{"id":53893,"date":"2020-06-27T07:41:34","date_gmt":"2020-06-27T12:41:34","guid":{"rendered":"https:\/\/olduvai.ca\/?p=53893"},"modified":"2020-06-27T07:41:37","modified_gmt":"2020-06-27T12:41:37","slug":"how-surging-bank-deposits-may-collapse-the-u-s-dollar","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=53893","title":{"rendered":"How Surging Bank Deposits May Collapse the U.S. Dollar"},"content":{"rendered":"\n

How Surging Bank Deposits May Collapse the U.S. Dollar<\/a><\/h3>\n\n\n\n
\"dollar<\/figure>\n\n\n\n

In another episode of \u201cStrange 2020\u201d, banks have become flush with deposits. But not in the way you might expect.<\/p>\n\n\n\n

According<\/a> to CNBC, \u201cA record $2 trillion surge<\/strong> in cash has hit the deposit accounts of U.S. banks since the coronavirus first struck the U.S. in January.\u201d<\/p>\n\n\n\n

In one month, deposits grew by $865 billion, which beat the record for an entire year<\/strong>.<\/p>\n\n\n\n

You can see the incredible jump in deposits in the official<\/a> chart below, starting as the pandemic hit earlier this year:<\/p>\n\n\n\n

\"fred\"<\/figure><\/div>\n\n\n\n

When you see such a large deviation from the norm, you don\u2019t have to have a degree in economics to suspect something is fishy. According<\/a> to CNBC, the Fed<\/a> appears to be partly responsible for this anomaly:<\/p>\n\n\n\n

The Federal Reserve began a barrage of efforts to support financial markets, including an unlimited bond-buying program. And an uncertain future prompted decision-makers, from two-person households to global corporations, to hoard cash.<\/p><\/blockquote>\n\n\n\n

Fox Business notes<\/a>, \u201cAbout two-thirds of the [$2 trillion in deposits] flowed to the nation\u2019s biggest banks.\u201d So if $1.34 trillion in deposits flowed from retail, asset managers, government programs like the Paycheck Protection Program, and big company lines of credit over the last five months or so, and only to big banks\u2026 that should raise suspicion.<\/p>\n\n\n\n

But that much cash flowing into big banks has another potentially big consequence\u2026<\/p>\n\n\n\n

Crash of the U.S. Dollar Could Be \u201cInevitable\u201d<\/strong><\/p>\n\n\n\n

The U.S. dollar may be headed for trouble in the near future, and the CNBC piece<\/a> finishes with one possible reason why:<\/p>\n\n\n\n

A lot of banks are saying, \u201cThere\u2019s frankly not much we can do with it right now\u201d\u2026 They have more deposits than they know what to do with.<\/p><\/blockquote>\n\n\n\n

If banks have trillions of dollars, but there isn\u2019t anywhere for that money to go, that has a number of potential outcomes.<\/p>\n\n\n\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

How Surging Bank Deposits May Collapse the U.S. Dollar In another episode of \u201cStrange 2020\u201d, banks have become flush with deposits. But not in the way you might expect. According to CNBC, \u201cA record $2 trillion surge in cash has hit the deposit accounts of U.S. banks since the coronavirus first struck the U.S. in January.\u201d In one […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[18769,426,702,839],"class_list":["post-53893","post","type-post","status-publish","format-standard","hentry","category-economics","tag-birch-gold-group","tag-inflation","tag-savings","tag-us-dollar"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53893","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=53893"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53893\/revisions"}],"predecessor-version":[{"id":53894,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53893\/revisions\/53894"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=53893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=53893"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=53893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}