As we all know, the Federal Deposit Insurance Corporation (FDIC) guarantees depositors that they’ll get their money back if a bank fails, at least up to a certain amount. To fund its operations, the FDIC collects small fees from the banks that are held in reserve for the purpose of taking over troubled banks and paying off depositors.
It’s time to call the global crisis what it is: the worst financial collapse since 1929. That’s no surprise to subscribers of The Casey Report, who have been amply warned over the last five years. But now even government officials, after trying to ignore the facts on the ground for the last couple of years, are admitting the truth of the matter.
“Nothing like this has ever been done before by the Federal Reserve,” says Bud Conrad. From holding mostly US treasury notes and gold, the Fed’s balance sheet has been expanded by a whole range of questionable assets and liabilities. In time, Bud says the consequences for the US dollar will be grim.
Under Bernanke’s direction, the Federal Reserve has completely rewritten its mission. Many articles in the International Speculator and The Casey Report have reported the strange growth in the loans they have made and explained that Bernanke has, for a long time, espoused unconventional actions to avert deflation and to expand the economy. So the charts below tell that story, and it is truly amazing.
4 reasons why this may be the worst crisis since the 1930s – and 4 projections for what’s going to happen. I identify the foundational forces now driving our economy to establish a basis for the investment recommendations you’ll read in this advisory in the months to come. The role of the U.S. as the world’s dominant economic superpower is now challenged by an out-of-control growth in debt and a deterioration in its reputation as a financial haven.
