Home > Off Blog, Uncategorized > Bank Run being organized across Europe on December 7, 2010

Bank Run being organized across Europe on December 7, 2010

From Zero Hedge — we will be updating this as we get more information:

December 7 Is The Unofficial Pan-European Bank Mutiny Day

After German blog “All is Smoke and Mirrors” floated an idea of an organized bank run (something attempted previously in the US without much success) in France in response to French austerity protests (which have resulted in no gains), the effort has since expanded to a pan-European organized bank run day on December 7, 2010, and has metastasized to Italy, Germany, the Netherlands, the UK and Greece. We are confident that very soon the rest of Europe, which is currently gripped in a climate of extremely unpopular austerity, will join in this symbolic protest against banking, which unlike the US, may just succeed, considering the European banking system is in total shambles, and in far worse shape than its American counterpart.

Since virtually all actions in 2010 by the global central banking cartel have been geared toward stabilizing the European banking system which continues to wobble on the edge of a complete systemic collapse, perhaps the marginal withdrawal of a few billion in deposits could be just the straw that forces a reset first in Europe, and shortly thereafter in the rest of the globalized developed (and then developing, proving what a joke the whole concept of decoupling is) world. As America has demonstrated so very well, 25 weeks of consistent withdrawals from domestic funds (sorry CNBC, there have not been inflows yet, confirming yet again that fact and propaganda don’t mix yet) have resulted in a quarter in which bank earnings were simply said crushed. Had Americans followed through and withdrawn their deposits from banks it would have been the final straw. Luckily, the lack of organization among the US population gave the US banking system a reprieve. In Europe things are different: banks are not as reliant on trading, however, they are far more reliant on a stable deposit base to sustain the Ponzi. Therefore, even a partially successful withdrawal campaign could have far more dire consequences to the continent’s banking system, and bring the financial system to its proverbial knees.

And before some accuse the blog’s activism of some vile form of megalomaniacal quackery, we should highlight that the action has already been noted by such reputable newspapers as Suddeutsche Zeitung. Furthermore, in just 24 hours 1,500 readers have pledge their support to the action’s various Facebook support sites, and another 48,000 are on the waitlist. We hope that more alternative media (the mainstream will unlikely support such a radical venture) catches on, and more Europeans realize they have all to gain and little to lose from forcing the balance of power to shift away from the banks, and into the hands of the people.

As for those who wonder why Europe’s banking is much more fragile from a deposit base perspective, we present the graphic below comparing asset bases of American and various European banks: since both Europe and the US have roughly comparable GDPs, one would assume that the two regions’ banking systes would have the same asset bases. That, however, is completely wrong. In fact Europe’s asset base is roughly ten times, if not more, as great, even as it supports an economy the same size as that of the US. Which is also why it is far more unstable as the marginal utility of every deposit dollar goes that much further via the fractional reserve banking model, and supports that many more assets. In other words, every dollar withdrawn in Europe would have roughly the same impact as 10 in the US.

Which is why this action actually has a chance of success. And even more so that when it comes to political activism, Europeans tend to be far more ready to participate in joint causes, unlike their apathetic US brethren, who are perfectly content to watch the world series and collect their unemployment checks (soon expiring).

Perhaps in a jesture of poetic irony, some two hundred years after America showed the “Old World” what miracles an emancipated and ambitious population can do when it revolts, it will be the Old World’s turn to return the favor, and rebel against that most destructive of concepts ultimately created by this splinter experiment from across the Atlantic: Central Banking and a fiat system in which money literally grows on trees.

For our European readers who wish to participate in this experiment, below are the various facebook support pages:

Italy
France
Germany
Holland
Great Britain
Greece

STOPBANQUE: More listings

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Categories: Off Blog, Uncategorized
  1. Threecrow
    November 2, 2010 at 10:35 am

    No matter how one googles this: Bank Run being organized across Europe on December 7, 2010, one cannot come up with information.

    Note to Charley: Your piece on QE is worthy of publication now.

  2. LeftyEconomist
    November 21, 2010 at 7:44 pm

    This is officially the stupidest fucking plan I’ve ever heard and that’s saying something.
    Banks collapsing won’t end capitalism, it will however return us to the Great Depression (you know, that pretty shit few years after the banks collaps…ed in the states).
    Also, while it would certainly topple the banks if people actually did it, it would also mean that the first few people to withdraw their cash would then cause the banks to fail BEFORE other depositholders got theirs as banks never have all their deposits in cash form (I’d say it’s far less than a third though I’ve not checked) which is actually more unfair than anything capitalism has yet thrown up. Two thirds of all depositholders in the country suddenly have no more savings, very nice.
    And you know, as the rich generally have people to mind their cash that would act quickly if they thought this was actually going to occur it’s likely the working class who’d feel most of the brunt.
    You fucking twat.

    • November 21, 2010 at 11:34 pm

      Come on, the stupidest? That would mean it beats out killing ten of thousands of Iraqis over the ginned up claim Saddam had WMDs.

      So let’s examine YOUR claims:

      1. It will bring about the Great Depression. Lefty, we are already in a depression, and have been since 2001. During that time we have experienced two major recessions and one financial collapse. The entire burden of this depression and its associated monetary events have been borne by working people.

      2. A successful bank run would reward those depositors who were quick to withdraw their savings at the expense of those who withdrew later. Let’s suppose this is true — which it is not — why is this an argument against hitting the bank for dumping their losses on the public while paying bonuses to the very people who created the crash in the first place. By this same logic, there is nothing to be done, since any attempt to make the banks pay for their crisis might lead to massive across the board bank failures. But, as you know, it is not true, since the ECB can step in to provide any quantity of euros to prevent bank failures — it is just dancing electronic digits on a computer terminal. As a reserve currency the euro can be created in any quantity required — a bank run would simply force it to do so.

      3. The working class would feel the brunt of a bank run. The working class is already feeling the brunt of banking insolvency — or, did this not occur to you. This is what the bailouts and austerity is all about. Since, the working class doesn’t own a single bank, how would the actual collapse of the banks hurt them more? Those who would feel the brunt of a banking collapse would be the shareholders of the banks, their creditors, and the independent monetary policy of the ECB.

      So, your criticisms amount to this: It will cause a depression that is already happening; it will impoverish the working class who is already being impoverished by the socialization of bank losses; the rich would quickly avoid the repercussions of bank failures, which they already are.

      What was your objection again?

    • Dar El
      November 23, 2010 at 1:19 am

      I actually agree with Lefty though the language detracts from the message. But to imagine this would actually work is to misunderstand the global financial system and the banksters who control it.
      Cash deposits are a small fraction of a bankster’s (imagined) worth, the majority of account holders have very little actual money. The economic matrix has not changed since the GFC. Banks are money lenders – for them debt is credit. Even ten or twenty million small depositors withdrawing their money would be a flea bite on an elephant’s back.
      Banks are built on negative equity; i.e a loan is someone else’s debt which is then sold to other financial institutions at a profit and declared an asset, and the value of these outstrip deposits tenfold if not more. Red becomes black. If economic revolutionaries wanted to really make a difference, they would encourage people to tear up their loans and refuse to pay. Then the courts and jails will fill up and the police would come, followed by the army and we will have the scenario that Lefty predicts and maybe the same kind of revolution that France had in 1789. Death and bedlam are never good.
      But as a purely symbolic gesture, why not? Go for it if you feel empowered by it. At least the Credit Unions and social banks will benefit.

      • November 23, 2010 at 10:11 am

        First, you don’t seem to be in agreement with Lefty. He (she) states that an organized bank run will collapse the banking system and bring on a depression. You argue that the organizers misunderstand the banking system and the negligible holding of the typical depositor will have faint impact on this system.

        Second, then you go on to argue that if the organizers of the bank run really wanted to collapse the system — a goal Lefty finds decidedly unforgivable — the participants should instead refuse to pay their debts. And finally put the corpse of debt slavery in its final resting place.

        This we believe is a great suggestion and we hope this will be the next stage of this movement. If you would like, you can send us a detailed presentation of your idea and we will post it here. Our email is charley2u — at — gmail.com.

        BTW: We are looking for something more along the lines of the Paris Commune, not 1789. Any help you can offer would be greatly appreciated.

        Thanks Dar El

        Charley

  3. Dar El
    November 23, 2010 at 4:46 pm

    Yes realise I did seem a bit contradictory, but my point was that the scenario proposed by Left was plausible. i.e that it is the poor and the too-late who will suffer most. The rich would take a hit, but they have their wealth invested in land, jewellery, gold, weapons, food etc – which might explain the current gold price. Over here they even own the water.
    I do think the banksters need to be punished instead of their victims and I’m mad enough to wish they would collapse, but the individuals rather than the institutions. Humans only know how to fight during times of crisis and a collapse of the financial institutions is liable to precipitate a chaos that could lead to something like Cormac MaCarthy’s “The Road.” The rich eat the poor.

    • November 23, 2010 at 6:37 pm

      Dar El,

      It is not the individuals, but the institution which pose the true threat. As Threecrow teaches, we have to get beyond the desire to see individuals punished and move toward creating conditions where the sort of antisocial activity of these folks will be impossible.

      As you point out, debt is exactly the sort of activity we want to abolish. The question you pose is whether the abolition of debt will lead to chaos? In the past, those who fought to end chattel slavery in the United States were often met with accusations that the slaves were incapable of enjoying freedom — that they were uncivilized savages who needed to be safely kept in bondage for their own good and the good of society. This turned out not to be true.

      Yet, many today believe we debt slaves are incapable of freeing ourselves from the bond of the debt manufacturers on Wall Street. I believe this fear is just as unfounded as the former.

      • Dar El
        November 23, 2010 at 8:12 pm

        I hear you, but the analogy with slavery is tennous in that ( without going into the details of society’s compulsion to borrow money to consume) the relationship with the banksters is mostly voluntary. Whic means anybody can choose to be free. But I also believe in good guys and bad guys. These institutions are just vehicles, shells if you like, for individuals to assume power they don’t deserve then exploit it to their maximum personal advantage. This handful of people sit round the board room and decide policy, interest rates and their own salaries without consultation or any thought about social responsibility.

        We do need action now. Before the institutions collapse of their own accord, which I believe is quite likely. The sort of action I would recommend is for people to transfer their money and loans, if they are viable, away from the banksters and into credit unions, social and community banks. For example the Islamic Shariah banks and Ethical Investment houses. Further we need to make a quick transition to steady state economies so that phoenix economies are ready to replace the broken model. A couple of places to look for this are an excellent documentary called ‘Requiem for Detroit’ where after the collapse, which included the destruction of 50,000 buildings, new economies emerged based on fairness and sustainability (re: the goodwill army). The science of zero growth economies is well laid out at http://www.steadystate.org. These are better options than risking the mayhem and violence that would certainly follow a total collapse.

  4. pattyschu
    November 25, 2010 at 12:05 am

    Hi, I live in USA. I had this feeling for a few days that I wanted to fired my bank. I did not know that some many of you share my feelings. I am angry and very upset with this financial system. And the only way they are going to listen is by hitting their pockets. I just requested a loan from my bank, whom I have had a relationship with for 5 years; and they denied my request due to 3 or 4 delinquencies that happened more than 5 years ago when I was unemployed. Ever since, I have paid all my bills on time, and I have kept my job for almost 6 years. This bank has been receiving my paycheck faithfully twice a month for the past almost 6 years. I could very easily pay the loan that I request. But they think that just because I had a few late payments 5 years ago, I should pay a higher interest rate. THEREFORE, I RESOLVED TO FIRE MY BANK. I know it will be hard. But my hard earned cash is mine. If everyone did this to their bank at least for 1 or 2 month, they will understand THAT WE ARE THE PEOPLE WHO SUPPORT THEM.

    • November 25, 2010 at 11:37 am

      We agree, the entire financial sector must be fired. and the Federal Reserve along with it.

  5. scipionasica
    December 3, 2010 at 9:52 pm

    You know who/what Dar El and Lefty are. If you don’t, think about it.

  6. Dar El
    December 4, 2010 at 1:45 am

    I’ve thought about it scipio. Hippies? I am sure you will enlighten us with your own presumption.

  7. December 6, 2010 at 8:30 pm

    Hey,

    I found a prepared fake money flyer for the bank run:
    http://www.cashday.oyla.de

    print, cut, fold, drop, enjoy

  8. Dar El
    December 14, 2010 at 3:43 pm

    So what happened? Oprah drowned out any real news here in Oz. Damn that’s depressing!

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