The title sounds all too familiar, doesnt it? We are seeing this in real time and its pretty wild! This is one of the main reasons that Bitcoin was created, to create an alternative to the fiat trash money. Tomorrow morning President Biden will speak on the 2 bank collapses that happed in the past week, and of course he is going to follow in Janet Yellens footsteps assuring that the US Government will bail the failed banks out and that all the depositors money is safe, but with what money? The printers are running nonstop, they have to be. The US defaulted on their debt recently, I mean all the conditions are not looking great for USD.
Are we seeing the beginning of the domino affect on US AND ALL GLOBAL BANKS?! Is the USD going to finally collapse? I don't think just yet, the FED is going to pull some strings to delay yet again but how much longer can they hold up the inevitable?
I don't get why people are overreacting this much. Banks were in trouble after offering this much, if Biden wants to save them so badly, just drop the interest rate a lot, and by that I mean like under 3% levels, which would be more than enough. That would cause a lot of people to withdraw their money and banks wouldn't normally want that, but right now there are excess amount of money in the banks that they can't pay back with interest, so people withdrawing their money and not requesting that much in return is actually better.
By this logic if banks want more money, they can offer 100% interest, would everyone jump on it if it was legit? Sure, but how could a bank pay that back? They can't. That is happening right now in a minor scale.