Hamilton Mobley

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Bank Runs

Bank runs occur after fraud: A bank lends out more money than it has.

Before the Great Depression, gold and silver were money. The dollar bills were just bills for gold or silver dollars.[1]

The banks lent out more money than they had (fractional reserve banking), the Fed printed more paper dollars than existed gold /silver dollars, and when depositors tried to withdraw their gold/silver, the fraud was exposed in bank runs because banks can’t print gold.[2]

Today, there are more digital dollars and credit than paper dollars (cash). If too many people want their money in physical cash, the banks can not deliver.[3]

Same with the banks that manage the contract gold schemes with ETFs, the COMEX, and futures market. Like before the Great Depression, people again think that they can trade their contract for the gold backing it.[4][5]

Today, people can’t go to work on lockdown/quarantine and if the government does not bail them out,[6] most will be dead broke and stocks will crash.[7]

When enough people want real cash or gold/silver in their hands, there will be bank runs.

There is not enough cash. It is all just a confidence game.




[1]https://www.hamiltonmobley.com/blog/r9tu385c22azkxuycdia7o3kludljh

[2] https://mises.org/library/anatomy-bank-run

[3]https://www.hamiltonmobley.com/blog/fractional-reserve-banking

[4] https://www.hamiltonmobley.com/blog/the-spdr-gld-prospectus

[5]https://www.hamiltonmobley.com/blog/gold-price-suppression

[6]https://www.google.com/amp/s/www.wsj.com/amp/articles/house-lawmakers-race-to-washington-to-ensure-coronavirus-stimulus-passes-11585318472

[7] https://www.hamiltonmobley.com/blog/interest-rates-and-inflation