May 23, 2023 - The Truth Central - Dr. Jerome Corsi
36:11
Are More Bank Failures and a Housing Bust on the Way?
Jamie Dimon warns the current Quantitative Tightening policies employed by the Federal Reserve may lead to more bank failures and closures. Is this, however, by design? Does the current leadership want to see smaller banks get swallowed up by larger ones until there is a small amount of such institutions controlling the industry? Meantime, small investors may see some serious problems as the real estate sector is fighting through some issues.Dr. Corsi explores these issues and more on The Truth Central, including how the recent volcano eruption in Mexico can serve as a lesson to Climate Change activists about how nature and our atmosphere actually works.Follow Dr. Jerome Corsi on Twitter: @corsijerome1Our website: https://www.thetruthcentral.comOur Sponsors:MyVitalC: https://www.thetruthcentral.com/myvitalc-ess60-in-organic-olive-oil/Swiss America: https://www.swissamerica.com/offer/CorsiRMP.phpThe MacMillan Agency: https://www.thetruthcentral.com/the-macmillan-agency/Pro Rapid Review: https://prorrt.com/thetruthcentralmembers/RITA: https://members.sayrita.com/truthcentralreaders/Become a supporter of this podcast: https://www.spreaker.com/podcast/the-truth-central-with-dr-jerome-corsi--5810661/support.
Thank you for joining us here on TheTruthCentral.com.
This is my new website, and we are doing a half hour of news every day, every weekday, Monday through Friday.
So, let's get right into it today.
I want to start off with the story which I'm covering With special interest, because of the book I've written on The Truth About Energy, Global Warming, and Climate Change, I'm following all these climate events very closely.
We have a major volcano that is erupting now in Mexico, and this is the kind of thing I think people don't take into consideration about certainly the climate change crowd, which wants to think that everything in the Earth is stable.
It was just the Industrial Revolution, because we had hydrocarbon fuels being burned with the Industrial Revolution that created carbon dioxide, that suddenly the Earth's temperature shot up to alarmingly high degrees.
Well, this is just nonsense.
The Earth has been here for 4.6 billion years, according to science.
The Bible, of course, disagrees, but that's the scientific view.
And we've been through many, many different ages of Earth's history.
First, 80% of Earth, there was nothing living on the surface of Earth, pre-Cambrian.
Last 20% of Earth's history is when life has occurred.
And we've had five major extinctions before human beings were around.
Carbon dioxide is a minor, almost a trace molecule in the atmosphere, and it is not the major greenhouse gas, which is water vapor.
But when we see these volcanoes occur, this one is in Mexico, and it is Really erupting in a massive way.
It's going to throw a lot of volcanic dust all over central Mexico.
It's a, the volcano is called Papo Cate Peti, which is again, these either Mayan or Aztec names, which are very difficult.
Okay, so we have a video on this, and Chris, can we show this?
This volcano has... If we can turn down the sound on that, I can narrate it a bit.
What you're seeing is essentially the...
Volcano is really erupting in a massive way.
This is an airplane flying by and you can see in the distance that the ash is coming out of the volcano and it's hitting a pretty high altitude.
Evidently someone was able to photograph it just as the volcano was beginning to really erupt.
It looks like a first phase eruption in that this is predominantly ash.
It's not ash and molten.
There's no molten of liquid or coming out of it at the moment but if you see
another video which Chris is now playing and again mute it you'll see how much ash is there is over
the whole country and this is going to cover about a third of central Mexico and it's going to be
again we've had these volcanoes occur these are things that people don't take into consideration
as climate events but yet the ash that's thrown into the sky is in a sense going to block the
sun and it has a major effect on These are the kinds of things, if you can imagine, eruptions which occurred for thousands of years, which happened 65 million years ago when we had the volcanoes that essentially ended the dinosaurs.
And in my book, I also say I think the Earth expanded at this time, because we don't have creatures this big around anymore.
There's a good alternative explanation to plate tectonics, which is an expanding Earth.
And again, we like to think in terms of the Earth being stable.
So the idea that the Earth may have expanded dramatically is hard for a lot of geoscientists to accept.
But if you think about it, there's a principle in mathematics, which is a difference in size is a difference in phenomenon.
In other words, you can make a bumblebee a thousand times bigger, it won't fly.
Bumblebee lifts off because of the proportion of weight and the way its wings are designed, and it just works right to fly.
But at a different size, those dynamics don't work.
So similarly, if the Earth was smaller, probably had less gravity, less mass, less gravity, and larger creatures would have been very functional.
Expanding Earth, then these creatures are no longer functional.
because again, the gravity would, these long necks these dinosaurs had, their size,
all fit in a lesser gravitational field.
You can see that when you take a look at the pictures of the US landing on the moon
and the astronauts have to bop around like bunny rabbits, they hit golf balls because they go so far.
Again, lesser gravitational fields would have creatures adapted to that field,
which would probably, in a sense, lesser gravitational would have to be larger
in order to be functional the way we function in this gravitational field.
We're our size because this happens to be functional for the gravity we experience.
Now if we began to have volcanoes of this nature, and if you take a look at the Pacific Rim, the Pacific Rim is a ring of fire and it could and will have massive volcanic activity sometime or other.
This will again be the kind of cataclysmic change That produces dramatic impacts on Earth's climate.
Not just a little bit more carbon dioxide or a little bit less.
Similarly, the Earth goes around the Sun in an elliptical orbit.
Right now we're probably at the most circular of the orbits.
That's why we have the interglacial warming period, which we're in.
But we will go back to an elliptical orbit.
And when we do, as an elliptical orbit, we will be experiencing, once again, an ice age, probably every 100,000 years or so we do.
That may not begin to come on for another 10 or 20,000 years.
It won't affect people alive today.
But again, it won't be dependent on carbon dioxide.
It'll be dependent on the predominant source of heat and light on earth, which is the sun.
And that's something people just on the left don't understand.
They don't want to accept that if the sun burns less strong, which it did in the little ice age and Napoleonic times, we had a little bit of ice age at that time.
And it was the meander minimum, which is sun burning less strong, fewer sunspots, et cetera.
That could happen again.
And we've had medieval warming periods, which do not fit into the narrative of the hockey stick.
Because we had warming periods of time in medieval era when there really was not an industrial age.
It was simply people living in very, very primitive ways compared to today.
But they weren't using hydrocarbon fuels except for burning some wood or coal, but in minor amounts.
And again, it was warm, not because of the carbon dioxide, But because of some unusual circumstances with regards to solar irradiance, most likely.
Now, the second story I think is one I've been covering extensively and will continue to.
But this involves a Houston developer who had an idea.
He was evidently a 61-year-old immigrant from India.
And he essentially got small investors to put money in and they bought, in the housing boom, in the pandemic era housing boom, he was buying various kinds of multifamily developments to rent.
And he was basically saying that, you know, these people were the investors would get returns and he would manage the properties.
He described buying buildings with plans to upgrade units, raise rents, and sell for a profit after three ideas.
He said everybody needs a place to live, so this is a good investment.
Well, it was, except that these investments are highly vulnerable to interest rate increases.
And over the past year, those interest rate increases have crushed his business model as thousands of other similar deals across the country because people can't pay the rents.
And the rents then go into foreclosure.
So in April, this investor lost 3,200 units to foreclosure because the multifamily units are facing the heat.
And this was a Texas development.
They borrowed 230 million to build the buildings.
We called Arbor, Arbor, A-R-B-O-R, Realty Trust.
Which was a public traded mortgage company, and it had to foreclose on the properties because the loans were defaulted on.
This Apple's Way, which was the company doing the development, could no longer finance, pay the interest on the loans taken out to develop the property.
Also, the turmoil in the commercial property market is beginning to I'll create more bank worries as you are finding it's not just Silicon Valley Bank, but smaller banks around the country hold about 2.3 trillion in commercial real estate debt, which does include rental apartment mortgages.
And that's almost 80% of all commercial mortgages held by banks, which is in these, essentially the smaller banks.
With the banking turmoil, you're going to find that many of these loans, which are on office buildings, skyscrapers, business parks, and office properties, have lost value during the pandemic.
And essentially, with these hybrid working place strategies, where people are not going into work every day, maybe even only two or three days a week, The banks have seen the values of these buildings drop.
So when the buildings have to be refinanced, again, someone's going to take a loss.
And if the owners of these buildings cannot handle taking the loss, well, the properties are going to foreclose.
Someone recently foreclosed on some 10 or 11 major commercial buildings in Boston.
This could be a cascading problem, which could again be a cataclysmic event, just like up to the volcano.
You know, people think everything is as normal.
Well, except everything's as normal except for the one day when everything dramatically changes.
And that's when you have a bank crash, you have a stock market crash.
And I'm predicting and saying and warning people that we're headed that way.
I saw an interesting article was being covered.
I didn't put it up on the site, but there is a report out that the CBS News was reporting that the US senators, every senator has been offered an emergency satellite phone.
And the official line of reasoning is that they all ensure redundant and secure means of communications during a disruptive event.
Well, that's raising questions of what kind of a disruptive event is the Department of Homeland Security envisioning.
The Department of Homeland Security advisory said the satellite phones are a tool for responding to and coordinating government services in the case of a man-made or natural disaster that wipes out other communication.
So, you know, people are saying, well, wait a minute, you know, we're going to have a cyber attack here prior to the 2024 election that wipes out communications and we now have new voting changes like we did with the pandemic.
Again, these are things that I think people are feeling very unsettled right now.
With a economy with the, there's still no agreement on the debt.
There's still meeting and discussing, but we could be defaulting, the federal government could be defaulting on payments as early as the first week of June.
Chris, would you like to comment on all this?
I was watching Representative McCarthy talk yesterday.
I believe another gentleman was with him, too, and the name escapes me.
He's the chairman of one of the committees as well.
They were discussing how the fight is still between cutting down spending and not cutting down spending.
It's not necessarily the debt ceiling because that's going to be raised no matter what happens.
Something's going to happen by June 1st.
It looks like a debt ceiling has to be raised out of necessity.
The question is, why is it that continued budgets contain pandemic-level spending?
The Senate is looking at a freeze.
They're saying, well, we'll be okay with a freeze in spending, but that still keeps government, I'll say, waste at pandemic levels.
We don't need that anymore.
Well, once the government spends, it's very hard to stop it from spending.
You can't take it away.
You can't take it away.
And that's the problem.
And we spent trillions of dollars trying to get the economy jump-started again after the lockdown.
During the lockdown, the government was sending out money to corporations and to individuals and extending unemployment benefits just to keep people alive.
People didn't have cash flow.
They weren't working.
So again, we're into a situation where in this advanced industrial state, and I continue to warn everybody, I mean, without electricity, where are you?
And once we get digital currencies, You know, you'll have no value whatsoever if we don't have actual currency that's still used, money in our pockets.
If everything's digital, we're entirely dependent upon the digital remaining active.
Now, I think this is very frightening.
Again, what I'm envisioning in terms of economic downturn, and with Dean Heskin here of Swiss America, I've written a book, it should be out available almost any day now, Chris, show the, very quickly, the page for Swiss America.
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And you should take a look at investments that will buffer against economic downturns, which we're going into.
We'll get back to more of the news.
And by the way, Tim Scott announced yesterday he was going to be running for presidential.
You saw that, I'm sure, Chris.
I think he really doesn't think he's got a chance, but I think he's trying to Position himself to get a little bit more visibility.
What do you think, Chris?
And I thought it was an interesting announcement, but especially with now DeSantis and Trump, we're going to have more candidates coming into the race.
Your thoughts, Chris?
Funny thing is I produce a show for the Project Sentinel and London Centre for Policy Research, as you've been on before.
We have a segment called Culture Wars.
We have a couple of celebrities who are, let's say, of good mind that talk with us.
And a couple of them say, Well, when I mentioned this to them in the beginning of that program, we recorded it on, I believe it was Monday.
They said, two of them said, well, I kind of know who he is, but I'm not sure.
I don't know enough about him to say whether I'd back him or not.
That's why he's there.
A lot of guys run for president when they know they can't win, just to get that name recognition, to get out there in the debates, to get the coverage, and either look to a cabinet position, look to a position on the ticket, or perhaps run 8 to 12 years down the road.
Or even to increase their ability to get campaign donations because they have higher visibility, they're seen, they're known, they enter themselves into another level of debate.
I mean, everybody thinks, well, become a senator or become a congressman, you're suddenly well-known and famous.
Well, you're not, because until you do something in Congress that's newsworthy, Even Jack Kennedy had the McClellan Committee hearings, which was the Teamsters moving into the organized crime, moving into the unions, the Teamsters.
And that was a big story in 1957.
So they're constantly looking, senators and congressmen, congresswomen, for something that will position them.
I don't know if we can say men and women anymore, but there you are.
It's a double-edged sword, though, because you wind up either raising your profile or exposing yourself.
You've got to take the risk, and these people are publicity hounds, as it were, so most politicians look for causes or opportunities to get themselves noticed by the news media.
Let's switch to the, go ahead Chris, I didn't mean to cut you off.
And then there's the Gary Hart types, the ones that look good and do pretty well when it comes to getting themselves out there, and then of course realize there's enough skeletons in their closet to kind of hurt their chances.
So some politicians might be better to stay in the, I wouldn't say background, but stay in the moderate name recognition category.
Or just not have skeletons in your closet.
That would help too.
Okay, so now Jamie Dimon, who is the head of JPMorgan Chase, is warning that if the Federal Reserve goes into quantitative tightening, it's going to lead to more bank failures.
In other words, I think we're going to see a massive crisis in regional and small banks, community banks, which hold right now a lot of mortgage loans, a lot of bonds that were issued, treasury bonds, at very, very low interest rates.
If these loans are going bad or if the interest doesn't lower, I don't think it's going to.
That's what Jamie Dimon is saying.
He's saying that interest rates are going up and with Fed funds at 5.5% and money market funds at that level, these smaller banks can't compete for deposits because they can't afford to pay 5.5% for their deposits.
percent for their deposits. So essentially what Jamie Dimon is saying is we could have a bank run
at any time with many of these small banks.
It could have 300 to 500 small banks failing at the same time.
And under quantitative tightening, the Federal Reserve is trying to get rid of all the debt that it's bought, the treasury bonds, the mortgage-backed securities, try to reduce its balance sheet.
During the pandemic, the Federal Reserve's balance sheet went up to $4.6 trillion.
I quite frankly think the Federal Reserve is probably not solvent itself if all of its assets were marked to market.
But if we begin to see quantitative tightening, what Jamie Dimon is saying is that the deposits are going to shrink in these small banks.
And he is basically seeing that the Federal Reserve has a lot of money lent to money market funds, to money funds, of $2.3 trillion.
And essentially, people begin to think, well, where can I get good rates?
And the bank rates are higher than they've been in a long time.
Many banks are not gonna be able to compete at this level.
The Federal Reserve, which now has a bloated balance sheet because of all the trillions of dollars of our debt that it's bought to finance the debt, The Federal Reserve is in a difficult position.
They need to get rid of some of these in order to remain more in the kind of financial balance you would expect.
You can't just have your assets be government debt priced at low rates when in fact we're in a higher interest rate environment.
And what Jamie Dimon is basically saying is the Federal Reserve is not going to be able to stop raising rates.
Because inflation is continuing.
Of course it's continuing because we're continuing to print money.
So I think we're into a situation where we're going to be quickly seeing a massive economic downturn.
And I'm not anxious for that to occur, but I think it's definitely coming.
Now, I also want to cover this story.
This was something that was on the Washington Post today.
You know, Zelensky's going around on this big tour and he's trying to raise money.
He wants F-16s to fight, to be given to Ukraine.
He wants to attack Russian areas and Russia.
Basically, this Ukraine war is a loser for Ukraine, NATO, and the United States.
This town Bakhmut was just taken.
And the pictures in the Washington Post today are startling because they have a series of pictures of what Bakhmut looked like before the Russian invasion and now what it looks like.
This was a pretty town that had like 70,000 inhabitants.
It was known for, basically, it had salt mines, they had a sparkling wine that it was known for, a home to about 70,000 people.
But for months, both Russia and, has been attacking it both by missiles and shelling it.
And so the pictures here are dramatic.
You can see in the Washington Post, they're showing pictures of the shelling.
So you've got this apartment complex and just one after the other, these explosions are coming in and hitting the buildings, which destroys the buildings.
The buildings set on fire and they burn internally.
So you might have the shell of the building lasting, but again, everything is rubble, all destroyed.
The infrastructure is destroyed in these cities.
So you don't have water, you don't have electricity.
You don't have any gas lines.
You have fires that burn out of control.
Russia is destroying systematically the cities in Ukraine, which were once beautiful, very nicely inhabited, very middle class, but again, a nice comfortable style of life for the Ukrainians.
What's happening here is that the money we're sending in, billions and billions, with not very careful auditing, is just going to get stolen.
Ukraine's one of the most corrupt countries in the world.
And from what we've seen about the Biden corruption, we have good reason to think that some of that money will be stolen by our own politicians.
And the destruction of Ukraine is an unreported story.
Because Ukraine is now uninhabitable in these cities that have come under Russian attack.
You have to tear these buildings down.
They're structurally unsound.
Basically, you have to tear the whole city down.
It's going to look like Hiroshima.
And by the way, we're meeting in Hiroshima here, this G7 meeting, which was the site of the first atomic bomb in World War II.
I think we're closer to World War III than we've ever been.
We're closer to a nuclear exchange in Ukraine.
And what I'm suspecting is that the next target for Russia will be to attack Kiev or Cheb or however these leftists call it these days.
Kiev is what I recall it being called.
At any rate, that's the capital of Ukraine.
It's not in the eastern part of Ukraine.
And if Russia takes Kiev, this war is pretty much over.
And I think it is over.
I don't think we're going to have a big counteroffensive.
Already, Ukrainians are backing up and saying, well, one counteroffensive isn't going to settle anything.
Well, I don't think they're going to gain that much territory.
But you'll have Zelensky continuing to ask for more money, more military, more weapons, wanting to attack Russia.
This is extremely dangerous.
Chris, you want to comment?
It's funny you mention the pronunciation of Kiev.
I always learned it was Kiev when I was taking international politics courses back in school.
We hear it all the time.
Recently, you heard Joe Biden pronounce it Keeve on a regular basis.
Since then, I've actually heard news agencies switch the pronunciation to Keeve to run defense for him.
Well, you get the left wanting to change all these pronunciations and names and pronouns and everything else.
I mean, you know, the language is getting completely altered in ideologically subtle ways and sometimes not very subtle.
I think, you know, as I look at the American people, I was watching Baseball game the other day and saying, these are not people who are woke.
These are not people who are out worrying about gender.
I'm confused about gender.
I travel around.
I don't see a lot of people confused by gender.
And of course, I'm not going to universities.
I'm going to throw this at you.
If there was a trans Who could hit 40 home runs and play great defense at second base or shortstop.
I don't think anybody care what their pronouns are or who or what they're or what they want to be.
They just want to see a good player.
Well, unless they wanted to play in a dress.
Oh, there's a uniform involved, so I guess you can't really do that.
Even the Women's Professional Baseball League had to play in their own uniforms.
Right.
So look, I mean, this gender nonsense, all these things are the kinds of culture war corruption that we're in.
And we'll be out later this year my book on Neo-Marxism, which is the second in this Great Awakening trilogy.
The first book was the climate book, Truth About Global Warming, Energy Global Warming and Climate Change.
And these books are up on the website too.
If you take a look at the website, You can see we've got the books, so you can see the various books I am producing.
That's the Energy Book.
These are available, links go to Amazon.
This one is in press right now, will be out shortly.
You can also see we list on the homepage the different places where you can See the show.
You want to want to highlight those, Chris, and explain it to people?
Oh, you can see the show actually here on our basic podcast.
If you click on the podcast, you're going to find the actual audio podcast.
You can also see this on the right column here on on our website, the truth central dot com.
If you're listening right now, you can go to that and find out what we have.
We have a rumble rumble channel on our YouTube channel.
Wherever you get your audio podcasts, from Spotify to iHeartRadio to Apple to Google, tune in GeoSong CastBox.
We're over plenty of outlets, including Amazon Music.
In fact, if you ask for The Truth Central on Amazon or via Amazon Alexa, she will play it for you.
And we're also now on Twitter.
We're posting on The Truth Social, CloudHub, a number of different channels.
And we're trying to increase our social media presence.
The broadcast is also being posted in shorts on YouTube.
Of course, YouTube will never allow us to monetize, and they're always going to be a problem.
But at any rate, we're on plenty of channels, and the show, I think, is gaining in viewership.
We'll be doing more to publicize it.
I intend to have more guests coming on.
We're trying to get some additional guests this week.
I see the dog likes that.
The dog's in favor of more guests.
And I've always liked dogs, and by the way, My Vital C, our other sponsor, please show that.
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No, I'm not taking the PET version.
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And we've got pets.
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I know our cat and dog love them.
And I'm very, very pleased to be having these.
We're going to be doing some telemedicine sites.
We're going to be opening a GetLongevityMeds.com soon.
And I'll have various telemedicines.
I have been in telemedicine.
I'm going to continue to be in telemedicine.
I've worked very hard to create a very long, stable administrative platform.
And we're going to be launching quite a few telemedicine programs in this coming year and the rest of this year and next year.
So Chris, any final comments before we wrap up?
Let's see what happens in the future.
I'm curious to see how Tim Scott's going to do in the future debates and whether this works out for him in the next 10 to 15 years.
And DeSantis pointed out something interesting earlier.
I guess last night he was speaking at a religious broadcaster's event.
He pointed out that we might see in the next eight years or the next two terms of the presidency some turnover in the Supreme Court, just like we did during the Trump administration.
So that might be something voters should take into account when 2024 rolls around.
And we'll continue to cover this climate agenda, which I think is Self-destructive.
Lowering our lifestyle and ending capitalism, I think, is the real goal of the climate movement.
Carbon dioxide.
Climate scientists know, the legitimate climate scientists know, that carbon dioxide is not a major threat to global warming.
And, in fact, we're actually enjoying an interglacial warming period.
We should be happy it's warm.
It's a lot easier to live.
We thrive in warmth.
And by the way, carbon dioxide, we exhale and plants love it.
We have a green Earth because of carbon dioxide.
So this is Dr. Jerome Corsi, my producer.
Chris, today is Tuesday, May 23rd, 2023.
In the end, God always wins.
God will win here too, despite all the insanity and craziness we're going through, God will win.
I sometimes fear what we'll have to go through before God wins with all this craziness.
But then again, I think life has always been fairly crazy and chaotic.
And to follow this volcano, I think it's extremely interesting to follow chaotic and cataclysmic events because it shakes up our understanding of normality.
And I'm hoping they didn't issue these emergency satellite phones to Congress in anticipation of another pandemic or another major crisis to have more social control.
At any rate, this is Dr. Jerome Corsi, The Truth Central dot com.
