Why Are Rich People’s Banks the Ones That Are Failing?

This post is to notify my substack subscribers that I’ll be releasing my next video tomorrow. It’s called, “Deep Diving the Fed’s Killer Whale Bank Crisis,” which follows up my last video. That video (“Why Is the Federal Reserve Provoking a Financial Crisis?”) stood alone (AFAIK) in predicting the bank crisis 3 weeks ahead of time.

A ton of work went into “Deep Diving the Fed’s Killer Whale Bank Crisis,” which was simply unavoidable if I wanted to get to the truth about the current crisis—which I wanted to get, and which I got. And in one day I’m gonna pass along that ugly truth to you. Lemme talk about those things.

1. Why the Long Interval Between the Last Video and This One, Guy?

It took me a really long time to produce this follow-up video for a few reasons.

One, I go where the evidence takes me, and it took me on a very long journey this go ‘round. When I say deep diving, I’m not playing around. It took a damn long time just to wade through all the data that I considered relevant, and almost as long to realize what I was looking it. I cover both the data and the process of discerning its significance—which is huge—in the video.

Two, I like to lay things out in my videos so that even a smart sixth-grader could understand what’s going on. Doing that visually takes some time and planning.

Three and most important is the writing. When you’re covering a massive amount of technical detail, the final product has to be written in such a way that both the data and its significance are clear. Without that the delivery feels like a shotgun blast to the face rather than a story. It’s gotta be a story.

The law firm where I cut my teeth (a wildly successful patent litigation boutique) emphasized that above all else: if you can’t get your story across, however complex, to a smart sixth-grader, you haven’t done your job. The more complex the data set, the longer it’s gonna take to write about it in a way that’s both informative and compelling.

Four, I have finally hit on the video format or style that I’ve had in mind for over a decade. In his memoirs, Edward Gibbon talks about how an author’s work should be an image of his mind. It just took me a really long time to figure out how to get that image out. This video is the first one that really does the job, and so I took some time to put the final buff job on it. You’ll see that in the video.

And it’s a long video—the longest by far on my channel at 71 minutes (previous high: 57 minutes). It’s an extended indictment of the U.S. Federal Reserve system.

Also contributing to the long interval between the last video and this one was the fact that I moved. Again. But this move is gonna stick. I talk about that at the end.

2. Preview of “Deep Diving Fed Killer Whales”

First of all, to call this crisis a “regional banking crisis” is borderline retarded, to borrow a very un-PC term that was freely used by administration officials in public and private schools during the 1970s. It’s not a “regional banking crisis” at all. That phrase is just grotesque propaganda intended to misdirect from the true nature of the crisis, which is a crisis among very big, very rich banks. “Killer Whales” explains why that is.

Second, the Federal Reserve caused this crisis, period. A lot of mainstream and alternative sources dwell on things like “interest rate mismanagement” of loan assets, yada yada zzzzzz…..

Those things are contributing factors at best. What the vast majority of the banking crisis coverage ignores is the actual cause of the crisis, which is huge bank deposits—huge as in billion-dollar-deposits—leaving the dead banks all at once. The Fed created those deposits. The video makes that crystal clear. Excruciatingly clear if you’re the Fed.

This bank crisis, which isn’t over, is a liquidity crisis. Yeah, yeah, yeah. It starts out as a solvency crisis—it always does. But what’s gone on—and likely to continue—is a liquidity crisis.

Don’t worry if you’re not clear on the difference between solvency and liquidity now. You will be when you see this video.

You’ll also be very clear about the fact that the Federal Reserve is engineering this crisis, from soup to nuts as my old engineering boss would’ve said.

The video also walks you through two different tests that you can use to see if your own bank is flashing the same dangerous warning signals that the three dead banks were flashing right before they collapsed.

Silicon Valley Bank, Signature Bank and First Republic bank all borrowed massively from Federal Home Loan Board banks (borrowing I discuss at length in the last video), and they all had whale deposits. The video shows you how to uncover and assess the level of danger associated with both of those factors. I show this in the video using a spreadsheet (which I’ll publish in this space later).

The one thing I wish I would’ve done a better job on in the video is the fact that it’s the sudden departure of personal bank accounts—not business bank accounts—that are tanking the banks. I knew this was going on, and I talk about it at length in the video, but I didn’t really make sense of it, as in WHY would it be personal accounts and not business accounts driving the crisis.

It didn’t really dawn on me until after I’d recorded the video: if you’re gonna criminally torpedo a bank using huge deposit departures as your weapon, you wanna use personal bank accounts, not business accounts. Why? Speaking as a litigator, I can tell you that businesses of the size we’re talking about here (~$100 million to ~$1 billion deposits) have all manner of protocols in place for the way material events—like cutting huge checks and transferring huge sums of money—go down. Those material events don’t just happen all once. They happen according to very long, very specific and very detailed protocols leave behind paper highways longer than US-20.

These mountain ranges of evidence would be discoverable in any litigation. But personal accounts? Nah. No such protocols at all. Who’s to say if Crazy Uncle Joey didn’t truly decide to transfer $3 billion out of his personal account based on his astrology chart that morning? So you can subpoena Crazy Joey all day long, but you’re gonna get bupkis. The same subpoena of a corporation, by contrast, coupled with a Rule 30(b)(6) deposition, is gonna produce the mother of all mother lodes of incriminating dope.

So while the video shows that personal accounts are driving the crisis, not business accounts, it doesn’t score the point about the strategic advantage of waging a financial war using personal accounts. Oh well.

That’s about it for now. It’s a damn good video, if I do say so myself, and I hereby do.

Since I’ve got a long-term home now (which I discuss at the end of the video), I set up a private post office box for contributions if you would like to help my video channel. People have been asking lately. You can help out by sending cash or check (or just a postcard to say hey) to…

John Titus

9660 Falls of the Neuse Rd.

Suite 138, No. 241

Raleigh, NC 27615