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High Bank Run Risk in the USA!




Current developments are pointing out to a highly likely risk for bank runs in the USA. This may happen in the October-December period already. Bank are supplementing their ATMs with additional paper banknotes, while the government is facing stalemate due to the "stuck" budget agreement.



More Paper Dollars are Being Printed,
Banks are Preparing for Disaster


The US government has printed an immense amount of banknotes - 65.7 billion dollars-worth and 1.18 billion pieces of notes in the month of September (according to this article).
This is more than double the amount printed in the entire month of August.

This happened just before the recent US government shutdown issue. And it is strongly believed that the US government is trying to prevent or minimize the effects of a run on the banks.

Already, it's wide-spread news that the US banks are already supplementing their ATMs with additional cash in case a run at them occurs (the sources are the Financial Times and The New York Times).



The USA Has No Budget, Unemployment Rises


In addition to the existing fears of a collapse - the USA still doesn't have a budget and as a result, the recent shutdown. This is threatening to push the economy into a deeper crisis. We have gotten a big step closer to the US' financial collapse.

Government employees are being sent away and the figures are staggering: more than 700,000 people will remain without jobs. This will result in much higher unemployment figures and will impact the purchase power in the United States, as all these people and their families will turn to a more economic lifestyle. They will save more and it's likely that many won't find replacing jobs for a long period of time.

While unemployment rates have been steadily decreasing in the year 2013 (according to the Bureau of Labor Statistics), but the recent shutdown will heavily impact the rates.



Monetary Easing Might Get Stuck


Quoting USA Today: "Treasury will run out of borrowed money by Oct. 17".

This could get the quantitative easing rounds stuck for a while. But it's likely that an agreement will be reached and the debt ceiling will be raised. Otherwise, a US default would be just a few steps away!

The mentioned USA Today article is telling us that unless the Congress raises the 16.7 trillion $ debt limit, the USA will run out of borrowed money.

So long, the US economy has been running on "borrowed money" - better said, artificial stimulus by monthly monetary easing.
But as we know, everything has limits.

If the monetary easing gets stuck, the Fed won't be able to help pay off debt by purchasing bonds.


Make sure you get prepared for a possible run on the banks by saving your assets. If you own more than 100,000 USD in a US bank account, then you're at high risk! Although, the ensured and guaranteed amount is said to be 250,000 USD, it's less likely that you will be able to save your deposited money, in case of a massive country-wide run on the banks.

Watch the developments closely and stay tuned to Prime Values. Make sure you educate yourself in order to get ready for disaster.





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