West blasts Balkan region’s plan to replicate US law
RT March 14, 2023
US and EU authorities have come out in opposition against a Bosnian Serb proposal to copy American legislation on foreign agents, by linking it to Russian influence. They have added claims that it endangers human rights and democracy.
Milorad Dodik, the president of Republika Srpska (RS) – the Serb half of Bosnia-Herzegovina – has proposed to copy the Foreign Agents Registration Act (FARA) of 1938, using “Republika Srpska” instead of the US. The “identical” law would protect the RS from meddling by foreign-funded organizations, including those of George Soros, Dodik told local media on Friday.
The US and EU reaction to Dodik’s proposal mirrored their opposition to a foreign agents registration bill in Georgia. Last week, thousands of protesters besieged the parliament for days, incited by accusations that the government had advanced a “Russian law” on foreign activity. Tbilisi officially backed down on Friday.
A foreign agents law would “significantly reduce the space for civic engagement” in Bosnia, the EU mission to Sarajevo said. “Any unfounded limitation of the effective exercise of fundamental rights and freedoms, including the right to association (and expression), is in itself contrary to the aspirations of Bosnia and Herzegovina to progress on the European path,” the mission’s spokesman Ferdinand Koenig told the CNN affiliate N1.
The US embassy in Sarajevo also chimed in, saying FARA “does not ban or restrict any activities, and it does not apply to independent media or civil society organizations,” merely allowing Americans “to be informed” about activities of foreign agents “without limiting freedom of speech or association in any way.”
“We have seen this movie before, and we know how it ends,” the embassy said, calling Dodik’s proposal a copy of the Russian “repressive legislation to suppress dissent, eviscerate civil society, and eradicate free media.”
USAID head Samantha Power joined the chorus, accusing Dodik of “trying to pass Kremlin-inspired draft laws that rob residents of their basic rights, silence dissent and allow corruption to flourish unchecked.”
Dodik responded to both claims over the weekend, tweeting that Republika Srpska is “copying the American model that made the US one of the world’s great powers,” which is inspired by “the highest standards in the protection of human rights and freedoms, among which is freedom of speech, which implies responsibility, which is the case in the most developed Western societies.”
He also noted it was “interesting” that Power was butting into the discussion, since so many “projects” in Bosnia are “financed through USAID.”
Under the 1995 peace treaty brokered by the US, Bosnia-Herzegovina consists of Republika Srpska and the Bosniak-Croat Federation. While it is technically independent, the ultimate authority in the country is a Western-appointed “high representative” who claims near-dictatorial powers.
I Read Richard Haass’ New Book (So You Don’t Have To!)
Corbett • 03/13/2023
Podcast: Play in new window | Download | Embed
Have you ever thought that the Bill of Rights was a bit lacking? Did you ever wish there was a list of obligations detailing those things we owe to the government for the privilege of being born into a certain political jurisdiction? Then, boy, do I have the perfect book for you! Join James for today’s dissection of The Bill of Obligations, the latest turgid tome of trash from Richard Haass, the outgoing president of the Council on Foreign Relations.
Watch on Archive / BitChute / Odysee / Rokfin / Rumble / Substack / Download the mp4
For those with limited bandwidth, CLICK HERE to download a smaller, lower file size version of this episode.
For those interested in audio quality, CLICK HERE for the highest-quality version of this episode (WARNING: very large download).
DOCUMENTATION
| Episode 188 – Listening to the Enemy | |
| Time Reference: | 00:30 |
| Episode 225 – Still Listening to the Enemy | |
| Time Reference: | 00:36 |
| Episode 412 – I Read The Great Narrative (So You Don’t Have To!) | |
| Time Reference: | 00:41 |
| Episode 418 – I Read Bill Gates’ New Book (So You Don’t Have To!) | |
| Time Reference: | 00:48 |
| The Bill of Obligations: The Ten Habits of Good Citizens | |
| Time Reference: | 01:06 |
| Richard Haass: “No,” CFR members are not New World Order architects (Feb 11, 2021) | |
| Time Reference: | 01:21 |
| Richard Haass on ‘The Bill of Obligations’ | |
| Time Reference: | 04:23 |
| Wall Street and FDR by Antony Sutton | |
| Time Reference: | 07:48 |
| FLASHBACK: You Are Being Programmed to Accept Global ID | |
| Time Reference: | 08:15 |
| Corbett Report Radio 050 – Deconstructing Pearl Harbor with Robert Stinnett | |
| Time Reference: | 08:22 |
| What Is The Average Global Temperature? | |
| Time Reference: | 17:24 |
| Episode 430 – The Media Are the Terrorists | |
| Time Reference: | 27:30 |
| Episode 382 – Your Body, Their Choice | |
| Time Reference: | 32:06 |
| Jacobsen v. Massachussetts | |
| Time Reference: | 32:20 |
| Buck v. Bell | |
| Time Reference: | 32:26 |
| How & Why Big Oil Conquered the World | |
| Time Reference: | 32:30 |
FDA and CDC Assertions in Doubling Down on COVID-19 Vaccination
Letter to Florida Surgeon General Tells America to Expect More Tension Over Injuries, Disabilities, and Deaths
By Peter A. McCullough, MD, MPH | Courageous Discourse | March 12, 2023
I am frequently asked: why are the government agencies still pushing COVID-19 vaccination after there have been calls in the US Senate and all around the world to pull them off the market for lack of safety and efficacy?
In a March 10, 2023 letter from FDA Commissioner Robert Califf, MD, and CDC Director Rochelle Walensky, MD, MPH, to Florida Surgeon General Joseph Ladapo, MD, PhD, the agencies give their rationale. While Walensky does not have a compelling academic track record, her FDA counterpart Califf has been considered a staunch advocate of randomized trials and a hawk on safety of cardiovascular drugs over his career which was notable for building the Duke Clinical Research Institute, one of the most impressive academic research organizations in the world.
Here are 10 assertions that Califf and Walensky make to Ladapo and Americans on why the COVID-19 vaccines should be “pushed.”
- “The claim that the increase of VAERS reports of life-threatening conditions reported from Florida and elsewhere represents an increase of risk caused by the COVID-19 vaccines is incorrect, misleading and could be harmful to the American public.” They are assuming unproven benefit at the start. The Bradford Hill criteria have been applied to VAERS and causality has been met. Autopsy studies have conclusively demonstrated causality for fatal syndromes. Doctors use the VAERS system when they believe COVID-19 vaccines caused the death, NOT when the death is unrelated to the vaccine in practice.
- “The FDA-approved and FDA-authorized COVID-19 vaccines have met FDA’s rigorous scientific and regulatory standards for safety and effectiveness and these vaccines continue to be recommended for use by CDC for all people six months of age and older.” The FDA has relied on the false surrogate of antibody elevations after injection eight times. This is neither rigorous nor valid. Large randomized, double blind placebo controlled trials with hospitalization/death as the primary endpoint are required to prove efficacy in all age groups.
- “Despite increased reports of these events, when the concern was examined in detail by cardiovascular experts, the risk of stroke and heart attack was actually lower in people who had been vaccinated, not higher.” They cite a nonrandomized study with inadequate control for the known determinants of cardiovascular disease. Both selection bias and confounding eliminate any valid claims of benefit. There is no mechanism by which COVID-19 vaccination would reduce cardiovascular events. There are >200 published manuscripts on COVID-19 vaccines mechanistically causing cardiovascular events including myocarditis, accelerated atherosclerotic cardiovascular disease, aortic dissection, hypertensive crisis, etc.
- “FDA and CDC physicians continuously screen and analyze VAERS data for possible safety concerns related to the COVID-19 vaccines. For signals identified in VAERS, physicians from FDA and CDC screen individual reports, inclusive of comprehensive medical record review. Most reports do not represent adverse events caused by the vaccine and instead represent a pre-existing condition that preceded vaccination or an underlying medical condition that precipitated the event.” The agencies have not produced a report giving their analysis of what caused death after vaccination. Since many deaths occur on the day of the shot or in the next few days that follow, the public deserves to see regulatory evidence for cause of death.
- “In addition to VAERS, FDA and CDC utilize complementary active surveillance systems to monitor the safety of COVID-19 vaccines.” CDC V-safe is one of the active systems mentioned. The CDC refused to release to the public until ordered by the courts, demonstrated an unacceptable 7-8% rate of hospitalization, emergency care, or urgent office visit caused by vaccine side effects. So agency use of systems demonstrate lack of safety and are not reassuring to the public.
- “Based on available information for the COVID-19 vaccines that are authorized or approved in the United States, the known and potential benefits of these vaccines clearly outweigh their known and potential risks. Additionally, not only is there no evidence of increased risk of death following mRNA vaccines, but available data have shown quite the opposite: that being up to date on vaccinations saves lives compared to individuals who did not get vaccinated.” There are no randomized placebo controlled trials demonstrating hospitalization/death are reduced as primary endpoints. Thus the agencies cannot make an efficacy claim from a regulatory perspective. Nonrandomized studies have the following threats to validity: 1) selection bias—healthier more health conscious people take vaccines, 2) vaccinated are more likely to seek early treatment which reduces hospitalization/death, 3) no control over prior COVID-19 infection which greatly influences risk of hospitalization/death, 4) no adjudication of COVID-19 endpoints.
- “Another study using mathematical modeling estimated that the vaccines saved an estimated 14 million lives from COVID-19 in 185 countries and territories between December 8, 2020, and December 8, 2021.” Modeling studies start with the unproven assertion that vaccination reduces death which has not been demonstrated in proper randomized trials, hence extrapolations to large populations are invalid.
- “The most recent estimate is that those who are up to date on their vaccination status have a 9.8 fold lower risk of dying from COVID-19 than those who are unvaccinated and 2.4 fold lower risk of dying from Covid-19 than those who were vaccinated but had not received the updated, bivalent vaccine. Roughly 90% of deaths from COVID-19, as carefully classified by the CDC, in recent months have occurred among those who were not up to date on their vaccines.” This estimate did not account for the two known determinants of COVID-19 mortality: early treatment and natural immunity.
- “Over the course of the pandemic, FDA and CDC have held numerous public meetings to discuss the safety and effectiveness of the COVID-19 vaccines where detailed safety data are shared with outside experts and public comment is encouraged. Further, FDA publishes the full regulatory action package containing hundreds of pages summarizing clinical studies and review for each COVID-19 approval on FDA’s website (see “COVID-19 Vaccines Authorized for Emergency Use or FDA Approved”) and CDC publishes an extensive amount of information on their clinical use in Interim Clinical Considerations. Complete information about both benefits and risks helps health care providers better care for their patients.” The FDA/CDC have never reviewed or commented on the Pfizer 90-day post-marketing data which reported 1223 deaths shortly after the shot. The FDA attempted to block these data to the public for 55 years. The agencies have never conducted a symposium to review the >1000 peer-reviewed published papers on serious adverse events and death after COVID-19 vaccination.
- “Unfortunately, the misinformation about COVID-19 vaccine safety has caused some Americans to avoid getting the vaccines they need to be up to date.” The Rasmussen Report indicates 28% of Americans know someone who has died after the vaccine. Nothing in that report suggested “misinformation” was leading to hesitancy, moreover it was word of mouth on the horrifying outcomes Americans are witnessing among their family and friends that is leading to refusal rates of boosters.
There are easily another ten invalid assertions made by the agency that could be handled by experienced clinical investigators. Take a look at the letter yourself. Keep in mind the FDA/CDC deceived America by asserting that SARS-CoV-2 did not come out of the Wuhan Laboratory and just a few days ago the US House of Representatives voted to declassify our documents from the laboratory after multiple agencies and witnesses capitulated on the lab origin. This casts doubts on truthfulness of any agency public health assertions during the crisis.
The important message to Americans is that our agencies have no intention of carefully considering vaccine safety or changing course on their relentless pursuit of frequent, mass, indiscriminate COVID-19 vaccination down to 6-month old babies. It will be up to you to protect yourself and your family.
Califf R, Walensky R, letter to Dr. Joseph Ladapo, Florida Surgeon General, March 10, 2023
McCullough PA. US FDA Willfully Blind on the Safety of COVID-19 Vaccination
McCullough PA. Found Dead at Home after COVID-19 Vaccination
McCullough PA. Modeling Study Makes False Conclusions on COVID-19 Vaccination
McCullough PA. McCullough Protocol©: Risk Stratification
McCullough PA. Good News on Omicron Outcomes from Prison
Public Health and Medical Professionals for Transparency
National Survey Finds finds 28% Personally know of a Death Caused by COVID-19 Vaccines
MP and American cardiologist call on the UK Parliament to hold the US government accountable for violation of the Biological Weapons Treaty
By Rhoda Wilson • The Exposé • March 14, 2023
UK Member of Parliament Andrew Bridgen and Dr. Richard Fleming have jointly called on the UK Houses of Parliament to hold the USA government accountable for their violation of the Biological Conventions Weapons Treaty resulting in the covid pandemic and unprecedented use of experimental genetic vaccines.
In a press release dated 13 March 2023, Mr. Bridgen and Dr. Fleming – a Physicist, Internist, Cardiologist and Nuclear Cardiologist – encouraged the US Congress to investigate the US funding of covid and highlighted that British citizens were paying the price for the US biological viral weapon and genetic vaccine programme funded by the US NIAID and Department of Defence. “Either the US will hold its criminals accountable or we should.”
“The world death count from the viral bioweapon is over 6.7 million, including more than 203,000 deaths in the UK. Based upon information as of 3 months ago (October 2022) there have been more than 2,400 deaths in the UK following the use of the genetic vaccine products, which are copies of the US biological viral bioweapon,” the statement said.
The statement also noted that there have been 1.6 million adverse effects reported to the Yellow Card system after being injected with the “genetic vaccines.” It continued:
“We call upon the Houses of Parliament to demand accountability on the part of the US Government for their violation of the Biological Weapons Convention Treaty resulting in the Covid pandemic and unprecedented use of experimental genetic vaccines that turn red blood cells grey and cause blood to clot upon contact, thus causing heart damage including prion disease (amyloidosis) and myocarditis, strokes, cancer, miscarriages and death.”
We have included an image of the full press release below.
The press release follows a tweet from Mr. Bridgen on Sunday where he confirmed that during his visit to Washington DC at the end of last year he was “informed that the US DoD were responsible for both the virus and the vaccines. Fort Detrick was named. Also, a facility in Canada. By the end of the month, I expect to see the start of criminal proceedings against the many politicians and officials who are responsible around the world.”
Source: Andrew Bridgen MP on Twitter
Russian MoD on US Drone Incident: UAV Fell Into Black Sea Due to Own Sharp Maneuvering
Sputnik – 14.03.2023
MOSCOW – US drone MQ-9 fell into the Black Sea on Tuesday morning due to its own sharp maneuvering, Russian fighters did not come into contact with it and did not use weapons, the Russian Defense Ministry said.
“As a result of sharp maneuvering around 09:30 Moscow time [06:30 GMT], unmanned aerial vehicle MQ-9 went into an uncontrolled flight with a loss of altitude and collided with the water surface. The Russian fighters did not use airborne weapons, did not come into contact with the unmanned aerial vehicle and returned safely to their home airfield,” the ministry said.
The ministry clarified that on the morning of March 14, the airspace control of the Russian Aerospace Forces had recorded the flight of US unmanned aerial vehicle MQ-9 over the Black Sea in the region of the Crimean peninsula in the direction of the Russian state border.
The flight of the drone “was carried out with transponders turned off, violating the boundaries of the area of the temporary regime for the use of airspace, established for the purpose of conducting a special military operation, communicated to all users of international airspace and published in accordance with international standards,” the defense ministry noted.
Russian fighters from the air defense forces on duty were scrambled in order to identify the intruder, the ministry added.
Meanwhile, Pentagon spokesperson Pat Ryder on Tuesday declined to disclose whether the US MQ-9 Reaper drone that crashed over the Black Sea after the intercept with Russian aircraft was armed.
“I’m not going to get into the specific profile of this particular aircraft. As you know the MQ-9 does have the ability to be armed,” Ryder said during a press briefing.
Ryder also added, that US Defense Secretary Lloyd Austin has not talked to Russian Defense Minister Sergei Shoigu after the incident.
Nord Stream blasts staged by a state-level actor – Putin
RT | March 14, 2023
Russian president Vladimir Putin has dismissed as “nonsense” recent claims that the attack on the Nord Stream natural gas pipelines might have been carried by “Ukrainian activists.” The president made the remarks on Tuesday during his visit to an aircraft plant in the capital city of Russia’s Buryatia republic, Ulan-Ude.
“I’m sure this is complete nonsense. An explosion of this kind – of such power, at such depth, can only be carried out by specialists, and supported by the entire power of a state, posessing certain technologies,” Putin told reporters.
Media reports, suggesting that a shadowy “pro-Ukrainian group” might have been behind the blasts on the pipelines at the bottom of the Baltic Sea, emerged last week. The New York Times cited its anonymous sources saying that “no American or British nationals were involved” in the operation.
Separately, multiple German outlets reported that the country’s investigators probing the blasts had found a yacht, allegedly used for the attack, which belonged to a Polish-based firm but was “apparently owned by two Ukrainians.”
The yacht reports emerged shortly after a bombshell investigation by veteran American journalist Seymour Hersh, who said US President Joe Biden’s administration had staged the attack on the pipelines with assistance from Norway.
According to his sources, the explosives were planted by US Navy divers last June under the guise of a NATO exercise and detonated remotely in September. The White House was quick to dismiss the allegations by the Pulitzer Prize-winning journalist, branding them “utterly false and complete fiction.”
US accuses Russia of drone downing
RT | March 14, 2023
A US Air Force MQ-9 Reaper surveillance drone was brought down on Tuesday morning over the Black Sea, after what the European Command claimed as“an unsafe and unprofessional intercept” by two Russian jets.
The “Intelligence, Surveillance, and Reconnaissance” platform was “operating within international airspace” when the airplanes approached, EUCOM said in a statement. One of the Su-27s “struck the propeller of the MQ-9,” so the operators ditched the drone into the sea.
“Several times before the collision, the Su-27s dumped fuel on and flew in front of the MQ-9 in a reckless, environmentally unsound and unprofessional manner,” the US military complained, accusing the Russians of “a lack of competence.”
General James Hecker, the commander of US Air Forces in Europe and Africa, said the drone was “conducting routine operations in international airspace” and that the crash resulted in a “complete loss” of the MQ-9.
EUCOM said the US “routinely” operates drone flights in international airspace to “bolster collective European defense and security” and “support Allied, partner, and US national objectives.” Hecker said the flights will continue, calling on the Russians “to conduct themselves professionally and safely.”
Neither the Kremlin nor the Russian Defense Ministry have yet commented on the alleged incident.
The US has admitted to providing Ukraine with intelligence, surveillance and reconnaissance information in the conflict against Russia, while insisting it is not a party to the hostilities. US and NATO spy aircraft routinely fly over the Black Sea and approach Crimea, sometimes right before Ukrainian forces launch attacks on the Russian peninsula.
Last week, a US strategic bomber flew a practice run for a missile attack on St. Petersburg, while staying in international and NATO airspace.
The Pentagon routinely uses the phrase “unsafe and unprofessional” to describe incidents when interceptors chase off US drones, spy planes or fighter jets that came too close to the Russian border.
Germany is not a sovereign nation – Moscow
RT | March 14, 2023
Germany is facing an inevitable economic decline after losing its access to Russian energy, but cannot do anything about it because it is not a sovereign nation, the secretary of the Russian National Security Council has claimed.
“Germany tried for many years to build its economy on a combination of cheap Russian energy and advanced German technologies. Like no one else, it realizes that the terrorist attack against the [Nord Stream pipelines] will definitely cause the German economy to decline further,” Nikolay Patrushev said in an interview published in Argumenti i Fakti newspaper on Monday.
The advantages that German businesses enjoyed by getting access to Russian fuel has long irritated the governments of the US and the UK, he continued. But Berlin is not at liberty to continue cooperating with Moscow, “because the German nation is not independent.”
“Washington imposes on Berlin its economic and environmental agenda and keeps a 35,000-strong military force on its soil. For years, the White House controlled [former chancellor] Angela Merkel, and now it forces the German leadership to side with the version of the pipeline sabotage that is advantageous to the US authorities,” Patrushev said, describing America’s treatment of Germany as “humiliating.”
The remarks were part of Patrushev’s comments on the sabotage of the undersea pipelines, which were built to supply Germany with Russian natural gas. The Nord Stream links were ruptured by powerful explosions last September in what Russia has called a blatant terrorist attack.
A series of articles published by Western media this month claimed that Western intelligence services believe that a “pro-Ukrainian group” not associated with any government was behind the attack. Patrushev argued that, considering the training and equipment that such a complicated operation required, this scenario would seem plausible only to people who “cannot think logically.”
Investigative journalist Seymour Hersh had previously reported that the operation was ordered by US President Joe Biden and conducted by a US-Norwegian team of saboteurs. Both nations deny this allegation.
Hersh said Washington wanted to prevent Berlin from making a U-turn on its decision to phase out Russian gas supplies in response to the Ukrainian crisis. Liquified natural gas, which is produced by American companies and costs significantly more, took over a large portion of the European energy market previously held by Russian fuel.
DeSantis Says Further Involvement in Ukraine Conflict Not in US National Interest
Sputnik – 14.03.2023
WASHINGTON – Florida governor Ron DeSantis said that further involvement in the Ukrainian crisis goes against US national interests and Washington should focus on defending the homeland instead.
On Monday, conservative political commentator Tucker Carlson published on Twitter the responses given by potential presidential candidates to a six-point questionnaire on Ukraine.
“While the U.S. has many vital national interests – securing our borders, addressing the crisis of readiness within our military, achieving energy security and independence, and checking the economic, cultural, and military power of the Chinese Communist Party – becoming further entangled in a … dispute between Ukraine and Russia is not one of them,” DeSantis said in response to the questionnaire.
DeSantis, a potential 2024 presidential candidate, stated that the Biden administration’s “blank check” policy on Ukraine distracts the country from what he considers to be the most pressing challenges.
The US should seek a peaceful settlement of the Ukraine conflict, DeSantis said, noting that he opposes deliveries of F-16s or other weapons that would allow Kiev to engage in offensive operations beyond its borders.
“These moves would risk explicitly drawing the United States into the conflict and drawing us closer to a hot war between the world’s two largest nuclear powers. That risk is unacceptable,” he said.
DeSantis also noted that US policies have only driven Moscow closer to Beijing.
Where Is Occupy Silicon Valley?
By Craig Pirrong | Brownstone Institute | March 13, 2023
Bank failures tend to come in waves, and we are experiencing at least a mini-wave now.
Banks fail for three basic reasons: 1. Credit transformation: deterioration in borrower creditworthiness, usually due to an adverse economic shock (e.g., a real estate bust). 2. Maturity transformation: borrowing short, lending long, and then getting hammered when interest rates rise. 3. Liquidity transformation combined with an exogenous liquidity shock, a la Diamond-Dybvig, where idiosyncratic depositor needs for cash lead to withdrawals that exceed liquid assets and therefore trigger fire sales of illiquid assets.
The two most notable failures of late–Silicon Valley Bank and Silvergate–are examples of 2 and 3 respectively.
In some respects, SVB is the most astounding. Not because a bank failed in the old-fashioned way, but because it was funded primarily by the deposits of supposed financial sophisticates–and because of the disgusting policy response of the Treasury and the Fed.
SVB took in oodles of cash, especially in the past couple of years. The cashcade was so immense that SVB could not find enough traditional banking business (loans) to soak it up, so they bought lots of Treasuries. And long duration Treasuries to boot.
And then Powell and the Fed applied the boot, jacking up rates. Bonds have cratered in the last year, and took SVB’s balance sheet with it.
Again, an old story. And hardly a harbinger of systemic risk–unless such reckless maturity mismatches are systemic.
SVB was the Banker to the Silicon Valley Stars, notably VCs and tech firms. These firms are the ones that deposited immense sums in exchange for a pittance of return. Case in point, Roku, put almost $500 million–yes, you read that right, 9 figures led with a 5–into SVB!!!
I mean: what the eff? Was the Treasurer a moron? For who other than a moron would hold that much in cash in a single institution? (Roku claims its devices “make your home a smarter.” Maybe they should have hired a smarter treasurer and CFO, or replaced them with one of its devices). Hell, why is a company holding that much in cash period?
A few of these alleged masters of the universe (like Palantir) saw the writing on the wall and yanked their deposits: deposits fell by a quarter on Friday alone, sealing the bank’s doom. Those who were slow to run howled to the high heavens over the weekend that if there was not a bailout there would be a holocaust in the tech sector.
Even though the systemic risk posed by SVB’s failure is nil (or if not, then every bank is systemically important), the Treasury Department and the Fed responded to these howls and guaranteed all the deposits–even though the FDIC’s formal deposit insurance limit is $250,000. You know, .05 percent of Roku’s deposit.
When evaluating this, one cannot ignore the reality that the Democratic Party is completely beholden to Silicon Valley. This is beyond scandalous.
Occupy Silicon Valley, anyone?
Treasury Secretary Janet Yellen insulted our intelligence by assuring us this is not a bailout. Well, it’s not a taxpayer bailout, strictly speaking, because the Treasury is not providing the backstop. Instead, it is being funded by a “special assessment” on solvent banks. Which are owned and funded by people who also pay taxes. And such an “assessment” is a tax in everything but name–because it is a contribution by private entities compelled by the government.
The policy implications of this are disastrous. The whole problem with such bailouts is moral hazard. What is to stop banks from engaging in such reckless behavior as SVB did if they can obtain seemingly unlimited funding from those who know that they will be bailed out if things go pear-shaped?
And the regulatory failure here demonstrates that bank regulation–despite the supposed “reforms” of Frankendodd–can’t even catch or constrain the oldest bet-the-bank strategy in the book. Free banking–no deposit insurance, no bailing out of depositors–couldn’t do worse, and would likely do better.
No, the failure of SVB is not the scandal here. The scandal is the political response to it. This reveals yet again how captured the government is. This time not by Wall Street, but by tech companies and oligarchs that are currently the primary source of Democratic political funding.
A couple of weeks ago the Silvergate story looked juicy, but SVB has put it in the shade. Silvergate also grew dramatically, but on the back of crypto rather than SV tech. It became the main banker for many crypto firms and entrepreneurs. The crypto meltdown did not affect Silvergate directly, but it did crush its depositors, the aforesaid crypto firms and entrepreneurs. They withdrew a lot of funding, and an old-fashioned liquidity mismatch did it in.
In traditional banks, deposit funding is “sticky.” Banks that rely on wholesale funding (“hot money”) are more vulnerable to runs. Silvergate’s funding was not traditional sticky deposit funding, nor was it hot money per se. It was money that was pretty cool as long as crypto was cool, and became hot once crypto melted down.
A run started, but the run was precipitated by a liquidity shock. Simple story, really.
Silvergate’s failure was not a scandal. SVB’s failure per se was not a scandal (except to the extent that our vaunted banking regulators failed to prevent the most prosaic type of failure).
Again–the scandal is the politically tainted response that will have baleful consequences in the future, as the response virtually guarantees that there will be more SVBs in the future.
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