Message:

<p>[QUOTE=&quot;fatima, post: 1455569, member: 22143&quot;]On the discussion of cash bank runs.&nbsp;&nbsp; The taking of cash from banks would be a bad thing if it was sustained.&nbsp;&nbsp; While I realize they can always break the laws as they are doing in Europe to keep the banks that loaned money to Greece from failing, they can&#039;t print cash at will.&nbsp;&nbsp; </p><p><br /></p><p>While the Federal Reserve can create all the electronic cash it likes, physical cash is counted directly against bank reserves and those ultimately have to be covered by real assets held by the Federal Reserve as the law requires via the Federal Reserve Act.&nbsp;&nbsp; If people start running the banks for cash, they may indeed have to close the doors because none will be left to give out.&nbsp;&nbsp; Of course it won&#039;t affect electronic commerce, but I can imagine what the shock would do to the financial system.</p><p><br /></p><p>It was incorrectly stated above that the US could keep printing cash.&nbsp; The US government stopped printing currency in 1971 in lieu of the Federal Reserve doing it.&nbsp;&nbsp; While the US Treasury can issue US Treasury dollar bills as it once did, this has an even bigger problem.&nbsp; This money would go right on the balance sheet of the USA and there are constitutional issues on how taxes have to be handled to cover it.&nbsp;&nbsp; It&#039;s a fascinating subject.&nbsp; </p><p><br /></p><p>Of course, they can simply ignore the law.&nbsp; It increasingly doesn&#039;t seem to be an issue now.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in