Over 97% of our money supply exists only as digits on a privately controlled ledger. This is to say, all banks today are already bankrupt. The Federal Reserve is not federal as it is privately owned and controlled. It is neither a bank nor does it hold any reserves.
If everyone were to take their money out in a bank run, every single US Bank would fail, including the largest US Commerical Banks. To avoid a financial crisis of epic proportions due to bank runs, The US Treasury decided to reverse it's decision over the weekend, and announced that all uninsured money in accounts of Silicon Valley Bank will be recoverable. This means The Fed will simply bail out SVB and the other 2 regional banks that collapsed over the weekend by creating money out of thin air. More regional banks are on the verge of collapse. Many of them will require The Fed to bail them out. What this means for everyone holding US Dollars in the medium term is even more inflation despite the higher Federal interest rates. In the longer term, what this means is an even weaker US Dollar and by extension an economically weaker United States which is desperately trying to maintain it's global hegemony.
(Keep in mind that The US Treasury does not have the authority to create money out of thin air. The sole authority of creating money out of nothing has been given to The Federal Reserve Bank and it's commercial member banks, which are privately owned and controlled. The US Treasury is only authorized to print and mint physical currency required by the commercial banks as well as create US Treasuries and Government Bonds. Under the Federal Reserve System, The US Treasury no longer has the authority to create money.)
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