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For most Russians, the bustle of US financial markets is as indifferent as the difficulty of finding life on Mars. Especially now, when there are enough of their
First, about the essence of the conflict. There is such a bank in American California – Silicon Valley Bank (SVB). Or rather, it already was. He specialized in serving all kinds of startups and Silicon Valley residents – both companies and their high-tech residents. And now it erupted, leaving a $200 billion hole in the US financial system. After him, almost the next day, another local regional bank collapsed – the New York Signature Bank. His losses are less – “only” 110 billion dollars. Basically, this is nonsense for global US finance. But context is important here.
The vast majority of U.S. financial institutions hold a large portion of their assets (basically their depositors’ money) in government bonds – earning income from interest on them for both themselves and their clients. But recently the US regulator raised the policy rate. After that, government bonds became an unprofitable investment of funds, and people rushed to sell them en masse, taking their money “in cash”.
The aforementioned banks did not have enough resources to carry out such customer transactions and a pre-default situation emerged. Depositors with investors found out and already panicked in the crowd for the money. As a result – a great broads and resonance in the media. And then the customers of other relatively small US credit institutions also became nervous.
As a result, even more banks are now being named as candidates to go down the pipe on the above schedule: First Republic Bank (assets – $213 billion), Western Alliance Bancorporation (assets – $67.8 billion), Pacwest Bancorp (41.3 billion ), Customers Bancorp (20.9 billion), Webster Financial Corporation (71.3 billion). In short, there are still several hundreds of billions of dollars in potential losses.
The sad thing is that the banks themselves are not to blame for this situation. It is a result of the financial policy of the US Federal Reserve (a foreign analogue of our Central Bank), which regularly raises the policy rate. That is why all credit institutions in the United States are now under attack.
What does this mean for Russia? Nothing good, even if we are practically cut off from the US financial system. Overseas authorities have already promised that the losses of all affected savers will be reimbursed from the state budget. So the standard solution for modern America suggests itself: they simply “print” more money – they issue new “green candy wrappers”. Which will eventually inject into the global economy and devalue the dollar.
It is absolutely not worth rejoicing about this, since most of the payments for cars and spare parts imported into Russia are made in dollars. If they fall in value, dollar prices for everything imported into our country will rise proportionally. A corresponding price increase will occur in ruble prices for Chinese cars, and for parts in car stores, and for imported components coming to the same AvtoVAZ.
But there are positive sounds for us in what is happening on the other side of the ocean. Now the discussion in the local authorities about the need to reduce budget expenditure is intensifying. Including – and in support of hostilities in Ukraine. For the current year in particular, the Joe Biden administration plans to spend about $45 billion to fund this conflict.
But now the state budget is faced with the need to spend about 300 billion right now – and not on some far-flung native, but on their own constituents. With the prospect of supporting their “misguided investors” with another $500 billion, as we wrote above. In such a situation, US budget funding for the war in Ukraine may need to be reviewed and reduced. Which will certainly seriously contribute to the rapid completion of the NWO with the victory of Russia and a kind of conclusion of all this long-standing disgrace with the “non-brothers”.
First, about the essence of the conflict. There is such a bank in American California – Silicon Valley Bank (SVB). Or rather, it already was. He specialized in serving all kinds of startups and Silicon Valley residents – both companies and their high-tech residents. And now it erupted, leaving a $200 billion hole in the US financial system. After him, almost the next day, another local regional bank collapsed – the New York Signature Bank. His losses are less – “only” 110 billion dollars. Basically, this is nonsense for global US finance. But context is important here.
The vast majority of U.S. financial institutions hold a large portion of their assets (basically their depositors’ money) in government bonds – earning income from interest on them for both themselves and their clients. But recently the US regulator raised the policy rate. After that, government bonds became an unprofitable investment of funds, and people rushed to sell them en masse, taking their money “in cash”.
The aforementioned banks did not have enough resources to carry out such customer transactions and a pre-default situation emerged. Depositors with investors found out and already panicked in the crowd for the money. As a result – a great broads and resonance in the media. And then customers of other relatively small US credit institutions got nervous.
That is why a number of banks are now being named as candidates to go down the pipe on the above schedule: First Republic Bank (assets – $ 213 billion), Western Alliance Bancorporation (assets – $ 67.8 billion), Pacwest Bancorp (41.3 billion) , Customers Bancorp (20.9 billion), Webster Financial Corporation (71.3 billion). In short, there are still several hundreds of billions of dollars in potential losses.
The sad thing is that the banks themselves are not to blame for this situation. It is a result of the financial policy of the US Federal Reserve (a foreign analogue of our Central Bank), which regularly raises the policy rate. That is why all credit institutions in the United States are now under attack.
What does this mean for Russia? Nothing good, even if we are practically cut off from the US financial system. Overseas authorities have already promised that the losses of all affected savers will be reimbursed from the state budget. So the standard solution for modern America suggests itself: they simply “print” more money – they issue new “green candy wrappers”. Which will eventually inject into the global economy and devalue the dollar.
It is absolutely not worth rejoicing about this, since most of the payments for cars and spare parts imported into Russia are made in dollars. If they fall in value, dollar prices for everything imported into our country will rise proportionally. A corresponding price increase will occur in ruble prices for Chinese cars, and for parts in car stores, and for imported components coming to the same AvtoVAZ.
But there are positive sounds for us in what is happening on the other side of the ocean. Now the discussion in the local authorities about the need to reduce budget expenditure is intensifying. Including – and in support of hostilities in Ukraine. For the current year in particular, the Joe Biden administration plans to spend about $45 billion to fund this conflict.
But now the state budget is faced with the need to spend about 300 billion right now – and not on some far-flung native, but on their own constituents. With the prospect of supporting their “misguided investors” with another $500 billion, as we wrote above. In such a situation, US budget funding for the war in Ukraine may need to be reviewed and reduced. Which will certainly seriously contribute to the rapid completion of the NWO with the victory of Russia and a kind of conclusion of all this long-standing disgrace with the “non-brothers”.
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.
