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Crypto The WonderDog! Bankers Versus The Crown

Daniil Danchenko

We are continuing our transcript of the Crypto The WonderDog Show, where its host, Dean Kirkland, continues to talk about economy, middlemen and negative aspects of such type of economy. If you want to listen to the podcast in it’s full glory - click HERE

Dean: Do you have any producers that actually, you know, they didn’t really do anything, they may put a couple bucks into it, but did we really need those couple of bucks, if there were so many damn middlemen?

Charlie: Probably not. I mean, you and I, like I said, you and I have worked as low-budget filmmakers, I mean, we’ve wrote our own scripts, we got our own production, we got our own people, act whatever it is in our own locations, we did it all ourselves and put out some product... Well, and we did it for a fraction of the cost that any studio could produce, so my points is at the same situation the same kind of thinking is taking place in energy and production of power. So, and that kind brings me to another point, and that’s also from Bitnews Today, and here’s, the headline is British bank sabotage the Royal coin and supposedly they’re voting for the dollar, you know…

Dean: Voting for the dollar?

Charlie: Yeah, voting for the dollar, so, in other words, what was interesting about this article is that they were saying that Great Britain was going to be the first country in the Western world to announce the plans to create, roll out a cryptocurrency. But it never happened or it hasn’t happened yet..

Dean: When did they say that?

Charlie: I think that was like in 2015, I believe something like that, it was several years ago. Maybe I’m wrong on the date but that was quite some time ago, and …

Dean: It was supposed to be released, the coin was supposed to be released in 2018, but they announced this, I guess, a couple of years ago, yeah.

Charlie: That’s right. And so, we were waiting and they were waiting in their way and they finally realize what happened is that the banking leads had said - No, we don’t want cryptocurrency. There’s a guy called Mark Carney, who’s the head of the Bank of England, which is kind of the equivalent of our Federal Reserve and he said, he’s been demeaning cryptocurrency, I mean “it’s not safe, it’s not effective, it’s not a very good store of value or wealth”. Well, of course he’s gonna say that.

Dean: Just like Warren Buffet downplaying Bitcoin because he’s got so many freaking dollars sitting in a bank and he doesn’t want those to turn into what he calls Bitcoin which is just fake money.

Charlie: In all fairness and I know you’re gonna hear, then I’m gonna try and play devil’s advocate here and at least advocate with a guy like Mark Carney, he’s gonna be claiming insane. There’s a reason why banks exist and supposedly it’s because they have a really good capacity of understanding where to distribute the money. A bank is a middleman, it’s really what it is. They take your money, your savings, they offer you a certain amount of money for that savings, in terms of an interest rate, and then they turn around and lend it, or put it into some other product that makes more money. They are the middlemen and they’re…

Dean: Okay, that’s you know, their version that you get one percent on your money, but they make 26 percent. That makes sense.

Charlie: Well a lot of times earlier what banks were doing here in the United States was they were putting in government debt. They were taking your money, let’s say at 2 percent, or 3 percent, and then turning around and putting it into one of the safest kind of loan as you could possibly get which was government debt, federal government debt at 6 percent. So they were literally making money doing nothing. This happened at various times I remember very distinctly and happening immediately after the savings and loan crisis. So, and going back I can understand why, you know, a guy like Mark Carney and anybody who heads up at the Federal Reserve is gonna say - Look, you can’t trust Bitcoin and cryptocurrencies. And quite frankly they got a point, because over half of them do fail, but I gotta tell you something, Dean. As badly as cryptocurrencies might be failing, in 2008 our entire financial system was falling apart. And you need trillions and trillions of dollars for banks.

Dean: It was supposed to be the safest thing in the world, yes, and all these people, well I mean that was you know those idiots that they were taking hundreds of millions of dollars and just flushing it down the toilet.

Charlie: Let’s just think of all these dislocations that were happening with financial system, you had back in the late 80’s or early 90’s the savings and loan crisis, because basically you, not you but the United States, deregulated the savings and loan industry. They allowed them to take money from wherever, put it in many many risky kind of investments, but all the while those institutions were still federally guaranteed and federally insured, the taxpayer was still on the hook. Prior to that, when they were regulated and said - Look, you have to make a kind of an investment that’s safe, because if we’re insuring you we want to make sure that we’re not insuring incredible risk and allowing you to do whatever you wanted to do. But with the Reagan administration they said “Now let’s do away with that, the power of the free market is going to make everything more efficient”. And so therefore we’re gonna deregulate, but we’re still gonna have the people, the taxpayer underwriting everything you do, well, wouldn’t that be sweet? You and I don’t have any guarantees from anybody about the things that we do, nobody is guaranteeing or underwriting our operation here with Crypto the Wonderdog. This is the free market as it gets.

Dean: I’m not having Pepsi down my shirt. (laughs)

Charlie: It’s not even that, it’s like the federal government, the taxpayer, you know, underwriting what you’re doing and support everything you do. That’s what with the savings and loan industry had happened, they had remarkable amounts of speculation that took place immediately after deregulation, all the while the taxpayer was still underwriting all of that nonsense. So they fell apart of course, because when you have this tremendous amount of speculation… See, what happened also is that the savings and loans could compete with each other in terms of interest rates, so one guy could offer you one rate, one guy could offer you a higher rate, but the only way that they could give you those kinds of rates they put their money or they took their money and put it into more risky investments. 

That’s why you had regulation in the first place, it was to avoid all that. Well, what happened – it fell apart, the taxpayer came out with who knows how much, nobody really understood how much, and then maybe not even 20 years later, maybe 10, we had the same thing happened with banks, with mortgages, where you were giving mortgages away to just literally anybody, and you had this incredible growth of real estate development and speculation and guess what? It all fell apart. Again, the people were on the hook for that as well. 

So, to claim that banks of financial institutions are safe it’s just pure nonsense, they’re not. They for you to get a higher return you have to put all that stuff into bigger and bigger or riskier investments. But the only way they can get away with that is if the federal government underwrites it all and subsidizes it all. And so that’s the hell of a scam. I mean, isn’t it great if you no matter what you do or how badly you screw up you’re always gonna get bailed out. Man, I would love to have had that with my ex-girlfriends and stuff.

Dean: That’s how divorces should be. No matter how bad you screw up the government seem to come in and take care of both of you, “Yeah we understand she was a …”

Charlie: Like I said, I kind of expect these organizations to claim that, because again they’re middlemen.

Dean: They hate that the blockchain is gonna start weeding out the middlemen, they’re gonna have to go find another line of work like, yeah.

This is the end of the part two, if you missed out the first part, HERE it is.  If you want to continue reading check out the PT. 3

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