posted on Oct, 30 2008 @ 09:58 AM
Realize many Americans use credit cards for daily purchase, many just pay off the balance monthly , some dont, and many cash strapped people are using
the credit cards to get the necessities now.
Also if retailers stop taking credit cards then that means debt cards too, I like many people have a debt card and dont even carry checks just use my
Now if you use stop taking credit cards thinking banks wont pay up then why would you take a check.. see the cascade effect here.. it the one little
crack that become a huge gaping hole.. once the trust in banks starts to errode the only thing that will be accepted is cash.. imagine if the use
economy would need to only use cash, no checks , no electronic transfer via credit/debt cards.. that would cause a run on the cash reserves in the
banks.. the banks would not have the cash on hand to meet the demand, bank runs would start and the entire economy would collapse.
Its like yelling fire in the theater, all it takes is one small slip up and the panic will start, causing a domino effect.
Building house's of cards is cool and quite impressive but its very very risky.. the banking industry is just that , banks lend out 10 - 15 times
the cash they have on hand, they really mainly in this day and age on electronic cash, they dont have the cash reserves to cover the needs of there
customers.. all they have are these digital ones and zeros now.. when the digital ones and zeros don't work, people will go to the banks to get
physical cash, they will not have the cash that people have in there accounts.
All it will take is a few banks closing there door due to not having cash and it will start bank runs on all banks, draining the entire system of