How to screw the system.

[Wake Up]

I was wondering if my fellow leftists were aware that banks only actually have about 10% of the money they hold.

I will explain.... most money is electronic and created by banks. When you ask for a loan, most of the time they don't give you money that they have in their vaults, they create the money there and then, with the stroke of a pen, or if you like, with a few keystrokes. Fractional Reserve Banking allows banks to lend, typically, ten times more than they have in reserve.

Basically if only 10.1% of the population went and withdrew all their cash from the bank the economy would go down the plughole as the government would be forced to print money to fill the gap created, inflation would go through the roof.
This is why Gordon Brown eventually nationalized Northern Rock, to stop everyone withdrawing their money which only exists on a computer file.



It's rather comforting to know that it is possible to screw the system and maybe we should spread the word. I know I will be... :laugh:

[Tower of Bebel]

We know, but that's why governments take matters in their own hands (nationalization, laws, advice and other measurements). Capitalism is fragile, especially in the stage of imperialism crises can be sudden and huge.

[shuuk]

This is decent, in other words i mean if you got 10.1% of the population to follow you, you could hold the contry at ransom and if they dont supply your domand you tell everyone to withdraw all there money...

Bringing Capitalism to its knees in a mater of minuets, however is there any way they could stop such a thing from happening and block this attack?

[Wake Up]

I don't think it would work as a blackmail device as the government can nationalize banks and all they would have to do is find out which bank you were going to target.

Its more a case of 10.1% of the population just turning up and demanding their money - which doesn't actually exist.
I also think that if people were fully educated on this matter they might be a bit more reluctant to use banks in the future.

[Luís Henrique]

This is decent, in other words i mean if you got 10.1% of the population to follow you, you could hold the contry at ransom and if they dont supply your domand you tell everyone to withdraw all there money...

Well, first of all, it is only 10.1% of the population if the distribution of money is absolutely even... which is, of course, very much untrue in a capitalist economy.


Bringing Capitalism to its knees in a mater of minuets, however is there any way they could stop such a thing from happening and block this attack?

Of course - the realisation, by common people, that if this was done, the system would fall - on their own heads. I don't think even 10.1% of people would be willing to go unemployed and unable to buy food just for the sake of "screwing" the system...

Luís Henrique

[shuuk]

Very true, but then farmers and hunters would keep somewhat of an economy alive by selling food and drink to the people, and prolly 20% of the population would die from 1 thing or another.

but eventualy wouldnt the system recreat itself and make some sort of system to prevent this from happening again wouldnt it be only like a 1 time thing?

[Sam_b]

Somehow I can't see 10% of the population willing to keep their entire livelihoods in a box under their bed.

[MarxSchmarx]

Banks essentially serve as intermediaries. You put your money in there, they use that money to make loans. The overwhelming majority of money put in most banks of consequence are from businesses, foundations, wealthy individuals, other banks and corporations - very little of it comes from people who can show up and just ask for their
money back. Until you get, I don't know, the likes of Siemens or General Electric making a "run on the bank" to smash capitalism, this strategy won't be able to go anywhere.