Guy Swann on the consequences of bailouts and a short-sighted “make depositors whole” attitude in the fiat monetary system.


It’s not fair that bank depositors would have to think about if their money is safe at a bank. You can’t expect a normal person to worry about where they put their savings or to. understand what fractional reserve banking entails –.a bail-out is necessary, adequate and justified to keep us humming along.

The response by Guy Swann:

No, we should not bail out the investors, owners, bankers, OR the depositors! Do you think the value and the resources needed to cover.a multi billion dollar insolvency comes out of nowhere?

This is the most dangerously stupid & cartoonish idea ever. YOU ARE STEALING FROM THE POOR, from everyone’s standard of living,.from the middle class who did *not* make a mistake. And it’s not some esoteric, abstract theft either. It’s real resources with real costs.

People have this crazy idea that prices just go up.and this is natural and there’s nothing we can do. You know what actually causes these prices to infinitely rise? The endless creation of debts, printing money, bailouts,.ceaseless overconsumption, manipulation of financial markets via politics,.and the constant propping up of investments and institutions.that **consume more than they produce.** In short, THIS.

That’s exactly what this is. The reason the gap for the poor keeps getting larger is because of THIS behavior,.because of THIS mentality. Because of THIS response. When you say “oh think about the everyday depositors” you do so at the.expense of those who saw their rent go up ANOTHER 20% this year.  Who saw the price of food go up, who saw their wages stagnate,.who *already* lost their job. They are the ones paying for your mistakes. 

I am so, so sorry for the people caught up in this shitstorm,.and I wish everything that it hadn’t happened, but this will NEVER stop.if we keep pretending there are no consequences and.we dump the costs onto people who had no involvement whatsoever. 

It’s not make believe, you cannot wish it away. YOU are making people poor to pay for your mistakes. There is no free lunch. This is the apex of selfishness, that you would want others to pay.the price in endlessly high living costs, in wages that constantly fall in value,.in prices that never cease to skyrocket, that you would watch them struggle,.watch them feel like life is meaningless & that they can never.get ahead because everything will always get more expensive.without ever stopping & why even try? Why produce? Why earn when it all gets taken anyway,.when it never amounts to any genuine progress? Why not just dive head first into the political debt.& consumption machine and just beg for a bailout.when it goes wrong like everyone else?

I feel for those who will suffer from this. More than you probably believe. But I feel even more for those who are stuck in endless poverty,.who never even have a chance, and when there is even a ghost of hint.of prices being corrected, of the overconsumption being punished… they get kicked in the gut all over again to bail out Silicon Valley.

This lie can go on for decades, but eventually you run out of producers, eventually you get into a series of cascading debt bubbles and banking crises, eventually you find yourself in a place where the central bank doesn’t respond to economic conditions, they actively and permanently manipulate everything about it. Because we purposefully engineered systemic fragility and corruption and let the real workers bail it out and prop it up over, & over, & over again. Today it might just seem like a depositor to a bank, or just a few investors, or one important bank, but the end of that road is the total destruction of our entire economic foundation.

You wonder why it feels like the world is falling apart? Why it feels like nothing is safe? Why it feels like we aren’t making progress anymore? Why it feels like the US is a pathetic shadow of its former self? This is why.

Maybe you don’t realize this is the truth of it, & you are not to blame for this. It is purposefully hidden by the politicians, corporate interests, & liars who profit most from it. It is understandable that you didn’t know. But in hearing this, you *can* be faulted for ignoring something that you know is true, just because you wish it wasn’t. 

I wish there was a magic wand, but it doesn’t exist.

This essay was first published by Guy Swann on his Twitter timeline and has been under permission by the author translated into Vietnamese by the team of BitcoinVN News.

Guy Swann is the host of Bitcoin Audible , a podcast which brings you the best in Bitcoin in audio form.

Guy is an advocate of buying Bitcoin, holding your own keys, ignoring the market price, to stop gambling on garbage, getting rid of leverage, work, stacking regularly, preparing for the financial collapse, taking care of your own family and using any free time available to learn more about new Bitcoin tools and services.