October 2, 2023
Excerpt from article, I encourage you to read it.
“When Silicon Valley Bank and other banks failed earlier this year, the debate over the sustainability of fractional reserve banking resurfaced. Under fractional reserve banking, banks keep only a fraction of customers’ deposits in reserve. The difference is bank credit, such as government debt, mortgages, business loans, and many other kinds of loans. This practice leaves the bank open to a run, in which panicky depositors attempt to withdraw their funds from the bank en masse but the bank doesn’t have the cash on hand. The following FRED graph gives an idea of the extent of the mismatch between deposits and reserves.”
“With such an agreement, “fractional reserve free banking” proponents say, depositors would know that they are effectively creditors to the bank and that the bank is therefore a debtor to them. This means that the deposits are technically and legally owned by the bank and that what the depositor has is technically and legally a callable loan to the bank. Clear agreements would mean that depositors understand that there is a chance that they won’t be able to get their money (actually, the bank’s money, in this view) immediately in the event of a bank failure. Of course, central banking and government-backed deposit insurance diminish customers’ expectation of bank responsibility—how much should banks be expected to disclose about the deposit relationship if most of their customers’ deposits are guaranteed by the government anyway?
In line with other fractional reserve free banking proponents, George Selgin argues that modern depositor agreements—the dense legalese most people skip—already establish this transparency.”
Take heed and consider this if you have large account balances in a bank. This was planned long before we were most born and just a way in leaner and tumultuous times for those in charge, bankers to transfer that wealth to them. There are several ways to bypass this taking, as low a balance. pulling cash out and leave enough to pay by check your mortgage/rent, utilities and credit. There are other strategies and methods. Find one that works for you and not allow your wealth to disappear.
I quit doing banks in 1987. Credit Unions are a different game entirely. I do use credit cards, but pay them off religiously every month. I don’t pay a dime of interest to anyone at all, and I’m almost psychotic about staying that way.
I thought the law changed a couple of decades ago that changed the ownership of funds from you to the bank when you make the deposit.
When you open a new account you sign ownership documentation authorizing the bank to do what they want with your funds without your consent.
I keep as little as possible in the bank, and as Greg says, credit unions may have better terms of use. Some smaller local banks are better too.
I ran into this problem late 70s. Large bank branch refused to release my money from my account over a certain amount. Since it was a “bank to bank” transfer, should not have been issue. Went in and closed my account next week AFTER cashing large IRS refund check. Went to CU right after. Never had a problem since
Mojo Nixon recorded a tune called “I hate banks”. Not as funny as “Elvis is Everywhere”, but probably worth a listen once.
I’ve been getting increasingly PO’d at my bank, and I’ve been at the same place for decades. The hassle of switching keeps me there. My experience with a credit union has not been good. So far, the one local, small bank I’ve looked at has me unimpressed. Their ads talk a good game, but I’m definitely getting a “woke” vibe from some of their marketing stuff. OTOH, they have a nice deal available for old farts such as myself.
And thanks, Greg. Now I have the “join your credit union” jingle from those old radio ads as an ear worm.
Western Rifle Shooters Association had a link on Saturday:
https://westernrifleshooters.us/2023/09/29/saturday-long-read-the-great-taking/
If you have money in a bank, or stocks/retirement account invested
in the markets, you might want to read it.
To summarize: You don’t own squat, you only think you do.
It could easily be gone, gone, gone. With you having no recourse.
not something I have to worry about anymore. medical bills and Bozo care took care of most of my retirement savings. I really hate Blue cross.
anyway, I keep enough to pay the bills and that is it. any “spare cash” goes to stocking the basement with goods. food, ammo and other stuff I know we will need
ever notice how a lot of things started costing more after 2008 ?
that is when the printing press got started and it has not slowed down since.
anymore it is when will the dollar fall not if. I try not to think about how bad it is.
but really, 2200 per month to the illegals. billions given in “aid” all over the damn world. I am kind of shocked it hasn’t crashed already sometimes.
hell even my brother who is sitting on a fat pile of cash in the bank is getting worried about it. talking about getting some silver or gold now.
I find that funny as I was trying to talk him into getting some back when gold was
875 per OZ. and now he thinks he should /
I’ve always been a fan of CU’s, never had a bad one.
“investing” in gold, silver, semi-precious metals, and food/equipment/medicine is the way to go.
Why would any sane person have anything to do with banks, anyway??
I just read an article that says Starbucks is basically operating as a bank. Evidently you can load up money on your card that enables you to get a coffee anytime with it, kind of like a Mac card I guess.
Anywho, idiots who drink that shit have pre-paid 1.9 million dollars on their cards. Which Starbucks controls. Think about that.
CIII
Sheeple
Without fractional reserve banking, banks would charge depositors a fee for holding their money. Moreover, there would be no banks loans nor any checking services.
When they close the doors, locking you out, it’s theirs.
Mises and Lew Rockwell are regular good reads for things you will not see elsewhere but as of late they kick the same dead horse some.