Well, it turns out that this prediction was correct. The FDIC unlimited insurance did end on 12/31/12 and the TBGT banks did experience a significant withdrawal of a considerable amount of their deposits. The Federal Reserve reported that $114 Billion was withdrawn from the 25 largest U.S. banks during the 1st week of January alone.
This withdrawal amounts to the largest fund outflow since the 9/11 attacks. In fact, this outflow even surpassed the pace of the monetary withdrawals during the 2008 financial panic. So, obviously something is going on here with regards to confidence in our banks and by implication the value of the dollar and the soundness of the economy.
Are the rats abandoning the ship so to speak? How can this be when we are told that all is well and we are in recovery mode according to media endorsed experts like Nobel prize winning, Keynesian economic, CFR member Paul Krugman of the CFR populated New York Times? This is a summary of the Krugman solution with commentary by Peter Schiff a free market supporter who has appeared in front of Congress and on many financial news networks like CNN and numerous others:
So, what does this massive withdrawal point to? Well, we’ll take a look at that in the next segment.
Meanwhile, below are some of Peter Schiff’s books to peruse should his common sense economics appeal to you and you want to learn more: