Gerald Celente Tried to Withdraw Currency from His Bank. The Bank Stonewalled, Then Made a Scene. There Is an Easier Way.
Gary North March 24, 2009
My view is that banks will remain open. The FDIC will see to that. So will the Federal Reserve. They dare not let a panic begin. The FDIC has asked Congress for a $500 billion line of credit. Congress will comply.
Gerald Celente thinks we could get a bank holiday. He went to his bank to withdraw currency. Here is his report on what happened.Author's Note: Suspicious of the soundness of the banking system, I requested to withdraw a substantial sum from our Key Bank account, leaving funds sufficient to cover ongoing business operations. First they tried to dissuade me, then they stonewalled me, and finally they turned openly hostile.
I was forced to sign a series of documents, including one acknowledging that since I was carrying a large sum, I could be the target of a robbery. To enhance that possibility, the teller slammed down the bag of cash on the counter and publicly announced the sum.
Despite repeated requests in the days preceding my withdrawal to get the cash in hundreds, they gave it to me in twenties, making for a bag five times the size and more robber-friendly. When I complained to the bank manager who had processed the request, the response amounted to "take it or leave it."
This will not be an isolated event. If you attempt to withdraw a large chunk of money from your account, negotiate the details in advance and anticipate possible hassle and obstruction.
We've heard similar accounts from clients and Trends Journal subscribers who, over the past several months, tried to close out mutual funds, 401ks and assorted sinking equities. They were dissuaded, cajoled, belittled and arm-twisted by brokers desperate to keep their accounts. Many caved in under the pressure, didn't close them and lost most of what they had.
The bank manager was imposing needless penalties on Celente. This indicates fear. A bank should not argue with a depositor when the depositor wants to remove currency.
The better way to do this is with an ATM. Nobody notices. If you know what the daily legal limit is, you can withdraw $20 less. You can accumulate a lot of currency this way.
I don't see the need to store up more than $1,000 worth. Why not? Because if banks go down, nobody will be able to pay. Your income will cease. You won't pay your bills. The economy would collapse. Under such a scenario, your currency would not last long. Neither would the retail stores you shop at.
Only if the FDIC allows a few banks go under, leaving most others intact, would currency help you, if your bank was one of the busted ones. Only if the FDIC goes under would Celente's strategy make sense. I think there is no chance of this. The FDIC is more sacrosanct than Social Security.
The importance of Celente's account is the hostility of the local banker. There is great resentment against depositors who withdraw currency. So, avoid letting the bank know what you are doing.
Currency is good for getting better prices from sellers of used goods. This kind of shopping makes sense. Your ATM will let you do this quietly.
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