Regional deposits might run now to the too big to fail banks.
But in time the run comes to the TBTF banks when their deposits exit to Bitcoin.
There is no interest rate high enough to stop it that the banks can also survive.
And at that point FDIC guarantees do nothing.
Peak woke needs open ended QE.
Woke banks go broke.
The next bank run will be out of the majors and into Bitcoin.
They cannot afford the interest rate necessary to keep deposits from running to Bitcoin.
For the first time, Bitcoin allows the separation of deposits and payments from the business of lending and its financing.
So if you’re a well run bank you will also pay for the failures.
It’s ok for us to all operate at 8% equity to assets.
They said so.
With Bitcoin in the room, deposit insurance is now redundant.
Bitcoin gives depositors the option to either hold their own cash or put it on deposit with a bank.
Depositors must choose their risk return profile and take responsibility for it.
This freedom of choice must in time make the need for taxpayers to insure deposits redundant.
What is an ultimate world of pristine price signalling really worth to civilization?
Signals without volatility, without value erosion, without needing to reference other measures, without the distortions imposed by an insider elite?
The next global reserve currency imposes itself on everyone.
🟧🟪
It’s a little surprising Bukele policies haven’t been copied by anyone so far.
Probably timing.
No politician is going to put his neck out in the midst of a bear market.
We are at just 0.5% of sovereigns.
Any bets on who will be the last to capitulate?
If you want to break a system, you can’t merely break it into its pieces.
You have to change its underlying idea by introducing something different.
Otherwise it will reconstitute itself.
The introduction of absolute scarcity to money is a much bigger deal than we realize.
“The first door of liberation is emptiness.”
We will see the first FOMO in by CBs during this cycle.
Anyone that studies the situation for more than a day can see that doing so is the only way to stay relevant.
On the road.
Nostr and Bitcoin behind the scenes.
No lawyers.
No accountants.
No bankers.
No HR.
No compliance.
Just shadowy super coders.
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