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Some of you might remember the recent scandal where #HSBC tried to impose cash withdraw limits on their accounts:

Well it turns out that was just a trial balloon, to see how the public might react to withdraw limits being public knowledge. Limits that are already in place!

Let me tell you what my sources are telling me.

They have tried to withdraw large amounts in cash from a bank. They were told quite categorically "No, you cannot have this amount in cash". They then asked if they could make an appointment to receive the amount in cash and were told "No"

Just an awkward bank clerk right?

They then proceeded to transfer the balance to another bank, and tried to make the same withdraw. They received exactly the same response "No, No, No, No, you can't have your money".

So what's going on?

The #European union is fearful of a systemic bank run taking place. After all, they have already seen bank runs in Cyprus (a successful testing ground) and other peripheral countries. Such a bank run would overwhelm even the European Central Bank.

But their steps to prevent this have been interesting to say the least...... They simply won't allow a bank run - it's against the rules!

What rules you say? Well, these vary from bank to bank and I've assembled them from a few different sources, but here they are:

- A depositor can only withdraw ~10% of their balance in large-scale cash per year.
- These limits do not apply to small one-time incidents such as ~5000 euros.
- All large cash withdraws must have a "valid" reason given. Hint: "I don't trust my bank", is not a valid reason.
- Daily cash machine limits are exempt.

Since the majority of cash withdraws are not large, these rules go unnoticed. But if they see an excessive/unusual amount of small daily withdraws taking place they can easily tighten these limits - all the procedures are in place.

So what are the implications of this?

Quite simple really. There won't be a bank run in #Europe - because it's no longer allowed. Just like a toddler, you will NOT be allowed to play with matches!!

So given the system is tearing itself apart at the seams, we'd better start looking for the weaker stitching somewhere else!

As to whether this system is in place in the #US yet I cannot say. If it isn't yet it soon will be.
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I've seen some Americans complain they would get questioned why they were taking out cash or hassled about taking out large sums. I think the banks are testing the waters.
Mine hasn't denied Me but then I Don't have enough to worry about.
+BewareofFlatteries I think it's definitely more developed rules here in Europe. The deflationary "threat" seems greater here currently. From what you are saying they are just starting to phase it in over in the US. The questions come first......then the limits....
Well, makes me seriously think about stacking gold and silver instead of fiat electronic money. 
I'm not sure if its in effect in Canada now or not.  I do know that the last budget passed by the government did have the bail in clause included in it.  I'm stacking silver.  At the current price how can you go wrong.  Eventually the price fixing on silver and gold will collapse.  My sources say that gold could hit between 10 and 15 thousand an ounce.  Silver may not get that kind of rise, but it will rise substantially.  Possibly into the 300 to 500 dollar range.
+fozzy0266 That's not "collapsing", that's "booming" or "bursting" instead :-D 
Is it possible to buy certified gold/silver in Canada? Any links? 
+Eduard Karesli I don't buy paper at all. Only the hard asset.  I am buying silver bars and coins of 1, 5, and 10 ounce.  I found a pawn shop here that sells silver for a better price than I can get from the bank, which is the only other source where I live.  All bars and coins have serial numbers. 
+fozzy0266 hmm, so it's possible to buy hard assets from the bank directly I guess?! That's also nice to know. I'll start in the near future making my own moves here in Quebec. Time to prepare for the "future"... 
+Eduard Karesli Your best bet in Canada, if you don't mind shipping, is from the royal Canadian mint directly.  I don't buy enough volume.  I buy 1 to 5 ounces every month so not worth the shipping for me.  Banks do charge a large "handling fee" lol. 
We have the same limits here,. At my bank you can't withdraw more than $2000 in one day and my paychecks will not be cashed at my boss's bank unless I open an account there and have enough in MY account to cover it.
I think they know most people have no real money to their name in the bank, so they just monitor in aggregate. If they see major drawdowns overall, that is when they lower these limits to where it becomes more visible.

Clever really - they limit withdraws, but at the same time look like they aren't!
I am reminded of this wonderful exchange between Sir Humphrey and Jim Hacker in Yes Minister:
Sir Humphrey: Minister, Britain has had the same foreign policy objective for at least the last five hundred years: to create a disunited Europe. In that cause we have fought with the Dutch against the Spanish, with the Germans against the French, with the French and Italians against the Germans, and with the French against the Germans and Italians. Divide and rule, you see. Why should we change now, when it's worked so well?
Hacker: That's all ancient history, surely?
Sir Humphrey: Yes, and current policy. We 'had' to break the whole thing [the EEC] up, so we had to get inside. We tried to break it up from the outside, but that wouldn't work. Now that we're inside we can make a complete pig's breakfast of the whole thing: set the Germans against the French, the French against the Italians, the Italians against the Dutch. The Foreign Office is terribly pleased; it's just like old times.
Hacker: But surely we're all committed to the European ideal?
Sir Humphrey: [chuckles] Really, Minister.
Hacker: If not, why are we pushing for an increase in the membership?
Sir Humphrey: Well, for the same reason. It's just like the United Nations, in fact; the more members it has, the more arguments it can stir up, the more futile and impotent it becomes.
Hacker: What appalling cynicism.
Sir Humphrey: Yes... We call it diplomacy, Minister.
Similar rules have been in place in the US for some time now. Banks keep a fraction of their deposits on hand, and must have a limit on the amount and number of withdrawals. 
It's time the banks started offering something in return.

They're quite happy to farm out funny money that has no value; lending out at rates above the zero percentage incentive they got from the government.

Who pays back this Ponzi scheme... Ask yourselves.
It's time to keep your gold buried in the backyard
I don't have any money or gold left. Kind of nice to not have to worry. 'Freedom's just another word for nothing left to lose.'
Don't withdraw, transfer your funds ... to Coinbase and buy Bitcoin. Exit the banking system completely and enter a world were your money is your money.
Back during the Great depression an executive order was passed requiring people to sell their gold to the government at a reduced price which the government then sold at a higher price. That's something to consider when buying gold. Some people are investing in "junk silver" instead. 
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