Watch: Alex Jones claims SVB 'bailout' harbingers a 'very draconian technocracy' with 'digital tokens'
Disgraced right-wing conspiracy theorist Alex Jones claimed on Tuesday that the Federal Deposit Insurance Corporation's decision to protect the assets of defunct Silicon Valley Bank customers is a harbinger of a worldwide cyber currency that an international cabal will exploit to control people.
The move has been criticized as a "bailout" akin to that which was implemented amid the 2008 crash by voices across the political spectrum. Liberal economist Paul Krugman, for example, wrote in The New York Times that while "the law says that deposits only up to $250,000 are insured and even though there was a pretty good case that allowing big depositors to take a haircut wouldn’t have created a systemic crisis, SVB. was pretty sui generis, far more exposed both to interest risk and to potential runs than any other significant bank, so even some losses for larger depositors may not have caused much contagion."
Similarly, Vox senior politics correspondent noted that "the logic for a bailout is often compelling — or at least more compelling than not doing a bailout. But there’s still something unsettling about the whole dynamic that cries out for larger reforms, as the journalist Matthew Klein summed up in a recent Substack post. 'Banks are speculative investment funds grafted on top of critical infrastructure,' Klein wrote. 'This structure is designed to extract subsidies from the rest of society by threatening civilians with crises if the banks’ bets are ever allowed to fail.'"
READ MORE: How 'new technologies' and 'inadequate regulation' hastened SVB’s 'predictable' collapse: economist
On Sunday, the conservative Wall Street Journal Editorial Board wrote that "this is a de facto bailout of the banking system, even as regulators and Biden officials have been telling us that the economy is great and there was nothing to worry about. The unpleasant truth—which Washington will never admit—is that SVB’s failure is the bill coming due for years of monetary and regulatory mistakes."
SVB's downfall, however, has also been attributed to the deregulation of the financial sector under former President Donald Trump.
"We'll never know what might have happened if the law hadn't been enacted. But given that Silicon Valley Bank would have been subject to stricter oversight under the old rules, more regulation may have slowed — or even prevented — the panic that set in last week as depositors rushed to withdraw their funds," Vox's Nicole Narea reported on Monday.
On Tuesday, United States Senator Elizabeth Warren (D-Massachusetts), who sits on the Banking Committee, penned a scathing open letter to Silicon Valley Bank Chief Executive Officer Greg Becker demanding accountability for "calling on Congress to reduce safety standards for 'mid-sized' banks like your own."
READ MORE: Economics professor explains why SVB and Signature Bank failed so fast
Meanwhile, despite there being no evidence that any other institutions are in danger of insolvency, Jones engaged in fearmongering about that possibility and what he believes could happen if another panic occurs:
I would not say go out and have runs on the banks because the, the, the, the, the, the, obviously the Federal Reserve is, is just gonna have a bailout or the federal government will a bailout of the FDIC. Um, but the, they're, they're saying this isn't a bailout. Uh, like it was back in 2008, but it really is a bailout. I think it's the beginning of much larger bailouts we're gonna be seeing, but directly to depositors. And then as that weighs down, I'm gonna push more and more people onto these apps, uh, where, where the government will say, we're gonna give you this money, we're gonna make your deposit good, uh, but you've gotta do it through Central Bank digital currency.
These arguments are not new to Jones, who has repeatedly promulgated false rumors about a supposed abolishment of traditional money by a sinister "New World Order" whose aim is the enslavement of humanity – a topic that was featured in a 2009 documentary.
But this time, the focus of his blame was much narrower:
It's being rolled out by the European Union. So they're moving us into this very draconian technocracy system where these are programmable digital tokens where they can decide where you can spend them, when you can spend them, they can devalue them, they can increase the value. This is their whole globalist social credit score, cashless society program. And then once the economy really implodes, they're gonna roll out the universal basic income. The only question is when are they gonna do it? And with the universal basic income, they can then manage every facet of your life and totally devalue, uh, the currency in your bank account or in your digital wallet with just one press of a button.
READ MORE: Alex Jones spends upward $100K a month despite bankruptcy filing: report
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