🚨 $300 TRILLION Derivative Crisis as U.S. Banks Prepare for Bail-Ins

300 trillion dollars. That's how much risk is hiding inside of U.S. banks right now that we know of. According to new data, U.S. banks are now sitting on 300.5 trillion dollars of derivative exposure. The same financial weapons of mass destruction that almost brought down the entire global economy back in 2008. But if you thought that derivatives were gone or that regulations had somehow brought them under control think again they didn't disappear they've evolved into a pile that's bigger more complex and buried under layers of financialization designed to hide their true risk in fact almost a year ago to the day i reported on derivative exposure growing in the us which at the time had just hit 223 trillion dollars meaning that today in just one year's time, that risk for U.S. banks has grown 35%. We're talking about hundreds of trillions of dollars worth of interconnected bets built on a foundation of debt, leverage, and speculation. It all ties back to your bank. But you might be thinking, okay, well, I know how this ends. Back in 2008, they bailed out the banks. But what if I told you that since then they've changed the rules now we were told that these rules were designed to protect us to prevent another bailout but what they didn't tell you is that their plan uses your deposits to backstop their failing banks and it's called a bank bail in and yes it is already legal here in the united states but the trigger well it might be starting right now with something as simple as a car payment. Over the last week, warnings have been issued from the second largest category of borrowing behind mortgages, auto loans, specifically subprime auto loans, where loans were made to borrowers who are already considered high risk and delinquencies are on the rise. But this isn't just about those missing their car payments. It's about how it ties back to the entire financial system. What most people don't realize is that when someone takes out a car loan, that debt doesn't just stay with the company. Similarly to what we saw with mortgages leading up to 2008, these loans can be picked apart, bundled back up, and sold to investors, specifically pension funds, insurance companies, and investment firms, which works fine as long as the payments are on time but what happens if enough of them are not it's no secret that americans are struggling financing everything from groceries to basic necessities on credit but as prices continue to rise there is one essential item that has been hit especially hard the car nearly 83 percent of americans rely on a car to get to and from work but yet the average new car payment is $800 a month. And with one in four Americans carrying an auto loan, well, more and more lenders were financing people who could not afford these loans, coming up with different ways, ignoring credit, extending the contract terms. And it's easy to say, well, maybe they shouldn't have taken out a loan that they can't afford, which is true. But even the used car market has become completely unaffordable for most American families who, again, rely on this transportation to get to and from work. And as the lenders were happy to make their profit and turn out these loans, what were they doing? Slicing and dicing, rebundling the loans to make them look safer on paper. That's where U.S. banks, shadow lenders, private equity would take pieces of these loans, bundle them back together as something else entirely, and stamp them with that AAA top of the line approval rating. All of this risk was disguised as stability. And it's from those repackaged debt instruments that more derivative exposure was built on top of. Does any of this sound familiar? Because the truth is it should. It's exactly what happened with mortgages back in 2008. It wasn't just about people defaulting on their homes. It was about the way that these loans had been sliced and diced and repackaged and blown into something much bigger than the original asset itself. See, those banks and those issuers don't care about the assets failing. They just care about getting their profit that comes from everything else. But when the underlying assets start to crumble enough at scale, that's when everything else starts to come crashing down. Today, the signs are everywhere, but the only difference from 2008 is what happens this time when it all comes crashing down. See, last time regulators knew that the banks were going to fail again, that it was only a matter of time that their papering over of the system would keep everything in place. Since they couldn't prevent the next crisis, what they did instead was change the rules to prepare for the next crisis. Two very different things. Specifically, they created a framework where unsecured creditors were responsible for absorbing the losses when a financial institution fails. And if you're wondering, what does this have to do with me? Think about your deposits. When you deposit into your bank, that money is technically no longer yours. Yes, you can see a number on the screen. You can move the money around. You can withdraw it as long as things are operating normally. But legally, when you deposit, it represents money that the bank owes you, meaning that you now are classified as a creditor. Now, again, under normal conditions, that distinction, that technicality seems almost meaningless because it doesn't change how you operate in your daily life but under a crisis that's when that technicality begins to matter a lot because they built a tool for the next crisis and it's called a bail-in something that was made legal in 2010 under the Dodd-Frank Act where failing institutions can use unsecured creditor deposits your deposits to make the failing bank whole again that's what they actually created Now, we were told that the system would be safer, that these new rules and regulations were designed to protect us and prevent a crisis. But the truth is, derivative exposure alone for U.S. banks has grown 35% in just the last year. And as we move closer to the next great bank failure, we've seen how this plays out in other countries like Lebanon. In 2020, Lebanon was facing sky-high inflation and a banking crisis. The government could not afford a bank bailout. So what did they do overnight? They froze the ATMs, they locked the doors and they shut down citizens accounts. That was almost seven years ago. And the citizens are just now today fighting to get their funds back. Can you imagine not being able to access any of your funds for the next seven years while the nation goes through a period of hyperinflation? The same thing happened in Cyprus back in 2013, when two of the country's largest banks collapsed one of the two banks went under taking the deposits with it wiping out savers overnight the second bank enacted a bail-in on anyone with over a hundred thousand dollars they took half of whatever one had to make the bank whole again and the depositors had no say no recourse but if you think this can't happen in the U.S. think again too many people i talk to say, well what about the FDIC the Federal Deposit Insurance Corporation, aren't I protected by them? But the truth is the FDIC is nothing more than a promise backed by the full faith and credit of the United States government, what they actually have is 157 billion dollars. Now 157 billion might sound like a lot but it's not when you compare it to the 11 trillion dollars that they insure Meaning if the system had real losses today and they had to pay out their depositors, people would be getting paid out about a penny, just over a penny per dollar insured in their accounts. And trust me, I understand how insurance works. They don't need to have every single dollar for dollar accounted for. But if one too big to fail or two midsize banks went under, that fund is completely wiped out. So what do they do during crisis? Well, they already have it all figured out. And again, you don't have to take my word for it. You can hear it directly from the FDIC themselves. Right. I mean, it's important that people understand they can be bailed in, but you don't want a huge run on the institution. But I mean, they're going to be. I almost think you'd scare the public if you put this out. Like, why are they telling me this? Should I be concerned about my bank? I think you've got to think of the unintended consequences of taking a public that has more full faith and confidence in the banking system than maybe people in this room do. These are the people who are in charge of protecting your deposits, sitting around in rooms laughing at the American people for having more faith in the banking system than they do, and knowing that bank bail-ins are legal and ready to be deployed, but wanting to make sure the American people have no idea. I don't know about you, but it doesn't exactly instill confidence for me as we head towards the next crisis. The truth is, risk is continuing to climb, not only because derivatives are growing in scale, but because the American consumer continues to default and the risk of underlying assets going under that all of this financialization has been built on top of is continuing to grow. And as that risk grows, the risk of the next bank failure of the crisis that you and I will be expected to foot the bill on grows with it. Now, I don't know about you, but this whole thing makes me sick to my stomach. It's never been designed to protect you and I, the American people. It's always been designed to protect the system and those at the top who benefit. Now, many people are going to be caught unaware when all of this happens, which is why I always encourage everyone to share these videos with loved ones, with family, with a friend, because there is strength in numbers and the more knowledge we can get out there, the better. But I also know many of you are probably wondering, well, what can I actually do to prepare? And for me, the answer is simple. It means make sure that you don't have everything inside of their system, that everything you own can't be frozen or seized with the push of a button, because when these things happen, they happen fast. Now, for me personally, again, I don't want to take any chances here. I have my plan in place. I have my insurance policy in place. And for me, that involves physical gold and silver, right? If I hold this right now and tomorrow the banks go under and they're freezing and seizing deposits, I'm protected. Everything that I hold, I know I own. If you're thinking right now about your own financial situation and everything you own are digits on a screen, that might be the time to rethink your strategy. Now, here at ITM Trading, we are a full service gold and silver dealer, but we work with people to create a custom plan, one that makes sense for you, for your goals, for your concerns, and what's coming next so that you can be best protected. I encourage everyone to have an execution plan because you quite literally have everything to lose without one and everything to gain with one. Now, if you want to take that first step, talk to one of our expert analysts, ask them any questions you have, and make sure that you're protected and positioned properly. call us at the number below right now while you're thinking about it or you can click the link in the description to set up a time while it is action that will truly protect you the level of care that we take when working with all of our clients is what makes us different so if you want to find out for yourself what that looks like again call us at the number below click the link in the description either way i hope to hear from you soon and in the meantime thank you so much for being here. I'm Taylor Kenney with ITM Trading, your trusted source for all things gold, silver, and lifelong wealth protection. Until next time.