As we watch the US banking system totter and begin to collapse, like the proverbial Jenga stack, we need to consider the implications this has for the global financial system and its supply chains.
I’ll begin with the stellar work of David Korowicz published on
Overview
“This study considers the relationship between a global systemic banking, monetary and solvency crisis and its implications for the real-time flow of goods and services in the globalised economy. It outlines how contagion in the financial system could set off semi-autonomous contagion in supply-chains globally, even where buyers and sellers are linked by solvency, sound money and bank intermediation. The cross-contagion between the financial system and trade/production networks is mutually reinforcing.”
“It is argued that in order to understand systemic risk in the globalised economy, account must be taken of how growing complexity (interconnectedness, interdependence and the speed of processes), the de-localisation of production and concentration within key pillars of the globalised economy have magnified global vulnerability and opened up the possibility of a rapid and large-scale collapse. ‘Collapse’ in this sense means the irreversible loss of socio-economic complexity which fundamentally transforms the nature of the economy. These crucial issues have not been recognised by policy-makers nor are they reflected in economic thinking or modelling.” Financial system supply-chain cross contagion – a study in global systemic collapse
“Last year, vials of the decades-old chemotherapy drug fludarabine could be purchased for a wholesale price of around $110. Not so much anymore.”
“This year, one company—Areva Pharmaceuticals—has jacked the figure up to $2,736, Stat News reports.”
“What’s going on with the aging chemotherapy used to prepare patients for cancer treatment?
It all comes down to supply chain problems triggering shortages that affect the only other two suppliers of the drug in the United States—Teva and Fresenius Kabi.” Drug shortages aren’t going away any time soon, supply chain expert warns
The link above courtesy of David Ferraro author of the The Collapse Chronicle
In the video discussion below, recorded seven years ago between Professor Guy McPherson and myself we discuss the tenuous state of the supply chain.
Edge of Extinction: Disruption of Supply Chain
“By 2027 the world could be facing a 214 trillion calorie deficit, says Sara Menker, founder and chief executive of Gro Intelligence, an agricultural data technology company.”
Published in 2018, do the math: We Have Five Years To Save Ourselves From Climate Change, Harvard Scientist Says”
So which goes first? The Supply Chain or the Food?
When not if Industrial Civilisation collapses we lose the “Aerosol Masking Effect” as pointed out by one of my readers in the comments section below, hence this edit on March 15th.
“The impact of the aerosol masking effect has been greatly underestimated, as pointed out in an 8 February 2019 article in Science. As indicated by the lead author of this paper on 25 January 2019: “Global efforts to improve air quality by developing cleaner fuels and burning less coal could end up harming our planet by reducing the number of aerosols in the atmosphere, and by doing so, diminishing aerosols’ cooling ability to offset global warming.”
From the post: “Global Dimming keeping the planet habitable”
I'm an anti-imperialist, environmental activist and blue ocean sailor, who is passionate about the earth and all it's inhabitants without favour. Brace for imminent impact as we bare witness to the non-linear unraveling of the biosphere and habitability disappearing for most if not all complex life on the only habitable planet we know of. To quote President Niinistö in North Russia: ‘If We Lose the Arctic, We Lose the World’. Folks we have lost the Arctic.
Kevin Hester 
And the kicker is the loss of aerosol masking, visitation by el nino, feedback loops, etc. etc.?
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Spot on Frank.
So few people would make that connection.
Bravo.
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Ok Kevin, will check out documentary,thanks
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Frank, after sleeping I woke up and thought I should edit the blog post and add in my work on the AME. Thanks to your comment. 🙂
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Brits…can’t get…vegetables. Not in the modern sense, anyways. Major British supermarkets are now…LOL…rationing vegetables.
https://eand.co/the-country-thats-teaching-us-how-not-to-survive-the-21st-century-4e2a12614cc2
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I guess I still cannot comment so I’ll just have to GIVE UP!
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Fascinating times until the shit that has already hit the fan smacks us in the face.
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News Week agrees with me!
https://www.newsweek.com/us-bank-collapse-could-spark-global-crisis-dr-doom-economist-1787443
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“We are in the beginning of a debt crisis in the U.S., we are only in the first few innings,” says Dr. Nouriel Roubini, co-founder and chairman of Roubini Global Economics & Professor Emeritus of the Stern School of Business of New York University. “It’s very likely the Fed will pivot with the implied risk of a financial meltdown,” he tells Daniela Cambone. “There is a doom loop occurring and the Fed is in a position where they will be damned if they do and damned if they don’t raise rates,” Roubini continues. “The real economy and financial economy are contradicting each other, and the government created a mess of too much debt and now it becomes another leverage cycle all over again,” he exclaims. “The Fed has been doing backdoor QE and the financial system is reckless… everything was in a bubble 2 years ago,” Roubini continues. “Even in a mild recession, the S&P is going to fall between 30% and 50% and gold has upside in this environment,” he says. “We are in a geopolitical depression, Israel is getting ready to potentially strike Iran and cold war between U.S. and China may soon become a hot war,” Roubini states. “There is only a certain amount of time before something happens in Taiwan, we are living in a world of geopolitical depression,” he concludes.
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Ok Kevin, will check out documentary,thanks
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Credit Suisse’s name keeps popping up 🙂
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“We’re in for a series of financial crises that are going to be up there with history’s biggest, if not exceed them. Call them the Mother of All Financial Crises.”
https://eand.co/why-were-headed-for-the-mother-of-all-financial-crises-72eadac215c5
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Ben Norton
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“The US Federal Reserve printed $300 billion in a week to save collapsing banks and bail out Silicon Valley oligarchs.
93% of Silicon Valley Bank’s deposits were uninsured, over the FDIC limit of $250,000, but the government still paid them.
56% of SVB’s loans went to venture capitalist and private equity firms.
In this article and video, I explain the shocking details of what should be an enormous scandal:
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“Let’s fast-forward nearly four years to an article published August 8th, 2022 in Australia’s leading daily newspaper, The Sydney Morning Herald. Titled, ‘We’re in trouble’: Australia risks food insecurity, expert warns, the article from more than eight months ago includes this line, quoted from the Australian Security Leaders Climate Group: “Only about five days’ worth of perishable food exists in the supply chain at any given time.”
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“With an abnegation of moral hazard, the long-term value of the dollar doesn’t stand a chance.”
Rome fell in very similar circumstances.
A combination of delusional, disconnected, exploitative rulers debasing the currency.
One major difference is this iteration of Rome burning has nukes to complicate things.
https://www.zerohedge.com/markets/end-moral-hazard-and-dollars-debasement?fbclid=IwAR1UUua4l896nrSKLICdum9jBCo3UXSfnTYxU5lZgrVPM0N-7CjVE4RwPac
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Don’t worry, it’s all gonna be ok!
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“Edward Dowd, Founder of Phinance Technologies and former BlackRock fund manager, and Michelle Makori, Editor-in-Chief and Lead Anchor at Kitco News, discuss the Federal Reserve’s latest rate hikes, and why Dowd thinks Fed Chair Powell will be “forced” to cut rates by June of 2023, leading to a “controlled implosion” of the banking sector. Dowd forecasts that as banks consolidate, only 6 major banks will be left standing by 2025, paving the way for Central Bank Digital Currencies (CBDCs), digital fiat tokens issued and controlled by central banks. This, Dowd claims, could lead to “total government control” and a potentially dystopian future .
Dowd also sees the dollar losing its dominance on the world stage with a “kinetic war” breaking out as the BRICS countries launch their own reserve currency.”
The USA will fight to the death of us all trying to shore up their sinking ship.
I think the war in Ukraine is just the first war to protect US dollar hegemony, there will be many more imho.
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John Kiriakou delves into the quagmire:
https://rumble.com/v2fhmc6-wsj-journalist-detained-brazil-and-china-de-dollarize-assange.html?fbclid=IwAR0_V6CHlCsvesqIOFCS6L4ZNkx-4cJ5xaGwiwD5SJkjs5i4K1NaNe5qG2A
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“The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it.” -John Kenneth Galbraith
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More Brilliance from Gail Tverberg
“Unfortunately, the world’s oil supply is no longer growing. Without an adequate oil supply, it becomes difficult to maintain complexity because complex solutions, such as international trade, require adequate oil supplies. Inasmuch as we seem to be reaching energy and complexity limits, nothing the regulators try to do to change the debt and money supply–even reeling them back in–can fix the underlying oil (and total energy) problem.”
“I expect that the rich countries of the world, including the US, Europe, and Japan, are in line to be adversely affected by high interest rates this time. With their high levels of complexity, they are among the most vulnerable to disruption when there is not enough oil to go around.”
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“The bottom line: “There’s a real concern that the contagion is going to take down healthy banks,” adds Klein. “There was too much confidence in bad banks, and now there’s too little confidence.”
Contagion, soon to be the “Buzz word” of 2023.
https://www.axios.com/newsletters/axios-pro-rata-3726ecf6-b863-49f2-9b4c-76cd1cf1bf08.html?chunk=0&utm_term=fbsocialshare&fbclid=IwAR01YZ7xqCYM2ZqIiCXRn5zdqgLfnrFFxX9uNFCOaoMIRvVMOKBCNWUVvIs#story0
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“Economist Michael Hudson joins Geopolitical Economy Report Ben Norton to discuss the collapse of four US banks in two months, giant JP Morgan Chase taking over First Republic Bank, and how regulators – and the government itself – are in bed with the bankers.”
“In March, Norton also interviewed Hudson on the collapse of Silicon Valley Bank, Silvergate Bank, and Signature Bank.”
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“Until Congress gets serious about breaking up these too-big-to-fail mega banks and restoring the banking system protections of the Glass-Steagall Act, which were repealed in 1999, every American is at risk of an unstable financial system.”
https://wallstreetonparade.com/2023/05/academic-study-finds-that-one-of-the-four-largest-u-s-banks-could-be-at-risk-of-a-bank-run/?fbclid=IwAR2zJBIR10Nwtql0KZJKg5abu2LXpB4f0QlHv7TEEYD3BbufNwAORZ2BkD4
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This is hilarious but no it isn’t, either.
Yellow Dot Studios announced its debut with a satirical commercial for “Big Money.”
The filmmaker-producer team behind Don’t Look Up launched a new climate-focused, “anti-bullshit” media venture Tuesday with a spoof advertisement for “Big Money.”
___
from:
https://www.commondreams.org/news/new-studio-pushes-back-on-climate-disinformation
sealintheSelkirks
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“International Finance Leaders Hold ‘War Game’ Exercise Simulating Global Financial Collapse. Should We Be Worried?
High-level international banking officials and organizations gathered last month for a global “war game” exercise simulating the collapse of the global financial system. The tabletop exercise was reminiscent of “Event 201,” the pandemic simulation exercise that took place just before COVID-19 entered the global scene.”
https://childrenshealthdefense.org/defender/leaders-war-game-exercise-global-financial-collapse/?utm_source=salsa&eType=EmailBlastContent&eId=ddfcdbac-ec58-435b-91ee-8c3c6cfd3156&fbclid=IwAR2RQpKdpPz6P9uePSZ1JSlc_uobMveTs_NFweoMWIsJpBQ5YB8bY-z_9aM
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“There are concerns we are in uncharted territory,” said Raghuram Rajan, the former governor of the Reserve Bank of India, who presented a paper on these risks at last year’s gathering of central bankers in Jackson Hole, Wyoming. He noted that “unintended consequences” were likely as QT continued.”
One for the No-Shit Sherlock files.
Me thinks these banksters aren’t sleeping well atm.
https://edition.cnn.com/2023/05/19/economy/quantitative-tightening-global-impact/index.html?fbclid=IwAR3bD_fKJKxgM6Id9iD6uNEpN6aDRmP2wcr9WZ0nDBQxvIUc3fARVc7MufI
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This article kills two birds with one stone from my perspective.
1) The corporate controlled and established IPCC uses 1880 as their baseline for anthropogenic warming blithely ignoring centuries of warming.
2) No matter how robust supply chains appear at first glance they are very susceptible to relatively small perturbations. A typhoon in the Philippines once shut down the entire Japanese vehicle manufacturing industry due to the unavailability of a simple solenoid.
https://www.sciencenews.org/article/supply-chains-3000-years-bronze-age-shipwreck?fbclid=IwAR2YhmgfLKxPj4uM3WTtfTaNj-iT40KazEEgXxoR7_TbjdYa3EliD8vXnE4
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This is a critically important report from Ben Norton showing the exponential growth of unity, trust and solidarity in the BRICS nations.
The Brics we knew of a year ago pales into insignificance relative to the political and economic power of this growing community of nations.
The empire of chaos will fight us to its death, it’s the nature of dying empires.
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Gaya Herrington on the Limit’s to Growth
https://www.interest.co.nz/economy/122715/gaya-herrington-explains-how-global-financial-crisis-led-her-leaving-central-banking?fbclid=IwAR04jukgPdgMp5QuZ9TY326BZVXwJpy-0FmdlvuuXhGnd0yYS_UYn08njIM
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I’ve been following Gail’s work for nearly a decade now and have always admired her analysis. This article is truly a “Piece de resistance”, fantastic work.
The depth of analysis reminds me of the work of David Korowicz and his paper titled: Trade Off: Financial system supply-chain cross contagion – a study in global systemic collapse.
Published by David Korowicz on June 17, 2012.
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