Bank Crisis Incoming? Deposits Draining out of Banks at Record Speed | Rafi Farber

This drawdown in deposits is more extreme than during the regional banking bailout. It’s time someone had the courage to stand up and say, I’m against those things that everybody hates. Now I respect my opponent. I think he’s a good man, but quite frankly, I agree with everything he just said. These are the candidates? They sound like clones. Hey guys, Rafa here from the endgame investor. It’s been a while.

I’m recovering from pneumonia. I’m doing all right. I kind of forgot how to do these things. But it’s all coming back to me now. Today I want to talk about what I’m sure nobody else is talking about, and that is the record weekly drop in bank deposits last week. I mean, second all time record weekly drop in deposits. There has never been a week like this, except on September 11th, 2001, which followed, of course, a huge injection of liquidity into the banking system.

So what happened this past week is pretty much unprecedented, and it’s not going to be in the news because nobody follows this stuff. And while it does correspond with tax day, tax day is when liquidity is sucked out of the banking system and into the Treasury’s account at Federal Reserve, it cannot be explained solely by tax day because we have other tax days that did not suck nearly this amount of liquidity out of the banking system.

What this looks like to me is the pre stages of the final, next and final financial crisis, which will be preceded by giant sucks of liquidity, suctions of liquidity, drains of liquidity. And I believe that has already started as I will show you in bank deposits that are being sucked out of the banking system at ridiculous speeds. And before we get into the details, this video is brought to you by Miles Franklin, precious metals called 855 game in to secure your precious metals.

Now, this week’s specials are one ounce South African silver, Kruger and 2023, wall supplies last only $3 and 10 cents over spot. And one ounce gold, Australian kangaroos wall supplies last only $59 over spot. If you are considering waiting for the final deflationary crash to get another trench of real money metals, I would recommend against that because during the next financial calamity, we’re going to see premiums rise significantly as they always do during deflationary crashes.

So you won’t really save a lot of money timing this, even if you time it perfectly, because higher premiums are going to compensate for lower spot prices. It might help you in trading, but I don’t think trading is going to really help people that much when the dollar really does collapse. So if you are stacking and you do it responsibly, meaning a portion of your income, whether that’s monthly by monthly, tri-monthly, quarterly, whatever goes into gold and silver or both, now would be the time to do it called 855 game and or email and game investor at miles franklin.

com and miles, Frank will help you out for with Lee. First thing I want to show you is this article from Reuters by Manya Saini, Fulton financial stock jumps on takeover to for failed Republic First Bank. If you think that you’re in the Twilight Zone, you are because we just had a bank failure called First Republic Bank. I think that was in San Francisco or maybe New York, one of the big cities that are tearing itself apart.

Now it’s a Republic First Bank. So what’s the difference between those banks? Well, one is Republic First and the other is First Republic, meaning Republic is Second and First is First, but in the First Bank, First is Second and Republic is First. And these are very distinct banks that you should know the difference between because if you don’t, then I guess you’re way out of the loop or something.

I say your three cent titanium tax goes too far and I say your three cent titanium tax doesn’t go too far enough. So April 29, Fulton Financials shares jumped on Monday after US regulators brokered its takeover Philadelphia based Republic First Bank, which failed following months of problems. You get that months of problems before that everything was fine. Let’s see what was the what were the months of problems? What did those months of problems consisting? If we skip down on our estate here because it’s boring and I want to read it, we have this chart over here.

This is its assets of Republic for no first Republic, not Republic First. Wait, wait Republic First, not First Republic. Okay, this I got it now. First, First Republic First, Second, 43 billion in commercial real estate. That was its biggest asset portfolio thingy. So they invested in commercial real estate and then the world decided to destroy the value commercial real estate by locking everyone down and saying that you don’t have to go to work anymore ever.

And that kind of hurt business a little bit if you own commercial real estate and this problem is going to get worse and worse and you might be asking Ravi, is this why there is a record massive drainage in bank deposits in the banking system and I will tell you see what’s happening in commercial bank deposits. This is all commercial banks not seasonally adjusted. We’ll zoom in here and I’ll show you what’s going on.

This is the weekly change in deposits we have here negative 258. 622 billion dollars. And if we zoom out five years, we can see that the only time ever that that was surpassed was on April, sorry, March, what was it April 2022, April 2022 at $336 billion. If we zoom out even further, you can see that is the only week in all of banking history where this number 258.

62 billion was ever surpassed. And that was tax day in April 22. Now, if we go to seasonally adjusted, right, I’m not exactly sure what a seasonally adjusted dollar is, but I know that there are seasonal trends in deposits. So if we go to the seasonally adjusted numbers, you can see that it’s 133 billion going down by 133 billion post tax day. And the only time that was ever surpassed, not even on the March, the March 2023 regional banking bailout crisis, there wasn’t even surpassed then.

So this draw down in deposits is more extreme than during the regional banking bailout. So if we zoom in here, we could see 132 billion dollars March 15, 2023. And here 133, this is when Silicon Valley Bank was collapsing. Well, remember that that was lovely. Here we have 133 billion. So we just beat it. So when was the last time we had a drop down like this, and seasonally adjusted deposits weekly, that was to whatever, let’s zoom in here in 2001.

That was here. And you scroll down a little bit to see the number 182 billion September 19 2000 monitors after a huge influx of 242 billion dollars in September 12 2001, a day after the terrorist tax. So that was pretty much a wash. And now we’re having since then the biggest weekly drawdown in bank deposits since then, and it’s showing up in other areas of the banking system.

This is bank reserves. This is a reserves that are held by banks at the Fed. This is really the liquidity cushion that if we pass, I think about three trillion over here. So this number is a, this is a three trillion dollar line. This right here is on the eve of the regional banking crisis March 8 2023. We were at three trillion dollars and we were there from about September to March.

So that’s about six months. And we were skirting that line three trillion dollars for six months. And also there was a banking crisis. So if we zoom out, if we go to the max here, right, we can see that here is the end of Q two in 2012. And then what number was that? That was about 1. 5 trillion thereabouts. That was when Q three started. And then we go back to about 1.

5 trillion that previous line. And we have here the apocalypse, right? September 18 2019, we’re at 1. 4 trillion dollars in reserves. And all the sudden, the money printing starts again, Q T ends and the interest rates go to 10% overnight. And then right after that, we have this money printing crisis. And I don’t want to use certain keywords because they’re bad. And now here we have the peak here.

And then all of a sudden, we go back to two, three trillion dollars in a regional banking crisis. But now if we zoom in, see what’s happening now, this is a huge, let’s get my face out of the way here. This is a huge drop in reserves from April 10 to April 24th. Let’s see where we at 3. 6 trillion. And now we’re at 3. 3. So a little bit over $300 billion in two weeks.

We’re right near that three trillion dollar level. And I can’t guarantee that that’s that three trillion dollar level is the crisis level for the next banking crisis. But it’s somewhere around there. It’s going to be a little bit higher than 3 trillion this time because the further out you get, the more liquidity you need to support a bigger debt Ponzi. So I do think first Republic, Republic first, Republic first, Republic is a symptom of the banking crisis that is developing.

And it’s coming out in deposits. And that’s why they’re falling. And one of the reasons that deposits are falling is because reverse repos appear to have bottomed out at around 400 billion dollars. And there aren’t any more that are going into the banking system. Why is that? Probably because the Treasury is selling fewer bills and more notes to try to move some debt over short term to longer term because there were last I checked or about $6 trillion in short term bills that were circulating.

And that can’t really be sustained. So you got to move some will be the longer term debt. But the RPs will bottom out. And we might have a little bit of a more of a bump of maybe 100, 200 billion dollars in reserves if those reserves flow in faster than debt either default or is paid back. Anyway, we’re getting really close to the final banking crisis. And that is going to lead to the final money printing round.

And in my little opinion here, it’s going to lead to the end game because once you start that final printing round, it’s going to be in the face of heavy consumer price inflation all over the world. And consumers are going to start to understand that they need to get out of their currencies, whatever they are, wherever they are, and move into something real or face the consequences. This is Rafa, the end game investor.

If you enjoyed this video, then consider signing out to be my patron link in the description below where you will get weekly commentary from a religious standpoint on what is going on in the monetary system today. And that’s for as little as $3 a month. You can always sign up to be an end game investor subscriber on Substack for free and always remember, it’s time someone had the courage to stand up and say, I’m against those things that everybody hates.

Now I respect my opponent. I think he’s a good man. But quite frankly, I agree with everything he just said. .

See more of Rafi Farber on their Public Channel and the MPN Rafi Farber channel.