•  the decision by Joe Biden to guarantee every deposit in U.S. regional banks is akin to “Joe Biden just nationalized the U.S. banking system.”
  • O’Leary is correct, and anyone who is holding assets like stocks or bonds in U.S. banks now needs to reconsider the disappeared line between government and the bank assets.  If the government can assume, control and backstop every single account balance within the bank, the government can assume and control all activity of the bank.  WATCH:
  • Downstream…. think about the consequences.  Remember the frozen bank accounts in Canada as a result of defining truck protest supporting Canadian citizens as domestic extremists?
  • Now think about the government no longer needing to ask the bank to take action, the govt has a regulatory ability to demand the bank to take action.  This takes “debanking” to an entire new level.  People are wondering why cryptocurrencies went up in value today.  There’s your answer.

Source: theconservativetreehouse.com


As Banking Collapses Erode Trust, Bitcoin Fixes Moral Hazard 

  • The scenario playing out before us is a stark illustration of what happens when trust starts to break down in a system fundamentally based on the idea of trusting, rather than verifying. In modern times, people think they need to hold their money in banks, but they have to trust the banks to maintain effective risk-management strategies in order to secure their deposits.
  • Bitcoin is fundamentally different. You can eliminate reserve requirements, duration and interest rate risks, counterparty risks and the like. There is no trust in Bitcoin. There is only code. It is backed one to one with itself, and as long as you hold your own keys properly, you don’t need to worry about a bank run.
  • As companies struggle to make payroll this week, I think this might just be a spark that lights a fire behind Bitcoin. Trustless money might just be the thing that helps to stem the tide of catastrophe in a system where trust appears to be crumbling.

Source: zerohedge.com