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Considering that bank accounts are not really paying interest anymore, I have been wondering why people do not just withdraw the money and buy something real, or just sit on it? What if a large group of people picked a day and all went to the bank to withdraw 1,000 dollars or more at their bank (s)? Would this get the attention of the financial elite and possibly stop the inflation we are facing, or would it trigger the next great depression? I seriously doubt that every bank carries anywhere near enough cash to satisfy the demands of their account holders, and with an increased savings rate this has to be more likely. Instead of waiting every 2 or 4 years to elect useless politicians could a business transaction withdrawing money make a difference?
Considering that bank accounts are not really paying interest anymore, I have been wondering why people do not just withdraw the money and buy something real, or just sit on it? What if a large group of people picked a day and all went to the bank to withdraw 1,000 dollars or more at their bank (s)? Would this get the attention of the financial elite and possibly stop the inflation we are facing, or would it trigger the next great depression? I seriously doubt that every bank carries anywhere near enough cash to satisfy the demands of their account holders, and with an increased savings rate this has to be more likely. Instead of waiting every 2 or 4 years to elect useless politicians could a business transaction withdrawing money make a difference?
What inflation are you envisioning? Everything points towards drifting deeper into an extended Deflationary Depression, no? Even all .gov new spending does not come close to the already destroyed wealth, so there is nothing to feed inflation in any form.
But if you some how "need" attention (but believe me, you REALLY Do Not want attention if you could see what that would bring you), there are plenty of ways. What and why do seek this attention, and to what ends?
Deflation is a myth and a con job to justify massive deficit spending. Once created money is never destroyed, unless the loans are paid back in full. The inflation is already here as prices continue to rise or stay flat in a recession, where they should have fallen as they tried to in late 2008. Anyone believing in deflation will be hit hard by the high inflation we will see next year. The attention would be to force interest rates up to make saving worthwhile and slow the inflation rate. What kind of threats are being made here that attention will somehow bring retribution from those in power?
Rick I think your confusing wealth creation with money creation.
Much of whats been destroyed was merely wealth reflected in unrealized gains that have now evaporated. Most all of the money created is just sitting on the FEDs balance sheet as banks reserves and has not hit the street so to speak. Eventually it will though I suspect.
In the meantime what I think your seeing is the cost of things you need going up whereas the cost of things you want in many cases is falling. Oil, food, etc..up..Houses, cars, clothes at Macys..down
And, with rates so low the "elite" would love you for taking your money out of the bank and buying something...anything. Stocks, bonds, houses, a new car, a washing machine, whatever, it would be welcome.
Typically those savings would be used to finance business investment. Rates fall and businesses see an opportunity to make a better return than the cost of borrowing. The problem right now though is businesses already have way too much capacity therefore the demand for money is low. Except, of course, from businesses trying to stay afloat by securing financing to hold them over for now. It's a shame some of those businesses will fail but it needs to happen for the greater good of the whole economy.
And, with rates so low the "elite" would love you for taking your money out of the bank and buying something...anything. Stocks, bonds, houses, a new car, a washing machine, whatever, it would be welcome.
You don't need to take money physically (as in "cash") out of the bank to buy anything...just write a check or use your debit card. It's all just digits, anyway, so they can keep track of you that way.
What Rick was referring to (I think) was removing actual CASH from the bank, as a vote of "no confidence", and stashing it elsewhere. Not a bad idea, seeing as how 69 banks have bit the dust this year up to July 31st! A lot of older folks were brought up with the notion that money is somehow "safer" in the bank. Banks love people to think this way. They get your cash, and you get an account number!
They also like you to think that the piddling "interest" they pay you is a good reason for depositing your $$$. In truth, it doesn't even compensate you for inflation. Rick is right - invest the cash in something that will go up in value, or at least is "real", and usable.
In time, this unbacked paper fiat currency will go the way of all such experiments in the past. Just not in our lifetimes. But who knows? Maybe....
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