Run On the Bank

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Possible Solution to Bank Run - Invest In BitGold

For centuries gold is considered one of the safest investments and BitGold has made it easy to buy and affordable as small investments are acceptable.
Essentially, payments are made in cash and then are converted into savings of Gold.

The only reason the government would tie the dollar to gold again would be to immediately re-establish the credibility of the currency and stop a global "run on the bank." But how could the dollar possibly fail? Our economy is immense and resilient. We control the world's most powerful military – which is distributed across more than 100 different countries. Why would anyone want to sell the dollar? It's true that the dollar is by far the strongest of all the world's paper currencies. But this strength is also a tremendous weakness. The ubiquitous status of the dollar is a kind of Achilles heel. You see, the vast majority of U.S. dollars are held overseas. According to the Federal Reserve, roughly half of all $100 bills are held overseas – almost $500 billion worth. Foreign demand for $100 bills since the fall of the Berlin Wall has caused production of $100 bills to soar. Far more $100 bills have been printed than any other denomination. Of course, it isn't only cash that is being held overseas. Foreign banks hold trillions in dollar-denominated bonds. The top five foreign holders of U.S. Treasury bonds (China, Japan, Ireland, Brazil, and the combined members of the Organization of the Petroleum Exporting Countries) have $3.1 trillion in dollar-dominated bonds. And those are just the major holders. The U.S. dollar is the currency of choice for banking reserves in almost every nation in the world. And then there are the big foreign accounts of U.S. corporations, which hold more than $2 trillion overseas. Adding up only these big numbers... you can see a huge amount of dollar currency and debt ($6 trillion-$10 trillion) is held overseas. And that's not to mention foreign-held U.S. real property, like real estate, stocks, and corporate bonds – all of which are denominated in U.S. dollars. Unlike, say, Japan, where almost all of the currency and government debt is held locally, the U.S. dollar is the de facto global currency. In the event of a bona fide global bank run, it won't be possible for the U.S. government to simply shut down the banks and halt the panic. Almost all of the "banks" are overseas, and almost all of the currency is held overseas. That's the huge difference between today and the last time our government defaulted on its obligations (back in 1933). This is the Achilles heel of our currency that most people don't understand... and that many of our policymakers won't see coming. In the event of a real run on paper currencies, the U.S. government won't be able to stop the panic by simply closing domestic banks and stock exchanges. It doesn't have an easy way to stop the panic because so many of the dollars are held overseas. Meanwhile... it should be pretty obvious to any rational person that sooner or later, millions of people around the world who hold dollars are going to begin to doubt the safety of their savings. After all, when just about every major bank in the U.S. was at the point of insolvency, the Fed simply printed almost 4 trillion new dollars to bail out the system. Wouldn't that make you wonder about the future purchasing power of those dollars? And besides, who in his right mind would own any government bonds that charged investors to own them, guaranteeing losses? Who would pay for the "right" to own a bond that pays no interest and is denominated in a currency whose value can't be controlled and isn't backed by any fungible commodity? Someday, historians will look back on today's negative interest rates and be amazed that such conditions could have existed. This sovereign bond bubble is truly the greatest mania in the history of finance. But we might not even need negative interest rates to spark the panic... Just imagine what might happen if a major presidential candidate began telling global media outlets that America was heading for a massive economic crisis and that now was a terrible time to buy American companies or other U.S. assets. Imagine if this candidate began calling himself the "Lone Ranger." Imagine if he promised to eliminate all U.S. government debt, most of which is owned by foreign investors. Actually, you don't have to imagine. That's exactly what Donald Trump recently told the Washington Post. You can bet millions of Americans – who don't understand anything about our currency's dangerous dependence on foreign investors – will cheer these promises. But what will the world's largest banks, the biggest insurance companies, and the wealthiest families think about these promises? How will the world's black markets for drugs, guns, and money-laundering – all of which use $100 bills – react? It's a safe bet that all of these hard-nosed foreign holders of our currency would rather own gold than a U.S. dollar that's subject to negative interest rates, new trade restrictions, capital controls... or outright repudiation from the "Lone Ranger." Believe me... these folks won't wait for a panic to move out of the dollar. They're selling as fast as they can, which explains the huge move in gold we've seen so far this year. But this is only the beginning...

Before A Bank Run Why Own BitGold?

I don’t believe the government is going to let the banks collapse. I think they’re going to print enough money to make sure that it’s the value of the dollar that collapses instead of the banks. So what does that mean? That means that you don’t lose your deposits. When you go to the ATM machine, the money is going to come out. The problem is, you’re not going to be able to buy very much with it – and that is a bigger problem. I would rather lose some of my money, but have the money retain most of its value, than retain all of my money that’s lost most of its value. Imagine how bad the 2008 financial crisis would have been had there been no bailouts – had the government allowed more banks to fail. It would have been worse, but then the problems would have been solved and we would have enjoyed a real recovery. One that’s sustainable. Instead we’ve just gone into another bubble, and we’ve made all of the problems that caused the last financial crisis infinitely worse. And now the government has put itself in a position where it won’t be able to bail us out the next time because it’s the government itself that’s going to have the crisis. It’s the government that’s going to be insolvent because the crisis is going to be in the dollar and – by extension – into the Treasury bond market.

Last October, the most powerful cycles in the financial universe converged for the first time since they triggered the Great Depression. Now, these same cycles are predicting a massive, sweeping, global debt collapse — a “roller-coaster ride through hell” that will destroy stock markets, economies and entire nations over the next four years. Since then, economic growth in Europe has ground to a near-standstill. What little growth seen there comes largely from massive government spending on the refugee crisis. Meanwhile, the economy is growing at a tiny fraction of a percent and analysts are cutting their forecasts for future growth. Industrial output is plunging. Consumer spending is slowing and consumer I What’s Better than Gold? 8 Go for a $1 million windfall (or much more) in 2016-2020 confidence is cratering. The official jobless rate is over 10%, nearly double that of the United States. And of course, Great Britain — the European Union’s second largest economy — may decide to leave the Union on June 23 — an event that would be devastating to the EU economy. All this, despite a massive new round of money printing and bond-buying, the 5th spate of quantitative easing since 2008. Japan is also a basket case. It is the world’s most heavily indebted nation, with a national debt of more than 1 quadrillion yen. Its economy is shrinking by more than 1% per year and last month, the government lowered its projections yet again. Exports are plunging. Consumer confidence is virtually non-existent. Consumers are spending less, saving more with each passing month. As has always happened in times of crisis, millions of investors world-wide are turning to mankind’s greatest “safe harbor” investment: Gold. But make no mistake: This is not just “the beginning.” I am firmly convinced that it is the beginning of the beginning of the greatest bull market in gold any of us will ever see. In a way, it’s one of the world’s worst-kept secrets. Millions of investors world-wide are already buying gold like crazy. Gold bullion companies are doing a land-office business. You see their ads in almost every commercial break on every cable news channel.

Small Investments are Allowed in BitGold

After a Bank Run BitGold or BitCoin?

A Great Alternative to Bitcoin If you are holding a significant amount of digital currency in the form of bitcoin and want to sell, there are a number of things to keep in mind. Selling bitcoin can often be more complicated than buying it, but there are good reasons to do so, especially if you are considering moving those assets into gold bullion using our bitcoin exchange. The mere fact that selling this cryptocurrency is such a complicated process may be a good reason to sell bitcoin. Even the best known digital exchanges for cryptocurrencies like bitcoin have been plagued with difficulties in recent years. These issues might be potential precursors to bigger issues for the currency as a whole. The lack of tangible assets backing the currency, the lack of a central governing body ensuring consistency in mining operations and distribution of the currency, and the fact that the biggest names in the bitcoin exchange markets have suffered such difficulties could be signs that the bitcoin bubble is bursting, if it has not already done so. Have your gold, and spend it too. The PrepaidCard is available for request to customers with at least 1 gram of Gold in their accounts. BitGold is an online platform that makes gold accessible for payments and savings. It’s like any other bank account in that you can deposit your local currency but your money is denominated in gold. Your Gold is stored in insured Brink’s depositories located in Zurich, Hong Kong, London, Singapore, Toronto, Dubai, or New York City. Think of BitGold as PayPal but denominated in grams of Gold. Discover a simple way to own and spend gold.  Get started with as little as $1 and build over time, with or without a bank run with bitgold.