James Wesley,
I have been trying to take the blinders off my wife’s family. While they are not ready to don tin foil hats with me yet, they definitely don’t think I am quite as eccentric as I was before. A failing economy can do that for people. I did have an interesting conversation with my Sister-in-Law though concerning banking. She is a branch manager of a bank; a very large banking institution. I don’t want to say the name, but as of 20 minutes ago, they have over 24,000 branches and ATM locations around the world. I asked her a couple of questions. What is the average amount in a savings account in her bank? And how much money does the bank have on hand on a given day?
The numbers shouldn’t have surprised me, but they did. The average amount in a savings account is about $1,200, but she said the numbers are really skewed as there are a few accounts that have lots, but most only have enough to keep the account open. She said that most just keep the account open so they have a place to cash their checks. The more shocking answer, was the total amount of cash on hand [for all of the tellers]. She said that the average that she keeps on hand is $16,500 in paper, and about $2,000 in coins. She said that twice a month they would double the cash on hand to accommodate pay cycles. So the most that this bank will ever have available is about $35,000.
Given that people with money have their pulse on the economy, they will know when it is time to pull their money out. If just one or two were to show up at my Sister-in-Law’s bank to cash out. That’s it. In less than two minutes her bank will be empty of paper cash funds. Sure, she can call in and have a truck bring more in. But if every bank is in a similar situation, will any banking institution, no matter how big, be able to keep up with demand? The answer is no! I am sure that there are bigger banks with more money in the metropolitan areas, but there are also more people and that creates more risk of pandemonium when the coffers dry up.
The short answer is: Keep a good balance or options with your wealth. Have cash, silver, ammo, food, etc. You will not be able to pay your house payment in 7.62 Ball just yet, but when/if that time does come, I doubt the bank will be asking for a payment anyway. If nothing else having physical wealth (tangibles) that is at your house/retreat/cache/safety deposit box, whatever, is going to be more important that the 3% interest that you might be getting at the bank.
If, God forbid, something should happen to you and your assets are in the bank, when you die the State and Federal Government will take a very large portion of that “already been taxed” money and “allow” your heirs to have the rest. But if it is in silver/gold/ammo/guns/other tangibles, then it just changes hands. Thanks, – A.K.J. in North Carolina