USDC stablecoin has lost its peg with the USD and has fallen by 10%.

Meanwhile:

Israeli Ambassador to China attaches great significance to cooperation within the Guangdong province, leading to increased bilateral trade.

It's pleasing to see how West Asia is becoming more commonly used to describe the Middle East.

This week we will start our podcasts with a very detailed analysis of events at SVB and what the impact of this might be going forward.

The fact that few appeared to grasp that over a decade of QE and ZIRP, to be replaced by rising interest rates and QT was not going to cause problems is frankly farcical and embarassing.

Reality:

Taiwan's Mainland Affairs Council announced that air routes between Taiwan and 10 Chinese cities were to be reinstated last Friday, with 13 other Chinese cities selected for cross-strait charter flights.


https://t.co/nOa0TIhK8k

If the masses lose confidence in the financial system, the catalytic effect is swift and highly problematic with serious consequences.

If you imagine nothing is allowed to fail then you have to accept the severity of the outcome of the consequences of doing so.

One for the virtual scrapbook, Yellen:

Let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out and the reforms that have been put in place means we are not going to do that again.

We have made this point several times over recent years. Naval fleets are obsolete given the advent of hypersonic missiles.

The Federal Reserve, Treasury Department and Federal Deposit Insurance Corporation stated that they will make additional funding available to ensure all Silicon Valley Bank deposits, both insured and uninsured will be paid in full.

The obvious question in light of developments at the SVB is what's the net worth of the Fed, given its clearly negative?

The next question is what's the net worth of other financial institutions, with large bond portfolios, on this basis?

Clown show continues:

Biden claims that he will seek stronger regulations for the banking sector.

Note:

US Treasury will make available up to $25bn from the Exchange Stabilisation Fund as a backstop for the BTFP, Bank Term Funding Program.

Who is currently backstopping the US Treasury markets because it is very obvious there is a move to drive down yields, given ongoing developments.

Or are we seriously supposed to believe that the very institutions with massive unrealised UST losses are buying more?

UK govt cleared the way for HSBC to buy the UK arm of Silicon Valley Bank by waiving certain restrictions on what types of customers could be taken on by its UK retail bank, related to not allowing complex corporate customers to be housed within ring-fenced banks.

So there is the perception of a financial crisis looming and yet we see the dumping of the dollar for the pound, yen, euro, yuan, Swiss franc, Aussie dollar etc

The Deputy Foreign Ministers of Russia, Iran, Syria and Turkey will attend a meeting to be held in Moscow on March 15th and 16th.

Credit Suisse 5 year CDS has reached a new record high of 466bps

Xi will be speaking with Zelensky, likely sometime in March.