Bitcoin Forum

The point being, that if the banking system goes bonkers, and Bitcoin goes to the stars, you still won't have anything, because you won't be able to get your Bitcoin value out to use as money. Do you have a solution?


US Government May Freeze American Bank Withdrawals As Currency Panic and Capital Flight Mounts (http://www.freedomsphoenix.com/News/343469-2023-05-08-us-government-may-freeze-american-bank-withdrawals-as-currency-panic.htm)

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https://dailyhodl.com/2023/05/06/us-government-may-freeze-american-bank-withdrawals-as-currency-panic-and-capital-flight-mounts-macro-guru-hugh-hendry/amp/
In a new interview on Bloomberg Markets, Hendry says mass panic and capital flight away from the US banking sector is entirely justified.

Hendry says a further decline in the M2 money supply, which in part tracks money in liquid checking accounts, could convince the US government to step in and prevent citizens from taking their capital out of the banking system.

"Sometimes it's kind of relevant to panic. I would recommend you panic… You've seen the biggest waterfall decline in M2 right now. M2 is deposits, not loans. That's the deposits fleeing the system and going into money market funds.

That could reach a crescendo where the Treasury and the Fed may have to come in and actually restrict your right as a US citizen to pull money out of the US banking sector."

... (https://dailyhodl.com/2023/05/06/us-government-may-freeze-american-bank-withdrawals-as-currency-panic-and-capital-flight-mounts-macro-guru-hugh-hendry/amp/)

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8)

I’ve been reading about this and it’s more of a possibility than people think. I know I will personally freak out if I’m unable to access my own money. This will probably get people to dump funds into real estate or stacks in an attempt to maintain ownership of their funds in some form. Leave it to the government to force people to do the worst thing at the worst time.

Haven't seen any authoritative source suggest this is imminent though the U.S. government needs no reason to freeze withdrawals if they think it'll stop a run on the banks. Sometimes the banks might stop withdrawals themselves. Happens all the time. Even worse, it'll usually happen when the U.S. economy is in recession.

People lose their jobs, don't have access to their funds -- sounds like a recipe for collapse.

If the US government can actually do this, then there is really no better option than moving all your funds out of the banking sector. You never really know what will happen or when it might happen. The Fed seems not to even need any reason to do anything at all; whatever they feel is right and looks like a trait to them, they look for their possible means to bring a stop to it.

If you can't convert your Bitcoin and other crypto to your local currency, 1 BTC will still be 1 BTC, but the use case will reduce, and not everyone will want to accept something they can't convert to their local currency as a means of payment. Even buying stocks and investing in real estate won't be a real alternative since you can't exchange stocks or a landed property for food.

Quite awkward in my opinion, considering that when all this situation with the banking system started to happen some months ago I recall president Biden giving a speech reassuring people that USA banking is stable and strong and people is not supposed to fear for their deposits. Obviously was a speech intended to calm down people and investors among them, what history has taught us is that once the bank run commences it becomes significantly difficult to stop.

Let us see what happens, at this pace people will move faster to Bitcoin, Silver and Gold.  ::)

Daily reminder to not keep too much money in a bank.

This is not the first time Hugh Hendry would be wrong and not the last, in 2012 he was really bearish against China and look how that played out. Dailyhodl and some other crypto sites have an agenda against banking sector so of course they are listening anything bearish about us banking sector and looking at OP post history, he has agenda against United States and civilization itself.

But if you really don't trust small- to mid-size US banks enough to keep your money in there i don't blame you as Trump safeguard regulations from keeping this from happening. Banks need more effective regulations, not less. And funny thing that these crypto magazines that hate banking secotr forget to tell you that those failed banks had significant exposure to cryptocurrencies.

But if you distrust the whole banking sector, i am not sure why would you keep trust on dollar itself either and not just keep everything in gold and bitcoin/altcoins instead.