Missing Gold, Unpayable Debts, Financial Crises, Bail-Outs and Bail-Ins… There Must Be a Better Way


The US congress bailed-out the banking sector, General Motors, and others with $700 Billion from TARP.

The Federal Reserve added approximately $4 Trillion to their balance sheet with Quantitative Easing and other programs in their effort to bail-out the banking cartel since the 2008 crisis.


Cyprus banks confiscated deposits, after the elite and insiders exited early, and they called it a bail-in.  That confiscation is the template for future bank failures in Europe, Canada, the US and other countries.

We may eventually see similar confiscations (bail-ins) in Greek banks, as well as in Spain, Italy, Ireland, the United States, and others.

There must be a better way!  Mathematically unpayable debt, confiscations of private assets, uncontrolled government spending, unfunded liabilities, missing gold, paper gold, officially sanctioned Ponzi Schemes, pension funds on the verge of disaster, and so many more indicate there must be a better way!

Proposal 1:  Back a new reserve currency with gold and thereby force governments, individuals, and bankers to be responsible.  Okay, that is “pie-in-the-sky” dreaming – not gonna’ happen.


Proposal 2:   Discontinue bail-outs and bail-ins and use Bail-UPS and Bail-DOWNS instead.


Bail-UPS:  (Instead of bail-outs)

The Fed “printed” almost $4 Trillion since 2008 to bail out bankers.  Allocate half that amount for Bail-UPS – whereby the US congress sends cash to taxpayers to boost UP their personal assets:

  • Reimburse 90% of the 2013 taxes paid by individuals, not corporations, and refund those taxes to the individual taxpayers.
  • Call it a Bail-UP because it increases spendable income.
  • Taxpayers benefit directly and banks benefit indirectly.

Bail-DOWNS:  (Instead of bail-ins)

Congress could allocate another $2-3 Trillion for Bail-DOWNS whereby private debt levels are reduced – the balances go down, all non-taxable to the individuals.

  • Banks forgive 10% of all personal credit card debt. The bank submits the individual names, account numbers, and amounts forgiven to congress, and congress reimburses the banks.
  • Banks do the same for student loan debt by forgiving 10% and are similarly reimbursed.
  • Mortgage companies do the same with private mortgage debt under $500,000 for single family homes and forgive 10% of the balance. The mortgage companies receive reimbursement also.


  • Taxpayers have more money to spend, which will boost the retail economy, reduce delinquent mortgages and credit cards, increase bank profitability, and improve taxpayer attitudes toward the IRS, government, and bankers.
  • Banks are reimbursed so they experience no costs, and they benefit from increased economic activity.
  • Congressional approval ratings will improve.
  • The Bail-UPS and Bail-DOWNS will help ignite the inflation that the Fed supposedly wants.
  • The Fed bailed out the bankers, and now they SHOULD bail-UP taxpayers and bail-DOWN debtors. It is fair and appropriate.
  • Both democrats and republicans would claim the program and take credit for the benefits to taxpayers and debtors.
  • Politicians can loudly proclaim they are concerned about taxpayers and debtors and thereby improve their image for the 2016 elections.
  • The program will improve the public perception of the banking cartel and diminish the public anger at the bankers for the economic crisis they created.
  • Since banks have significant influence over congress and would be fully reimbursed, the legislation should pass.
  • The shrinking middle-class would benefit.


  • National debt will increase but clearly few, if anyone, in congress or the administration cares about excessive debt so this seems unimportant.
  • The excess money put into circulation will create more inflation, but the Fed is on record wanting more inflation so the bail-ups&downs will assist the Fed.
  • There will be collateral damage, as there always is with any government program, but we trust that damage will be minor compared to the benefits to the taxpayers and debtors.

To Congress and the Administration:  Give Bail-UPS and Bail-DOWNS a chance.  Clearly bail-outs and bail-ins have been problematic, so let’s progress in a new direction that benefits taxpayers and debtors.

(Dreaming on… but stranger things have happened)

 Gary Christenson

The Deviant Investor

29 thoughts on “Missing Gold, Unpayable Debts, Financial Crises, Bail-Outs and Bail-Ins… There Must Be a Better Way

  1. Sorry to comment late, but I would want to discuss the fllwg thoughts. Or, you open a new post on this!? to be discussed by the communty!
    I am a gold “bug”, as it does represent money, independently held, against all odds of the market/government, historically!

    One thing we know for sure! A tiny little financial elite is dominating the markets and any FIAT Money System is not meant to last forever. A Ponzi sceme.
    For those, who can print any amount of money, better launch any amount of virtual credit, for their own purposes, are not at all worried about it. They ARE, only concerned about the power to dominate the sceme!
    What do we have!? A violent “abuse” of control and domination since 9/11 (NSA, google, facebook, whatsup, internet, personal data, etc.) This is the main purpose! Domination!!! Ending in, finally, abolish/restrict real money, cash! This will “trigger” the totalitarian end-game Maybe, after that achievement, only topped by injecting a micro-chip to people!?
    When the domination (0,01%) achieves this, they will manipulate, except, all assets, as today, like stocks, commodities, the World markets. BUT, also the gold one!
    No crash!
    A war was always the way out, to disapropriate the people and re-adjust their own Ponzi system.( To perpetuate the rule, that fat (them) always “swims” on top/surface of the soup!) Now, they will promote the same desapropriation by negative interest/yield!!! (Read the theories of Silvio Gesell!)
    To close-up that project, however, they need to abolish the money, the real currency! They need to implant total dictatory (NWO)
    All political hanky-panky, the elections, the war in Syria, the “new” war on Russia, are just to hide above strategy! They control the US, but also GB/Europe/Putin/Xi/Japan/the Brics!
    Consequently, gold will be beaten as a reserve currency, a save haven, in case the hidden elites make the “Big Brother”, total domination, become true!

    Gold will only prevale, if there are two opponent groups, on the NWO project. In that case, we will get a war. The traditional/old way to promote the re-set!
    We all have, certainly, the same opinion, That the “crazy” volume of paper gold market manipulates the physical one. But, what, if this is not all the case!? The hidden elites, in fact, sell their own stock to lower the quotation (Why!? They will not need it any more!), to “fuck” up the cautious investors/enemies (China/Russia), afterwards!?

  2. Make gold savings tax free. Prohibit gold futures and gold options trading. Prohibit unallocated gold. Reduce taxes by 30% to underline to other countries that we are not going to tax our citizens to repay our enormous debts. Pay off all treasuries as they become due with 20% gold, default on the balance. Cut welfare 20%, cut soc sec 20%. Remove all rules including soc sec in income.

  3. As long as you conflate money and credit, you will never get your analysis right.

    Our ‘Legal Tender Money’ is defined by law, specifically Section 31 U.S.C. 5103, it’s a short paragraph. In it, you will not find the credit generated by the banks or the Federal Reserve listed.

    There is no law anywhere that authorizes either the Fed or the banks the privilege to create money. There is no law anywhere that designates the credit generated by the Fed or the Banks as ‘money’. There is no law anywhere that even acknowledges credit as a currency.

    There is no ‘money’ in any deposit account of any type in all of westernized banking, they are all credited accounts, a.k.a. Bank Debt. This means that the richest amongst us have exactly the same amount of ‘money’ in their deposit accounts as the poorest amongst us have in theirs, $0.00.

    That a bank maintains some ‘money’ on hand to placate a few requests for the legal tender medium, does not negate the fact that all deposit accounts maintain a zero monetary balance. A ledger book entry denoting the amount of ‘money’ the bank owes to (stole from) the depositor, is not ‘money’, regardless of your ability to ‘spend’ that ledger book entry with a debit card. Passing around bank debt from one recipient to another, is not payment for anything. Crediting an account with the amount and actual payment are two different things.

    If we were to properly value the Fed and bankster’s ‘credit dollar’ against the current money of account, the legal tender FRN, the true value of the bankster’s ‘credit dollar’ would be around $0.04 in legal tender. Adjust all debts accordingly.

    As for government debt; there is absolutely no logical reason for any government issuing a FIAT currency to be in debt. Think about it, what medium is it borrowing? What medium does it owe? The entire gov. debt mime is a carryover from the old gold standard days, and it’s stupid.

    the Frog

  4. I thought the function of gold was to cause depressions & collapses because of excessive specs. Also your comments on the cost of wars is interesting as the US supposedly starts 81% of conflicts.There seems to be room for savings there

  5. Ahhhh…so predictable. The usual one dimensional drivel from the gold humpers. You forgot to add in the fact that it’s all manipulated (but only on the way down…it’s ‘fundamentals’ when gold and silver are increasing).

    If we examine history, we see that silver and gold cannot function as money effectively either.
    The world had it’s share of depressions and collapses when gold and silver was the standard too.

    Go back further, we see severe swings in the price of gold when major sources of gold were discovered.
    If we were to adopt a gold based standard – I agree that many positives would come of this.

    However, if you want to be honest – identify the unique strengths of FIAT and explain to the readers how your gold and silver standard preserve these NECESSARY strengths….such as the ability to manipulate the currency to fund a massive military to protect our interests, and our land and democracy.

    Our democratic ways depend on FIAT….gold based standards necessitate dictatorship and tyranny when a nation comes under threat. THIS is why we have FIAT and not a gold standard. FIAT = DEMOCRACY.

  6. Define “Money”, different than that of “Currency”, where money (Gold) is the world “Anchor” (agreement) for “Money” … and all government’s will have their own currency (and tax laws on their own currency).
    Little change from today, (except US$ is not money, it is only a currency).

    For all the discussion about the timing of gold
    markets there is needed, a NEW definition for gold …
    as an ANCHOR for MONEY.

    Money anchors all currencies, (via bid/ask ratios) ,
    each country uses Currency, (basis of tax laws).

    You work for currency, (not money) … you buy sell
    with currency … (you do not go into McDonald’s
    with a tiny speck of Gold or 1/10th oz. of Silver.

    While Gold is poor as an Anchor …but it is the best Anchor …
    it is bid/ask daily … it has 5000 years of history. It is periodic-table stable,
    element, rare, does not rot, or rust, nor attract bugs.

    You guys know all that stuff … but you really need
    to redefine Money as an Anchor … that currency (‘s)
    is not money (just a coupon for money … It should
    be anchored by Government’s agreement and contract

    Movement of Gold is minimal as it is the sanctity
    of contract (ownership), the ACH clearing of
    check balances, the SWIFT foreign payment system.

    Gold would not be wholly owned by Governments …
    nor by banks … rather they provide the legal
    basis that gold is money … the world-anchor
    for all currency, based on world-wide bid/ask.

    Gold is the best Money, as Anchor for all Currency(s).
    Gold is no good as a currency … but is excellent as the
    basis of Money (anchor) by all governments .

  7. Unless you change the way money works you change nothing. Ending the Fed’s monopoly on being able to create money out of thin air is the only solution that will lead to an honest money economy. We will not know freedom until the last Federal Reserve official has been strangled with the entrails of the last TBTF bank CEO.

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