Bank Holiday Crisis? Rumors Fly Amid Currency Crisis
Currency Crisis
With the world on the verge of a currency war as the Federal Reserve follows thru on its dollar-killing quantitative easing program, rumors are once more swirling of a bank holiday, during which US citizens will be forestalled from withdrawing cash or at least restrained in the amount of the withdrawal they can make.
Currency Crisis Causes Bank Holiday Rumors
The bank holiday is rumored to be set for next week, with Thursday November Eleven pinpointed as the most probable date.
Consistent with radio host Steve Quayle, a priest was told by one of the managers of a prominent east coast bank that banks would close for an undetermined period of time, and that when they reopened, all withdrawals by checks would be restricted to $500 per week irrespective of what the balance in the account is.
Limiting the sum of money patrons can withdraw or blocking the facility altogether reminds us of a Citigroup advisory that was sent to consumers at the start of the year which said that the bank reserved the right to need ( 7 ) days advance notice before allowing a withdrawal from all checking accounts. The tale stoked fears that financial establishments were preparing for bank runs. History has a sitting President taken off on a foreign trip for an extended period, with Sixty five airplanes, 34 battleships allegedly 3,000 folk including his pals and cohorts, at the height of an industrial and political upheaval?
Concerns over a bank holiday first arose in June of last year, when it was rumoured that banks would close their doors in early Sep.
On his site, Quayle asks, When in U.S.
With Brazil and other countries now threatening to take extreme currency measures to guard themselves against a dollar crisis, an identical fiscal environment is stoking matching fears. Concern was powered by reports that US embassies in foreign nations were purchasing big quantities of local currency.
Bank holidays are not without case law in the United States. On March 5 1933, newly elected Franklin Roosevelt announced a bank holiday that lasted four days, in which he rammed thru the Emergency Banking Act which granted FDR near dictatorial control of the dealings of banks. The Act also forced every voter and business in the country to relinquish their gold in return for paper currency.
The 1933 bank holiday served as a face-saving mechanism for many fiscal establishments thousands of them never re-opened after the closure period had stopped.
While we predict it to be business as normal the week after next and the rumors to subside as they did last year, the simple fact this fear keeps cropping up shows how shaky the economic landscape is at this time.
First of all, the controversy is no longer about whether the US financial system and the dollar will come crashing down or not, but if that unavoidable process will be characterized as a unexpected collapse or death by a thousand cuts. The second appears to be much more likely, with a few lurches and leaps on the way, the first of which was Ben Bernanke’s statement on Tuesday the Fed will buy $600 bill of U.S. Presidency bonds over the next eight months.
The blame for this turmoil can be laid firmly at the feet of Bernanke, acting at the request of the Fed’s owners, who having guaranteed in June last year that they wouldn’t monetize the debt of the U.S. Government. Have now embarked upon a loony experiment that may lead to the collapse of the US dollar paper standard, as CLSA’s Chris Wood describes it.
As the Honorable Louis McFadden, Chairman of the House Banking and Currency Committee, warned in 1933, the Federal Agency does not care that it is killing the dollar because its role is to represent the interests of its global owners and its Wall St cronies, not the american folk.
Some people think the Federal Reserve Banks are United states Government establishments. They are non-public monopolies which prey upon the people of these United states for the benefit of themselves and their foreign patrons ; foreign and domestic speculators and scammers ; and rich and rapacious money lenders, expounded McFadden.
So while the content clappers on Wall Street are drunkenly celebrating the indisputable fact that their artificially inflated market is racing only on account of the value of the greenback being eviscerated, Main Street is hunkering down for a long winter, beset by worries about hyperinflation, rising food prices and gas price hikes, as oil follows gold’s meteoric rise, again solely due to the Fed’s call to debase the greenback.
Monetary upheaval is now equaled by political upheaval, and we will be able to only hope that Officeholder Ron Paul and his child, Senator in waiting Rand Paul, can build momentum to ultimately cut out the cancer that is destroying America by ending the Federal Agency for good.
