Silence DoGood MBA
The online chicken account known as Doomberg recently published a piece called “Gold in handcuffs”, in which one of the points that was made was that the failure of Signature Bank exposed the inner dealings of corruption and playing favorites within the FDIC, Federal Reserve and Treasury Department, right out in it open. It just so happened that the bank that acquired Signature’s assets took in all deposits, EXCEPT companies associated with cryptos. Why and how did this happen?
his was active discrimination playing out within the vetting process (is anyone surprised anymore)? The FDIC REQUIRED the bank that won the bid to acquire Signature’s assets to also not take any of Signature’s crypto business over. The FDIC has denied this claim. But I’ll point out that Treasury Secretary Janet Yellen made the argument that the system will only backstop and protect depositors of banking institutions that are SYSTEMICALLY IMPORTANT. Unbelievably and to practically no one noticing, Yellen effectively nationalized the banking system by creating a PERMANENT IMBALANCE of deposits at Federal Reserve institutions. The FDIC is now just “smoke and mirrors”, a mirage of protecting those Federal Reserve Fiat notes or digits from being taken from you, but in reality, never ensuring your loan to the bank in the form of a deposit is protected from the loss of future buying power when that money is returned to you in the future. The Fed will guarantee $250,000 per depositor, but they will not guarantee that a loaf of bread may cost $100 in the future, or that it might even be unobtainable without a barter system if the current system fails.
It is now a sure thing that deposits will flow from smaller community banks and regional banks, to the largest 10 banks, but particularly the big 4 big banks – JP Morgan, Bank of America, Wells Fargo and Citi. Saule Omarova, Biden’s OCC nominee that was rejected by Congress due to her Marxist ideologies, recently wrote a NYT Op-Ed as to why everyone should just have a public checking account at the Federal Reserve, so the rhetoric is in the air. There are flaws in her logic in nearly every paragraph, but her theoretical ideas sound like one of Homer’s Sirens, pleasing to the ear of those seeking solutions with only the frame of mind to reference the existing system; no outside the box thinking needs to apply. The government created the problem, and then creates the solutions to their problems in the hive minds of academia (Omarova’s alma mater is Cornell).
Yelling fire in a crowded theater is no laughing matter, yet the Treasury and Federal Reserve are making contradicting statements that essentially do just that, particularly the rhetoric around the phrase they love to spew: “the banking system is safe and sound”, while everyone within government gets into line and on the same page. Safe and Sound is nearly as catchy a dystopian slogan as Build Back Better is. Janet Yellen recently made a reference in a testified hearing to Congress that bank deposits during a bank failure had to cover all deposits or no deposits, and that there was no mechanism by Treasury to say, wipe out foreign business accounts while ensuring deposits of domestic accounts. Regardless of whether the depositors were foreign or domestic corporations, we are supposed to have basic doctrine called “the rule of law”, we live in a country that supposedly has “law and order”. If these deposits made it into the system, they should all be considered innocent until proven guilty, when some individual or entity is caught breaking the law, then banking laws are extensive and broad when it comes to enforcement, particularly around OFAC laws, and Treasury’s own discretion to basically freeze anyone’s assets at the snap of a finger.
The FDIC instructing a bank that is acquiring a failed bank, to selectively ban certain clients from doing business with them moving forward, means that our banking system has been nationalized. Some will try to call this act “state capitalism” of privatizing profits while socializing losses “for the common good”, but it can be more succinctly summarized as “Corporate Fascism”, where the state creates cartels and monopolies where it benefits the top the most, which is the elites and politicians. Once this system is firmly in place, the next step is typically war, which requires involuntary conscription to the military to keep their game going, and for information and knowledge to get lost in the infinitesimal swamp. You thought stealing and changing how currency works would anger the people? Wait until their sons and daughters go to fight a senseless war in both the Eastern European region, and the South China Sea, in which the United States is and will be the aggressor, and who will be at fault. I pray this never happens.
Turning to possible solutions in areas I may not normally look, I’ve been trying to understand the Crypto/Blockchain space for many years (I will do my best to call crypto by its real name, blockchain moving forward). But regardless of my feelings, or what I may not understand yet, why should these companies be discriminated against? If there are minimal laws already on the books, then Congress should create them; otherwise, these companies have technically passed all of the Federal Governments testing and compliance requirements that they place on banks and other institutions to “know their customers”. If the FDIC can tell an acquiring bank which accounts to acquire, the banking institutions are no longer governed under “rule of law”, but rather a capitalist-fascist technocratic rule. There is no law and order, only the orders the FDIC tyrants give to the acquiring bank, and no doubt the FDIC receives marching orders from the Federal Reserve, Treasury, or both.
I am a big precious metals bull because eventually, 100% of all Fiat currencies have depreciated to zero at some point, while precious metals have never gone to zero. Precious metals show their true colors of wealth creation when there is great scarcity created by the elites, usually perpetuated in times of war. The race for Fiat to zero is typically a process that plays out in 50 years or less, and the final 2-6 months of a monetary collapse is when the currency depreciates the fastest. Throughout history, over 900 currencies have gone to zero; not one has survived once it has de-pegged itself from precious metals. So I think my odds are pretty good that at some point, the US dollar will find the same fate, regardless of what theoretical monetary alchemists and politicians attempt to concoct. Not only will this process happen sooner rather than later, but is unfolding before our very eyes in March, 2023.
We live in a modern age where digital assets have actual and perceived value (dot com domains have fetched into millions of dollars being just one example), and so collectively, we have to look at how to value things both in the physical and digital, what something’s perceived value is based on trade-offs and opportunity costs, and how to determine the value of a “Trust System”. Because Trust, like time, is a rare commodity. Gold and Silver are the most ancient forms of Trust systems, but also have flaws that can be exploited, such as shaving coins and outright counterfeits (how about a tungsten Gold bar, anyone?). What if there happened to be a new, unknown system out there that solved a major dilemma around Trust, particularly around complex problems of game theory? Well, for the first time in 6,000 years, the Byzantine Generals problem around Trust, has been solved, digitally, through Blockchain. Surely, that has value, which is why big tech and big finance alongside big government have attempted to downplay blockchains fruitions into mainstream society, yet plowing unfathomable amounts of currency at the problem, hoping something will stick. Banks have played the role of a Trust intermediary for many hundreds of years, but now stand to be cut out all together, including their juicy profits to help the globalist agenda. De-globalization and widespread Blockchain adoption would make banks all but obsolete if people can trust each other, so now we see Big government creating different problems, starting with a lack of laws and rules (call Blockchain Crypto, and turn it into the Wild West), and then when the little guy gets hurt because he had no idea what he was doing, excoriate the industry with onerous and burdensome regulations that don’t even apply in order to stifle innovation and to keep the status quo. Keep those on the inside inside, and use regulation to create barriers to entry for new entrants. But like the wild west, once people have had a taste of a golden nugget, there’s no stopping human ingenuity and know how in solving complex problems for their own personal benefit. The blockchain economy has left the station, it is here to stay regardless of anyone’s feelings, mine included. It is up to We The People to craft solutions that benefit society as a whole, not just the elites. And not just lip service, but actually mean it.
I believe we are at a precipice in this fight. Both sides of Blockchain and Precious Metals must come together to fight the tyranny and injustice that both sides can see clear as day, as both sides are right in their respective rights. Both Precious Metals and Blockchains in their purest forms are Trust Mechanisms, and this Trust can be broken when the creator and curator of the Metal/Coin/Blockchain goes out of their way to perpetrate fraud, as God gives us freewill; we need to Trust but also Verify. The cycle has to repeat. Isn’t it ironic that “Trust but Verify” is a Russian proverb! Although Precious Metals and Blockchain technology looks at solving various human problems from a different perspective, we humans automatically want to reject any other theories outside our established Trust systems. This is normal. Not only normal, but beliefs are hardwired into us. Like the belief that FDIC will cover your deposit. And indeed it will, but the FDIC will not cover your future buying power of Federal Reserve Fiat notes you’ve loaned to a bank in the form of a deposit. Therein lies the fallacy of one of many half-truths, and where we all have to become judges, we must be subjective while seeking the whole Truth. Beliefs are the hardest to change of all.
So whoever can crack the code to merge and morph Blockchain technology and Precious Metals into something immutable and iron clad, that could very well speed up adoption of Trust mechanics within the monetary system. Until then, We The People can expect both sides of the fight to continue to dig in to their respective trenches, and tell the world why their side makes the most sense. But we do need a few brave souls to come to the table and work something out before we are all wiped out by tyrannical governments who are attempting to grab the monetary “nuclear briefcase”, and when they get hold of it and push that button, CBDC’s will wreak havoc around the globe!
Happy stacking, whatever it is that you stack, so long as it is not paper money sitting somewhere, or digits inside a Federal Reserve FDIC Bank!
https://doomberg.substack.com/p/gold-in-handcuffs?utm_source=substack&utm_medium=email