I think instead there simply isn't enough money in the system to cover the amount of assets (bank liabilities… "deposits") that will at some point get called. The banks will not receive a government bail-out again, but savers (those with deposit balances above the insured limit) getting bailed-in.
That isn't the government doing anything -- it is the government not doing something! IMO ol' Marty (among others) has scrambled his noodle in his bid to blame government for every problem that comes along.
The government will this time simply not be available when the call comes to provide offseting assets (UST bonds) to the Central Bank, in order to enable the creation of that lovely moar money for the banks… so they can turn around and make good on all their promises to "depositors".
This is credibility deflation. Of over-leveraged retail banks. Savers have given the banks too much credit.
It is to say "the link between retail banks and the nation State will be severed". (smile)
Bank deposit credit balances are not "money".
This is analogous to "spot gold" credits not being gold.