At 9am tomorrow, I'm pulling my money out of the bank

[Mortikhi]

Tonight Bush convinced me that the shit may be hitting the fan. So, tomorrow, I'm pulling my money out of the bank and sticking it in my safe, minus the amount from checks I have floating in the mail.

I will hold on to it for a couple of weeks, and if the shit isn't going to hit the fan, I may return it.

There's no harm in being prepared.

[ItsTime]

Where do you live? JK. keep it safe my brother.

[MRoCkEd]

What's the point if it's not worth anything?

[DAFTEK]

So am i, not that i have much anyway, but I'm going straight to wall-mart and buy food with it :D

[Mortikhi]

What's the point if it's not worth anything?
It won't be worthless overnight.

Bank accounts being frozen can.

[ItsTime]

ask for it in silver lol

[Sandra]

Isn't it dumb to make this announcement? I mean, if you cause panic overnight, they'll just close the banks for a few days.

[raystone]

whatever you do, don't it put bank in the bank in U.S. dollars. Open an everbank account, and go with a foreign fiat currency that isn't on the verge of collapsing...renminbi, swiss francs, japanese yen, even pesos or singapore dollar

[Original_Intent]

I told my wife I won't miss the lousy 2% interest we would gain in a year.

I don't want the bank loaning out 12.5 times my deposit and earning interest on it.

I would rather hold the cash for a while to see how things shake out and spend it on food, silver etc. If things calm down I may deposit some back.

I'll admit I am pretty sick of the whole scam. Run on the banks and if they won't give you your deposits, don't make payments. I would like to see them even try to foreclose on people if they would not give them their deposits. People would take up arms.

[fedup100]

Question? If everyone in the coutry took all their money out of the banks this week, would we get rid of the Federal Reserve? If so, maybe we have a chance to really do something meaningful.

[werdd]

already done so my friends, looking to go to the coin shop and see what they have for silver and gold.

[Dary]

What's the point if it's not worth anything?

Actually... and correct me if I'm wrong but...

For existing debt, like your mortgage, the failed dollar would actually be worth more.

For instance. Let's say you have 100,000 FRNs in your pocket and you owe 100,000 FRNs on your house when it collapses. You still only owe 100,000 FRNs, but only now you owe 100,000 worthless FRNs. In other words, those dollars may not be able to buy anything NEW because they are worthless. But they could still pay off your house. Anyone applying for a new mortgage would have to pay 2,3,4 or a hundred times more in failed FRNs (or whatever alternate currency arises) for the same $100,000 mortgage, but since your contract is for 100,000 FRNs then that is what it is. It's not like they can refuse your failed FRNs right?

That is the definition of deflation. You get your house paid off with worthless money. That makes it worth more, right?

Am I right?

[Original_Intent]

Actually... and correct me if I'm wrong but...

For existing debt, like your mortgage, the failed dollar would actually be worth more.

For instance. Let's say you have 100,000 FRNs in your pocket and you owe 100,000 FRNs on your house when it collapses. You still only owe 100,000 FRNs, but only now you owe 100,000 worthless FRNs. In other words, those dollars may not be able to buy anything NEW because they are worthless. But they could still pay off your house. Anyone applying for a new mortgage would have to pay 2,3,4 or a hundred times more in failed FRNs (or whatever alternate currency arises) for the same $100,000 mortgage, but since your contract is for 100,000 FRNs then that is what it is. It's not like they can refuse your failed FRNs right?

That is the definition of deflation. You get your house paid off with worthless money. That makes it worth more, right?

Am I right?

I thought with deflation dollars are worth more. The Fed reduces the money supply substantially, no one can get FRNs, they are worth more.

If you have the FRNs, I think whether deflation, inflation, or hyper-inflation, you can pay off any debts as long as you have enough. In severe deflation you might be able to re-negotiate and they would be will to take less immediately just to get their hands on FRNs.

Post Civil War it was deflation that destroyed the economy (or I should say it was the tool the Insiders used to destroy the economy) I am thinking the Depression was deflationary as well. Weimar Germany it was hyper inflation, whcih I think if we started into the banks would call on all loans because the dollars would be losing value so fast.

I have seen a lot of good arguments both ways that we are headed into hyper inflation and also deflation. It's really a question of which gun they decide to shoot us with.

[Mortikhi]

Ok, all my money is out.

Now all I gotta do is sit back and see what happens.

What's that saying: fortune favors the prepared?

[mconder]

You can do one better than that...convert your dollars into useful things in the event of a collapse.

[Bruno]

I thought with deflation dollars are worth more. The Fed reduces the money supply substantially, no one can get FRNs, they are worth more.

If you have the FRNs, I think whether deflation, inflation, or hyper-inflation, you can pay off any debts as long as you have enough. In severe deflation you might be able to re-negotiate and they would be will to take less immediately just to get their hands on FRNs.

Post Civil War it was deflation that destroyed the economy (or I should say it was the tool the Insiders used to destroy the economy) I am thinking the Depression was deflationary as well. Weimar Germany it was hyper inflation, whcih I think if we started into the banks would call on all loans because the dollars would be losing value so fast.

I have seen a lot of good arguments both ways that we are headed into hyper inflation and also deflation. It's really a question of which gun they decide to shoot us with.

I don't think Dary was saying the dollars are worth more, just that you would have more of them.
If you have a fixed rate loan, your payment might be $1000/month, for example. That payment does not change (excluding taxes and insurance for simplicity, just speaking of the P&I).
Now, with inflation, you will have more dollars as income, if your employer does in fact follow your salary with the rate of inflation. Let's assume you used to make $50,000/year, and with a hyperinflation, you now make $100,000. You have more "worthless dollars" to spend, and your fixed rate payment is still $1000/month.

This assumes, however, that the government does not step in, break your contract with the mortgage company, and "restructure" your loan to adjust for inflation to "save the banks".

Considering all the gov. meddling, I could see this happening.

[FindLiberty]

removed - duplicate post error

[DAFTEK]

Done :D Just exchanged my money for food... lol

[Cinderella]

i just took my money out and bought guns hookers and drugs....

[Bruno]

i just took my money out and bought guns hookers and drugs....


always a wise choice. they will all be necessary in a post-apocolyptic world

[Cinderella]

well i have a plan...the hookers work as my biological weapons spreading their herpa-ghono-syphal-aids...the guns are for my personal protection and the drugs are....well...for medicinal purposes

[FindLiberty]

Originally Posted by mconder: You can do one better than that...convert your dollars into useful things in the event of a collapse.


Originally Posted by Cinderella: well i have a plan...the hookers work as my biological weapons spreading their herpa-ghono-syphal-aids...the guns are for my personal protection and the drugs are....well...for medicinal purposes

Hmmm,

Yes, things that are valuable if the $ collapses (new shoes still in boxes, etc.). If there is no collapse, this is not wise. DON'T PUT ALL YOUR EGGS IN ANY ONE BASKET! Don't pull out your entire life savings of $34,589.24 and stuff it under your matress, that's nuts unless the bank does not have FDIC "protection".

No reason to help create a banking panic. Even as a political stunt, they would be forced to print up even more fiat money to cover the 90% that does not exist at the bank (other than as "debt" on paper). That stunt would just make your own money more worthless, quicker.

The pull out from (one) bank idea is only critical if you have more than FDIC insurance "covers", that is more than $100,000 in a single name, on all accounts at that bank. Another bank is a good idea to prevent inconveinience if a bank gets the weekend whammy, before it reopens under a new name the following week. The FDIC is ready to bail you out by re-creating your bank balance (up to their limits: $100k single, $200k joint, $250k retirement account) by printing up some nice new money for you, right out of thin air.

Take any excess (over $100k) and open up an account at anOTHER bank (not same chain or bank ownership though), it must be another FDIC insured bank.

I also like the Permanent Portfolio (PRPFX) : http://www.permanentportfoliofunds.com/performance.htm

If you have over $1m, just send the excess to me as a gift.

[Mahkato]

The pull out from (one) bank idea is only critical if you have more than FDIC insurance "covers", that is more than $100,000 in a single name, on all accounts at that bank. Another bank is a good idea to prevent inconveinience if a bank gets the weekend whammy, before it reopens under a new name the following week. The FDIC is ready to bail you out by re-creating your bank balance (up to their limits: $100k single, $200k joint, $250k retirement account) by printing up some nice new money for you, right out of thin air.

Yeah, but how long will it take our good friends at the FDIC to print up and distribute all of these $100,000 checks to everyone?

[mconder]

always a wise choice. they will all be necessary in a post-apocolyptic world

You forgot the Mad Max motorcycle.

[TheEvilDetector]

Question? If everyone in the coutry took all their money out of the banks this week, would we get rid of the Federal Reserve? If so, maybe we have a chance to really do something meaningful.

That is technically impossible, unless, the printing press goes into hyperdrive, but by then, it would be cheaper to use the FRNs for toilet paper than buying toilet paper itself.

[tmosley]

Yeah, I'm looking into canceling my direct deposit and taking delivery of my paycheck instead. Even if the banks go under, there will probably still be check-cashing institutions.

[FindLiberty]

Toilet paper? (I know you are kidding about use but not the price of it...) It's too scratchy to use fiat paper money as TP. Pages from old phone books are better.

Cancel your direct deposits?

Come on, RPF regulars know better than to panic. The concerns about the USD should be about protecting it's value and not a shortage of fiat paper!

Even if TSHTF, the FDIC will have checks ready for those that want to close out their accounts within a few days, since the whole bank closing on Friday was probably pre-planned the week before. The bank re-opens with a new name a day or two later the following week and you still use your old account number - business as usual as long as you are within the FDIC $100,000 insurance per individual TOTAL from all YOUR accounts at that bank. If you need to open another account at another bank to level each bank off below $100k, more power to you for your wealth, just protect it by spreading it to other banks.
That process won't involve any suitcases stuffed with fiat money since it's ‘gonna be a electronic xfer or counter check, unless you are crazy and are looking to get robbed as you drag your cash, stuffed into pillow cases, down the street.

A panic cash withdrawal run is more complicated because of the normal fractional reserve only keeps a tiny amount of paper cash at the bank (compared to its total book deposits) and there is a shortage of FDIC people and potentially a huge number of banks if everyone panics for no good reason... It may take months for ALL that new paper to appear (~9x the banks account $s). Just use the electronic xfers that would be available in a few days if the bank required FDIC intervention because its books reflected unacceptable ratios according to FDIC / banking regulation rules.

If you insist on forming a line in front of the bank doors, don't get run over by a Brinks armored truck delivering more and more new cash to the bank every day, as required, to feed any panicking bank customers. For most people, they won't notice or care ‘cause they use electronic xfers and plastic and they rarely visit the bank building.

Running to the bank to pull out all your paper money is foolish now. Just keep enough paper cash on hand for a few weeks of cash (paper) expenses. The CC and electronic xfers will stay available, or only be down for a few days, if TSHTF at your local bank.

Don't panic, and don't cause a panic by "demanding" hyperinflation to fill your fists with fiat paper as you run out of the bank, so you can stuff your mattress with it as it becomes more worthless due to the panic run for fiat paper.
They will just tell people to come back the next day for paper..

All this while we await the new $10,000 Obama fiat bills to go into circulation.

[SonOfLiberty33]

I pulled my investments from Merril Lynch and am waiting for the check to clear so I can buy silver bullion and keep it in a safe. .50 BMG ammo also seems to be a good investment, hardly over a year ago it was not much more than a dollar a round, today its $3.50. It's all speculation but it could be a viable route of saving. However I think re-selling ammo to the public might be illegal. But in a post-apocalypse era, what better to have than cache's of the best anti-anything round stored up? :D

[FindLiberty]

Agree - guns and ammo useful for family defense, up to a point.

...collect too many and start bragging about it may
get you drilled, gassed and burned.

Remember Waco?

[Mortikhi]

So you say keep your money in the bank because banks never close their doors and dont buy too much ammo. Maybe you should change your forum name to HopeLibertyFindsMe

[FindLiberty]

So you say keep your money in the bank because banks never close their doors and dont buy too much ammo. Maybe you should change your forum name to HopeLibertyFindsMe

FDIC insurance = $100,000 per person / $200k per couple on the account. May close doors but you will get your money! The crappy FDIC / fed reserve system has that one thing going for it (and a lot more going against it including moral hazard).

Guns are GOOD = self-defense and 300 million of 'em give the tyrants pause. If you live in the middle of a large city after TSHTF, you will either run out of ammo or melt the gun barrel protecting your stash of crackers and canned peaches. Brag about your modifications for full automatic fire and watch what happens to you via the BATF. I don't approve, but I don't plan to counter-attack either.

Find Liberty = supply and demand on products, services, jobs, sound money, etc. If enough people want it, the invisible hand will smack it into shape, including you and me.
+++
Otherwise, I just want to be left alone and respect your right to do likewise - BTW, I insist on the former and Liberty found me a long time ago!

[crackyflipside]

FDIC insurance = $100,000 per person / $200k per couple on the account. May close doors but you will get your money! The crappy FDIC / fed reserve system has that one thing going for it (and a lot more going against it including moral hazard).

Guns are GOOD = self-defense and 300 million of 'em give the tyrants pause. If you live in the middle of a large city after TSHTF, you will either run out of ammo or melt the gun barrel protecting your stash of crackers and canned peaches. Brag about your modifications for full automatic fire and watch what happens to you via the BATF. I don't approve, but I don't plan to counter-attack either.

Find Liberty = supply and demand on products, services, jobs, sound money, etc. If enough people want it, the invisible hand will smack it into shape, including you and me.
+++
Otherwise, I just want to be left alone and respect your right to do likewise - BTW, I insist on the former and Liberty found me a long time ago!

The gov't and banks can freeze your accounts when the SHTF... It happened in Argentina when their economy went to crap.

[FindLiberty]

The gov't and banks can freeze your accounts when the SHTF... It happened in Argentina when their economy went to crap.

Yes, you are right!. I guess they could also send troops from door to door to search for "our" guns and gold too...

Let's hope TSdoesn'tHTF - I don't want to promote/cause/participate in an unnecessary bank panic that could help trigger TSHTF scenario due to anticipatory overshoot.

In the worst case (Depression, $ collapse, War), good luck exchanging cash or gold coins for some food, water, medical care. You may instead wish you had some freedom (authority to grant it or release yourself or others from a government crack down) or possess enough spare food, water and medical skills/supplies to exchange with others. Living in the middle of a huge city if TSHTF (no electricity and without enough land to grow food, etc.) would be impossible IMO.

Preparations for TSHTF? I'd worry less about the bank or the auto-deposit versus a paper paycheck in hand, and worry more about having me some Green Acres with land spread'n out so far and wide. Government might take that too if they think they are running low on supplies for their under-the-mountain hide-away.

The part that scares me the most here is we have swarms of "good" government central planners that are using all their skills: (coercion, force, Keynesian economic manipulation via taxes, rules and inflation, spin, deception and lies) to prevent TSHTF from ever happening! They do it "for the good of the system". Since I'm convinced that Government Does Not Work, we need to brace for severe unintended negative consequences in direct proportion to all their hard work and best intentions.

It's widespread greed and ignorance, the fed with it's moral hazards, regulation and taxes including the hidden tax of inflation, and blind faith in government that are the long term problems that should be addressed. There ain't no free lunch or quick fixes!

[mediahasyou]

buying gold results as a hedge against the falling dollar. You maintain wealth while other's living standards go to shit.

[drew1503]

Actually there is only enough money for about 500 banks.
http://www.infowars.com/?p=4627
Just taking the cash out is good but buy like 10 to 15 percent in gold and silver, just in case. What is the worst that can happen? You turn it back in for cash?
You can take gold and silver to any country and exchange it but take your dollars and you will either get pennies or laughed at. Many countries are not even accepting the dollar any longer. Buy food, water, medical supplies, things that you can touch, you can use.
It is called preparing and we are told to do so in California for Earthquakes, etc. so why not the economy collapsing when it IS a reality? Ron Paul has said himself the Depression is already locked into place and will most likely last a decade, it will be worse than the depression.

[FindLiberty]

Gold / Silver / other PMs are fine when used to store the value of your money as you ride out inflation.

Go for it!

Why did you wait 'till now to do this? Gold was a better deal at $200/oz. It may even break $2,000/oz or higher if the SHTF.

[Mortikhi]

I already have my gold and silver.

Now I have my money out.

When you ask what good is money if tshtf, I will tell you. When tshtf and the masses are at the bank trying to their dollars, I will be spending my soon to be worthless dollars on more supplies.

I'm just trying to stay at least one step ahead of the panic.

Only the people on these boards and some of my family members know what I have done, not the entire country, so I highly doubt that my withdrawing my money will cause a nationwide run on the banks.

[JoshLowry]

FDIC insurance = $100,000 per person / $200k per couple on the account. May close doors but you will get your money!

So if all the banks close where does our government get the estimated 4.5 trillion dollars that is insured?

They don't have 4.5 trillion sitting in a bank vault, that's for sure...

[NewEnd]

why stockpile gold when you can stockpile dry goods like rice, beans, canned gods, cigarettes and cat/dog food? You could barter them just as easy as gold, they are not inflated at the moment, and you could use most of it over time. Most this stuff will last 3 years.

(well I dont smoke, but cigs would be worth more than gold... :P )

[kombayn]

Honestly, join a credit union not insured by the NCUA which is a federal government FDIC for credit unions but ones insured by ASI, American Share Insurance which is a private organization for credit unions and not regulated by the federal government or state governments. Just do your research.

[FindLiberty]

So if all the banks close where does our government get the estimated 4.5 trillion dollars that is insured?

They don't have 4.5 trillion sitting in a bank vault, that's for sure...

Correct-ah-mundo. There is no Social Security "lockbox", no FDIC cash vault!

Congress will order the massive printing of paper money and instruct the federal reserve to blow lots of extra ones and zeros into computer databases to "fund" the "rescue" of the FDIC, mortgage and banking systems. In the process, our money will be debased and inflation will rage. The very substance of the poor and middle class gets eaten out as wealth is silently consumed and redistibuted.