Record withdrawals at U.S. banks as Americans lose trust in financial system

Record withdrawals at U.S. banks as Americans lose trust in financial system

(NaturalNews) You probably haven't heard much about it from the
mainstream media, but the latest figures released by the privately-owned
Federal Reserve (FED) indicate that America's largest banks saw
record cash withdrawals during the first full week of January 2013. As
reported by Bloomberg Businessweek and scant others, account
holders withdrew a record $114 billion in just one week, which
represents the largest one-week withdrawal sum made in America since the
September 11, 2001, terrorist attacks.

The data, which accounts
for all cash withdrawals made from the nation's 25 largest banks, has
reportedly shocked many financial analysts who say they are unsure
exactly what sparked this minor bank run. Some have speculated that the
December 31, 2012 expiration of the Transaction Account Guarantee (TAG)
insurance program, which was designed to protect smaller banks from
insolvency, may have played a role in triggering what appears to have
been a wave of panic withdrawals.

But since the bulk of these
withdrawals were made at larger banks that were not covered by TAG, this
explanation hardly suffices. Another more likely explanation is that
Americans are simply unsettled with the current state of the financial
system, and for all intents and purposes are trying to protect their own
assets from insolvency. This is further reinforced by the fact that a
similar run on "physical" gold escalated around the exact same time,
suggesting that depositors are anticipating rocky times rapidly
approaching.

"[W]hat surprised analysts is that the withdrawals are from larger banks that were considered safe," explains a report from AllVoices.com about the issue. "Expectations were for depositors in small and medium banks to put their deposits in the bigger banks
when the insurance program ended," it adds, noting that TAG's
expiration would have logically induced the opposite effect of what
actually occurred.

Though many so-called experts are reluctant to
admit it as a possibility, this ongoing trend of massive withdrawals of
federal reserve notes and physical metal assets from banks and vaults
just might be the people's way of responding to the ominous writing on
the wall, which does not appear to spell any type of real recovery for
America. To the contrary, a perfect storm of attempted gun control
legislation, ever-increasing taxes, inflation, reduced wages, and job
cuts may finally be getting the attention of a critical mass of
Americans, who for too long have ignored the progressive downfall of the
financial system.


Source:-
http://www.naturalnews.com/038902_fractional_reserve_banking_withdrawals_economic_collapse.html