17th March 2023 - Banks.

tl;dr

Concerns about bureaucrats overriding democracy grow ever more urgent.

Market Snap

Market Wrap

First Republic has been saved by a consortium of US investment banks, whilst Credit Suisse continues to teeter on the edge despite massive government intervention. The very nature of fractional reserve banking means that no bank can withstand a fully-fledged bank run. Meanwhile the deliberate debasement of fiat – first against hard assets through QE (quantitative easing) and then against consumables through inflation - makes government bonds unattractive on any medium-term view.

The flight to safety in cryptos has only just begun.

Occasional Series – UK Budget

Jeremy Hunt, Chancellor of the Exchequer, was a vocal proponent of a zero-Covid strategy. He has that in common with my local MP, Diane Abbot.

Given the decimation to our economy, and, more importantly, the destruction of so many childhoods - especially those who come from a vulnerable background – brought about by the draconian, illiberal, and illegal restrictions forced upon us that nonetheless fell short of a zero-Covid strategy, it is clear to any reasonable person neither of these two charlatans are fit to be MPs, let alone hold high office.

And you wonder why yesterday’s budget merely reinforces our economic and societal decline?

Curious Cryptos’ Commentary – It’s all about banks, again, and again, and again

Boring and dull I know. After all, cryptos only exist because of a desire to get away from TradFi. Where did it all go wrong?

Reuters reports that bidders for Signature Bank must forego all crypto business to be successful in their bid.

The civil servants and bureaucrats are getting a touch overconfident about the limits of their responsibilities and power.

Curious Cryptos’ Commentary – This bit isn’t about banks! Huzzah!

Just kidding. It’s the only game in town right now.

Blockchain Association, a non-profit pressure group advocating for crypto rights, has submitted an FoI request to the Federal Deposit Insurance Corporation, the board of governors of the Federal Reserve System, and the Office of the Comptroller of the Currency.

Their concern is not dissimilar to the Reuters’ report referenced above (https://theblockchainassociation.org/blockchain-association-submits-foia-request-to-investigate-de-banking-of-crypto-firms/):

“Today, Blockchain Association (BA) submitted Freedom of Information Act (FOIA) requests to the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency, requesting documents and communications involving the de-banking of crypto firms in the United States.”

“These are lawful businesses in the United States and should be treated like any other law-abiding business.”

And it is this last point that is most important.

The growing politicisation of civil service bureaucracy should be a concern for everyone. If bureaucrats start exercising their administrative powers not in line with the law, but in line with their own morals, values, and beliefs, democracy itself is at risk.

There have been other examples of this civil servant groupthink acting against democratic decisions both in the US and the UK. Whether you agree personally with the outcome or not, no right-minded individual would agree with such a process.