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john_d_uk

National Bankruptcy Day

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Remembering back to the time in Russia when the economy was crashing, and there were reports of people queuing to withdraw their money from the banks (making the banks insolvent) before it was completely worthless, made me think.

What would happen if everyone in the country went to their banks on the same day and asked to withdraw all their money?

Perhaps they could even withdraw all the money up to their overdraft limit too.

Would this technically make the UK based banks and building societies bankrupt? or would it actually show that the monetary system in this country is basically a huge confidence trick?

Either way, I wonder if we could start a campaign so that perhaps the day in the year when technically we have earned enough to pay all the tax we owe (it's around the end of July I think) could be the annual day when we all withdraw our support to the banks, and keep the money out of the banking system for a month and a day.

I wonder what would happen? - especially as we are all being pressurised to use electronic payment more and more.

JD :ph34r:

Edited by john_d_uk

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What would happen if everyone in the country went to their banks on the same day and asked to withdraw all their money?

Um... That would be a "run" on the banking system, and the financial system would collapse. This might possibly provide you with some amusement, but most people would regard it as a bad thing.

More interestingly, if the banks and the Bank of England knew that something like this was really coming, it could in theory be averted. The main problem would be achieving a sufficient supply of paper currency, but if this could be done then the BoE would just have to extend temporary free credit to all the banks, which it is quite capable of doing. After all, it wouldn't be long before people got uneasy carrying around £10k in cash and wanted to put their money back in the bank...

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Remembering back to the time in Russia when the economy was crashing, and there were reports of people queuing to withdraw their money from the banks (making the banks insolvent) before it was completely worthless, made me think.

What would happen if everyone in the country went to their banks on the same day and asked to withdraw all their money?

Perhaps they could even withdraw all the money up to their overdraft limit too.

Would this technically make the UK based banks and building societies bankrupt? or would it actually show that the monetary system in this country is basically a huge confidence trick?

Either way, I wonder if we could start a campaign so that perhaps the day in the year when technically we have earned enough to pay all the tax we owe (it's around the end of July I think) could be the annual day when we all withdraw our support to the banks, and keep the money out of the banking system for a month and a day.

I wonder what would happen? - especially as we are all being pressurised to use electronic payment more and more.

JD :ph34r:

would that be a clever thing to do?? then we are all left with useless money in our hands and no savings etc

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What would happen if everyone in the country went to their banks on the same day and asked to withdraw all their money?

I wonder what would happen?

My department would have a VERY busy day!

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  • 338 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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