Is France heading for a Bank Holiday?

Discussion in 'Financial Cents' started by DKR, Jan 10, 2019.

  1. DKR

    DKR Raconteur of the first stripe

    Yellow Vest protesters are hoping to trigger a bank run with a nationwide coordinated cash withdrawal. By threatening the French financial system, protesters say, they want to peacefully force the government to pass their reforms.

    “If the banks weaken, the state weakens immediately,” said Yellow Vest “sympathizer” Tahz San on Facebook. “It’s elected officials' worst nightmare.”

    Protesters plan to empty their bank accounts on Saturday, withdrawing as much money as possible in a bid to undermine the French banks – if not the euro itself. The plan is to “scare the state legally and without violence,” forcing the government to adopt the movement’s Citizens’ Referendum Initiative, which would allow citizens to propose and vote on new laws.

    I know if I want to withdraw more than X amount of cash from any of my accounts, I have to give notice to the bank to ensure that they have enough paper on hand.... I do have to wonder if this is shooting themselves in the foot?
    And if the mass of protesters is as poor as they claim, how would this have any real impact?

    Of course France is slightly smaller than Texas....

    Getting out the popcorn.
    Last edited: Jan 10, 2019
    3cyl, oldman11, sec_monkey and 4 others like this.
  2. oil pan 4

    oil pan 4 Monkey+++

    Yeah I only keep about 1 month of operations money in my checking account.
    The rest is in the deposit box.
    my wife thinks we need to have thousands upon thousands of dollars in a savings account or CD.
    I'm trying not to start an argument by nicely telling her no.
    Says I need to build up my credit.
    Well the way I do things I don't need credit and that works just fine for me.

    I would rather my money grow mold sitting in a safe deposit box than have it in a savings account making less than 1% intrest.
    I could make up that 1% by turning in couch change.
  3. Zimmy

    Zimmy Wait, I'm not ready!

    That's what they get with open borders and a liberal government.

    Feed 'em fish heads.
  4. BTPost

    BTPost Stumpy Old Fart Snow Monkey Moderator

    Chinese Government Bonds are paying 7-9%. these days...
  5. oil pan 4

    oil pan 4 Monkey+++

    Being a slum lord nets more like 20% to 25%.
  6. T. Riley

    T. Riley Monkey+++ Site Supporter++

    If you can’t hold it in your hand you don’t own it and even then you have to be able to defend it. I don’t keep a red cent in the bank i don’t have to. Cash is a non-earning asset for a bank so they keep it as low as possible. 1/2 to 1% of total assets is common. However the central bank, our Fed, has billions in the vault unissued. The French banks will be ready. The protester won’t cause a ripple.
    mysterymet, oldawg, oldman11 and 3 others like this.
  7. Wildbilly

    Wildbilly Monkey++

    There isn't that much actual CASH in the banks, especially in many of the smaller towns and rural areas. If everyone went to the bank and withdrew 100 euros the system would collapse.
    Gator 45/70, 3cyl and oldman11 like this.
  8. Bandit99

    Bandit99 Monkey+++ Site Supporter+

    This really isn't such a bad to make themselves be noticed and heard but...I doubt it will do the trick. It might cause a hiccup until they get their arms around it but...

    But, having said this, I have always thought that if we truly want to be heard and show them we're still in charge then we all should stop paying our taxes. It would bring the government to its knees in a month...
    Gator 45/70 and 3cyl like this.
  9. duane

    duane Monkey+++

    Went to the local branch of a major branch to draw $10,000 out of an account to buy a car from an older friend of mine who wanted cash. Noon on a Tuesday, wrote a check out for cash on account, gave it to the teller, they had about $4,000 available in the whole branch. They had over $30,000 in the canisters that go into the card machines, but they could not access that, all in $20, max with drawl in 24 hour period on card, $500. Large amounts of cash flow thru system, Walmart, Lowes, etc, but it is picked up and taken to armored car centers, taken to central location, and back out. Most cash no longer goes thru banks and they have little on hand and even lower amounts available for 1 account. If you want cash, every bank in the country is Hotel California, you can check in, but not out. They want a cashless society and a flat transaction tax is their dream. You will not even have to file taxes, it will be like the "sales" tax, taken out automatically and deposited in the governments account and using cash or bartering will be a crime as not using the "system" will be an automatic proof of cheating the government out of their legal taxes. YMMV, but that sure appears to be the way we are headed. Kind of frightening when Home Depot can tell me how much I paid, when I bought it, and what the serial number is on a drill I bought last year when I need proof of purchase for a warrenty claim to fix tool.
    Tully Mars, oldman11 and Gator 45/70 like this.
  10. DKR

    DKR Raconteur of the first stripe

    Cash is King

    Until the Gov issues new banknotes....

    2016 Indian banknote demonetisation - Wikipedia
    What a disaster at so many levels.

    Stop me if this sounds familiar:
    The Indian government had demonetised bank notes on two prior occasions—once in 1946 and once in 1978—and in both cases, the goal was to combat tax evasion via "black money" held outside the formal economic system.
    In 1946, the British Raj government removed notes of 500, 1000, and 10,000 from circulation.[21] In 1978, the Janata Party coalition government demonetised banknotes of 1000, 5000 and 10,000 rupees, again in the hopes of curbing counterfeit money and black money.[22]

    In 2012, the Central Board of Direct Taxes recommended against demonetisation, saying in a report that "demonetisation may not be a solution for tackling black money or shadow economy, which is largely held in the form of benami properties, bullion and jewellery."
    According to data from income tax probes, black money holders kept only 6% or less of their wealth as cash, suggesting that targeting this cash would not be a successful strategy.The Bharatiya Janata Party (BJP) had previously expressed opposition to demonetisation. BJP spokesperson Meenakshi Lekhi had said in 2014 that members of the public who were often illiterate and had no access to banking facilities would be adversely affected by such a policy.
    Gator 45/70 and VisuTrac like this.
  11. BTPost

    BTPost Stumpy Old Fart Snow Monkey Moderator

    What you found out is exactly right.. Banks do NOT hold large amounts of cash, on hand for daily transactions...If you need a Big Chunk of Cash, you are required to give the Bank prior Notice, that complies with their Withdrawal in Cash Policy... Main Branches, and larger Commercial Bank branches will have more cash than neighborhood Branchs, but usually the Branch knows when and if one of their customers usually needs a large Cash presents...
    Gator 45/70, mysterymet and oldman11 like this.
  12. Wildbilly

    Wildbilly Monkey++

    Many years ago the bank called my Father and asked if his business was going to make a deposit that day (FYI we weren't the only business they called). It seems that the bank was running short of cash. I quickly finished the deposit and he took it to the bank.
    Gator 45/70 and oldman11 like this.
  13. arleigh

    arleigh Goophy monkey

    I wonder how long it will be when people will be offering stuff for sale but using PMs in stead of money.
    Small 12 hp engine for sale 10 ounces silver.
    Gator 45/70 likes this.
  14. VisuTrac

    VisuTrac Ваша мать носит военные ботинки Site Supporter+++

    erm, already done/do it. statewide firearms forum. I have offered long gun for sale with FRN and Silver Face value prices. Sold a few for some ziplock bags full of dimes and another for a couple of rolls of quarters. Great way to obtain silver. I like to think of it as modern day mining.
  15. T. Riley

    T. Riley Monkey+++ Site Supporter++

    The Federal Reserve held several million dollars in Bank owned US Treasuary notes and bonds for the banks I worked for over the years. At any time i could call and pledge them to secure a loan from the Fed and they would bring me all the cash I needed the next day. All without signing anything. We had a standing borrowing agreement. Or, I could drive 90 miles to the Fed and pick it up which I did on occasion. No armored car, no guard, just me. The French banks will not run out of cash for long.
    Cruisin Sloth and Gator 45/70 like this.
  16. Gator 45/70

    Gator 45/70 Monkey+++

    I would imagine that O'bozo sent most of our cash to Iran? But have to give the drug lords credit too South of the Border.
  17. Cruisin Sloth

    Cruisin Sloth Special & Slow

    Better be new for that price !!
    You figure out the asking price ?
    150.00 ??

    it's all good , pushing yOUr chain
    oldawg likes this.
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