Financial Freedom is often misunderstood As meaning that you have lots of money In reality Financial Freedom means the Ability to own your assets and decide How where and when they are spent Another misconception is that money you Have in the bank belongs to you in Reality the banks own your money and Your money will even be used to bail Them out during the next economic crisis Today I'm going to tell you everything You need to know about Bank bail-ins Including where they came from who is Behind them and how you can protect your Assets before it's too late Before I start a reminder that none of What follows is financial advice okay Let's go back in time to the 2008 Financial crisis as some of you will Know this monetary Ragnarok was caused By the bursting of the housing bubble More accurately big Banks invested in Bundles of Bad Mortgages which crashed In value when the housing bubble burst Initially the big Banks thought Everything was fine that was until the Collapse of Lehman Brothers in the Autumn of 2008. layman was a well-known And well-respected Investment Bank as Such the news of its bankruptcy sent Wall Street into a frenzy which Eventually threatened the entire Financial system In the end the U.S government had to
Step in to basically bail out wall Street according to CNN the U.S treasury Gave over 200 billion dollars in loans To hundreds of financial institutions Now this is less than a third of the Total cost of bailing out the entire Financial system which is estimated to Be 700 billion dollars meanwhile the Regular people who were affected by the Financial collapse got essentially Nothing everyone knew that Wall Street Speculation was to blame but only one Person went to jail Kareem Sarah gelden A former executive at Credit Suisse all The other big Bank Executives were given Bonuses Now if you watched our video about the Securities and Exchange Commission or SEC you'll know that the regulator was Supposed to investigate just how much The big Banks were to blame for 2008. Well instead of investigating the SEC Allegedly destroyed the evidence it had Been given as part of the investigation Not surprisingly the average person was Not happy about how 2008 was handled and Many of you will know that the bank Bailouts are why Satoshi Nakamoto Created bitcoin the politicians had a Different solution for the unwashed Masses however and that was to pass a Long list of new regulations one of These was the Dodd-Frank Act in the United States which was passed in the
Summer of 2010. now the Dodd-Frank Act Is Infamous for being long vaguely Worded and containing some questionable Provisions The primary focus of the Act was the Enormous derivatives Market For those unfamiliar a derivative is an Investment that derives its value from Some underlying asset an easy example is Futures when you buy a Futures Contract You're effectively betting that the Price of some asset will be higher or Lower at some future date without having To actually buy the asset itself now the Total value of the derivative Market is Estimated to be as high as one Quadrillion dollars or 1 000 trillion Dollars the actual value is unknown Because of poor accounting but what is Known is that the 25 largest banks hold Roughly 250 trillion dollars of Derivatives obviously that is a huge Financial Risk that's why the Dodd-Frank Act included a provision which states That in the event of a financial Collapse derivatives claims come first In other words if 2008 happens again Derivatives debt owed buy big banks will Be paid off before anything else the Difference is that these debts won't be Paid off by bailouts but by bail ins now Whereas a bailout is when a big Bank Receives money from someone else to pay Back its debts a bail in is when a big
Bank uses its clients money to pay back Its debts this includes people who lent Money to the bank and people who have Money in accounts with the bank such as Well you and me The Dodd-Frank Act opened the door to Allowing big Banks to use their client Funds to bail in themselves the next Time there is a financial crisis it's Assumed that the next financial crisis Will be caused by an issue in the Derivatives market and derivatives debt Will again take precedence in the Payouts If you're wondering who came up with This insane idea the answer is Paul Colello and Wilson Irvin both of whom Used to be key Executives at Credit Suisse the pair coined the term bailin In an article for The Economist in January 2010. Paul died just a few Months later reportedly from cancer In a presentation about balines Wilson Revealed that the people in power had Been working on alternatives to bailouts Since 2008. he explained that the desire To develop an alternative to bailouts Increased after the financial crisis Started to affect Europe in mid-2012 the International monetary fund or IMF Published a paper advocating for bailins As the ideal alternative to bailouts the IMF paper had almost the same title as The Economist article by Paul and Wilson
From two years earlier all the IMF Needed was somewhere to test this new Balin method enter Cyprus now Cyprus was One of the European countries that was Hit the hardest when the 2008 contagion Spread to the continent by the end of 2012 Cyprus was on the brink of default And begging for a bailout in early 2013 The IMF and the European Union bailed Cyprus out for 10 billion euros as with All IMF loans the bailout came with Multiple conditions One of the conditions was for cyprus's Largest bank to execute the first ever Bail in almost 50 percent of all bank Account balances worth more than one Hundred thousand Euros were seized a Substantial proportion of these funds Reportedly belonged to Russian oligarchs Cyprus was also required to take 6.9 Percent of all Bank balances lower than 100 000 and 9.9 percent of all Bank Balances higher than 100 000 regardless Of the bank Despite the social chaos and capital Controls that ensued the first ever Bank Balin was declared a success by the IMF And its allies in 2014 the G20 countries Agreed to pass bail in laws in Accordance with the financial stability Board or fsbs bail in guidelines the Fsb's guidelines include the issuance of Bail in bonds which should be sold to Pension funds newsflash this means your
Pension money could be used to bail out Banks too the United States was the First to legalize bailins in 2010 with The aforementioned Dodd-Frank Act the UK Followed suit in 2013 with the financial Services act the EU legalized bailins in 2016 with the bank recovery and Resolution directive so be sure to check When your country legalized bailins and If you think this is crazy you should Check out our video about digital ID That will be down in the description Anyways I must stress that the specifics Of Bank Balin laws tend to vary from Country to Country unfortunately I don't Have the time to get into the details About each one here however all these Bailing laws seem to follow the same Three rules likely because of their Collective Conformity with the FSB The first rule is that bank balines are Only allowed for banks that are deemed To be domestically or globally important It's not entirely clear which banks fall Into the domestically important category But it's safe to assume that this rule Pertains to those with the most assets Under management as for globally Important Banks the FSB publishes a list Of them every year along with their de Facto risk of default due to derivatives Debt there are currently 30 globally Systemically important banks with JP Morgan being noted as the highest risk
JB Morgan reportedly has 60 to 70 Trillion dollars of derivatives dead If you're wondering what happens when a Non-systemically important Bank goes Under the answer seems to be that they Get to be acquired by a domestically or Globally important Bank If that wasn't wild enough Regulators Are trying to apply these laws to crypto Exchanges more on that in a moment now The second rule of bank balins is that They do not apply to bank balances below The deposit Insurance threshold In the U.S the FDIC covers 250 000 of Deposits In the UK the fscs covers 85 000 pounds And in the EU it's 100 000 Euros with Various insurers involved if you think This means your money is safe Think again as pointed out by The Huffington Post quote Deposit Insurance Funds in both the U.S and Europe are Woefully underfunded particularly when Derivative claims are factored in in Short insurers don't have enough money To cover all Bank deposits in the case Of the FDIC it's 2021 annual report Suggests that it only has around 120 Billion dollars in its Insurance Fund This is a drop in the bucket compared to The 19 trillion dollars of Bank deposits In the U.S and a speck of sand in the Desert of the derivatives Market which Could be in the quadrillions
Luckily there's the third rule of bank Balins which states that you will be Given some alternative asset in exchange For your lost deposits now believe it or Not but these alternative assets are Typically shares in the bank that you Bailed out let that sink in the bank Takes your money and gives you its Worthless stock in return Not only that but if governments manage To pass laws to make Central Bank Digital currencies or cbdc's legal Tender you could very well be paid back In cbdc instead of cash come to think of It bank balance would be the perfect way To force people to adopt cbdc's and Perhaps that's the whole point Speculation aside it's important to note That you could temporarily lose access To your funds during a bank Balin as We've seen with Cyprus Banks could put Limits on their hours of operations Limits on payments limits on transfers And limits on cash withdrawals until the Bail in process is complete More evidence comes from a bank Balin Document from the Bank of Scotland which Suggests that it could take up to a week For you to get your insured deposits Back I imagine there would be a similar Lag for other banks around the world Make no mistake the social unrest that Would trigger would be truly Unprecedented
Now the people in power appear to be Hyper aware of this because they've Apparently been running Bank Balin Simulations for years the most recent High-profile Bank simulation was held by The FDIC in November last year although The FDIC simulation is publicly Available it's predictably hard to find The simulation featured dozens of Panelists from prominent financial Institutions and Regulators that you've Probably never heard of as you might Have guessed one of them was Wilson Irvin who seems to keep a very low Profile these days despite or maybe Because of being the Chief Architect of The bank Balin process now I'll leave a Link to the full simulation in the Description if you're interested but I'll reiterate that it's hard to find Even with the link I'll also caution That it's lengthy and contains lots of Financial jargon in any case the most Exciting stuff begins around the one Hour mark Snippets from this section Went viral at roughly 1 hour and 18 Minutes one of the panelists Ponders how The FDIC and its secret allies should Maintain the Public's confidence in the Financial system when the balines Inevitably happen she argues that Transparency is the answer but that some Entities should get more transparency Than others this particular panelist
Also made an off-the-cuff comment about Making sure the public understands that Quote prior compensation could be clawed Back now maybe I'm hearing things but That sounds like it's possible for the Banks to take your money long after the Bailing process has been completed she Even asked the other panelists how they Can quote address excess cash use in Such a crisis this suggests that Governments could very well be planning On introducing a cbdc using bank balins Then again it could just be a reference To the freeze on cash withdrawals I was Talking about earlier as a cherry on top The panelist also said that they should Quote make the announcement on a Friday Ideally a Friday night for context Fridays are famous for being one of the Days when nobody pays attention to the News hence why bad news often comes out On Fridays the more you know A second panelist agreed with the first About being selective with transparency About the bailin and specified that they Should tell the banks and big investors First he said they shouldn't tell the Public until later because they would Panic a third panelist agreed with the Second and said something sinister along The lines of the public has more faith In the banking system than we do let's Keep it that way The other panelists laughed he went on
To repeat that only institutional Investors should know what's going on And they should quote be careful with What we tell the public but wait there's More a fourth panelist then said Something even more Sinister I had to Listen to it three times because I Couldn't quite believe what I was Hearing the timestamp is around 1 hour And 27 minutes she literally says quote The information should go out once we're Moving out of the recession make of that What you will This fourth panelist went on to explain That non-bank entities including Cryptocurrency exchanges should be Included in the bailing process now this Could mean that she wants them to be Subject to acquisition by big Banks or That she wants to use the crypto you Hold on exchanges to bail them in a Little later Wilson said that they must Make sure that disinformation about bank Balins doesn't get out before the fact Check approved version of events he even Went as far as suggesting that this Online censorship should happen in Advance so that people don't talk about Their money being taken it just so Happens that governments around the World are in the process of rolling out Exactly these kinds of online censorship Laws and most of them will be going into Force later this year or next year you
Can find out all about that using the Link in the description I strongly Suggest watching that video so this Brings me to the big question and that's What you can do to protect your money From being taken by the big Banks when The next financial crisis comes around There are lots of things you can do and They all fall under one umbrella keep Your money out of globally and Domestically important Banks before you Do anything though I'll remind you to Check the details of the bank Balin laws In your country or region this is Admittedly easier said than done but you Should be able to get the answers to all The questions you have Well at the bank Pro tip ask about Shared accounts and multiple accounts That said the first hedge against bank Balance is to move your money to smaller Banks that are not globally or Domestically important ideally these Small banks will have little to no Exposure to globally or domestically Important ones but I suspect it's going To be hard to find a small bank with Zero exposure The second hedge against bank balance is To always keep enough cash on hand to Pay for at least a few months of Expenses depending on your personal Circumstances though this may not be Ideal or even possible also keep in mind
That Fiat currencies are losing value by The day due to inflation and will Continue to do so this ties into the Third hedge against bank balins and That's to have some physical gold and Silver ideally in denominations that Could be used for payment if needs be as A fun fact gold and silver eagles are Technically legal tender in the US the Catch is their face value is much lower Than their actual value The fourth hedge against Bank balins Meanwhile which is the best in my Personal opinion is to hold Cryptocurrency now to be clear this Means decentralized cryptocurrencies Like BTC eth and XMR not centralized Ones like stable coins ideally these Cryptos will be kept in your own Personal crypto wallet and if you don't Have a crypto wallet you can get a Discount on one using the link in the Description I digress Now any of these four Hedges will work And ideally you should do all of them Not Financial advice of course If the slips of the tongue at the FDIC Simulation are anything to go by the People in power will start doing Bank Balines after the next recession now I Honestly have no idea when that could be It doesn't seem to matter either because They don't plan on telling us that our Money has been used to bail in the banks
Until all the institutional investors Have gotten out at least we know the Announcement will be made on a Friday When nobody's paying attention as per The FDIC panelist the real wild card is What happens after the bank balins are Announced again the social unrest will Be unprecedented Now this could conveniently create Another crisis that the people in power Could use as an excuse to exercise even More control never mind the possibility Of cbdc-based insurance payouts the Silver Lining to this situation is that People are becoming increasingly aware Of what's going on and what the elites Are planning if you want to help with That take a second to share this video With someone you think would enjoy it And like And subscribe so that you don't Miss the next one and on that note I Will see you next time [Music]
