While the world watches with interest the colorful fireworks show over the Kremlin and hotheads predict the first use of nuclear weapons in a military conflict, the Fed once again raises the discount rate by 25 points, and the Russian Finance Ministry expresses concern about the soundness of the American financial and banking systems.
The Federal Reserve and the Federal Open Market Committee (FOMC) announced Wednesday that the central bank will raise the federal funds rate by 25 basis points (bps), as expected by the market. This is the tenth consecutive time the Fed has raised interest rates since the initial 25bp increase in March 2022.
The Fed statement noted that unemployment was low, but "inflation remains high." In the FOMC statement, the committee stressed that "the U.S. banking system is sound and resilient. And this is the main thing, there is no reason to worry.
Meanwhile, in Canada, a parliamentary committee of the federal government decided (https://buildhope.net/ottawa-grants-itself-extraordinary-powers-to-prepare-for-potential-bank-runs-181276.html) to give the government emergency powers to "stop any financial panic in Canada.
That is, not a single bank has yet collapsed in Canada, some parliamentary committee wrote a 430-page summary document in seven days amending the CDIC (Deposit Insurance Corporation, the equivalent of the FDIC in the US) law, on the sole basis that several banks have collapsed in America, and Canada might too.
Imagine a seriously comprehensive document of 430 pages, written in a week by a couple of MPs, that takes into account the severity of a possible banking panic in the Canadian banking market and foresees it, giving the Finance Minister extraordinary, literally military powers, with the ability to break all laws, regulations, budgets, and just about everything, to save the country from a possible panic.
I have had to work on serious documents in my life, and I can tell you that the preparation of a 190-page report on the industry can take several months. Honest students who don't steal other people's work and don't know how to use ChatGPT write their thesis in a year.
Robert Coyosacki wrote his 280-page book, Rich Dad, Poor Dad, for two years and published it in 1997. And some two MPs figured out how to give emergency powers to the government in a week and described it all in detail in a 430-page work. Doesn't this remind you of anything?
Methodological guidelines for preventing a Covid-19 pandemic also quickly emerged.
In Robert Kiyosaki's book, Rich Daddy taught a major lesson:
The main difference between rich people and poor people is that rich people buy assets and poor people buy liabilities. An asset is anything that brings money into your pocket. A liability is anything that takes it away. What's interesting is that the poor and middle class buy passives, which they think of as assets.
All those bright flashes in the sky, wars and other important distractions, constant companions of democracy. When you want to be distracted by bright flashes in the sky, or even a nuclear mushroom, in the meantime someone is doing their own thing, robbing the surrounding gawkers, creating the biggest banking crisis in history, where hundreds of millions will be robbed.
Bernard Shaw once said on this subject:
Democracy is a balloon that hangs over your heads and makes you look up while other people pick your pockets.