Jump to content


Photo
* * * * * 1 votes

Just Worked Out How To Crash The Banking System ...


  • Please log in to reply
28 replies to this topic

#1 goldbug9999

goldbug9999

    HPC Veteran

  • Members
  • PipPipPipPip
  • 1,741 posts

Posted 01 April 2012 - 09:09 AM

OK so Cantona had the right basic idea - mass withdrawal of cash, however the execution was flawed since it required mass coordinated action and for people to be willing to do something most of us rarely do any more - physically walk into a bank.

But there is actually a much easier way to achieve the same thing, here it is ...

Simply draw out all the money you spend on "day to day expenses" (food, fuel, etc etc) at the beginning of the month from the cashpoint and then buy all these things cash as you go.

Lets say this amount is 300, by doing this and assuming roughly even spending throughout the month you have increased the average amount of cash in circulation by 150. The "miracle" of fractional reserve banking means that you have reduced the amount of electronic money, to be gambled and skimmed by spivs, by around 100 times this amount. Doesn't require any coordinated action, just a slight change of habit.

So lets say 100k people did this relatively simple adjustment to their spending habits: 100,000 * 15,000 = 1.5 billion removed from the banking system.

Edited by goldbug9999, 01 April 2012 - 09:18 AM.

.. instead of supporting productive industry by extending credit to increase tangible capital investment, the banking system has extended credit mainly (about 80 percent in the United States and most English-speaking countries) to buy real estate and load it down with debt. The result is that rental income is used to pay interest to the banks rather than to pay taxes. This forces governments to tax wages, profits and sales. That increases the cost of living and doing business, on top of the interest charge.


#2 Police

Police

    HPC Regular

  • Members
  • PipPipPip
  • 735 posts

Posted 01 April 2012 - 09:12 AM

1.5 Billion is chicken feed - and can be replaced at will.

#3 The Spaniard

The Spaniard

    HPC Senior Veteran

  • Members
  • PipPipPipPipPip
  • 3,492 posts

Posted 01 April 2012 - 09:17 AM

A recent blog post on the subject of UK cash from the positivemoney website:

http://www.positivem...ysical-cash-uk/
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Imagine a society that recognizes for the first time its need for a universal medium of exchange.

Someone offers to run this new system, on condition that he alone issues the necessary tokens of exchange. He proposes to lend out the tokens for everyone else to use to conduct their business, but only if they pay him interest for this use.

Would you support his proposal or would you think he was trying to scam you? Why would you think that his tokens were better than anyone else's?

Should the medium of exchange be issued collectively and debt-free as a utility for productive enterprise and trade, or should it be lent into existence at interest by a privileged but essentially unproductive minority, as a cost to and as a drag on everyone else?


http://www.positivemoney.org.uk

#4 Bloo Loo

Bloo Loo

    Ripened on the Diversity Vine

  • Members
  • PipPipPipPipPipPipPip
  • 51,564 posts
  • Location:Essex-the land of Equality
  • About Me:Im Bloo yabba dee yabba die.

Posted 01 April 2012 - 09:24 AM

OK so Cantona had the right basic idea - mass withdrawal of cash, however the execution was flawed since it required mass coordinated action and for people to be willing to do something most of us rarely do any more - physically walk into a bank.

But there is actually a much easier way to achieve the same thing, here it is ...

Simply draw out all the money you spend on "day to day expenses" (food, fuel, etc etc) at the beginning of the month from the cashpoint and then buy all these things cash as you go.

Lets say this amount is 300, by doing this and assuming roughly even spending throughout the month you have increased the average amount of cash in circulation by 150. The "miracle" of fractional reserve banking means that you have reduced the amount of electronic money, to be gambled and skimmed by spivs, by around 100 times this amount. Doesn't require any coordinated action, just a slight change of habit.

So lets say 100k people did this relatively simple adjustment to their spending habits: 100,000 * 15,000 = 1.5 billion removed from the banking system.


They already dont have enough cash to pay the bills...Bail outs and QE helped to quell the issue.

These were "liquidity" problems.....so they said.
WARNING

Your
country is at risk
if you
do not keep up repayments
on a gilt or other loan secured on it





#5 bajista

bajista

    HPC Regular

  • Members
  • PipPipPip
  • 540 posts

Posted 01 April 2012 - 10:21 AM

Simply draw out all the money you spend on "day to day expenses" (food, fuel, etc etc) at the beginning of the month from the cashpoint and then buy all these things cash as you go.



And leave everything else you have in the banking system? Hmm, what day is it?

#6 goldbug9999

goldbug9999

    HPC Veteran

  • Members
  • PipPipPipPip
  • 1,741 posts

Posted 01 April 2012 - 10:24 AM

And leave everything else you have in the banking system? Hmm, what day is it?


Quite a high proportion of people dont have an "everything else".

.. instead of supporting productive industry by extending credit to increase tangible capital investment, the banking system has extended credit mainly (about 80 percent in the United States and most English-speaking countries) to buy real estate and load it down with debt. The result is that rental income is used to pay interest to the banks rather than to pay taxes. This forces governments to tax wages, profits and sales. That increases the cost of living and doing business, on top of the interest charge.


#7 goldbug9999

goldbug9999

    HPC Veteran

  • Members
  • PipPipPipPip
  • 1,741 posts

Posted 01 April 2012 - 10:30 AM

1.5 Billion is chicken feed - and can be replaced at will.


The figures I gave were just an example of the effect a small action by a relatively small number of people. At the moment we moan on here but play into the hands of the bankers by keeping such a high proportion of our day to day money use electronic.

.. instead of supporting productive industry by extending credit to increase tangible capital investment, the banking system has extended credit mainly (about 80 percent in the United States and most English-speaking countries) to buy real estate and load it down with debt. The result is that rental income is used to pay interest to the banks rather than to pay taxes. This forces governments to tax wages, profits and sales. That increases the cost of living and doing business, on top of the interest charge.


#8 Self Employed Youth

Self Employed Youth

    HPC Senior Veteran

  • Members
  • PipPipPipPipPip
  • 3,316 posts

Posted 01 April 2012 - 11:22 AM

I withdraw 100% of my dole on giro day from the bank (dole must now be paid into a bank account - no two ways about it), unless I have a direct debit going out, then I leave enough in to cover it.

Not only are there effective tax rates exceeding 100%. Combine them with the cost of simple goods such as cars and houses and there isn't much point in saving up money. Better to stockpile food, fuel, seeds, durable goods etc. and wait for the new currency.
Have I not reason to lament what man has mas made of man?

Initially 'Unemployed Youth'
Then 'Formerly Unemployed Youth'
Then 'Unemployed Again Youth'
Hopefully soon to be 'Employed Again Youth' and not long after that I'll be eligible for working tax credits, if not I'll at least get adult rate dole and maybe car insurance will be potentially affordable!

#9 TheCountOfNowhere

TheCountOfNowhere

    I live on HPC!

  • Members
  • PipPipPipPipPipPipPip
  • 10,643 posts
  • Location:Nowhere

Posted 01 April 2012 - 11:28 AM

Better still, go to your work on monday and demand to be paid in cash. We have somehow been forced/tricked/conned into giving the bankers every penny we earn.

I think withdrawing all your wages at the start of the month is a fine idea and I'm off down the bank now. At least if they did collapse you'd have some cash in your house to tide you by for a week or two.

Not sure how the bankers wangled us giving them ALL our money in the first place. I remember my mum and dad alkways being paid in cash. Also, don't they make money everytime you spend money on your debit card ?

#10 Executive Sadman

Executive Sadman

    I live on HPC!

  • Members
  • PipPipPipPipPipPipPip
  • 14,464 posts

Posted 01 April 2012 - 12:28 PM

The govt can print and give it to them, which they do.

Only way i see to crash it is for people just to refuse to do any business with banks, so it becames blatant there is no need or demand for them. Only then will the idiots at westminster get the message.

I closed my accounts a while back and have shifted to local building socs.
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


Posted Image

#11 markyh

markyh

    HPC Regular

  • Members
  • PipPipPip
  • 735 posts

Posted 01 April 2012 - 12:34 PM

Simply draw out all the money you spend on "day to day expenses" (food, fuel, etc etc) at the beginning of the month from the cashpoint and then buy all these things cash as you go.

Lets say this amount is 300, by doing this and assuming roughly even spending throughout the month you have increased the average amount of cash in circulation by 150. The "miracle" of fractional reserve banking means that you have reduced the amount of electronic money, to be gambled and skimmed by spivs, by around 100 times this amount. Doesn't require any coordinated action, just a slight change of habit.

So lets say 100k people did this relatively simple adjustment to their spending habits: 100,000 * 15,000 = 1.5 billion removed from the banking system.


You are forgetting that many many households do all spending on creidt cards and use any spare income to pay off their credit card bill so have no "cash" spare to draw out.

Seems crazy but this is a true story, about 2 years ago had friends to dinner and they where complaining of getting further into debt and they asked how we managed to shop so cheaply. I explained we switched everything available from Tesco's to Aldi and Costco and pretty much halved our monthly shopping bills from 600 p/m to 300 p/m.

They thought thiss was well worth ago until I mentioned that Aldi and costco don't take credit cards so we draw out the 300 cash just after payday and budget it for the month the old fashioned way via a Jar in the Kitchen.

This then killed the dream dead for them as they said they are always overdrawn and a big chunk of their income each month went to pay off credit cards so they don't have 300 cash to draw out without hefty bank charges.

I tried to explain they should just pay 300 less off the creidt card each month, use that to be available in their overdraft to draw as cash and 1/2 their grocery bills. After several explanations they couldn't grasp the concept of this so I just left it.

Last i checked at Xmas they are now 1 years salary in debt on credit cards. Some people just can't shake the spend on CC and pay off as much of the CC bill each month ethos even as the debt's build and build.

M

#12 gadget

gadget

    HPC Veteran

  • Members
  • PipPipPipPip
  • 1,458 posts

Posted 01 April 2012 - 12:44 PM

This whole thread misunderstands the entire financial system...

If people use cash rather than credit / debit cards for purchases will make no difference. Just as quickly as people withdraw it, other people will bank it as the original people use the cash to buy stuff. The demand for cash may go up a bit but the BOE will simply print more cash to satisfy that.

Monthly flows of money are not the issue. To bring down the banks the people that have savings, ie have lent money to the banks need to withdraw it and keep bundles of cash (or gold etc) stashed under their beds. Happened a bit with the old dears in Japan over the last twenty years i think...

#13 MongerOfDoom

MongerOfDoom

    HPC Veteran

  • Members
  • PipPipPipPip
  • 1,655 posts

Posted 01 April 2012 - 01:55 PM

Not sure how the bankers wangled us giving them ALL our money in the first place. I remember my mum and dad alkways being paid in cash. Also, don't they make money everytime you spend money on your debit card ?


Reality check? The problem is hardly that people deposit their money in bank accounts. That has worked fine for centuries now. Just why would anyone be worried about that when there is QE? The money given to bankers is deducted in taxes before you even receive your earnings, and there is a promise that this shall go on for decades as needed.

Could we not have some proper conspiracy rubbish that is at least plausible?

#14 winkie

winkie

    I live on HPC!

  • Members
  • PipPipPipPipPipPipPip
  • 25,492 posts

Posted 01 April 2012 - 02:31 PM

Bit like saying "what do petrol stations do when they run out of fuel"? ;)
What you don't owe won't worry you.

Less can be more.

#15 Errol

Errol

    I live on HPC!

  • Members
  • PipPipPipPipPipPipPip
  • 9,173 posts

Posted 01 April 2012 - 02:57 PM

It's a good idea to use cash for everything anyway, simply for the benefit of remaining private/annonymous and outside the banking system.

Want to get paid for polls? Try YouGov





0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users