NC Renegades

As if all the operations around finance in this land were not already unsound and degenerate enough, the alleged president just cancelled moral hazard altogether. It’s now official: from here forward there will be no consequences for banking fraud, poor decision-making, fiduciary recklessness, self-dealing, or any of the other risks attendant to the handling of other people’s money. Bailing out the Silicon Valley Bank and Barney Frank’s deluxe Signature Bank means that the government will now have to bail out every bank every time something goes wrong.

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 The trouble, of course, is that the government doesn’t have the means to bail out every bank. Its only resort is to ask the Federal Reserve to summon new money from a magic ether where the illusion of wealth is conjured to paper-over ever greater fissures in the splintering matrix of racketeering that America has become. That will quickly translate into US dollars losing value, that is, accelerating inflation, which is how nature punishes you when your government lies and pretends that it has a bad situation well-in-hand.

     Be advised: the situation is not in-hand and is going to get a whole lot worse as new and subsidiary shocks thunder through the weeks and months ahead, until the whole wicked business blows. Likewise, the reactions of our government will only get more tragi-comically pathetic. The harder this gang of feckless, wannabe control freaks pretends to control events, the faster events spin out of control.

     Money dies when it loses its direct connection to the generation of wealth from the real things of this earth: fuels, crops, metals, materials, labor, and the value-added products made from them. Since that divorce has already happened, the need arises for something else that can function as money (a store of wealth, an index of value, and a medium of exchange). The government will pretend that a Central Bank Digital Currency is that something else. Since banking is now nationalized by the Federal Reserve backstopping everything and everybody, then theoretically all the wealth of the nation is under its command. That would be another illusion.

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I wrote a letter to 50 North Carolina Senators expressing my opinion against HJR 235. This is the only response that I received:

Sen. Mary Wills Bode <marywills.bode@ncleg.gov>

To:David DeGerolamo

Tue, Mar 14 at 6:02 PM

David, thanks for your note. I appreciate you reaching out about HJR 235.

Best,

Senator Bode

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I was surprised that I did not receive more replies, even if it was an autoreply. I was surprised that the only one who did reply was a Democrat. I do want to thank Sen. Bode for her reply. I wish she would have told me her position on HJR 235. I was surprised that senators that I know and in one case even worked with prior to her election did not respond.

Lessons learned? None. I already knew that voting is not a solution. This effort cost me nothing more than 10 minutes of my time and I received information and confirmation that will be useful in the future.

David DeGerolamo

OUR NATION IS NOW THIRD WORLD & DYING. THE AMERICAN DREAM IS DEAD! THE RADICAL LEFT ANARCHISTS HAVE STOLEN OUR PRESIDENTIAL ELECTION, AND WITH IT, THE HEART OF OUR OUR COUNTRY. AMERICAN PATRIOTS ARE BEING ARRESTED & HELD IN CAPTIVITY LIKE ANIMALS, WHILE CRIMINALS & LEFTIST THUGS ARE ALLOWED TO ROAM THE STREETS, KILLING & BURNING WITH NO RETRIBUTION. MILLIONS ARE FLOODING THROUGH OUR OPEN BOARDERS, MANY FROM PRISONS & MENTAL INSTITUTIONS. CRIME & INFLATION ARE DESTROYING OUR VERY WAY OF LIFE…

Page 2: NOW ILLEGAL LEAKS FROM A CORRUPT & HIGHLY POLITICAL MANHATTAN DISTRICT ATTORNEYS OFFICE, WHICH HAS ALLOWED NEW RECORDS TO BE SET IN VIOLENT CRIME & WHOSE LEADER IS FUNDED BY GEORGE SOROS, INDICATE THAT, WITH NO CRIME BEING ABLE TO BE PROVEN, & BASED ON AN OLD & FULLY DEBUNKED (BY NUMEROUS OTHER PROSECUTORS!) FAIRYTALE, THE FAR & AWAY LEADING REPUBLICAN CANDIDATE & FORMER PRESIDENT OF THE UNITED STATES OF AMERICA, WILL BE ARRESTED ON TUESDAY OF NEXT WEEK. PROTEST, TAKE OUR NATION BACK!

Source

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The lines are still being drawn in terms of a civil war but only as action is concerned. The lines defined by the division sowed by the other side to weaken and take over the Republic are entrenched. Once the first shot is fired, the people who have been marginalized, have had their country, rights and Liberty stolen, and their health attacked will not stop. This is not a call to action; this is just reality. How do you feel about this illegal government and out of control justice system? This is no longer a rhetorical question.

We may not be able to stop what is coming but we surely do not have to submit to an evil tyranny.

David DeGerolamo

The Fed just gave out over $300 BILLION in single week.

See for yourself: the Fed’s balance sheet has erupted higher, erasing over HALF of its Quantitative Tightening (QT) efforts. Again, we are talking about $300+ BILLION in a single week.

Now, technically much of this ($164 billion to be exact) came in the form of loans to banks. The banks will have to pay this back, so it’s not quite the same as Quantitative Easing (QE). Regardless, the key point is that the Fed is NO LONGER shrinking its balance sheet… instead it is printing money. And not a little bit, but $300+ billion in a single week.

To put that into perspective, it’s the equivalent of more than TWO MONTHS’ worth the Fed’s emergency QE program that it ran in response to the pandemic. And again, the Fed did this in just FIVE DAYS.

What does this mean?

First and foremost, that something VERY BAD is going on behind the scenes in the U.S. banking system. But more importantly for us as investors, that the next round of bailouts/ easing/ reflating the financial system is here. 

This won’t end well.

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This was an excellent interview with Edward Dowd by Alex Jones. Dowd discusses the banking collapse, the massive increase in the death rates among working-age Americans from the vaccine, and even addresses the fraud that is the Ukraine war. 

Click here or the image above to view the video

The 1929 Stock Market Crash

Overview

The 1929 stock market crash is conventionally said to have occurred on Thursday the 24^th and Tuesday the 29^th of October. These two dates have been dubbed “Black Thursday” and “Black Tuesday,” respectively. On September 3, 1929, the Dow Jones Industrial Average reached a record high of 381.2. At the end of the market day on Thursday, October 24, the market was at 299.5 — a 21 percent decline from the high. On this day the market fell 33 points — a drop of 9 percent — on trading that was approximately three times the normal daily volume for the first nine months of the year. By all accounts, there was a selling panic. By November 13, 1929, the market had fallen to 199. By the time the crash was completed in 1932, following an unprecedentedly large economic depression, stocks had lost nearly 90 percent of their value.

The events of Black Thursday are normally defined to be the start of the stock market crash of 1929-1932, but the series of events leading to the crash started before that date. This article examines the causes of the 1929 stock market crash. While no consensus exists about its precise causes, the article will critique some arguments and support a preferred set of conclusions.

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The financial fundamentals of the markets were also strong. During 1928, the price-earnings ratio for 45 industrial stocks increased from approximately 12 to approximately 14. It was over 15 in 1929 for industrials and then decreased to approximately 10 by the end of 1929. While not low, these price-earnings (P/E) ratios were by no means out of line historically. Values in this range would be considered reasonable by most market analysts today. For example, the P/E ratio of the S & P 500 in July 2003 reached a high of 33 and in May 2004 the high was 23.

The rise in stock prices was not uniform across all industries. The stocks that went up the most were in industries where the economic fundamentals indicated there was cause for large amounts of optimism. They included airplanes, agricultural implements, chemicals, department stores, steel, utilities, telephone and telegraph, electrical equipment, oil, paper, and radio. These were reasonable choices for expectations of growth.

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Price/Earnings Ratio

The P/E ratio is a classic measure of any security’s value, indicating how many years of profits (at the current rate) it takes to recoup an investment in the stock. The current S&P500 10-year P/E Ratio is 27.4. This is 36% above the modern-era market average of 19.6, putting the current P/E 0.9 standard deviations above the modern-era average. This suggests that the market is Fairly Valued. The below chart shows the historical trend of this ratio. For more information on this model’s methodology and our analysis, keep reading below.

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Is history repeating itself? I ask the question based on these reports on Citizen Free Press:

• Update — 11 Wall St banks pledge to deposit $30 Billion in First Republic…
• First Republic stock tanking in after hours…

$30 billion from 11 TBTF banks appears to have calmed the masses and caused a rally on Wall Street. Until the market closed. The “little people” do not know what is going on behind the closed doors of Wall Street and the government. I cannot help but wonder why the stock in First Republic tanked after the market was closed and the “little people” have no access to trade stocks.

While tomorrow will be another interesting day, we should take note of the similarities of today’s market and the stock market crashes leading up to the Great Depression.

David DeGerolamo

On Friday, March 10, Silicon Valley Bank (SVB) collapsed and was taken over by federal regulators. SVB was the 16^th largest bank in the country and its bankruptcy was the second largest in U.S. history, following Washington Mutual in 2008. Despite its size, SVB was not a “systemically important financial institution” (SIFI) as defined in the Dodd-Frank Act, which requires insolvent SIFIs to “bail in” the money of their creditors to recapitalize themselves.

Technically, the cutoff for SIFIs is $250 billion in assets. However, the reason they are called “systemically important” is not their asset size but the fact that their failure could bring down the whole financial system. That designation comes chiefly from their exposure to derivatives, the global casino that is so highly interconnected that it is a “house of cards.” Pull out one card and the whole house collapses. SVB held $27.7 billion in derivatives, no small sum, but it is only .05% of the $55,387 billion ($55.387 trillion) held by JPMorgan, the largest U.S. derivatives bank.

SVB could be the canary in the coal mine foreshadowing the fate of other over-extended banks, but its collapse is not the sort of “systemic risk” predicted to trigger “contagion.”

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h/t SLL