The Day An Economic Holocaust Was Averted Economies Can Collapse At The Speed of Light The Story of First Electronic Bank Run R ep. Paul Kanjorski, a US Congressman reveals an incident: “OnThursday [the 18th Sept. 2008], at about 11 o’clock in themorning, the Federal Reserve noticed a tremendous drawdown of money market accounts in the United States to a tune of $550 billion being drawn out in a matter of an hour or two. The Treasury opened up its window to help. They pumped $105 billion into the system and quickly realized that they could not stem the tide. We were having an electronicrun on the banks. They decided to close the operation, close down themoney accounts, and announce a guarantee of $250,000 per accountso there wouldn’t be further panic and there. And that’s what actually happened. If they had not done that their estimation was that by twoo’clock that afternoon, $5.5 trillion would have been drawn out of themoney market system of the United States, would have collapsed theentire economy of the United States, and within 24 hours the worldeconomy would have collapsed. Now we talked at that time about what would have happened if that happened. It would have been the end of our economic system and our political system as we know it.”He further adds, “We [in Congress] talked at that time about what would have happened. It would’ve been the end of our economic systemand our political system as we know it. That’s why, when they made thepoint that we had to act quickly, we did. Secretary Paulson said let’sbuy out the sub-prime mortgages, but he said give us latitude and largeauthority to do as many things as we decide necessary and give us $700billion to do that.” Finally He adds, “So Paulson went in andmade a complete switch and started buying securities and reinvesting in banks of theUnited States. Why? Because if you don’thave a banking system, you don’t have aneconomy. And although we did that, it wasn’t enough money and as fast as we didthat the economy has been falling. And thereason last week is that we are no better off today than we were three months agobecause we’ve had a decrease in other equity positions of the banksbecause other assets are going sour by the moment.”This narrative by Rep. Paul Kanjorski is a case of electronic bank runand its giving nightmares to the world’s banking system. People don’thave to stand in line outside the banks and create a scene. People can withdraw their investments from the privacy of their own homes by means of the internet. That means “instantaneous” bank runs can takeplace at almost the speed of light anytime the public panics. All by itself, that’s a scary thought. In this first electronic bank run,$550 billion was withdrawn in “an hour or two”. But this was a bank run/panic that happened so quickly and “stealthily” that almost no oneknew about it at the time—including the participants. Thus, it’s possible that less than 1% of the American people unwittingly participated inthis $550 bank run. What caused this electronic bank run? Was it a conspiracy among some elite group? No. It was the spontaneous, uncoordinated actions of thousands, perhaps a few million Americans who reacted to some newsevent (perhaps the closing of another bank) independently butsimultaneously deciding to withdraw their money from their ‘money accounts’ and move it somewhere else.Thus, there was a kind of ‘panic’—but no one who participated inthe panic realized a ‘panic’ was taking place. In other words, on September18th, I might’ve read the news about another bank failure and decidedon my own that it would be prudent to use my internet connection tomove some of my bank funds. I might thereby have participated in thisfirst electronic bank run, but I would not have dreamt that hundreds of thousands of others were also reacting to the same news event (perhapsa bank failure) and simultaneously also withdrawing their funds fromthe banks.Fortunately, virtually no one but the Federal Reserve and the Treasury Department recognized that an electronic bank run was taking place. If the rest of America had realized a ‘national’ bank run was taking place,the whole country would’ve joined in and every dime might’ve beenpulled out of the banks in a matter of minutes.Probably what saved the day was the fact that this electronic bank run occurred ‘privately’ and without the knowledge of the public oreven the participants. Therefore, although there was a true ‘bank run,’there was no ‘panic’ in the public in a real psychological sense.Even so, this ‘spontaneous’ electronic bank run had to terrify thepeople in Congress, at the Treasury Department and in the FederalReserve. Thanks to digital dollars and internet connections to bank accounts, the people can now randomly, spontaneously andunpredictably decide to withdraw so much money from their bank accounts, that the whole U.S. and global economies could instantly collapse.In other words, on this day, the ‘masters of the universe’ in WashingtonD.C. learned they are no longer in control of the monetary system andeconomy. Thanks to digital dollars and the internet, ‘money’ can now move at the speed of light and virtually anyone (everyone) can move his(their) money at any time for any rhyme, reason or whim. If enough people decide to move their cash based on single news report, the wholebanking system and global economies can be collapsed at the speed of light.Revelation 18:14-18—which describes the “end times” fall of “Babylon” and reads in part: “For in one hoursuch great riches came to nothing.” When—inall the previous history of the world—could allthe “riches” of a mighty nation “come tonothing” in just “one hour”? Such fantasticdestruction of “wealth” could not have beenpossible until 1) we started treating debtinstruments (promises to pay) as if they were assets (payments); 2) wedevised digital “dollars” that consisted of nothing more than electronic1’s and 0’s on some banker’s hard drive; and 3) the internet allowedmasses of people to access their bank accounts almost instantly.For virtually 5,000 years of human history, the event described inRevelation 18:14-18 was not merely impossible, it was unimaginable.It was inconceivable. How could you make all the wealth (gold andsilver coin) of a nation “come to nothing” in just “one hour”? Sure, thegold and silver might be stolen, or even sunk to the bottom of the sea,but it would continue to exist and would not “come to nothing”.Today, however, digital dollars can “come to nothing”—and they can do so at the speed of light. In fact, these bank runs prove thatRevelation 18:14-18 is no longer impossible, but is now even likely.Think not? How many people are currently plugged into electronicbanking? Given the global awareness of the current economic crisis,let’s suppose the stock market fell by 1,000 points in one day, warbroke out in the Middle East, or martial law was suddenly imposed ina big country—could any one of those or scores of similar events beenough to trigger a massive, spontaneous withdrawal of bank fundsover the internet? Yes. And we only need one such event to collapse theglobal economy. According to Congressman Kanjorski, this electronic bank run came within a few hours of collapsing the whole world economy. It’s morally wrong to allow a sucker to keep his money. ~ WC Fields
Posted on: Mon, 10 Jun 2013 01:13:17 +0000
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