The recent failures of big banks in America are not because the system is failing.
It's not because there's an overall banking crisis.
It's not because there aren't enough bank regulators.
It's because of Joe Biden's inflation and his spending of trillions of dollars.
That's according to an analysis by Steve Moore, the chief economist at FreedomWorks, who talked about his conclusions in an interview with Fox News.
Two banking corporations failed on Friday and over the weekend, and analysts have linked their problems to their investment in low-interest bonds, and the subsequent push to make interest rates higher in an effort to tamp down the inflation that has developed under Biden's economic policies.
"I agree with the president that we don't have an overall banking crisis," Moore explained. "The system is sound, but I do think you have a lot of major banks that are in some trouble.
"And SVB, the Silicon Valley Bank, may just be the tip of the iceberg here," he said.
He explained it is "important for people to understand how this potential banking crisis happened. It's not because there aren't enough bank regulators, as Biden is trying to say. It's because of the massive inflation and the trillions and trillions of dollars of borrowing that the federal government has done that has put our financial system in great jeopardy and great peril."
Moore explained American "can't just keep doing this" over and over, "borrowing trillions and trillions of dollars."
What has happened, he noted, "because of the Biden spending and debt policies, is that not only did inflation go up, but interest rates have gone up."
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The Federal Reserve, in fact, has raised interest rates nearly a dozen times in recent months.
Biden has claimed that Americans can be "confident" in their banking system because of his response to the failures of Silicon Valley Bank and Signature Bank in recent days.
Federal officials said bank customers' accounts will be protected, although those who invested in the bank will not be.
And he claimed that taxpayers won't be on the hook to pay for the losses.
"Instead, the money will come from the fees that banks pay into the deposit insurance fund. Because of the actions that our regulators have already taken, every American should feel confident that their deposits will be there if and when they need them," he said.
Author: Bob Unruh