The economist, Alexander Nazarov, believes that the banking crisis in the United States will continue, and as an indication of that, he pointed to the decline in the stocks of two American banks.
The expert said in a post on his Telegram channel today, Tuesday: “The banking crisis continues in the United States, and the shares of some banks continue to decline and may go bankrupt in the near future. The total size of their assets is approximately equal to the size of the assets of the recently bankrupt First Republic.”
He added that the United States will start printing money for two reasons, the first to finance the budget deficit and the second to secure American deposits.
The veteran expert stated that the US Deposit Insurance Agency has only $125 billion of the total funds deposited in US banks, which amount to $18 trillion, meaning that insurance covers only 1.5%.
He referred to the statements of US Treasury Secretary Janet Yellen, who said: “If the public debt ceiling is not raised, the government will run out of money on June 1, 2023.”
“The US government cannot save the drowning banks, only the Federal Reserve can do this by resuming printing paper money, which will again lead to a rise in inflation in America and in the medium term to a collapse of the dollar,” Nazarov said.
This article was originally published by RT.