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Reuters reports that the European Union is preparing to freeze withdrawals and ATMs when banks are "failing or likely to fail", in an effort to "save creditors' money". Of course, this ignores the fact that the people trying to withdraw their own money are, by definition, such creditors to the bank.
The European and American banks have both been stated to live on borrowed time. The Euro is fundamentally on shaky ground, after trying to combine economies with as fundamentally different characteristics but without the fiscal policy instrument to enforce conformity. Meanwhile, the US dollar has been printing as much money as it can since August 15, 1971, when the United States defaulted on its loans and obligations. (It wasn't worded like that, of course, but the net effect was still that the US cancelled payment on its international loans.) Both of these spheres of economic influence can be predicted to undergo serious disruption as bubbles burst in rapid succession, when they burst: the precise time is impossible to predict, just as it is impossible to predict the precise point in time of an avalanche or a volcano eruption, but at the same time completely possible to say that such an outcome will happen at some point.
Related:
http://xbtnews.net/2017/07/eu-proposes-account-freezes-to-prevent-bank-runs-bitcoin-to-the-rescue/
https://news.bitcoin.com/european-union-proposes-account-freezes-to-protect-failing-banks/
http://xbtnews.net/2017/07/eu-proposes-account-freezes-to-prevent-bank-runs-bitcoin-to-the-rescue/
(Score: 3, Interesting) by ledow on Monday August 07 2017, @08:06AM
Like all businesses...
You may be a creditor but unless you represent a substantial portion of their income, your money is forfeit to pay off the bigger debts. It's as simple as that.
Now, UK banks have government-backed guarantees up to a certain amount, but in terms of being a creditor in administration terms? Yeah, forget it.
Same if you buy a product (say, a Christmas hamper as one famous example from the UK) from a company that goes bust? Yeah, your money, and the sale of what should be your goods, goes to pay those larger debts (i.e. the suppliers) rather than you. You might see a token payment but that's about it.
Which is one of the reasons that you really should go to jail if your business is put into administration owing those kinds of monies.