4 ms·
> Depositors can be made whole without receiving little green pieces of paper. However, in principal The bank promises redeemable cash, that's why people stay
by HervalFreire 4y ago
> Depositors can be made whole without receiving little green pieces of paper.
However, in principal The bank promises redeemable cash, that's why people stay in banks. But it's a lie. Again bank runs exist because of this lie.
Everybody knows the Fed screws it all up. A wire transfer among competing banks would make the competing bank demand that the other bank redeem the transfer in green paper money.
However, because the Fed is the bank of banks, it just becomes number a change on the balance sheet of the fed.
- dredmorbius 4y agoWhat is your evidence or basis for claiming that banks settle transactions in physical Federal Reserve Notes? Because whatever it is, it's a figment of your, or someone else's, imagination. Bank settlements typically occur via SWIFT: <https://en.wikipedia.org/wiki/SWIFT https://en.wikipedia.org/wiki/SWIFT> <https://www.investopedia.com/articles/personal-finance/050515/how-swift-system-works.asp https://www.investopedia.com/articles/personal-finance/05051...> The preferred form of a large-denomination withdrawal from a bank will either be a chashier's check or a wire transfer in virtually all cases.