By: April Carson
Hank Paulson, who served as the US Treasury Secretary in the past, has stated that the US banking system could have lost up to $1 trillion in deposits over the last year. The scale of such outflows is unprecedented and could potentially have a significant impact on economic growth if not addressed quickly.
Paulson's recent interview with the Financial Times reveals that around $1 trillion has been withdrawn by depositors from the banking system in the current year. The majority of the withdrawals have originated from large institutional investors, who have shifted their funds to other markets in search of higher returns.
According to Paulson, small and regional banks are currently concentrating on safeguarding their capital and restricting their lending services. This is expected to lead the economy toward a recession.
The central bank has taken some proactive steps to address the situation. It has reduced the interest rate and encouraged banks to increase lending activities. However, it is uncertain whether these measures will be able to prevent a recession in the US economy.
The capital markets were closed for a few weeks, and although they have reopened, it's not to the same extent as before. There are also credit concerns, so it seems probable that a recession may occur.
Paulson has foreseen a shift away from regulated banking to traditional borrowing and lending, which may cause more uncertainty and panic. The US faces a serious risk of economic isolation in the face of a bleak economic outlook, according to Paulson.
The Chinese claim that the US is attempting to confine them, and their people firmly hold this belief. They are emphasizing to the global community and American CEOs that China has re-opened its economy.
If the US restricts trade and investment with China more than our allies and partners think is necessary, it could lead to the US becoming isolated.
"I am afraid that Congress is not fully recognizing the significant power that China holds, its long-term existence, and its connections with several other nations. This could lead to a potentially hazardous situation for the US economy," said Paulson.
It is estimated that since 2011, more than $1 trillion has left the US banking system and been invested in China. This leaves the US vulnerable to a financial crisis as it lacks significant foreign reserves to weather economic downturns. With this in mind, Paulson is advocating for a more balanced approach to foreign investment.
"The US must maintain its commitment to its allies and partners so that it can remain connected to the global economy," said Paulson. "It's important to remember that while there are economic benefits of investing in China, they should not come at the expense of the US economy."
Paulson believes that economic sanctions will not be effective in achieving the desired results and that the US must take a more proactive approach. He suggests increasing access to foreign markets, strengthening economic ties with developing nations, and encouraging further investment into infrastructure projects to create jobs and bring money back into the US economy.
It seems that China and a group of economically-aligned countries called BRICS are working together to move the global monetary system's focus from the US dollar.
It is reported that the group is planning to create a new currency that would avoid using the US dollar.
The term BRICS refers to a group of countries namely Brazil, Russia, India, China, and South Africa. Some other countries such as Saudi Arabia, Argentina, Iran, Indonesia, Turkey, and Egypt have reportedly shown eagerness to join this group.
The purpose of this currency would be to reduce the risk associated with relying on a single currency, the US dollar.
By utilizing the collective economic might of these countries, they can help buffer themselves against any instability in financial markets. This could have major implications for international investments and could leave the US vulnerable to financial uncertainties.
How Our Beliefs Attract The People And Circumstances Of Our Lives.
-----------
April Carson is the daughter of Billy Carson. She received her bachelor's degree in Social Sciences from Jacksonville University, where she was also on the Women's Basketball team. She now has a successful clothing company that specializes in organic baby clothes and other items. Take a look at their most popular fall fashions on bossbabymav.com
To read more of April's blogs, check out her website! She publishes new blogs on a daily basis, including the most helpful mommy advice and baby care tips! Follow on IG @bossbabymav
-------------------
LOOKING TO INVEST IN 4BIDDENKNOWLEDGE? CLICK HERE TO MAKE A CONTRIBUTION AND GET INVOLVED WITH 4BIDDENKNOWLEDGE TV AND BECOME PART OF THE MOVEMENT!
Are you a member of the 4BK TV Channel? If not, you should want to become one!!
On 4bk.tv, you can Expand your mind and explore your consciousness in our collection of workshops by Billy Carson, including Remote viewing - Ancient History - Anomaly Hunting, and how to Manifest the things in life you've always desired!
Start your 3-day FREE trial now!
GET YOUR BOOK TODAY!
