When one bank wins

This is the setting I am facing. It is set to the speculative setting of we all have a certain amount of money (me not that much), still the Arab News (at https://www.arabnews.com/node/2568749/business-economy) gave me something to ponder. 

So it all starts with a certain amount of speculation. In any given en time there is an amount named X. X is a little fluidic, but X represents a real number, what that number is, will be known to just a few people, it tends to shift a lot on a day by day basis. So when we are told ‘UAE banks see 8.9% rise in short-term deposits to $14.7bn by May’ it infers that someone else lost this, optionally several players a part. Natixis made a profit and several other banks do. As of July 2024, the United States government has a monthly interest rate of 3.33 percent on its debt of over $34,000,000,000,000 dollars, which amounts to 11.2 billion. If you say that fast it doesn’t seem so much. As I personally see it, the chains around the debt driven economies are about to choke the living daylights out of its population. Yet, as some are trying to avoid to become another Silicon Valley Bank (SVB) and two months after that the First Republic Bank. That was in 2023. So what (or who) handed the UAE-based banks such as neat little profitable setting? Wouldn’t you like to know? I would and there is every indication that it was all on the up and up. And the article ends with “Profitability surged to 21.5 billion dirhams, driven by higher net interest income and a significant drop in impairment charges, according to New York-based global professional services firm Alvarez & Marsal” it is interesting that we do not get where these funds originated. I can understand that banks do not wash their laundry out in the open, yet after the SVB debacle, the media should hand us the goods, or at least partial goods. It is nice to see all the banks do well, yet the setting is that it comes from somewhere and the people have a right which banks are not performing as well as they should.

I reckon that this is a dangerous stance and it could fuel several other bank runs, but the reality is that the western media is not to be trusted, so where can we get the goods?

We get that debts seen all over the planet also inclines that someone is making a bundle out of that. Merely the US needs to make good on $96.8B EVERY MONTH to keep their image of ‘we are doing so well’ up, but who pays for that? Especially now that business is going to China and some to Europe. Soon, I believe that this point was already passed, to US cannot even keep up the interest payments, then what? As I see it, the big players and billionaires will place their trust funds in the UAE, Saudi Arabia, Monaco and Nassau. So what happens then?

I have no idea, but it will not be pretty, not for Europe, not for Japan and not for the USA. Japan has $9.2T debt, Europe has accumulated an impressive €12,732,445,200,000 debt, if the percentages are the same, we see Europe needing to find €35.3B each month and Japan a mere $25.4B a month. That money come from somewhere, does it not? Last year the US collected $4.44 trillion, this sets a dangerous premise. The interest in the US over a year is $1.16T, a simple 26% of the tax budget, lost to nothing (read: banks) and this implies that to break even the budget needs to set to 70% of the money and as we were told “The U.S. government has spent $5.60 trillion in fiscal year 2024 to ensure the well-being of the people of the United States”, which implies that not only are they not keeping a budget, they haven’t been able to keep it for years and now we see other nations getting a larger slice of the revenue pie. So, how much longer can this game be played? You think Russia is bad? I wonder how bad the USA can become when this setting implodes on America. Are the two connected? Not directly and it floats on my assumption that if one bank wins, another bank loses, which bank loses is unknown to me, I don’t have a clue, but as I see it, the media faltered in their jobs to inform the public. 

And should I be wrong, I apologise. Yet I believe to inform the readers when I can. Have a lovely Sunday, which is now starting in Vancouver, they are ready for breakfast (it’s 5AM there).