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ALERT RED ALERT: US banks fearing default stock up on cash
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  1. #1
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    21 RED ALERT: US banks fearing default stock up on cash

    Holy S***! As I predicted back in October, America's largest crisis ever is upon us!!!!-JG

    US banks fearing default stock up on cash

    By James Politi in Washington and Michael Mackenzie and Tom Braithwaite in New York

    Last updated: October 3, 2013 10:33 pm
    Financial Times of London




    US banks were stocking cash machines with extra funds, investors dumping Treasury bills and US equity indices sinking on Thursday in a sign of mounting unease that Washington risks defaulting on its debt later this month.



    On the third day of a government shutdown, policy makers and business leaders expressed increasing concern that Republicans and Democrats would not reach a deal before the October 17 deadline to raise the debt ceiling.



    Christine Lagarde, managing director of the International Monetary Fund, gave warning of dire consequences for the rest of the world if the stalemate were not resolved. “The government shutdown is bad enough, but failure to raise the debt ceiling would be far worse,” she said. “It is ‘mission critical’ that this be resolved as soon as possible.”



    John Boehner, the Republican speaker of the House of Representatives, has indicated to members of his party that he may be willing to rely on Democratic votes to pass an increase in the debt ceiling, suggesting a slightly more conciliatory position than that which triggered the shutdown.



    But House Republican aides and members of Congress said they would still be seeking concessions from Barack Obama on deficit reduction – including cuts to popular pension and health programmes – in exchange for a debt ceiling increase. The White House and Democrats have said they are open to a big fiscal deal but increasing the country’s borrowing authority to pay America’s bills should not be the subject of negotiations.



    Meanwhile, two of the country’s 10 biggest banks said they were putting into place a “playbook” used in August 2011 when the government last came close to breaching the debt ceiling.


    One senior executive said his bank was delivering 20-30 per cent more cash than usual in case panicked customers tried to withdraw funds en masse.


    The move to source extra cash is a precaution to deal with an unnecessary upturn in demand, banks said. The Federal Deposit Insurance Corporation insures deposits up to $250,000.


    Banks are also holding daily emergency meetings to discuss other steps, including possible free overdrafts for customers reliant on social security payments from the government.


    The US Treasury has said the US could run out of money as early as October 17 if there was no congressional deal.



    “A default would be unprecedented and has the potential to be catastrophic: credit markets could freeze, the value of the dollar could plummet, US interest rates could skyrocket,” the Treasury said in a report on Thursday, citing “negative spillover effects around the world”. It added: “There might be a financial crisis and recession that could echo the events of 2008 or worse.”



    A daily economic confidence index produced by Gallup, the polling firm, fell further on Thursday to a reading of minus 32. A week ago, it was minus 22, raising worries that the shutdown could dampen Americans’ spending even if they are not directly affected by it.



    Financial markets had remained relatively sanguine about the US fiscal stand-off before Thursday, when the S&P 500 closed 0.9 per cent lower in New York, its worst one-day performance since late August.



    Premiums for insuring against a US sovereign default over the next year rose from around 30 to 54 basis points. Money market funds are big holders of Treasury bills, and these short-term securities are viewed as a substitute for holding cash as they are backed by the full credit of the US government.


    But as the debt ceiling deadline looms in the absence of an accord in Washington, money funds are looking to lighten up on their holdings of October-dated bills, said traders.



    As worries increased, President Barack Obama delivered a blistering speech attacking Republicans for insisting on delaying funding his healthcare reforms in return for their approval of the budget.



    “There’s one way out of this reckless and damaging Republican shutdown,” he said. “Take a vote – stop this farce,” he added to applause.


    Mr Obama also repeated that Republicans should unconditionally fund the government and raise the debt limit. “You don’t negotiate by putting a gun to the other person’s head,” he said. “The American people are not pawns in some political game ... you don’t get to demand ransom for doing your most basic job.” he added.
    In only two weeks, the US government will be left with just $30bn to pay its bills, and it has given warning that on some days thereafter its actual obligations may exceed that total.



    US Treasury officials have been reluctant to specify which bills would be paid – and at what point a default would be triggered. They have simply said there is no alternative to raising the borrowing authority and that prioritising certain payments over others – as suggested by many Republicans – is unworkable.



    Mr Obama compared the US defaulting to a “deadbeat” who failed to pay his restaurant or mortgage bill. “The United States is the centre of the world economy, so if we screw up, everybody gets screwed up,” he said. “The whole world will have problems, which is why, generally, nobody’s ever thought to actually threaten not to pay our bills. It would be the height of irresponsibility,” he said.


    Last edited by JohnGaltfla; 10-03-2013 at 06:06 PM. Reason: enhance titel
    “If we must have an enemy at the head of government, let it be one whom we can oppose, and for whom we are not responsible.” – Alexander Hamilton

    John Galt, www.johngaltfla.com

  2. #2
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    Good Evening, John,

    All the usual suspects, stoking the fires of fear... We can see the writing upon the wall, but it's message is not new, nor unique. God has also been warning us, and like Housecarl's signature line, "Sow the wind, reap the whirlwind..." What is coming, will make the Wiemar Republic's implosion look like a cakewalk in the park, with the entire world, ready to mug us...

    When we excluded God from our lives, we set forces in motion that are more inexorable than the tides, and as you're well aware, "Time and tide wait for no man..."

    There are two types of sin, John. Sins of commission, and sins of omission. America has not held it's representatives in government responsible for their actions. Same too, with those in business/banking, that have looted, raped, and pillaged their way through the greatness that was America, a nation once consecrated unto God... Let people scoff at what has happened, but the great scientist and Christian, Sir Issac Newton's Third Law of Motion says this:

    When one body exerts a force on a second body, the second body simultaneously exerts a force equal in magnitude and opposite in direction to that of the first body.

    This is so, regardless of whether in physics, the affairs of men and nations, or in the spiritual realm...

    We now will see the results of so many disparate forces, straining as they are, to find equilibrium. The very action thereof, will be horrific at best, cataclysmic, at worst.

    Truly, Only God Can Save Us Now...

    God Bless You and Yours, John. May You All Safely Dwell Beneath the Wings of The Almighty...

    Maranatha

    OldArcher
    Want to live a more exciting, happier, and fulfilling life? Learn to Dowse! It's easy, and 499 out of 500 can do it! As a hobby, or vocation, Dowsing can change your life, and at the same time, help other people. It's not magic, and it's not religion. It's using your mind, and your senses, to accomplish your goals.
    Dowsing- give it a try. You won't be sorry!

  3. #3
    Yeah, I don't think anyone should need to look at a clock to know what time it is...

  4. #4
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    You know, I'm on record here calling for a massive war or FF event to blame the inevitable collapse on. It's going to happen [collapse] as math doesn't lie. Could it be so simple as blaming the collapse on a dysfunctional congress thereby saying we need a stronger [tolitarian] central government and demonstrating it by the inability of congress to cooperate? Or, to blame it on the tea party extremists? If I've heard that talking point once I've heard it a dozen times the last few days. One thing I know is that the globalists and especially the bankers will deflect the blame. Interesting end game here.
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  5. #5
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    False Flags happen before a War.

  6. #6
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    OK, John WHICH shot is that gif of??
    RULE 1:
    THEY want you DEAD.

    "If there must be trouble, let it be in my day, that my brothers' children (and their parents) may have peace, and have NO KNOWLEDGE of what I have done."

    The BEST in Life:
    To CRUSH your enemies.
    To see them driven before you
    To listen to the lamentations of their women

  7. #7
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    Quote Originally Posted by night driver View Post
    OK, John WHICH shot is that gif of??
    My back yard. I've been experimenting.
    “If we must have an enemy at the head of government, let it be one whom we can oppose, and for whom we are not responsible.” – Alexander Hamilton

    John Galt, www.johngaltfla.com

  8. #8
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    Quote Originally Posted by Sleeping Cobra View Post
    False Flags happen before a War.
    Bingo. And why stock up unless you are preparing for a panic and a run.

    Just like September 2008, an almost perfect duplicate event and story.
    “If we must have an enemy at the head of government, let it be one whom we can oppose, and for whom we are not responsible.” – Alexander Hamilton

    John Galt, www.johngaltfla.com

  9. #9
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    Quote Originally Posted by Hfcomms View Post
    You know, I'm on record here calling for a massive war or FF event to blame the inevitable collapse on. It's going to happen [collapse] as math doesn't lie. Could it be so simple as blaming the collapse on a dysfunctional congress thereby saying we need a stronger [tolitarian] central government and demonstrating it by the inability of congress to cooperate? Or, to blame it on the tea party extremists? If I've heard that talking point once I've heard it a dozen times the last few days. One thing I know is that the globalists and especially the bankers will deflect the blame. Interesting end game here.
    You can bet that everything will be produced, directed and orchestrated for the ultimate and undying benefit of the Administration.

    JGF...have you considered that Obama may simply close the banks without warning, ala 1933?
    "Talking is easy and everyone is wise after the event."

    Ernest Joyce

  10. #10
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    Quote Originally Posted by Ben Sunday View Post
    You can bet that everything will be produced, directed and orchestrated for the ultimate and undying benefit of the Administration.

    JGF...have you considered that Obama may simply close the banks without warning, ala 1933?
    Only when actually hardcore military conflict begins. Then he may restrict hours of operation....
    “If we must have an enemy at the head of government, let it be one whom we can oppose, and for whom we are not responsible.” – Alexander Hamilton

    John Galt, www.johngaltfla.com

  11. #11
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    Quote Originally Posted by JohnGaltfla View Post
    Just like September 2008, an almost perfect duplicate event and story.
    Well THAT would explain the whole Deja Vue feeling...
    RULE 1:
    THEY want you DEAD.

    "If there must be trouble, let it be in my day, that my brothers' children (and their parents) may have peace, and have NO KNOWLEDGE of what I have done."

    The BEST in Life:
    To CRUSH your enemies.
    To see them driven before you
    To listen to the lamentations of their women

  12. #12
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    Does anybody really think that they won't raise the debt ceiling again this time?

  13. #13
    Like a ant many have done the best we can. It's been in Gods hands the whole time.

    I think you all have done your best to warn the readers. Best to all.

  14. #14
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    Quote Originally Posted by Mr. Gravy View Post
    Does anybody really think that they won't raise the debt ceiling again this time?
    I'm thinking they will raise it, and the USA will continue it's slow death, circling the drain. I could be wrong this time, though.

  15. #15
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    got toilet paper?

  16. #16
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    Thanks John! Just told my husband that we need to get more cash out of our banks. OH Packyderms wife, I have lots and lots of toilet paper.


    These are scary and interesting times we are living in.

    Norma

  17. #17
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    Quote Originally Posted by My Adonai View Post
    I'm thinking they will raise it, and the USA will continue it's slow death, circling the drain. I could be wrong this time, though.
    They will raise it .......then after the holidays & once we get into January expect the value of the US dollar to take a hit
    "Give me control of a nation's money and I care not who makes her laws."
    Mayer Amschel Rothschild

    All wars are banker wars http://www.youtube.com/watch?v=Td1My8SmyV4

  18. #18
    World War Three has to start before they crash the stock market and dollar. It's the right time of the year to get war going in the Middle East followed up by Korea.

    If not this year then next. So is life.

  19. #19
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    Remember that raising the ceiling brings the risk of a credit downgrade, and the world economies will only tolerate that kind of thing from their reserve currency for so long before they decide there might be a better reserve candidate elsewhere. Right now we're probably only looking at a drop from AA+ down to AA or similar. Just imagine what kind of Brown Note a drop from AA+ to B would be for the world markets.
    E Deploribus Unum

    Oderint dum metuant

    Every day is a JDAM day

  20. #20
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    If you came home from work and there had been a sewer backup in your neighborhood, you get to your house and it is full clear to the ceiling...What would you do? raise the ceiling or....clear out the shit.

  21. #21
    BTTT......

  22. #22
    Just tried reading the original article, and you evidently have to sign up to read it. So get it here, folks....it's important stuff.

  23. #23
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    Quote Originally Posted by JohnGaltfla View Post
    My back yard. I've been experimenting.
    It is the right time of year for chili.
    Your levity is good, it relieves tension and the fear of death.

    The Frigid Times - http://www.frigidtimes.blogspot.com/
    Civil Defense Reborn - http://cdreborn.blogspot.com/
    Believe what you will, but the Russian nuclear threat is far from dead. It ain't even sick. - Brutus

  24. #24
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    Ask yourselves this important question - which will run out first in the USA, the supply of paper currency, or the willingness of others to accept that paper currency in exchange for REAL VALUABLES, as the realization dawns that the people who issued that currency cannot even keep their rented government running?

    Good luck with your answer...
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  25. #25

    20

    Thanks to a poster on another board for posting this. Zero Hedge:

    US Banks Stuffing ATMs With 20-30% More Cash In Case Of Panicked Withdrawals

    Tyler Durden's pictureSubmitted by Tyler Durden on 10/03/2013 18:31 -0400

    Debt Ceiling

    .



    .
    Even as the fearmongering over the debt ceiling hits proportions not seen since 2011 (when it was the precipitous drop in the market that catalyzed a resolution in the final minutes, and when four consecutive 400 point up and down DJIA days cemented the deal - a scenario that may be repeated again), some banks are taking things more seriously, and being well-aware that when it comes to banks, any initial panic merely perpetuates more panic, have taken some radical steps.

    The FT reports that "two of the country’s 10 biggest banks said they were putting into place a “playbook” used in August 2011 when the government last came close to breaching the debt ceiling. One senior executive said his bank was delivering 20-30 per cent more cash than usual in case panicked customers tried to withdraw funds en masse. Banks are also holding daily emergency meetings to discuss other steps, including possible free overdrafts for customers reliant on social security payments from the government."

    The problem with bank runs is that often times, steps taken to mitigate future panics become self-fulfilling prophecies.

    Hopefully this is not one of those cases. Then again, since increasingly fewer Americans actually have money in deposit and savings accounts with banks, there is likely nothing to worry about.

    h/t Gaganpreet
    http://www.zerohedge.com/news/2013-1...ed-withdrawals

  26. #26
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    Stock up on cash when the Dollar Collapses. I would think they want to buy Gold and stock up on Gold instead.

  27. #27
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    Quote Originally Posted by JohnGaltfla View Post
    Only when actually hardcore military conflict begins. Then he may restrict hours of operation....
    Hubby and I have been wondering if this will also affect online banking. We've noted a slowdown in outgoing payments by several different banks of all different sizes. The instant online banking isn't nearly as "instant" as it used to be.
    Find my free fiction stories here.

    "Isn’t it interesting that the same people who laugh at science fiction listen to weather forecasts and economists?” - Kelvin R. Throop III

  28. #28
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    The problem with bank runs is that often times, steps taken to mitigate future panics become self-fulfilling prophecies. (from the Zero Hedge article above)

    Ohhh yeah.

    Panic early avoid the rush...

    And while you are at it, convert those potentially/eventually useless FRN$ into stuff you can use...
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  29. #29
    Quote Originally Posted by Kathy in FL View Post
    Hubby and I have been wondering if this will also affect online banking. We've noted a slowdown in outgoing payments by several different banks of all different sizes. The instant online banking isn't nearly as "instant" as it used to be.
    Neither is REGULAR banking, in person.

    About 8 months ago, SOMETHING changed at our local (very small town, locally owned, 7 branches) bank. Transactions now take about 10 minutes, no matter how simple. I actually joked with one of the tellers who is a friend, saying "oh, you need to send it to the NSA before it goes through, now, huh?" and she just rolled her eyes and said "shhhh!"

    Summerthyme

  30. #30
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    Banks stocking up on extra cash in advance of potential heavier than normal outflows is prudent banking. No bank wants to be the one telling customers they can't get cash. I'm on the Board of a local community bank and it's what we've done in the past over looming crises in DC, and yes people do come in looking to get their money "just in case". Note that banks do not carry unlimited amounts of cash so as to be able to immediately cash out any size account. If you have a very large account and want it all in cash you might have to wait a couple days for them to get the cash.

  31. #31
    Quote Originally Posted by The Mountain View Post
    Remember that raising the ceiling brings the risk of a credit downgrade, and the world economies will only tolerate that kind of thing from their reserve currency for so long before they decide there might be a better reserve candidate elsewhere. Right now we're probably only looking at a drop from AA+ down to AA or similar. Just imagine what kind of Brown Note a drop from AA+ to B would be for the world markets.
    and don't forget that down grades are 'credit events' for lots of cds' that originating banks can never cover

  32. #32
    I am an ISO for a small community bank in fly over country. We are not stocking extra cash nor is anything hinky going on with our systems. I have had network issues in the past that caused some delay in processing transactions One even hung around for a month or so before I figured out the malfunctioning device. I say all that to say this. The big banks might be "plugged into the matrix" but us little guys are just trying to take care of our customers and show a profit.

  33. #33
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    Quote Originally Posted by The Mountain View Post
    Remember that raising the ceiling brings the risk of a credit downgrade, and the world economies will only tolerate that kind of thing from their reserve currency for so long before they decide there might be a better reserve candidate elsewhere. Right now we're probably only looking at a drop from AA+ down to AA or similar. Just imagine what kind of Brown Note a drop from AA+ to B would be for the world markets.
    Think they'll still downgrade after the Fed suing them? http://www.redstate.com/2013/02/05/d...us-government/

  34. #34
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    Quote Originally Posted by Kathy in FL View Post
    Hubby and I have been wondering if this will also affect online banking. We've noted a slowdown in outgoing payments by several different banks of all different sizes. The instant online banking isn't nearly as "instant" as it used to be.
    Yup. I gotta pay some of my bill by snail mail so that they get "paid" on time.
    "One Shot, Twelve Kills - U.S. Naval Gun Fire Support "

  35. #35
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    Quote Originally Posted by twincougars View Post
    If you came home from work and there had been a sewer backup in your neighborhood, you get to your house and it is full clear to the ceiling...What would you do? raise the ceiling or....clear out the shit.
    That's just it. As long as they can raise the ceiling in YOUR house, THEIR house is just fine. More shit for you. No shit for them. Aren't they special.

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