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<p>[QUOTE=&quot;Conder101, post: 82118, member: 66&quot;]Same thing happened with government currency in 1964.&nbsp; The government had issued many more silver certificates than they actually had silver backing on hand. Why?&nbsp; Because they never dreamed had there would be a run on the currency to redeem the notes for silver.&nbsp; This is standard procedure in all financial institutions.&nbsp; Many people think he local back has all that money that has been deposited sitting in the vault.&nbsp; Actually they only have about 3% or less of their assets on hand to satify demand deposits.&nbsp; They are gambling that they will never have more than 3% of their assets requested for payout on any given day.&nbsp; Banks that used to issue their own currency back in the 19th century used to do the same thing&nbsp;&nbsp; Take in $1000, and issue $1500 in banknotes because you probably won&#039;t have to redeem them all at the same time.</p><p><br /></p><p>But anyway the US govenment got caught short so they simply changed the law so that they no longer had to edeem the notes with silver like they were supposed to, but could just redeem them with other paper.[/QUOTE]</p><p><br /></p>

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