Everyone Loves A Holiday -Except Maybe A Bank Holiday

We live for holidays right? Sure, especially if you’re fortunate enough to be employed. Who doesn’t love those 4-day weekends?

But I’m not talking Veterans Day, Christmas or 4th of July. I mean a bank holiday as in the 1933 sense of the word. Let’s back up and recall from history a somewhat common occurrence during our last Great Depression. By 1932 nearly nineteen hundred banks went out of business due to runs on banks. Mere rumors could force a bank to close when depositors smelled collapse and withdrew their money en masse. Many lost their life savings overnight.

A bank run in the Great Depression. Detroit, MI
Deja Vu?

In 1933 President Roosevelt declared a Bank Holiday from March 6 to March 10th suspending all transactions except making change.

Yikes! What would that look like today? Panic may not be hyperbole. We’re fairly inter-twined. Too connected if you ask me. Sure it’s convenient, but doesn’t cloud computing, all the hacking and the mostly ignored cyber threats sort of give you pause? It does me. Searching shoes on Zappos and then getting pop-ups for the same brand for the next 3 weeks on every website I go to -that creeps me out!

Not just the global thing; the Euro problems dragging us down and all that. Why do you think the stock market keeps doing the up and down jig on the stupidest news -all bad, from the European Central Bank, own Fed or slow growth numbers in China? Not to mention the Jon Corzines and Jamie Dimon’s of our world.

According to SurvivalBlog, all printed U.S. currency and minted coins amounts to less than $800 billion worldwide. Your bank account is just electronic digits.

Ponder if you will these factoids:

  • All new Social Security recipients receive benefits by direct bank deposit only
  • All checks in the US are cleared through the Automated Clearing House (ACH) network. Pan-European Automated Clearing House (PE-ACH) network does the same for Europe.
  • Military pay, housing allowances, military retirement & most government assistance benefits are by direct bank deposit
  • Credit & debit cards operate in the same electronic manner
  • What would happen if gas and diesel purchases became “cash only”? Ditto for grocery stores?
  • Food stamps aren’t coupon booklets any more, but EBT cards (Electronic Benefit Transfers)
  • Internet businesses will be disrupted or brought down in the event of any system wide cyber failure
  • Mortgage payments and automatic bill-pay; yep more and more automated

Under a bank holiday not only will bank accounts be frozen, but virtually every thing else will be too. Maybe barterable tangibles, emergency cash on hand & food storage isn’t just for the kooks any more. They say “prepare for the worst and hope for the best”, but like hurricane preparedness, most of us probably won’t do this either.

Aloha, Mikie

~Remember:  The government has NO resources. They produce NOTHING. They can only take from one group and give to others they feel more worthy of their largess (buying votes). Support tax reform!

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