Is Confidence growing or DECLINING? What is happening NOW (economically)?

Money and investing is a 'confidence game'. Psychology is key to investing and trading our markets. What is happening now is that 'confidence is waning' as investors watch banks fold and our regulators seek policies of comfort for depositors and savers. The psychology of money is key to future progress for our economy. My sense is that a number of factors are now changing 'confidence' to 'confusion'! Here are a few of the issues:

1. The bail-out of three large U.S. Banks is affecting investor confidence. Silicon Valley Bank, Signature Bank, and Silvergate Bank are all defaulting on their obligations to depositors and investors. This is producing a growing lack of 'confidence' in our financial system. Can our authorities REVERSE this reality?

2. The deposit insurance issue is another factor as bailing out all depositors (which our Fed just did) produces a MORAL HAZARD going forward. Wealth disparity grows as the well-heeled depositors get bailed out with the normal depositors. Capitalism is now over and today's changes are producing a coming RESET for our system. Is this positive for our freedoms? For world commerce?

3. It now appears that the policy of increasing interest rates to solve the INFLATION problem is done (over) as this policy produced the current banking problems. Higher rates produced a decline in market value of bonds and mortgage securities and this resulted in losses as a BANK RUN happened with Silicon Valley Bank depositors. The bank run forced management to SELL securities at a huge LOSS so that depositors could be paid as funds were being withdrawn. Is this building 'confidence' going forward? 

4. Our Central Bank (the FED) is now allowing all banks to sell government securities to them for immediate cash if bank runs continue. This produces more questions about the soundness of our financial system. The FED can buy securities to temporarily fund member banks if they need immediate cash. This is another QE policy (essentially) which we all have seen before. Will counterfeiting more dollars (QE) produce 'confidence' in the system? QE is essentially a 'counterfeiting' policy as Central Banks create money units 'out-of-nothing' for these purchases. Where does this lead going forward?

5. As I write interest rates are trending DOWN, oil prices are trending DOWN, and general confidence is trending DOWN. Can our FED reverse their policies and reinstall 'CONFIDENCE' in the system? Will a pivot to lower interest rates create more BUBBLES or will sound growth ensue from these policies?

6. My sense is that we are now at the END of a financial era and nothing will restore the status quo given our SITUATION. We need to change direction and recognize that our problem is SYSTEMIC! See my prior missive for understanding on this issue!

7. It now appears that the BEAST financial system is emerging fast. The BEAST system is where Central Banks resort to digital currencies for the planet (destroying all fiat paper currencies and this prior system of Keynesian DEBT). It could happen in the next few months given out situation. You and I become deposit holders within a Central Bank run financial system (all becomes DIGITAL/virtual).

Events are changing fast as we approach the END of an era. Read my prior missive to understand the 90 year era which is ending. Keynesian economics is essentially over and a NEW MODEL is emerging. Central Banks will implement this new model as they FORCE digital money on everyone. We all become enslaved to digits, identity codes, and virtual reality under the control of elites who run the system via their central computers and artificial intelligence machines.

Those with some wisdom may desire to get OUT of the official system to some degree. How do we get out of the official system:

1. We buy assets which the system does not control. Gold coins and silver coins are one option. Agricultural products can also be positive.

2. Products which can be bartered for other goods and services are viable alternatives. Items like gas, bottles of booze, bakery items that people desire, food items which people need and desire, cell phones, medical items which people need, etc. Anything that can be bartered for other goods and services are viable alternatives if they have VALUE. Value in exchange is the mindset to think about.

3. Even paper bills (paper money) may work for a time period. Our drug cartels know the value of paper currencies for their trades. We can built on this idea until our authorities call-in all these paper money items. At some point our system will be CASHLESS and PAPERLESS as digital/virtual money is what our authorities seem to desire for their NEW MODEL.

Prepare for the BEAST financial system down the road. Prophecy says this will occur and I expect prophecy to win over all other options. Our official authorities want CONTROL over all commerce and the only real option is to go digital and use artificial intelligence to administer the SYSTEM. I call this the coming BEAST financial system. It's all prophesied in Revelation 13. Do your own research and study on these issues. Have a great day and watch what happens this next week with the POWELL meeting on March 22. Will he pivot or will he force higher interest rates to stem inflation?

I am: Donald B. Swenson, Economist/Philosopher, donaldswenson.blogspot.com.

http://kingdomecon.wordpress.com