Contagion Alert — At Least 5 More Banks on 'Death Watch'

Above, banker J. P. Morgan.

Ever since the U.S.dollar was taken off the gold standard, all we really have are promissory notes. They aren't backed by anything, just promises. Nothing more. 

Newsmax has posted an article by Peter Reagan on the recent bank failures and what they actually mean to everyone who has a bank account of some kind. He also said that five more banks are on a "death watch" as they are also hanging by a thread. 

There are some takeaways to be mindful of.

Here's what really caught my eye in the article:

There’s a big difference between money and credit

Bank failures are not a sign of a healthy economy. They usually lead to a lot of finger-pointing and political posturing.

Let’s rise above that – like the famous banker J.P. Morgan did in his 1912 Congressional testimony regarding the particulars of a financial panic that led to the collapse of dozens of banks. He tried to explain how financial crises work, and the nature of money itself, to the committee. Though he’s most often quoted as:

“Gold is money. Everything else is credit.”

What he actually said, according to the Congressional record, was the slightly less inspiring, “Money is gold, nothing else.”

In the simplest terms, your money in the bank? “Your” money? In accounting terms it's a bank liability. It’s a promise from the bank to pay you so many dollars on demand.

It’s not “money,” in Morgan’s terminology – it’s “credit.” It’s an IOU.

Like any other promise, those made by banks to their depositors can be broken.

Physical precious metals, on the other hand, whether American gold eagles and silver bullion bars are your property.

They are not a liability on someone else’s balance sheet. There are no accounting tricks. Once you purchase them, they are yours.

In J.P. Morgan’s day, the first thing that everyone did during a financial panic was go to the bank and withdraw all their money as gold and silver coins. They knew that paper money was an IOU, an easily-broken promise.

Fast-forward to today. What’s the first thing people do during a financial panic? They still go to banks and take out all their money – but banks won’t hand over gold and silver anymore. (Sometimes they won’t even hand over dollars.)

During uncertain times like these, I encourage you to educate yourself on the benefits of diversifying with historic safe haven assets.

By the way, do you know why the government is bailing out the two banks? Many of the depositors are Democrat donors. 

Glenn Beck posted:

Sen. James Lankford EXPOSED the harsh reality of the Silicon Valley Bank bailout and the disastrous impact it will have on middle America:

"Banks in Oklahoma, in rural towns, are about to pay a special fee to be able to bail out millionaires in San Francisco."

Those "special fees" will be passed down to...us!

Think about that!

To read the full article, go here.