I love the idea of putting our money where our mouth is, so I’m excited about the possibilities for this suggestion. Thanks for any further explanation of your theory.

L.S.

Response

The short term consequences of mass individual participation would be a draw down of the deposit base of the banking system and the governments’ response which might include more bailouts, withdrawal limits, currency and exchange controls, bank holidays, bank nationalizations, etc The intermediate consequences would be the publics’ response to the governments’ response, which I would expect to include a severe reduction in confidence in the monetary system. When a system fails to retain the confidence, support and participation of enough of the people it supposedly serves then the system itself will fail and need to be replaced. I would consider that to be a long term consequence.

As far as what to do with the withdrawn currencies? The same thing as I do when those currencies are in electronic debit form. I pay my bills and everyday expenses, and with constant replenishment from my labors, those debits are kept from being bank reserves. When one deals in cash, it encourages others to deal in cash and withhold deposits from the banking system. Keeping more than what a person considers short or medium term cash needs on hand may be counter productive. Cash reserves above short or medium term needs may best be used to build ones personal wealth.

Sam

I love the idea of putting our money where our mouth is, so I’m excited about the possibilities for this suggestion. Thanks for any further explanation of your theory.

L.S.

Response

The short term consequences of mass individual participation would be a draw down of the deposit base of the banking system and the governments’ response which might include more bailouts, withdrawal limits, currency and exchange controls, bank holidays, bank nationalizations, etc The intermediate consequences would be the publics’ response to the governments’ response, which I would expect to include a severe reduction in confidence in the monetary system. When a system fails to retain the confidence, support and participation of enough of the people it supposedly serves then the system itself will fail and need to be replaced. I would consider that to be a long term consequence.

As far as what to do with the withdrawn currencies? The same thing as I do when those currencies are in electronic debit form. I pay my bills and everyday expenses, and with constant replenishment from my labors, those debits are kept from being bank reserves. When one deals in cash, it encourages others to deal in cash and withhold deposits from the banking system. Keeping more than what a person considers short or medium term cash needs on hand may be counter productive. Cash reserves above short or medium term needs may best be used to build ones personal wealth.

Sam