What Political Movement Will Silicon Valley Bank’s Failure Spark? By Athan Koutsiouroumbas

Maybe a private money movement–get the government out of money entirely. From Athan Koutsiouroumbas at realclearwire.com:

In bucolic Indiana, Pennsylvania, residents have started an “It’s a Wonderful Life Festival.”

The town’s Christmas celebration commemorates both favorite son Jimmy Stewart, who starred in the iconic movie, and the story’s message of redemption and hope.

In the film, a bank run threatens to devastate an affordable-housing business run by George Bailey, Stewart’s character. The Great Depression has come to Bedford Falls. With over 9,000 banks failing during that period, bank runs were common.

For nearly 100 years since that fictional Beaver Falls bank run, the federal government has insured bank depositors for the purpose of stopping bank runs, which have historically triggered economic depressions. That decision was part of a sweeping political movement in response to the financial crisis of the 1930s: the New Deal.

Could a political movement arise from the recent failure of Silicon Valley Bank, which collapsed in mere hours? That question may be best answered by looking to the distant past.

In what came to be known as the “Bank War,” President Andrew Jackson made it his mission to dismantle the U.S. National Bank, which many blamed for triggering the Panic of 1819. Elected in 1828, just forty years after George Washington was inaugurated, the nation’s first populist president consolidated a political base against federal overreach. He succeeded by stopping the bank from being rechartered.

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