When there is fear in the air, banks start getting really tight with their money, and right now there is lots of fear in the air. A major credit contraction would be a nightmare scenario for the economy, and as you will see below, there is evidence that this is already starting to happen. Hopefully our leaders can find a way to calm things down, because we all remember what happened during the last financial crisis.
Banks decided to substantially tighten their lending standards and that really deepened the economic downturn. So our leaders should be doing what they can to support the stability of the system, but in so many cases they end up doing just the opposite.
For example, on Wednesday U.S. Treasury Secretary Janet Yellen publicly admitted that blanket coverage of all uninsured deposits in U.S. banks is not even under consideration…
In response to a direct question about whether the Treasury would circumvent Congress to insure all deposits, Yellen replied, “I have not considered or discussed anything having to do with blanket insurance or guarantees of all deposits.”
When she made this statement, she poured even more lighter fluid on small and mid-size banks all over the country.
Wealthy individuals and large companies have already been pulling billions of dollars out of such banks, and a lot more money will inevitably be pulled out in the days ahead.
Now that these banks are bleeding deposits at an unprecedented rate, what do you think their approach to lending will be?
Needless to say, they are going to be extremely averse to taking risks at this point.
And that means that lending standards are going to be getting a lot tighter.
In response to a tweet in which Joe Biden touted the accomplishments of his administration, Elon Musk warned that “the banks are melting”.
Umm … the banks are melting
— Elon Musk (@elonmusk) March 23, 2023
Musk is quite correct.
Our banks are definitely in the process of melting, and hundreds of them could soon be in very serious jeopardy.
And just to make sure that hordes of banks will soon be teetering on the brink of disaster, the Federal Reserve hiked interest rates once again this week.
As CNN’s Richard Quest has pointed out, our banks “are stuffed to the gills with these government bonds”, and every time rates go up those bonds become even less valuable…
Quest said, “Now, if inflation was your goal and your number one target, then you’d have gone 50 [basis points]. But, obviously, the overriding concern today is the banking sector. And remember, Zain, the problem with the banking sector is that all the banks are stuffed to the gills with these government bonds. Raise the interest rate, and the bond becomes less valuable. So, even today’s action at 0.25% makes things that little bit worse for the banks.”
Later, he added, “More banks are going to go out of business. More state and regional banks in the United States will need to be resolved — to use the technical phrase — they’ll be taken over, they’ll be wound up, they’ll be taken into ownership, all sorts of things.”
So is there evidence that all of this banking turmoil is starting to directly affect the behavior of U.S. consumers?
Well, it appears that credit card transactions are already starting to tumble quite dramatically…
As Citi’s Paul Lejuez writes in the latest “Citi’s Credit Card Insights” report (available to professional subs), the bank’s credit card data for the 16 sub-sectors it tracks show that total spending in March wk 3 (ended 3/18/23) decreased 10.3%, a big deceleration vs March wk 2 (-6.8%), and driven by a high-single digit decline in transactions. Ex-Food, spending decreased even more, tumbling by 13.0% vs -8.1% in March wk 2.
As Lejuez notes, “This was the first week of data following the disruption within the financial sector, and we were curious if it might have had an impact on the consumer. It sure did” and as Citi goes on to note, the third week of March, and the first week after America’s regional banks imploded, “was the biggest decline in total retail spending we have seen since the pandemic began (April 2020).”
As economic activity slows down, companies all over the nation will be forced to slash payrolls.
We have already been witnessing a tsunami of layoffs in recent months, and it appears that this tsunami is gathering even more momentum.
For example, Walmart has just announced that it will be giving the axe to hundreds of e-commerce fulfillment workers…
Hundreds of workers at five U.S. Walmart facilities that fulfill e-commerce orders are being asked to find jobs within 90 days at other company locations, a spokesperson confirmed to Reuters.
About 200 workers at Pedricktown, New Jersey, and hundreds of others at Fort Worth, Texas; Chino, California; Davenport, Florida; and Bethlehem, Pennsylvania were let go due to a reduction or elimination in evening and weekend shifts, the spokesperson said.
And Accenture just announced that it will be laying off a whopping 19,000 workers worldwide in the months ahead…
Professional services company Accenture plans to cut 19,000 jobs worldwide over the next 18 months in order to trim costs amid the tumultuous economic environment.
Most of the cuts will impact those working in the company’s non-billable corporate roles, Accenture said in a Thursday filing with the Securities and Exchange Commission (SEC).
Even Disney is being forced to slim down. In fact, we are being told that the coming wave of Disney layoffs in April will be a “bloodbath”…
With Disney’s April 3 shareholder meeting — a virtual affair this year — less than two weeks away, some clarity is emerging about the company’s plans to reduce staff and cut costs.
Insiders tell Deadline that multiple rounds of cuts are being prepared. The first one is being targeted for late March, likely next week, we hear. (March 30 or March 31 have been floated as possible dates, but that has not been confirmed.) According to sources, there will be a big wave in late April, described as “the big one” or a “bloodbath,” when a large portion of the cuts are expected to come.
Needless to say, this isn’t normal.
We haven’t seen anything like this since 2008, and every month this crisis just seems to escalate even more.
You know that things are bad when one of the largest employment websites in the entire world starts conducting mass layoffs…
Job search platform Indeed announced on Wednesday that it plans to lay off 2,200 employees, or roughly 15% of its staff.
Indeed CEO Chris Hyams said in a letter shared with employees that the cuts come from nearly every team at Indeed and Indeed Flex, noting that the decisions were carefully made with human resources, the legal department, and Diversity, Equity, Inclusion and Belonging teams.
As economic activity slows down, it is inevitable that many more Americans will suddenly lose their jobs.
Just hope that it doesn’t happen to you.
We have been anticipating that a major economic meltdown was coming, and now it is here.
Unfortunately, most Americans still assume that our leaders know exactly what they are doing, but the truth is that way too often they are taking actions that are making our problems even worse.
***It is finally here! Michael’s new book entitled “End Times” is now available in paperback and for the Kindle on Amazon.***
About the Author: My name is Michael and my brand new book entitled “End Times” is now available on Amazon.com. In addition to my new book I have written six other books that are available on Amazon.com including “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”. (#CommissionsEarned) When you purchase any of these books you help to support the work that I am doing, and one way that you can really help is by sending copies as gifts to family and friends. Time is short, and I need help getting these warnings into the hands of as many people as possible.
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Article cross-posted from The Economic Collapse Blog.
Why Bullion Beats Numismatics and Collectible for Your Safe or IRA
Precious metals continue to attract Americans seeking reliable ways to protect their wealth amid inflation, geopolitical risks, and stock market swings. Whether stored in a home safe or held inside a self-directed IRA, physical gold and silver deliver tangible value that paper or digital assets often lack. Yet investors must choose carefully between bullion—pure bars and coins valued mainly for their metal content—and numismatics or collectibles, where rarity, history, and collector demand heavily influence pricing.
Advisor Bullion serves as a dependable source for straightforward, high-quality bullion. The company specializes in physical gold, silver, platinum, and palladium, emphasizing transparent pricing and products that deliver maximum metal content for every dollar spent. This approach makes it ideal for both personal holdings and retirement accounts.
Bullion consists of refined precious metals in standard forms like one-ounce coins (American Gold Eagles, Silver Eagles, Canadian Maple Leafs) or bars. Their value tracks closely to the current spot price of the metal. A typical gold bullion coin trades near the live gold spot price plus a small premium. This structure keeps costs clear and predictable.
Numismatic coins and collectibles add substantial value from factors such as age, rarity, minting errors, or historical significance. A pre-1933 U.S. gold coin or graded proof piece can carry premiums of 30%, 50%, or even 200% above melt value. While this appeals to hobbyists, it creates complexity. Pricing depends on subjective grading, collector trends, and auction results instead of daily spot prices.
For investors focused on wealth preservation and retirement security rather than building a collection, bullion often delivers better results.
Lower Costs and Better Liquidity for Home Storage
When keeping metals in a home safe or private vault, liquidity and efficiency count. Bullion offers clear benefits:
- You acquire more actual gold or silver per dollar invested. Numismatics divert a large share of your money into rarity premiums and massive sales commission, reducing your metal exposure.
- Selling bullion involves tight bid-ask spreads, so you recover nearly full spot value with minimal fees. Collectibles require finding the right buyer and may sell at a discount if demand for that specific item weakens.
- Bullion prices remain transparent and update with global spot markets. You can track gold near current levels or silver accordingly and know exactly where your holdings stand. Numismatic values are priced by the Gold IRA companies with hefty margins applied.
- Standardized coins and bars store efficiently and divide easily for partial sales. Rare coins often need protective slabs and controlled conditions, adding hassle and expense.
- Bullion enjoys worldwide acceptance. A 1-oz Gold Maple Leaf or Silver Eagle sells quickly to dealers anywhere. Niche numismatic pieces may appeal only to limited buyers, slowing liquidation when speed matters.
In times when quick access to value becomes important, bullion’s simplicity stands out.
Stronger Fit for Precious Metals IRAs
Precious metals IRAs continue gaining traction as investors diversify retirement portfolios beyond stocks and bonds. IRS rules permit certain bullion products in self-directed IRAs if they meet purity standards (.995 fine for gold, .999 for silver) and are held by an approved custodian. Eligible items include American Gold and Silver Eagles plus many generic bars and rounds from recognized mints.
Numismatic and most collectible coins generally face heavy scrutiny from custodians due to valuation disputes and elevated markups. These higher premiums mean less actual metal ends up working inside the account.
Bullion avoids these issues. Its value links directly to verifiable spot prices, which simplifies reporting and lowers the risk of regulatory challenges. More of your IRA contribution purchases real metal instead of dealer profits or speculative upside. Over time, owning additional ounces that appreciate with the metal itself can create meaningful outperformance compared with high-premium alternatives that deliver fewer ounces.
Regulatory guidance from the CFTC and state securities offices repeatedly cautions against aggressive sales of expensive numismatics or “semi-numismatic” coins for IRAs. For retirement planning, transparent bullion from established providers reduces risk and aligns better with long-term goals.
How to Get Started with Bullion
Begin by clarifying your goals. Are you protecting savings in a safe, or moving part of a retirement account into a precious metals IRA? Focus on the number of ounces you can acquire at current prices rather than chasing marked-up collectibles.
Diversify sensibly: use gold for core preservation and silver for its blend of industrial and monetary qualities. Mix coins for easier divisibility with bars for lower per-ounce costs on larger buys. Arrange secure storage—whether at home with proper insurance or through professional facilities.
As economic uncertainties linger and faith in conventional assets erodes, bullion continues proving its worth as a dependable store of value. Its direct approach avoids the hype that sometimes surrounds collectible markets and keeps the focus on the metal itself.
For investors prepared to strengthen their portfolios, Advisor Bullion supplies the expertise and selection needed to acquire high-quality bullion efficiently. Whether building personal holdings or integrating metals into an IRA, their emphasis on transparent, investment-grade products helps secure more ounces today that support greater financial security tomorrow. In a complicated financial landscape, bullion’s clarity and reliability make it the smarter foundation for protecting what matters most.
The article is about worldwide banking collapses, so how does it make sense to allow gold ads for self directed IRAs in which those companies “hold” your gold? How could anyone trust that when it hits the fan, you think the guy in somewhereville, CALI is going to give the gold or the money back? I feel sorry for all the people who think in this environment they should buy a bunch of gold and never take possesion of it or let someone else take possession of it. We have seen that these entities like Credit Suisse and SNB have no regard for rules they once agreed to, so why would any other financial institution at this point, especially if they can get away with it!
Are you questioning gold investment companies like Kitco and GLD?
One ponders how this credit retraction will affect the real estate market, and to what extent.
Between Credit card debt and auto loan debt along with student debt, if enough people are laid off and the jobs are disappearing by the thousands, pretty soon all that debt with hit a brick wall and no one will be paying their bills except for water and electricity. House payments and all other debt be damned.
This is exactly what led to the 08 crash. The FED raised rates at the same time gas was going for around $5 a gallon. What do you think homeowners would or could do? They opted to buy gas to get to work instead of making their toxic home loan payment that just went up about 35 to 40%.
We have now entered that very same scenario but 10 times worse, because our house of financial cards is so flimsy it will be blown away again because of very bad economic policies, such as the United States losing our Reserve Currency Status to the growing BRICS assembly of nations.
Biden has essentially, in his two years in office, destroyed our economy. We have no idea who is actually running our government because Biden is so far gone it is obvious to us as well as the rest of the world that he is not the one calling the shots. AND, the ones who are calling the shots were not voted into position by the people, they are appointees from the Affirmative Action line-up of morons who have no idea of the consequences of their directives.
Let me take a stab at this. The Marxist Globalists have overthrown the government. That is why every move of Traitor Joe Biden seems inept. That is why no Senator has tried to impeach the administration EVERY DAY, prosecute, and throw them in jail. Mass outside on the front steps EVERY DAY and force the MEDIA to investigate. Elections are stolen or fixed forever. It’s done. “Climate Change” bankruptcy, Electric cars, clown military, endless war, poison vaxes, Ukraine money pit, Taiwan money pit, broke banks, Cloward-Piven-Obama-overloading of the system, border invasion and culture erasing. We are not yet “building back better.” You have to demolish everything first, including religion, identity, freedom, and common sense. {Baphomet tattoo: “Solve et coagula.”} We either surrender over the phone {big guy gets 10%}, or we commit to “You will own nothing, and you will be happy.”
Yes, and my town just raised my property taxes. Can I sue?
Musk is wrong. The banks are not melting. They are lining up for their next wefare check.