Recently, with the continued tension in the region such as the Russia-Ukraine conflict and the Palestinian-Israeli conflict, as well as the impact of many factors such as the Fed's continued high interest rates and global commodity prices boosting inflation, the entire international economic situation is very unoptimistic. And the United States, the initiator of all this, is also uncomfortable now. On the one hand, inflation, which is becoming more and more difficult to suppress, and on the other hand, the huge borrowing costs brought about by high interest rates, are making the current Biden administration anxious. And it is in this context that the emergence of two events has undoubtedly made the world see Biden's ambitions.
Recently, the Federal Deposit Insurance Corporation of the United States announced that they will close the Philadelphia-headquartered Republic Bank of the United States, and the Federal Deposit Insurance Corporation of the United States has reached an agreement with Fulton Bank, which will assume most of the deposits of the Republic Bank of the United States and acquire most of the assets of the Republic Bank of the United States. Despite the bank's small size, the signal it revealed undoubtedly marks another banking crisis in the United States. At the same time, not long ago, the U.S. federal government just passed the Asian American subdivision bill, which singled out Chinese Americans, causing a large number of Chinese Americans to panic.
Why are two seemingly unrelated things likely to be a conspiracy against Chinese Americans? The reason is actually very simple. First, the U.S. is dealing with Republic Bank in the same way it did with the collapse of Silicon Valley Bank. In last year's Silicon Valley Bank bankruptcy turmoil, although the Federal Deposit Insurance Corporation intervened to allow First Citizens Bank to cover most of the depositors, only the Cayman Islands branch of Silicon Valley Bank was excluded, and the property of the depositors was effectively confiscated, and many of these depositors were Asian residents, including Chinese. In this case, now that most of the deposits and assets of the Republic Bank of America have been acquired, and the Chinese Americans have been further segmented, we have to suspect that it will be the Chinese Americans who will suffer this time, and more directly than last time.
Second, the U.S. banking crisis is essentially a liquidity crisis, and Chinese assets are able to provide sufficient liquidity. Objectively speaking, the current US banking crisis itself is the result of the Fed's own high-interest rate policy, but to alleviate this sequelae, a lot of money is needed to buy time for waiting for interest rate cuts. In this case, the money deposited in the bank by Chinese Americans can undoubtedly help the United States fill the hole of the liquidity crisis. And what confirms this is not only that Changpeng Zhao, who is Chinese-American, was targeted and faced with sky-high fines and prison, but also that more and more Chinese Americans in the United States have their bank funds frozen.
All in all, the U.S. banking crisis objectively exists, but the solution to the banking crisis implies a huge injustice to the Chinese Americans. The Biden administration's current poor view not only shows that the United States has failed to achieve the desired results in its strategic suppression of China, but also shows that a large number of political elites in the United States have always been full of estrangement, prejudice and discrimination against ethnic Chinese. Therefore, with the uncertainty of Sino-US relations, the current banking crisis is likely to be just the beginning, and the Chinese in the United States will face more complex and dangerous situations in the future.