Banking had progressed and evolved our world.
No longer does a human needs to carry bags of gold to buy an egg and be rejected by the seller as having no change and go hungry, or get robbed by
brigands. All he needs is a promissary note - money, backed by the authoriser well known and respected within the community who hold his assets, to
exchange such smaller denomination notes capable for purchases and exchanges in value.
With further improvements in the banking systems such as today, we can move billions in a blink of an eye through the internet to get things done a
whole lot faster, unlike the past whereby it would take months for gold or promissary notes to reach another part of the world by ships, if at all due
to weather conditions.
Unfortunately, what man nobly creates, it can be twisted by evil for its own selfish agendas, as we realized now the duplicities of bankers and
corrupt politicians when in collusion. The mistake had been made, but reforms are on-going.
However, that trust in banks had been badly shakened, and many had chosed to keep their savings hoarded under mattresses at home, which does not
CIRCULATE the money into the economy to distribute and share wealth to others within that shared society. It only gathers dust when hoarded.
We came into this world with nothing and will leave with nothing anyway. But many had only left such wealth under their mattresses undiscovered when
they passed on, or under the ground as proven by a lucky few who found it.
Point is, money is best kept in banks, put to good use within society than be left at home and have it stolen, so long as those funds are kept within
reputable and well - regulated institutions, unlike those in Cyprus, Russia, Iran or China.
But when bank runs occur, at times more due to emotions than reasons, govts and banks will have to stem such panic to prevent a collapse to society
with the SUDDEN loss of such funds which had served as a function in the economy of a civlised society to maintain stability, more so during a
NATIONAL EMERGENCY when such funds are desperately needed.
One method the insignificant nobody me can think of is -
1. Declare a national emergency tax during those critical times, explain honestly the reasons why, and then tell the citizens that it will be deducted
only from those whom have higher savings, within the banking system while the money is still in there.
Of course, it would have been better to give citizens a choice to make and send voluntary contributions, but comprehending human nature - it doesn't
happen. Most will selfishly ignore it and expect others to do so. Thus the need for enforced participation in the rescue of the nation - effective
2. Inform them at the same time that NEW notes would be issued and can be exchanged for old ones, but only at a minimum trade in of below $1000 daily,
and that after 3 days of announcement, old notes would be considered null and void, and all banks and foeign exchanges around the world will be
informed immediately on this policy.
For those who wish to change more than $1,000, they can save it in the bank, BUT within 3 days and it will be automatically converted into new notes.
This will ensure that ALL hoarders will place their monies back into the banks rather than to own worthless paper. And once in the banks, the
registration of their wealth will be made known, even if split into different accounts or other traceable links, and the national 'emergency' tax will
kick in immediately.
Even if they were to withdraw later, it would be 3 days later. And if the nation still continues to have hoarders screwing up the economy, another
round of 'new notes' issue will take care of that. It could even weed out money launderers, corrupt officials and criminals whom now think that they
can safely put in small amounts but daily to hide and transfer their ill begotten gains across the economy.
But with the 'new note issues' - they have limited time to change those funds and can be discovered immediately once they place such funds into banks
This is only my personal idea, but I am sure there are far more intelligent folks out there than me who can think of simpler and effective ways to end
the fear of bank runs which if are based upon fear mongering and irrational beliefs. There will be rational times when humans will truly need to take
out their savings to protect themselves, and nothing can hide from the truth. My post does not intend to curb such times, but only to curb irrational
selfish intended bank runs.
The cost may be high in terms of informing all but can be cut down using our modern interconnected media. However the cost of not doing anything will
be higher as criminals and the selfish continues to screw around with our financial systems, which may even doom our civilisation.
20-3-2013 by SeekerofTruth101 because: (no reason given)