It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

Any point in withdrawing before the Banker Holiday?

page: 1
3

log in

join
share:

posted on Jul, 19 2009 @ 09:31 AM
link   
Or will it be a moot point? Is the value of the dollar going to be useless or meaningless? Does the banker holiday mean that basically all of your money will be absolutely useless or will your cash have value still? Sorry I'm still learning a lot and trying to understand. Thank you




posted on Jul, 19 2009 @ 11:28 AM
link   
Please post a link to where you got the info on the Bank Holiday, as it would help in our research, thus helping us answer you.



posted on Jul, 19 2009 @ 01:21 PM
link   

Originally posted by prepare4it777
Or will it be a moot point? Is the value of the dollar going to be useless or meaningless? Does the banker holiday mean that basically all of your money will be absolutely useless or will your cash have value still? Sorry I'm still learning a lot and trying to understand. Thank you


A Bank Holiday is quite simply just a holiday when banks are closed in the former British Empire (UK, Canada, Australia, ect.) We have them all the time, in the United States they are called Federal Holidays. It is absolutely nothing to fear. It just means that the banks, some other commercial and selected non-essential government offices (post offices, DMVs, ect) are closed for the day, and will be open again the next business day. The next major holiday in the UK is the Summer Bank Holiday in August, where you get a nice three-day weekend, and in the United States is Labor Day, where you get the same.
Take a look here:
en.wikipedia.org...

Now if you are referring to the Emergency Banking Act of 1933, as the "Bank Holiday", well I see no reason to fear that either for two reasons: First off, instead of declaring a mass 4-day bank audit as the United States did in 1933, the US government has decided to do rolling solvency checks, they are deeper and are being done over a longer period of time without interrupting the banking system for consumer or commercial interests. You've probably seen this in the news it was commonly called the "Stress-Test" and concluded in May.
You can see an article on the results here, they were quite encouraging really:
www.washingtonpost.com...

The second reason that you have nothing to fear is that should any massive audit such as that in 1933 take place again, your funds are still insured by the FDIC. As long as you are below the $250,000 limit your money is safe, secure and not going anywhere.
You can see an explanation of how FDIC insurance works and how much coverage is offered here:
www.fdic.gov...

Finally, because of things like FDIC insurance, removing your money from banks and getting it in hard currency actually doesn't really do anything today except make you a target for robbery as you would be carrying large sums of cash to make expensive purchases. You also actually loose money by having hard currency because you're not gaining any interest on it either. Now if you are worried about the inflation rate of the US Dollar, and wanted to pull your money out to purchase metals, foreign currency or some other investment product that is a different story, and something you should take up with your financial adviser.
Here's a good link on what mass bank runs actually do:
www.econlib.org...

To make a long story short, if you're keeping your cash just as cash, there's no reason to worry about leaving it in a bank. The United States Government, which are the ones that ascribe value to our fiat currency anyways, back your deposits up to $250,000 though the FDIC, and after the "Stress-Test" we've found that most of the banking system is quite solvent enough to weather the recession.

So on your next Bank Holiday, go and enjoy yourself! A little relaxation in stressful times is always good for you.



posted on Jul, 19 2009 @ 01:53 PM
link   
If this is also in some way shape or form to do with the talk of a new global currency, (you mention the dollar being worthless) there are some things about this as well that should make you feel better.

Currently, The United States is strongly resisting any pull of a global currency because of the fact that the US Dollar is the de facto global currency right now, period. China, Russia and the European Union would like to see their currency also become mass-reserve currency like the dollar is as well however. This would give these other economies a far larger say in the global market and far more political power.

There is some sense to this especially within the European Union when taken as a whole. The EU in total has a higher Nominal GDP than the US, ($18.394 trillion versus $14.264 trillion), however because of the EU's larger population still has a smaller Per-Capita GDP by almost exactly $10,000, which is a very substantial amount.
Sources:
en.wikipedia.org...
en.wikipedia.org...

However all of this doesn't really even matter if and when a global currency should come about (much more a matter of if within our lifetimes I believe than when) because your United States Dollars could simply be traded in for whatever the global currency would be. A good example to look at of this was the introduction of the Euro in place of so far 16 individual local currencies. Each time a period of exchange is given, where there is even overlap between the local currency and the Euro, allowing a fully and market-fair exchange of the currency to take place before the local currency is phased out.
Take a look here for more on how it was done:
en.wikipedia.org...

Actually devaluing the Dollar to the point of insolvency then replacing it with a global currency is very bad for global business. The American people's greatest asset to the global economy and the income flow of the planet, is as purchasers. Eliminating the wealth of the United States and putting us in poverty would destroy the wealth of most other nations as well, including almost all of the so-called rich elites. The US needs to continue consuming to keep the economy moving, and do to that we need to have purchasing power. Absolutely nobody, from China to Russia to Europe is talking about bankrupting the United States, it would be complete suicide for their economies as well.



new topics

top topics
 
3

log in

join