Monday, February 09, 2009

Rep. Kanjorski: "Electronic Run On the Banks"

At 2 minutes, 20 seconds into this C-Span video clip, Rep. Paul Kanjorski of Pennsylvania explains how the Federal Reserve told Congress members about a "tremendous draw-down of money market accounts in the United States, to the tune of $550 billion dollars." According to Kanjorski, this electronic transfer occured over the period of an hour or two.

Here is a transcript of what Kanjorski says More.. in the video:

"On Thursday Sept 15, 2008 at roughly 11 AM The Federal Reserve noticed a tremendous draw down of money market accounts in the USA to the tune of $550 Billion dollars in a matter of an hour or two.

Money was being removed electronically.

The treasury tried to help with $150 Billion.

But could not stem the tide.

It was an electronic run on the banks

The treasury intervened but had they not closed down the accounts they estimated that by 2 PM that afternoon. Within 3 hours. $5.5 Trillion would have been withdrawn and collapsed the US - and within 24 hours - the world economy."

Liveleak link


Anonymous said...

Refreshing comments from an otherwise opaque CONgressman.

A good way to clear out the system is to put enough $ in the system to let people get their CASH out of the bank, then default on foreign debt and Treasury, using the cash withdrawn from banks to restart the economy with a NON FRACTIONAL RESERVE BANKING SYSTEM.

Yes there would be immediate inflation by creating the cash for the deposits to be withdrawn but followed immediate deflation as the foreign dollar deposits are defaulted. Only in person withdrawls from US citizens would be honored, thus protecting the US citizen.

These dollars could then be redeposited in a new banking system that by law did not allow fractional reserve lending. Lending would be based exclusively on free capital amounts over 85% of deposits. This way, people would know that most people that deposit $ in a bank would be able to get it out and banks would have some funds to lend for worthwhile endeavors. Capitalism which is savings of people. You can not devalue savings and expect people to keep $ in the bank.

Anonymous said...

Why use fiat money. Wouldn't it make more sense to buy gold with fiat money, then default on foreign obligations, and start again with a gold based system? Maybe that's part of why the US mint hasn't issued any new gold coins since Aug 2008?


The banks are to blame for everything


What a great responce.