Forum Post: Boycotting Banks 101 - Always take your money in cash

Cash is king at banks. Those scum suckers need cash to live like everybody else needs air to breathe. Currently banks have a reserve ratio of 22 to 1 for deposits. That means banks keep $1 of actual paper money on hand in their vault for every $22 they have in deposits on their books. The other $21 were created, by the miracle of fractional reserve banking, out of thin air and do not exist anywhere but on their ledgers.

That's why the bank runs of the 1930's ended up bankrupting so many banks. They don't have enough real cash to cover all the money on deposit. Not by a long shot. At a ratio of 22 to 1, your last measly $100 that you take out in cash actualy puts the bank $2200 in the hole. Only one in 21 depositors need to withdraw their money and the bank goes bust overnight. It can be done.

Transfering your money over the bank's computer system or asking for a check will have no effect. That's just transfering a bookeeping entry from one bank to another. It does noting to impact the critical 22 to 1 ratio. In order to bust the bankers you must take your money out in cash when you close your account. Remember always, cash is king.