no say in that.

Will NEVER have a say.

I can’t remember the last time the “public” had a say…..

…..on anything that really mattered.

Because we don’t fucking matter.

Anyone who plans to keep voting…..

…..(above the local/state level)…..

…..and legitimize U.S. Federal politics…..

…..and the destruction of their own country…..

…..and perhaps the world…..

…..is a “battered wife“…..

…..or just a FUCKING IDIOT.

(However, even if you’re an idiot, you should still give me money, for all the work I put into this blog. Or, at least, follow me on Twitter, and be sure to “like” everything, even the old stuff.)

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COMMENTS POLICY

Comments and any associated weblinks or other references must be directly relevant, tangential, and responsive to specific facts or views within my own published material (not just to other comments), specifically the material above the given comments section that you are adding to.  What this means, for example, is if I wrote about dogs and cats in the Ukraine, and only dogs and cats in the Ukraine, please don’t start babbling about life in Lugansk, or the horrible loss of life in general. THIS IS NOT A “DISCUSSION BOARD.” IT IS NOT A DEBATE PLATFORM TO DISCUSS IRRELEVANT HISTORICAL QUESTIONS, OR TO INJECT YOUR OWN PET SUBJECTS / INTERESTS, PHILOSOPHICAL MUSINGS, OR RANDOM RAMBLINGS THAT DON’T DIRECTLY, SUBSTANTIALLY BEAR ON WHAT I WROTE.  Please, no disjointed / overcaffeinated rambling, which implies, among other things, no mentioning eight different topics in one comment, like a schizoid aiming to connect all the dots (if your mind is racing, take your Ritalin and calm the fuck down before you comment on this site); no “pet issues” or inquiries that have no direct bearing on what I wrote; no unclear/unexplained, irrelevant, or barely-relevant weblinks; no trying to write your own mini-blog news update digest in my comments; no batteries of questions like what about Donetsk and what about Kiev and what about the Big Offensive and how does this all end and where does blah blah blah (I will NOT respond to you, I will BLOCK you); no asking me what I think of some commentator whom I’ve never heard of; no Nazis; no Nazis pretending to be Jewish like “I’m a bar mitzvah boy, but I’m so ashamed of my people who are not the real Jews of Jesus’ time“; no “crypto” Jew-hating (when I have to read it three times before I’m sure it’s about Jews, then I permanently block your wise ass); no dogmatic Marxists; no using anti-Ukraine jargon or other “Nadsat” bullshit-speak that you picked up from The Saker, which no one outside of you and your freaky virtual friends can understand (e.g., Ukrops, 404, the vimiratis); no calling for the destruction or dissolution of the USA or its government; no calling for the destruction of Washington, DC; no calling for violence against current or former elected or appointed officials of the U.S. Government; no nonconstructive or hateful ranting about Jews (or Swej, Joos, Jooz, Jooze, Juice, Juize, Jewz, Jewze, J-Dogs, J-Dogz, J-Dawgz, J’s, Chews, Choos, Chooz, Chooze, Zionists, Zio-Nazis, Anglo-American Zionists, Amerizionists, Zionist Occupation Government, ZOG, IsraHell, Bibi SatanYahoo, “those of whom we cannot speak”, “your friends whom we can’t talk about”, “a certain small ethnic group”, the chosen, the tribe, the chosen tribe, the thirteenth tribe, tribe of Judah, the Khazarians, Khazarian mafia, Rothschilds, Khazarian Rothschilds, JewTube, JooTube, JewMerica, JooMerica, etc., etc.); no being nasty to other commenters; no trolling the “sysop”; no passive-aggressive needling of the “sysop” (I don’t acknowledge, I just BLOCK and you’re gone, “one strike” and your ass is out, GO GET SOME THERAPY); no dissing or ragging on the Insane Clown Posse, no Chupacabras, no “country music”, no karens or avocado toast, no complaining that your other comment wasn’t published (because you’d didn’t read this Comments Policy), and no claiming “the korona doesn’t exist because vyruses don’t exist.”  Please share your ***CONCISE*** (2 smartphone screens of small font text is NOT concise, I don’t have time to read your dumb fucking manifesto, gawd dayyuuum!!!), relevant, coherent, organized thoughts, and come back for my next post. Also, by commenting, you expressly accept and agree to my “one bullet, one Nazi” policy, and please be advised, this includes Nazis everywhere, even in the Ukraine. Furthermore, if you are a LibJew/DemJew, you are BANNED from commenting on this site UNLESS you acknowledge the extensive presence and influence of Nazis and other fascists in the Ukraine, who don’t give a fuck that they have an allegedly “Jewish president”, because they’re still (in many cases) getting paid by the state, and they’ll “take their country back from the Jews” once they take care of the Russians (can’t slit all throats at once.) If you can’t acknowledge it, then get the fuck out with your “Never Again” bullshit. Also, no scrubs. If you don’t know what a “scrub” is, please consult the TLC video on YouTube. Although scrubs exist in ALL ethnic groups and populations, a very good example of scrubs, is all the poor young black men who get shot dead, and then the moms are like, “He had such aspirations, he was going to be a rapper.” Yeah, they were all going to be famous rappers, all the thousands of them! Sure!