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Unchecked, our government is on the verge of dipping into our own savings. What about FDIC Insurance? Got 100,000 or even 250,000 FDIC-insured liquid funds in one institution, you're safe. NOT! .....
Cyprus could become the fourth eurozone country to be asking for a bailout. Its Popular Bank needs a huge sum for recapitalization by the end of June, and Nicosia hasn’t said where it will come from.
The Cyprus Popular Bank as the second biggest lender on the island needs another 1.8 billion euros ($2.23 billion) until July to meet new recapitalization requirements... Cyprus banks have been crushed by a writedown on Greek sovereign bonds negotiated in an attempt to make Greece’s debt mountain more sustainable. Bank of Cyprus and Popular recorded record losses in 2011, depleting their regulatory capital.
Tuesday, 19 March, 2013 – 11:27
The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts, the Green Party said today.
Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out…. www.voxy.co.nz...
...One of the most reliable economic statistics is the amount of U.S. currency in circulation held outside of depository intuitions by the public. By the end of 2010, U.S. currency in circulation with the public had risen to $920 billion dollars, amounting to $2950 for every man, woman and child in the country. Over the past decades we have witnessed a host of cash-saving financial innovations, leading to widespread predictions of the advent of a “cashless society”. But contrary to these expectations, the demand for U.S. dollars continues to rise and we remain awash in cash. Over the last twenty years, real per capita currency holdings increased by 79 percent and currency as a fraction of the M1 money supply rose from 30 percent to 49 percent.
To put these figures in perspective, they imply that the average American’s bulging wallet holds 91 pieces of U.S. paper currency, consisting of: 31 one dollar bills; 7 fives; 5 tens; 21 twenties; 4 fifties and 23 one hundred dollar bills. Few of us will recognize ourselves as “average” citizens. Clearly, these amounts of currency are not normally necessary for those of us simply wishing to make payments when neither credit/debit cards nor checks are accepted or convenient to use.
Federal Reserve surveys (Avery et al. 1986, 1987) of household currency usage found that U.S. residents admitted to holding less than 10 percent of the nation’s currency supply. Businesses (Anderson, 1977; Sumner, 1990) admitted to holding 5 percent. It seems that the whereabouts of roughly 85 percent of the nation’s currency supply is unknown. This anomalous finding suggests that the “currency enigma” (Feige 1989, 1994) and the problem of “missing currency” (Sprenkel, 1993) is still very much with us.
The currency enigma has both a stock and a flow dimension. First we must determine who holds the outstanding stock of U.S. cash. Specifically, how much of this currency is abroad, (the dollarization hypothesis) and how much is held domestically (the underground economy hypothesis) by citizens reluctant to admit to their true cash holdings? The flow issue concerns the amount of cash payments sustained by that missing currency. If half of the missing currency is hoarded and the other half is used as a medium of exchange, turning over at an average velocity of between 30 and 50 transactions per year, (Feige, 1989a) the missing circulating currency stock would give rise to a flow of “missing payments” of an order of magnitude comparable to the entire GNP of the United States....
originally posted by: Horus12
When the average man starts to find out about the con, then usually that is when the game changes.
People also say to invest in gold or silver. Fine. But in a situation where banks close or stop withdrawl of money, gold again becomes pointless, food or gas is what people want.
originally posted by: Chrisfishenstein
a reply to: Nexttimemaybe
People also say to invest in gold or silver. Fine. But in a situation where banks close or stop withdrawl of money, gold again becomes pointless, food or gas is what people want.
Or be skilled in a useful craft....That would go a loooooong way for resources!