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08/18/2007 Archived Entry: "BANK RUN!"

BANK RUN! Countrywide Bank was one of the largest in the nation, recently ranked #16 in terms of deposits. They are bankrupt, like all modern banks. They lent out almost every penny deposited and lied to their customers, telling them they could have all their money back, anytime they wanted.

Silver here. If I ran my business the way every bank is run, I would (and should) go bankrupt and be prosecuted for fraud. The difference between Countrywide and BOA, Citi, or Chase isn't in their solvency; it is in the confidence of their customers.

Countrywide's customers have figured out that the bank has failed. Depositors are standing in line, knowing full well that those who get their money out first will do better than those who have to wait for months or years while fedgov "insurance" decides who to pay and how much.

If depositors fear bank runs, central banks are terrified of them. Bank runs signify a loss of confidence in the consensual mass hallucination we call money. If enough people start asking What Has Government Done to Our Money? (HTML) (PDF), (Hardback book) the jig is up. The colossal pump that moves wealth from the poor and thrifty masses to the privileged few in government and Wall Street would cease to function.

The pump has been running for nearly 100 years, but its days are surely numbered. The central bankers can create money, but they can't create confidence.

The government can't stop the demise of Countrywide. They literally can't print the money fast enough. The central banks created $300 billion from thin air in two freaking days, using digital fraud that is faster than any printing press. Countrywide borrowed another $12 billion on Thursday, hardly enough to pay one depositor in 10.

The scam has grown far beyond the bounds of counterfeiting with paper. The fed printed $12 billion in actual paper money, and shipped all 363 tons of $100 bills to Iraq, between May 2003 and June 2004. There aren't enough presses on the planet to create $300 billion in $100 bills in two days.

Time has run out for Countrywide, and it is running out for the entire Empire of Debt. People are noticing. Ron Paul has been warning us about the fraud called the fed for years but now people are starting to pay attention.

Gold has been money for over 6,000 years. The FRN isn't even 100 years old, and like many of us, unlikely to survive until that birthday. I don't know when gold will once again be used as money, or how, but I suspect that the end of the dollar will be closer, and faster, than any of us can imagine. Like bank runs, once confidence fails and consumers change their minds, there is no turning back.

Posted by Silver @ 09:27 AM CST

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