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How To Protect You And Your Family From Financial Disaster If There Is "A Run On The Bank"


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2023 Mar 14, 6:06am   857 views  15 comments

by ohomen171   ➕follow (2)   💰tip   ignore  

#bankfailures ..." Run on banks" and bank failures in the US are the center of attention worldwide. When I was a student at Tulane over 50 years ago, I took a course called "Money and Banking." It taught us how the banking system works in the US. (It works the same in most other countries in the world.) The instructor was a very capable young German man named Hans Flickenshield. He went on to do better things including several posts at The World Bank.
I recommend this course to all of you. It will change your life. If you are out of school, you can take it online. If you are in college or know someone who is in college, please urge them to take this course.
If I repeated to you all that I learned, it would take several pages to do it. Instead, let me give you an overview of what the course taught me. In the US, on any given day banks generally hold 1/7 or 14.28% of the cash needed to pay all depositors if they did "a run on the bank." The whole banking system is kept afloat by the public's confidence in the banking system. When that confidence collapses, there are huge problems. Social media has compounded this problem as it rapidly creates panic and a stampede of depositors trying to get their money out of the bank.
How do you protect yourselves from a huge financial loss if there is "a run on a bank?" The answer is Diversify! Diversify! Diversify!
Let me show you what Elena and I do. We begin our diversification by keeping our day-to-day operating money in a credit union account. These financial institutions rarely fail. I keep a separate account at a bank that is part of American Express for my pension check. Our retirement savings are spread out between two financial institutions. You would recognize the names if I wrote them here. Both institutions did not require a government bailout during the 2008-2010 financial crisis. Likewise, both financial institutions survived all the financial stresses of the Covid pandemic. We also keep an investment account equal to 4-5 months’ salary at a financial institution on the island of Mauritius. I would nickname this island "The Switzerland of Africa." It is prosperous and politically stable with zero tolerance for corruption. The account is 100% legal and complies with all US tax disclosure requirements. Finally, we keep a small amount of cash and gold where we can get it immediately.

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1   WookieMan   2023 Mar 14, 6:23am  

ohomen171 says

politically stable with zero tolerance for corruption.

By default this statement is a lie. You're just unaware of the corruption. That's okay, but everything is corrupt. Your gas station cashier is corrupt. Your stay at home mom is corrupt. Your banker is corrupt. You see, everyone does what is in their own best interest. Everyone. This is fact. So by default everything is corrupt my friend.
2   BayArea   2023 Mar 14, 7:13am  

Eyeroll
3   clambo   2023 Mar 14, 7:54am  

I don't worry because 99.99% of my money is not in a bank.

I do have a couple of checking accounts; I established one in Florida when I changed my residence to there.
4   NuttBoxer   2023 Mar 14, 9:31am  

ohomen171 says

In the US, on any given day banks generally hold 1/7 or 14.28% of the cash needed to pay all depositors


This is extremely outdated information. Reserve requirements have been dropped many times in the past 50 years, and are either non-existent, or so low they may as well be. An average bank holds less than 1% of all deposits on hand.

ohomen171 says

Social media has compounded this problem as it rapidly creates panic and a stampede of depositors trying to get their money out of the bank.


You mean by exposing the lie that our money is safe? That's what I liked the most the past few days, finally some truth coming out.

ohomen171 says

credit union account. These financial institutions rarely fail.


I support local business, including using credit unions, but they cannot guarantee your money anymore than any other fractional reserve institution. Every time there's a financial crises the past few years, my credit union sends out an email saying our deposits are safe. Not what I'd call re-assuring.

ohomen171 says

zero tolerance for corruption.


So they always maintain 100% of all deposits on hand? If it's fractional reserve, it's inherently corrupt.

ohomen171 says

Finally, we keep a small amount of cash and gold where we can get it immediately.


This is the first time you've mentioned real diversification. Diversification means assets other than paper. I hope you're keeping three months on hand in cash, that's the usual recommendation.
5   pudil   2023 Mar 14, 11:58am  

Why is fractional reserve inherently corrupt? No one in the world expects that their money is kept in a safe in back. They made a freaking Christmas movie explaining all of this.

If you don’t like the system, pay for a safety deposit box or bury cash in your yard. No one is forcing anyone to use banks.
6   Tenpoundbass   2023 Mar 14, 12:00pm  

If the banks close down and wont give any money. Just remember the criminals had a banner year with defund the police and all.
What with crime having no consequences and all. It's practically your money those thugs are sitting on.
7   Robert Sproul   2023 Mar 14, 6:17pm  

pudil says

If you don’t like the system, pay for a safety deposit box or bury cash in your yard. No one is forcing anyone to use banks.

Cash kept like that will be assumed to be fruits of crime and siezed if the authorities become aware of it, so their intention very much IS to 'force' us to use banks by making any large sum of cash illicit.
2014 was the year that Police Civil Asset Forfeitures exceeded the value of all goods stolen in burglaries.
8   Robert Sproul   2023 Mar 14, 6:21pm  

ohomen171 says


He went on to do better things including several posts at The World Bank.

'better things'

At the World Bank....yeah, OK....
9   NuttBoxer   2023 Mar 14, 7:57pm  

pudil says

Why is fractional reserve inherently corrupt? No one in the world expects that their money is kept in a safe in back.


Then explain the banks runs that just happened..?

If you tell someone you will keep their money safe for them, then when they ask for it, you don't have it, I guess to you that's a beacon of truth and integrity?
10   NuttBoxer   2023 Mar 14, 7:59pm  

I will say Ohomen is better prepared than most people I know.
11   clambo   2023 Mar 14, 8:14pm  

Bank information from an article I read herewith:
USA bank assets=$22.9 trillion
Liabilities=$20.7 trillion
Deposits=liabilities=$17.6 trillion
Cash=$3 trillion
Actual bank notes=$0.1 trillion =$100 billion
If I had a lot of cash I would buy Swiss Francs and open an account in Switzerland.
I'm not holding cash so I don't care about the "problem" of where to keep my money.
I don't know where my shares of AAPL actually are, they are at Vanguard and T.Rowe Price brokerages.
Likewise I don't know where my mutual funds are because I have never been to a Vanguard physical location.
12   AmericanKulak   2023 Mar 14, 8:24pm  

NuttBoxer says


This is extremely outdated information. Reserve requirements have been dropped many times in the past 50 years, and are either non-existent, or so low they may as well be. An average bank holds less than 1% of all deposits on hand.

Banks can also borrow from the Fed on a short-term basis to cover much of what little the reserve requirement actually is - this is a little known fact.

Buying batteries, .22LR & other ammo, cans of food (and rotating them), etc. is a must before anything else. Oh, and YAMS!!!

Best place to hide cash is among books on the lowest shelf. Last place people check, esp. when pressed for time, and diversity hires/crooks don't even know what books are for, other than some crazy Whiteness hobby. The best books aren't big ones, but shitty little well thumbed novels.

Other great places to hide cash:

on the inside of cardboard TP rolls, and then put a wound up cable or detachable plug cord in them. Looks like you're just organizing cords and doesn't merit a second look.



on the inside of crappy beat up T-shirts. Not in suit pockets. Even if they rummage through drawers, they won't see it unless they turn each item of clothing inside out. Quick searches by druggies or Tyler, Texas constables won't have the time or energy to do all that.
13   NuttBoxer   2023 Mar 15, 10:14am  

We have a couple of ordinary household items that are for hiding money. Plus a drawer(I know not the best), plus a small safe. But the biggest security measures we took care of first, no one has our physical address. We have a loaded 9mm and 12 gauge in a dresser drawer, and the closet.
14   Tenpoundbass   2023 Mar 15, 10:37am  

AmericanKulak says





When the shit hits the fan cell phone service and internet will be shut down for Civilian use in America.
15   HeadSet   2023 Mar 15, 4:28pm  

cisTits says

Just suck Newsom's cock.

Lines too long.

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