On a non-seasonally-adjusted basis (why adjust when we are looking at annual changes), US domestic banks saw a stunning $1.17TN in deposit outflows (ex-large time deposits) in 2023 – the largest annual decline ever (and only the 3rd annual decline on record going back to 1985 – 1994, 2022, and 2023)…
Breaking down the outflows, it’s clear that large banks have suffered more pain in 2023:
- Large Banks saw around $800BN in deposit outflows (ex-large time deposits) in 2023 – the largest ever annual decline deposits and second year in a row (and only third year ever of annual deposit declines).
- Small Banks saw around $300BN in deposit outflows (ex-large time deposits) in 2023 – the largest ever annual decline in deposits (actually the only annual decline in deposits ever in data going back to 1985.
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“Then WTF are banks going to do when The Fed shuts down this ‘temporary’ bailout program in March?”
The system is insolvent and musical chairs continues. Until it doesn’t.
Let us attend! We are all facing uncontrollable circumstances. The good news is we are not the first Empire to descend into depravity.
I came upon a free small book online that helped me further understand where we stand today. It’s 26 pages. You can read it in one evening, “The Fate of Empires and Search for Survival.”
https://people.uncw.edu/kozloffm/glubb.pdf
The author, Sir John Glubb stated, “Decadence is a moral and spiritual disease, resulting from too long a period of wealth and power, producing cynicism, decline of religion, pessimism and frivolity. The citizens of such a nation will no longer make an effort to save themselves, because they are not convinced that anything in life is worth saving.”
All I know is that each 24 hours we live now is dedicated to the survival of the humanity. We are faced with deep uncertainty, fear of what’s next, and some of us are trying to cover all bases. We cannot. It’s too overwhelming. I have very little means and I am very old. I never imagined what I am bearing witness to today. I do what I can each day to survive and wake others up. If they refuse to hear what I have to say I move on.
“In the Fall of 1774 & Winter of 1775, I was one of upwards of thirty, chiefly mechanics, who formed ourselves into a committee for the purpose of watching the movements of the British soldiers, and gaining every intelligence of the movements of the Tories,” said Paul Revere.
This is what we must do right now. We watch. We wait. We remain calm so that we can help others remain calm. We walk together in moral solidarity We keep faith in God alone. He will lead us to green pastures. The road ahead is fraught with land mines, mud, blood, and much suffering. We accept it just as Christ did. We carry our Cross!
Am I sad? Yes. Am I scared? Yes. But I no longer am the paralyzed man sitting on his mat in the Bible. God has shaken my soul. There is no way out. This nation must be cleansed in accordance with the Lord.
Outflow, foreign investment leaving, Americans pulling the money out of an insolvent system? Maybe buying the T-bills that other countries like China have been dumping?