Missing Gold, Unpayable Debts, Financial Crises, Bail-outs and Bail-Ins …


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.

  1. 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.
  2. Banks do the same for student loan debt by forgiving 10% and are similarly reimbursed.
  3. 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.


  1. 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.
  2. Banks are reimbursed so they experience no costs, and they benefit from increased economic activity.
  3. Congressional approval ratings will improve.
  4. The Bail-UPS and Bail-DOWNS will help ignite the inflation that the Fed supposedly wants.
  5. The Fed bailed out the bankers, and now they SHOULD bail-UP taxpayers and bail-DOWN debtors. It is fair and appropriate.
  6. Both democrats and republicans would claim the program and take credit for the benefits to taxpayers and debtors.
  7. Politicians can loudly proclaim they are concerned about taxpayers and debtors and thereby improve their image for the 2016 elections.
  8. 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.
  9. Since banks have significant influence over congress and would be fully reimbursed, the legislation should pass.
  10. The shrinking middle-class would benefit.


  1. National debt will increase but clearly few, if anyone, in congress or the administration cares about excessive debt so this seems unimportant.
  2. 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.
  3. 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

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