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Silver Wheaton Corp. Message Board

  • redoaks37 redoaks37 Jan 2, 2011 9:58 AM Flag

    Bank Runs upon us soon!

    When the ball hits the ceiling fan, sometime early 2011 at the earliest, there will be massive bank runs.

    I expect that the FED and other central banks will pre-empt such a run and will do the following:

    1) Disallow cash withdrawals from banks beyond a certain amount, say US$1,000 per day; 2) Disallow cash transactions up to a certain amount, say US$10,000 for certain transactions; 3) Transactions (investments) for metals (gold and silver) will be restricted; 4) Worst-case scenario – the confiscation of gold AS HAPPENED IN WORLD WAR II. 5) Imposition of capital controls etc.; 6) Legislations that will compel most daily commercial transactions to be conducted through Debit and or Credit Cards; 7) Legislations to make it a criminal offence for any contraventions of the above.


    Maintain a bank balance sufficient to enable you to comply with the above potential impositions.

    Start diversifying your assets away from dollar assets. Have foreign currencies in sufficient quantities in those jurisdictions where the above anticipated impositions are least likely to be implemented.


    There will be a financial tsunami (round two) the likes of which the world has never seen.

    Global banks will collapse!

    Be ready.

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    • I'm printing my own money as we speak.

    • Dude, you need to calm down and reflect more on how things really work in the world:

      1) There are not going to be large scale bank runs in the USA as long as you have FDIC insurance and the Federal Reserve standing by ready to create a few trillion dollars to backstop the banks. Just like in 2008 when a few small mini-runs happened the feds just inject massive amounts of credit into the system and the run peters out.

      2) There isn't going to be confiscation of gold ala roosevelt in 1934. The reason gold was nationalized was because the USA was on the gold standard, the government desperately wanted to expand the money supply to fight deflation, and the only way to create more money was to take possession of more gold. Gold has no connection to the money/credit supply in the 21st century. Someday a move may happen to restrict or nationalize private gold, but that will only happen when we are well on the path of hyperinflation.

      3) The government isn't going to restrict the amount of bank withdrawals. That idea comes from 1920's germany that used paper money and physical money was actually in short supply (right up to 1923 when you see pictures of people with wheelbarrows of marks). We live in an age of digital money/credit. There is no such thing as a shortage of money, the only thing that will change is velocity of money as inflation ramps up.

      4) The government isn't going to outlaw paper money and force all transactions via debit/credit cards. Paper money is just a side show to the feds, its is no longer relevent in a digital money age. Bernanke doesn't print 600 billion paper dollars to buy US Treasuries, he just has his people create 600 billion more digital bank reserves and uses them to buy the bonds.

      If Spain has to be bailed out in 2011 (likely) the euro and its banking system will come under severe pressure and we could easily see a global financial crisis ala 2008. But the things your talking about are not going to happen (in the USA). The central banks will flood the world with digital credit, will do whatever it takes to prop up the system, and may officially start us on the road to hyperinflation.

    • I don't know why you believe any American, would just cheerfully allow the confiscation of their gold.



      End of story!


      • 2 Replies to hlpatriot
      • hlp -

        Wouldn't be anything
        "cheerful" about it.

        But if I told you just
        2 years ago that people
        would allow themselves
        and their CHILDREN to
        be sexually groped by
        strangers as mandated
        by the govt. to get
        on a domestic flight,
        you'd have called me

        PMs are the only defense
        we the people now have.
        But I don't kid myself
        that something "couldn't

        I know this: history shows
        government has an insatiable
        appetite for power and control.
        It won't voluntarily reign
        itself in. IT IS INCAPABLE
        of doing so.

      • I agree Americans will not give up their up their gold. Two of the things you mentioned would start a civil war. 1. Being the confiscation of gold. 2. Laws forcing people two use only debit or credit cards ( I own either debit or credit cards nor will I ) also that law could not pass not congress.

    • There cannot be a bank because people do not have evough savings in banks. Everybody is in debt. Gold was not confiscated during WWII. The turn in of gold was voluntary and it happened much before WWII.

    • Why would there be a bank run? Bank runs occur when people fear that they will lose their money because the bank is becoming insolvent. The Fed can just infuse as much money as necessary in any bank that finds itself in a liquidity crunch. TARP funds are still available just for that purpose. Since FDIC insures that deposits up to $250,000 per bank will be paid in full no matter what happens, I find it difficult to believe that there will be bank runs in the US.

      Now that's not saying that there aren't problems, but I don't think a bank run will be one of them. Nor do I think that the restrictive measures you suggest would be put in place by the Federal Government, because to do so would show that they do not have a handle on the situation where what they want to do is instill confidence that the government can effectively deal -- whether they really are or not. Appearances are very important.

      • 1 Reply to mtstack2000
      • Since and including Viet Nam have you ever asked yourself why we keep involving ourselves in these &^%$#$ little wars? Why did Johnson keep us in Vietnam and NOT want to win? It was to feed the military/industrial complex which is owned by the Worlds richest Bankers. Now after they had there stooge Obama installed they decided to scuttle currency, first have the U.S. taxpayer bailout same bankers. NO ONE knows the toxicants hiding within the Big Banks but it is surely still there. The Bankers have their money, now they will scuttle the Banks, crash the fiat, and leave the taxpayer holding a bag full of %$#@.
        Yes I agree it's time to own P.M.'s and maybe that farm Jim Rogers recommended a few years back. Wyoming, Montana, and a 7mm will provide ample food. Just wait until the store shelves are empty. The Beast is wide awake.

    • Swiss Franks are looking particularly rosy. This is the one country and currency that enjoys the stability it obtains in the world, by rising value.

      In that, the currency is the export of choice, therefore, devaluing it would be the opposite of prudent for that country.

      • 1 Reply to yourdeadmeat69
      • "All currencies are declining against gold but some faster than others. The US dollar for example is down 78% against the Swiss Francs since 1972. During the same period the pound has declined a massive 85% against the Swiss Franc. Both the dollar and the pound are now at all-time lows against the Swiss currency. *****BUT the Swissy is only strong relative to weak paper currencies because against real money/gold the Swiss Franc has declined 87% since 1972."

        Good article.

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