Bank Runs

WHAT ARE BANK RUNS?

The video above talks about the shift of the French yellow vest movement to protesting the banks. This video touches a bit on the new laws against protesting, and how this new tactic is intended to be both legal, and nonviolent. He discusses the global implications, and how this idea could have large ripple effects. He also notes how the idea of a deliberate bank run has much more potential to affect those they intend to.

The first attempt ever to effect change by attempting a bank run. Dubbed “The Tax Collector’s Referendum”. Ties together very well how targeting the banks through a bank run can disrupt the finances of the 1%. Explains the reasoning behind the tactic, and why it can be tremendously useful.

What is a bank run? – Investopedia

HOW UNELECTED CENTRAL BANKS OPERATE

In these videos we are given a walk through of how our central bank works. The commercial banks all hold accounts at the federal reserves. Each bank is required to have a certain amount of cash on hand to satisfy loans from the reserve. All commercial banks hold accounts at the central banks.

We are also shown how banks operate, how our money is used by them, and how currency interacts with both commercial and central banks.

Investopedia explains central banks

How central banks influence currency supply

The 9 functions of central banks

IT'S LITERALLY IMPOSSIBLE FOR BANKS TO GIVE EVERYONE ALL THEIR MONEY

In this video, the idea is proposed what would happen if each person today asked to withdraw all their money in $100 bills. This would not actually be possible, as illustrated in video banks typically only have $.06 on hand for every $100 deposited due to the requirement of using our money to repay their loans from the recession in 2008. The balance of what we deposit facilitates loans to generate profits to keep system running.

As the video explains, the only cash at the Federal Reserve is that which they “reserve the right to print”. In the event all citizens did this, it would force the banks to borrow large amounts of money from the central bank, and respectively force them to print more currency. Essentially everyone withdrawing all their money would cause the banks to become bankrupt themselves, and the federal reserve would make us currency.

THE RISE OF GLOBAL 'BAIL-IN' POLICIES

In the video above, they talk more about the bail in policies. After the 2008 banking recession, laws were passed allowing banks to use deposits to prop up the institutions. The bank of Cyprus was a test run for these policies. Some depositers even had 60% of their savings seized! This was rolled out to the G20 countries, enacting plans in the EU, US, UK, Canada, New Zealand, and more. The global central bank has recorded over $700 trillion units of currency deposited, with global GDP around $70 trillion. Currently, when you deposit money you become an uninsured creditor. There is not enough money in circulation to cover the losses from total bank collapse.
The video above talks about how banks are no longer simply holding our money, we are now actually loaning it to them. The yellow vests are calling for all citizens to withdraw all money. They advocate this legal nonviolent tactic to create an absolute nightmare for the 1%.
In the video above we are explained about how banks essentially run a scheme to gamble with our money for profit with diagrams. They discuss bank “bail ins”, and the bank of Cyprus.

They talk about bail in’s, and global banking. They give an example of how in 2013, one bank actually stole money from their customers by converting uninsured deposits into equity for recapitalization. These “bail in’s” are beginning to happen globally, and under the new rules “globally systemic banks will have to hold total loss absorbing capacity. Equity or debt that can be converted into shares of at least 16-20 % of their assets, weighted for risk”.

Bailouts are bad for politicians, and that is why this scheme was initially enacted. “The new global rules will force creditors to bear banks’ losses, ensuring taxpayers’ money should never again be used to bail out banks.” At the Brisbane G20 summit the countries all agreed to implement the new bail in concept. They pitch the idea as they would prevent recessions with bail in’s using money only from creditors, though in truth they are utilizing everyone’s money. They show how many countries have implemented these policies.

.What are bail in’s?

More on the bank of Cyprus

The bank still exists too!

ECONOMIC COLLAPSE IS INEVITABLE

In this video we are walked through the scenario of a bank run from the perspective of the banks balance sheet. Commercial banks essentially hold assets or bonds, loans to customers, shareholder equity or investments, and customer deposits.

They state that a recession or crash is inevitable, but predicting when is impossible due to the amount of manipulation. The largest world banks do not have close to enough cash on hand to give everyone their money. The only thing supporting the banks is peoples faith in the system itself.

The video touches on JP Morgan, Wells Fargo, Goldman Sachs, TD, Alpha Bank, and Credit Unions. All institutions on hand only have only pennies on the dollar respective to total deposits. If everyone withdraws all their money these institutions would crumble respectively. “If your money is in the bank, it’s not yours, it’s theirs.” They suggest private vaults, gold or silver, and crypto currency as alternatives.

Banks operate on incredible risk, as they are no longer simply savings institutions. Where they now operate as investment banks our money is marked as a liability in their books because they can do almost anything with it. A man in Manatoba Canada was once told at a credit union that to withdraw a million dollars he would have to take out $100,000 each year to do so.

Through this video we come to learn more how banks work. Banks want cashless society’s so they own the money and have control of it. Bank runs ultimately can take the banks down altogether.

BANK RUNS CAN BE GOOD

“Runs can be very useful in threatening bankers to stop taking such excessive risks.”

A run ensures a bank will close before becoming insolvent and be forced to repay depositers in full without a bailout. We currently hold the power to threaten banks with total failure and no possibility of a life boat.

MORE ON HOW THEY WORK

WHAT DO WE DO WITH OUR MONEY AFTER A BANK RUN?

The video above appears to come from a tech podcast. This person discusses how quickly things can change in a modern age. A big focus of this video is the implications of crypto currency with the French yellow vests calling for a bank run. The idea of everyone simply hoarding cash seems foolish, and here we examine some of the benefits of global decentralized currency as well as what society may look like without banks.

– Adam Rice

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