Banks Might Fail

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Marina
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Banks Might Fail

#1 Post by Marina » 9 months ago

I expect anyone could guess but for your info word is that the banks could go bust and that if you have savings they could disappear.

In UK there are some safeguards for savings under a certain amount. Don't know what the situation is like in the rest of the world.
Marina

Bobcat
Posts: 3303
Joined: 7 years ago

Re: Banks Might Fail

#2 Post by Bobcat » 9 months ago

Hi Marina,

Do you have a particular article you are referring to?

In the US there is a 'deposit insurance' that the govt. has in place. But it would only be of use with some small bank failures. If there was a systemic failure of the banking system or of some larger banks, it would quickly overwhelm the FDIC (and almost was in 2008). The Chinese towed the line in 2008 and helped prevent a systemic collapse. But a certain US president has made sure that the Chinese will not be so generous if it happens again.

The coronavirus has put great stress on an already stressed banking system. This is why I posted what I did here. The hegemony of the western world, and especially the Anglo-American empire hangs in the balance on the continued functioning of their banking system and the reserve status of the dollar.


Bobcat

Marina
Posts: 2139
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Re: Banks Might Fail

#3 Post by Marina » 9 months ago

No Bobcat there is no article - this is what I am hearing from reliable sources.
Marina

Stranger
Posts: 1897
Joined: 3 years ago

Re: Banks Might Fail

#4 Post by Stranger » 9 months ago

Banks are failing all the time here in the USA, but most of them are acquired by some other institution.


https://www.fdic.gov/bank/individual/fa ... klist.html

Stranger, (Ps 135:4 KJV)

Bobcat
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Joined: 7 years ago

Re: Banks Might Fail

#5 Post by Bobcat » 9 months ago

Hi Marina,

Here is one article on the topic. The article also shows how they deal with those situations when they are manageable in size.


Bobcat

Marina
Posts: 2139
Joined: 5 years ago

Re: Banks Might Fail

#6 Post by Marina » 9 months ago

Thank you both for the insight. I don't know much about banking but I do remember when the Argentinian currency failed and the banks all shut and the currency devalued. People were banging on the doors of the banks with saucepans but they couldn't rescue the money.

Guess I'm wondering if something like that could happen. Any ideas? Or no not likely?
Marina

Bobcat
Posts: 3303
Joined: 7 years ago

Re: Banks Might Fail

#7 Post by Bobcat » 9 months ago

Hi Marina,
Guess I'm wondering if something like that could happen. Any ideas? Or no not likely?

In the US "something like that" did happen in 1929. There was a run on the banks. Everyone wanted to get their money out of the bank. But the bank didn't have everyone's money. So the doors of the banks were locked.

The reason why the banks didn't have everyone's money, and still don't today, is because the banking system operates on what's called the fractional banking system. If you want a quick read of how that works, here is an article.

In essence, such a system only works when people have faith in the system. As long as people believe their money is safe and available when they want it, the fractional banking system usually works. The people are willing to leave their money in the bank (or most of it) because they believe it will be there when they want it.

But, if something (or somethings) happen that shake people's faith in the banking system, then, they will go down to the bank to take their money out. And, for most people, it won't be there. Something similar happens when word starts to go around that gas will be in short supply. Everyone heads down to the gas station to fill their cars. And before everyone can get gas the station runs out of gas and closes.

So, the question really is, could it happen again?

It depends on a number of things. But many of those things eventually lead back to the US and Great Britain.

By way of example, imagine if you let your neighbor hold your money in safekeeping. He has a good reputation, so you trust him. And whenever you need some cash, he always lets you get what you want.

But now you hear that he has been writing a lot of checks lately and acting erratically. Now you start wondering if your money is safe.

Now apply that to the US and Britain. That is a very simplified example. But maybe you can start to see why huge budget deficits, huge trade deficits, and the printing of trillions of dollars to help with the pandemic (printing money is for the govt. what writing checks is to an individual), and an erratic leadership, all these things could eventually take their toll on people's faith in the system.

Eventually, the whole system, banking and all, will go down, one way or another. (Lu 16:9) But regarding the banking system (especially in the US and Britain) and whether something bad will happen, it's hard to say. That is, it is hard to say when. It will happen. We just don't know when. All the circumstances are there for it to happen, but the politicians and bankers have been able to keep 'kicking the can down the road' so far, putting off the day of reckoning.

When it does happen, though, the structure of the world, as we have known it, will have changed. The US and Britain will no longer be the dominant world power. And the next world power is only scheduled to last a very short time. (Rev 17:11, 12)


Bobcat

Marina
Posts: 2139
Joined: 5 years ago

Re: Banks Might Fail

#8 Post by Marina » 9 months ago

Thank you Bobcat - that's very clear. I can understand that.

:sheep:
Marina

AmosAu3
Posts: 440
Joined: 1 year ago

Re: Banks Might Fail

#9 Post by AmosAu3 » 9 months ago

Hi Bobcat, Marina and Stranger,

I think that "Fractional Banking" could be akin to "Pyramid Selling."

We, as customers, lend the BANK our hard earned cash to keep in trust for us. In the meantime they both lend out our money to other people and businesses for their own (the banks) profit, and buy other commodities ie, shares, short term money market, etc. When there is a credit squeeze on the economy, problems rapidly begin to happen. When the original depositor requires his own "hard earned" back, he is forced to stand in line and hope he can get at least some of his money back. I was personally in this position following the GFC. I tried to cash in the remainder of my "super" but was only able to draw down about 25% each year, because the rest of it had been spent by the Superannuation company. It took several years before I was able to get my own money back!

Governments can give a guarantee to prop up banks, and they have done so in the past, BUT to do this, the government first needs to borrow the money from the World Bank and elsewhere. It becomes a never ending circle of borrowing and lending......until the final call ends in bankruptcy.

Since I've become aware of the workings of the complete system, I only use what I absolutely need to do for survival.

Any thoughts?

Regards, Amos.

Marina
Posts: 2139
Joined: 5 years ago

Re: Banks Might Fail

#10 Post by Marina » 9 months ago

I wonder where the World Bank gets the money from.

As the money is not linked to gold, it is only worth what Mr Supermarket lets you out of his store with for x amount of money.

Am still working away on my 1914 YouTube (get finished one day I promise) but when you see WT's maths and how it can magic time into existence and out of existence - if you apply the same principle to banking - maybe it's all just a silly magic trick with numbers.

There's two hills near me and some legend of a dragon. I forget exactly how it goes but something like, "the money would come or the payment made when the dragon was at the other hill." I guess it's was a bit like saying, "I'll pay you tomorrow." But tomorrow never comes because when tomorrow does come, it's today.

Makes me think of this :)

(Revelation 17:8) 8 The wild beast that you saw was, but is not, and yet is about to ascend out of the abyss, and it is to go off into destruction. And when they see how the wild beast was, but is not, and yet will be present, those who dwell on the earth will wonder admiringly, but their names have not been written upon the scroll of life from the founding of the world.
Marina

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