Forum Post: What would happen if the US decided to withdraw all there money from there bank account?
Posted 13 years ago on Oct. 12, 2011, 1:47 a.m. EST by Zombie5565
(5)
from Ridgecrest, CA
This content is user submitted and not an official statement
Seriously?
They'd print more money, so you can have your money, it will just be worthless.
Kind of the direction we're headed.
While the money doesn't physically exist in the bank in paper form, it was debited from the government's account in electronic form long ago. Between banks and the government, most American money exists as electronic balance sheets these days. So while the government would have to turn the banks' electronic money into paper money for you to withdraw by printing it, an equal amount of that electronic currency would be destroyed and no inflation would occur.
We could deprive the banks of capital to invest with, though.
Some banks would go bankrupt. They might declare a bank holiday. It has happened before.
I'm not an expert on this but I believe The Great Depression was piloted by certain banks. People took money out and a lot of banks started failing but that's exactly what the bigger banks wanted in order to absorb the smaller ones.
No, I don't think it would be worthless, it would have major effects. Banks don't have the cash and they would have to get it somewhere in order to give it back. I have the feeling they would try anything not to give it back. I receive my stipend on my bank account and spend it all and more every month for basic needs to support my family but I would like to ask my employer to hand it to me in cash: they will probably say that's impossible. When did they decide that cash ain't good no more?
Our money is not in the bank ! If 20% of us withdraw, the banks will be dry tomorrow ! and total collapse :(
What money would they pull out? You can't withdrawal -14 billion dollars from the bank. Actually they should have to deal with over-draft fees and have their account closed until they can pay it back. The U.S. withdrawing their money would be like the scene from Dumb and Dumber when the suitcase is opened and has only IOU's in it.
You're exactly right, and although I'm all in favor of taking down today's ineffective and inefficient Top 10% Management Group of Business & Government, there's only one way to do it – by fighting bankers as bankers ourselves. Consequently, I have posted a 1-page Summary of the Strategic Legal Policies, Organizational Operating Structures, and Tactical Investment Procedures necessary to do this at:
http://getsatisfaction.com/americanselect/topics/on_strategic_legal_policy_organizational_operational_structures_tactical_investment_procedures
Join
http://finance.groups.yahoo.com/group/StrategicInternationalSystems/
if you want to be 1 of 100,000 people needed to support a Presidential Candidate – myself – at AmericansElect.org in support of the above bank-focused platform.
If I had a nickle for every person on this forum running for president I'd be part of the 1%.
The candidate is nothing but a straw man; it's the STRATEGY that's important. I love you, but obviously no one has taught you to READ and THINK critically before you respond LOGICALLY, not EMOTIONALLY. Peace is the absence of emotion, and so is good judgment. And please don't respond with an insult just because I criticized your critical thinking abilities, for this only makes you look bad.
I love you too. Seriously I do. Take the presidential stuff out of it, because it makes you look opportunistic. And there really are way too many running for president on this forum. Why not just put forth the strategy instead of the president stuff?
I have cited the strategy in the first link, but it takes 100,000 people to join the group cited in the second link, and support a candidate (and not necessarily me) in order to make that strategy a reality at AmericansElect.org.
Consider putting your funds in a local credit union, away from the Wall Street Banks.
Ha, yes... then we would just have a WHOLE LOT OF PAPER!
They could print more.
But they couldn't do that if our money was backed by some sort of tangible asset. The masses of people are ultimately to blame for letting it get to this point.
Consider putting your funds in a local credit union, away from the Wall Street Banks.
what money? nothing but a hiccup if people like us pulled our money out. I have about 600 right now before some bills. what you got? take big money to cause major problems.
first you have to understand the terms "fractional lending" and "a run on the bank"
CHAOS!!!! because........for every dollar on paper there is less than 5 cents in the bank!
Another depression maybe??? (As if we are not already in one)
Were you paying attention to what happened in 2007/2008?
In short, Financial Revolution. The end of a puppet government and the return of the Union as it should be. This is a c/p of something I wrote earlier that speaks to this issue.
As the situation stands voting out this corrupt official and in that corrupt official is not going to change anything. We have been voting in and out a revolving door of officials for decades and none of them have been able to fight back the corruption that is ruling this country. The 99% have to fight that corruption. This is the beginning of a revolution. This is the gathering storm of a Financial War that may just shake the fabric of our society. But, that is not necessarily a bad thing. I think that our society needs to be shaken up. I think that, United, the 99% need to refuse the Credit System and bring the Banks to their knees so they will relinquish control of the Government back to the People. We need to stop paying our mortgages, car loans, insurance, medical bills, student loans, etc. We need to pull our money out of the Stockmarket, bonds, 401k's, etc. We need to show the Banks that We stand against their corrupt system of Capitalist Governance and that we want our Democratic Republic back. We do this not to get rid of Capitalism, or to punish the wealthy with new taxes, or to bring in any kind of Socialism. In fact we do this to remove Socialism for the wealthy 1% and have them return to the Capitalistic economy we live in. But, Capitalism is not our system of Government. So We the People have to rise up and fight this Financial Revolution. We have to play chicken with the economy on the brink of destruction and force the Banks and their Corporate pawns to leave our Government alone. Then, and only then, can we vote and have our voice truly heard at the polls.
This is entirely irrelevant to the thread.
Umm, how so? He asked what would happen if we pulled our money out of the banks. In essence, this is how we fight against the 1%. It is completely relevant.
So you fight the banks by forcing the banks to default on your deposit? Really? You win by losing everything you hold at a financial institution? Please - enlighten me.
On the long term , the money you hold in the bank will be usefull anyways..... you should start considering not to have all your money on 1 basket.... and worst dont be the last for asking the money on a bank that has close doors. Buy food, buy gold, or even invest on Real State( preferent a place where you can plant some tomatos ) , if you have better position, put money on some other investment.... change your car tires, buy a Taxi, or whatever....
You win by forcing them to relinquish control of the Government. Currently the Government will not make legislation that removes the influence of the 1%. Why should they? This is a Capitalist State after all, right? They've earned the money they get from lobbyists. All they have to do is pass laws that the 1% wants and protect them against the laws that they don't want. I am not saying that this is a pretty solution. I think it is a horrible thing that has to happen. It is either we fight the banks or succumb to the inevitable future where our markets crash and we are left with no control over our Government.
Not only does this not explain what plays out when a run on the bank occurs, it also did not make sense. You also avoided responding to my post.
I'll clear it up for you. I'll use little words.
Banks & Corporations are allowed to buy laws from the Government.
The Government is suppose to make laws for the populace.
We live in a Democratic Republic where we vote to see who will make the laws that we think are needed.
The ability of the Banks and Corporations to buy laws they want goes around the form of government we have.
The Banks control the People through their control of the Government.
The People have to wage war against the Banks.
The People have to force a run on the Banks to make the Banks fear the People.
Through fear of losing everything the Banks will allow the Government to enact laws that will prohibit the purchasing of laws by Banks and Corporations.
The Government will return to the control of the People.
I hope that is elementary enough for you to understand.
OK, as disillusioned as you are, you're STILL not understanding what the run on a bank will do.
The bank will get a bailout - too big to fail, we've seen this just three years ago. Taxpayers take the hit.
The individual with the deposit will get reimbursed via the FDIC (for the most part). Taxpayers take the hit.
And we're right back to where we started, except the tax payers. They just lost.
And maybe the banks are regulated to keep a greater reserve, ie. less money to lend to individuals and small business. So individuals and small business just lost.
So how are you reaching your conclusion that this is a good idea?
The American populace will not stand for another socialist bailout for the Banks. If you will note, I advocate removing your investments that are in the banks as well so you don't lose your deposits. If we have learned nothing, there is no such thing as too big to fail. We have to fight back! We can not sit back and let the Banks buy the legislation that only serves them. If it means we start the next depression instead of letting them do it, then so be it. At least we will have our government back in our hands. We are sick and tired of the Capitalistic Republic we live in. We want a return to the Democratic Republic we once had.
I did note that you advocated removing deposits from banks, and I explained why it is a very, very poor idea.
The idea of "starting the next depression" is an equally poor idea.
And why wouldn't banks lobby for legislation that only benefits them. Would you expect them to lobby for legislation that benefits, say, the tobacco industry? No. The tobacco industry will lobby for legislation to benefit the tobacco industry, and banks will lobby for legislation to benefit the banking industry. Everyone lobbys for legislation that benefits their own cause.
Currently, YOU are lobbying for YOUR cause. Does that mean the government is now "out of our hands" and in your hands? No.
Stop filling the forums with complete nonsense.
The 1% can afford to out lobby the 99% because they have the money to do so. We should not allow our government and it's governance of the people to be bought and sold like a commodity on the trade room floor.
And where did they get that money from in the first place?
From taking advantage of legal bribery... They've systematically benefited from decades of legislation that made it easier for them to succeed despite the effects of said legislation on the rest of us.
No. I'm asking you - how did the most successful businesses acquire the cash they have? For example, a successful tobacco company. How did a successful tobacco company make money in the first place?
By repressing legislation that would have hurt their business by paying our elected officials to vote for or against laws that would help or harm their business. Seriously? Of all the businesses you could think of you pick Big Tobacco? They are notorious for their subterfuges to keep their profits. It took lawsuits on massive scales to shed light on their horrible business practices. Nice soft pitch you threw me there.
You're thinking too into it. It could be any industry. The point is that the people have supported those businesses via giving them business. Tobacco companies have money because people purchase cigarettes. Society has placed a value on their goods and services and the market has rewarded them for what they do (make cigarettes). And now they can do whatever they want to with that money they've earned.
Is it wrong to work, earn money and spend it as you please?
It is not wrong. But, it is wrong to be able to buy the government. The government and our laws should not be for sale. I am fine with capitalism as an economic system. But when it becomes our governing system, then we have a problem. We have migrated from a Democratic Republic to a Capitalist Republic. "He who spends the most money gets the law he wants passed." Should not be the monicker of our governmental system.
So then, by your logic, wouldn't you want regulation reform? Wouldn't you want to question those making the rules (the gov't), rather than harass those playing the game (the banks)?
Now let me ask you this again - what good does it do to have a run on the banks?
Man I really have to drill this into you. The Banks wont let the Government pass legislation that would stop them from having financial control of the Government. The People have to make the banks hurt for them to recoil from their stance and let the Government pass those kinds of reforms. Your Government has been bought. We have to remove those that rule them so that we can again have our Government serve us.
Not even true. What about that legislation that was just passed disallowing banks to collect their full merchant fee. Do you think banks WANTED that revenue stream destroyed? You have to be out of your mind if you think they wanted that reform.
If banks regulated themselves, like you are claiming, do you think that, for example, would have been enacted?
Yes of course, and then they turn around and start charging other fees that gain them more profits...
They give just enough to show you they are 'honest' while they rob you blind behind your back.
Andrew Jackson did that to kill the second nation bank. The US hasn't had a bank though since then, my understanding is that they just print money now and flush it down the toilet.
No one does this.
Its a sarcastic cliche, sorry if English is a second language to you, I didn't consider readers would take that seriously. I have no idea how the US manages its funds. If I did I wouldn't have to make a sarcastic and bitter joke. I suspect a large amount of corruption and waste and that pisses me off.
No, the "print money" part.
Holy crap are you kidding? The Fed can print money when they want to and do.
What he Said....
Wikipedia does a good job at defining a bank run.
"A bank run (also known as a run on the bank) occurs when a large number of bank customers withdraw their deposits because they believe the bank is, or might become, insolvent. As a bank run progresses, it generates its own momentum, in a kind of self-fulfilling prophecy (or positive feedback): as more people withdraw their deposits, the likelihood of default increases, and this encourages further withdrawals. This can destabilize the bank to the point where it faces bankruptcy."
So, what would happen if everyone residing in the United States decided to withdraw all of the money they have in checking and savings accounts?
Accounts*
Well ultimately because the banks are too big to fail the fed would "print" some more money to replace the lost money. Banks don't make very much money from the people that deposit there anymore.
interest is so low on my savings its kind of insulting to have it at all. .07%? Why bother, it almost forces you to make riskier choices with what is left over to try and save at the end of the month. I want my money to work for me, not a bank. I use the bank as a tool. I also use credit unions which are, in my book, the best kind. Down with old Mr. Potter!
In addition to interest rates on savings being low -- really the only smart investment would be one that will profit from a market crash. The only safe investment would be a precious metal commodity, or food.
I wouldn't buy gold at the current rate. Its just another bubble waiting to happen. Food commodities are not something I know enough about to trade in. Food pails don't have any return and represent a dimmer view of society then I am willing to accept.