. . .
B “I want out of the Racket – the stock market Racket. I want to hold my deferred compensation in the form of dollars, for what they are worth. As I see it, Treasury Bills and Treasury Bonds are allegedly protected by the ‘full faith and credit’ of the United States. What is that worth? When the Big Jolt hits, what is Uncle Sam’s telephone number? Or e-mail address? email@example.com? A general promise by the Uncle when I have full faith that the credit of the United States is sketchy, provisional and conditional at best. I won’t touch Treasury Bills or Treasury Bonds.”
C “Another hollow and worthless promise. I won’t touch Treasuries and refuse to deposit money in a bank. The FDIC (Federal Deposit Insurance Corporation) allegedly provides insurance for banks, yet the agency is ‘stressed’ to put it mildly and will not pay all claims in the event of a significant bank run. The NCUA (National Credit Union Association) allegedly provides insurance for credit unions and may provide some insurance protection for some time for some depositors. I am willing to make a tentative commitment to the system and keep some of my funds in my Local Credit Union (LCU).”
B “Depositing a healthy chunk of money in the Sealy Posturepedic Credit Union (SPCU) involves little counterparty risk and allows me to sleep peacefully at night. When the Big Jolt hits, there will not be enough physical dollars. Regular folks may accept regular dollars for two related reasons – inertia and habit – until the shock triggers them to do something and change their habits. Regular folks will accept the few available physical dollars for four or six or eight weeks for transactions as long as other citizens accept dollars for transactions. Then regular folks will only accept Sacagawea dollars and some coins for a few weeks, although coins like dollars of any kind are in short supply today. After a few more weeks, some informed folks will accept silver coins minted before 1964 at a premium.”
C “In the end, the Depression is our guide. Twelve gauge shot gun shells may be another medium of exchange and twenty-two rounds may be used as change to support the emerging barter economy. Cash of any kind is the threat to the those who run System. The government now requires banks to obtain and record the identity of anyone making a cash deposit and are refusing to accept cash for some payments.”
B “Banks do not need deposits to be able to loan money. Yet today many banks are offering gimmicks and gewgaws to attract funds that they will be able to retain during a ‘bail in’ without any obligation to the depositor.”
. . .
C “Junior’s paper route money stored in his piggy bank may be our only available liquid asset.”
B “She may not stand for us withdrawing some of the Standing Liberty quarters from the collection she has accumulated with her baby sitting money.”
C “We may need a bushel basket of Wheat Pennies to buy a pocketful of wheat.”
B “When the banks are maneuvering to avoid a haircut, we may be required to go to our Barbers.”
. . .
[See the e-commentary at Preserve Cash; Preserve (Some) Privacy (May 4, 2015), “Bail Ins” Are Globalized; “Bail Outs” Are Bailed Back In; No Bail For Bankers (December 29, 2014), Globalizing The Bail In (July 8, 2013), Bailouts: Out; Bail Ins: In; Slowly Boilin’ The Frog (April 15, 2013), Money “In The Bank” Or “Under The Mattress” (October 8, 2012), Boycott Big Banks – Vote Your Dollars (November 21, 2011), and Boycott Big Banks (February 1, 2010).]
Bumper stickers of the week:
The U.S. government is pursuing an international currency war and a domestic war on currency.
SPCU/You > LCU/NCUA > Bank/FDIC > Uncle Sam/FF&C