>>> . To exercise control of said money, especially in times of turmoil, you need an underwriter, usually in the form of police and/or army, which usually require the government to be functional.
You seem to operate under impression there's only one government. That is not so - in fact, there are many different governments and many different ways to store money, which allows to hedge the risks.
>>> It's a game of semantics.
It's not. There's a point when failing government resorts to actions which go beyond regular taxation - such as hyperinflation, confiscations, defaults, etc. In such cases governmental insurance is no good as there's much more chance it will hurt you than benefit you. For the private company, the minimum you get is zero, but for the government it can get way worse than that.
> That is not so - in fact, there are many different governments and many different ways to store money, which allows to hedge the risks.
For the omnipresent omnipotent investor, that might be true , but probably is not true even for that investor -- e.g. the US government can and does have a wealth tax in the form of inflation, that applies to every single asset class anywhere in the world, enforced through FATCA/FBAR; You have no legal way to protect your assets against inflation+taxation).
If you're in Cyprus, and you need money usable in Cyprus, you are dependent on a functional Cypriot government, one that did not employ capital controls (But they did...)
Furthermore, a lot of people here are unaware, but for at least 3 months, there was more than one currency called "Euro": The Greek Euro, and the non-greek Euro. Banks in Germany would NOT accept greek Euro, or remit non-greeo Euro to a greek bank without collateral or other guarantees. All fiat money is fungible.
>> It's not. There's a point when failing government resorts to actions which go beyond regular taxation -
Your statement is ironic. Who gets to define what "regular taxation" is? The US had, at times, 80% taxation. Is that regular? The US government has been running a much higher than reported inflation for years. Is that regular?
You seem to operate under impression there's only one government. That is not so - in fact, there are many different governments and many different ways to store money, which allows to hedge the risks.
>>> It's a game of semantics.
It's not. There's a point when failing government resorts to actions which go beyond regular taxation - such as hyperinflation, confiscations, defaults, etc. In such cases governmental insurance is no good as there's much more chance it will hurt you than benefit you. For the private company, the minimum you get is zero, but for the government it can get way worse than that.