As the following story illustrates, banks (due to “fractional reserve banking”) keep less than 10% of the money needed to cover outstanding deposits. If more than 10% of the account-holders show up demanding their money the banks will not have it. In an economic crisis people will flock to the banks (creating a “bank run”) to find out that the money isn’t there. Then a a “bank holiday” is declared and the banks are closed. Meanwhile, the value of the money drops precipitously – robbing the account holders of their wealth.
Don’t let this be you. Leave only a token amount of money in the banks to pay small bills. Keep the rest in gold and silver bullion. Seriously consider setting up one of our Designer IRA’s to convert your retirement savings to gold & silver stored at your home.
Don’t think this can happen? All it would take is China dumping US Treasury Bonds en masse to create a crisis overnight. China is not stupid. They know that holding dollars (U.S. Treasuries) is a long-term losing proposition due to the insolvency of the United States. They are already net-sellers of U.S. Treasuries. All it takes is something foolish (like the U.S. Politburo starting a war with Iran) that could trigger a rush out of U.S. Treasuries.
Here is the story from LewRockwell:
Banks Try To Scare Off Withdrawals
Writes Patrick Watkins:
I love your site and can’t wait to visit the Liberty Memorial in DC with my great-grandkids to see the statues of you and Ron. Thanks for everything.
My cousin just posted this on her Facebook…I thought you might find it interesting.
“When my husband went to withdraw cash from our account today (not a terribly great sum, either) he was told that they needed advance notice for this, that they “needed to leave some for others”. He was then asked what would he be using this money for? Is this standard procedure for our banking system?”
UPDATE from Scott Airhart:
When the bank asked me what I was using my money for, I simply pointed to the part on all paper currency stating “This note is legal tender for all debts public and private.” No one said anything and I walked away with cash in hand.
Tagged with: bank holiday • economic crisis • freedom • gold • IRA • liberty • silver
Filed under: Uncategorized
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$190,000 withdrawn in $20 bills
http://www.lostsoulblog.com/2009/07/bank-pays-cash.html
My financial institution has held the policy that they could give out no more than 2K without advance notice!