All over the Internet this week have been rumors of Italy shutting down its banks last week. Two people were quoted in every single "news" article: Peter Giordano and Peter Jordan. Want to know what I remember from my college Italian classes? Giordano and Jordan are the same name in Italian/English. This, I'm afraid is a bad hoax. Sure I can understand it not being the headline for ABC. Gosh, it hit Drudge. Sorry, it's still not true. It made many many blogs but no news organizations, not even the Italian news. Now that's not saying their banking system isn't in a world of hurt. It is a mess. Probably even worse than the mess our banking system is in.
How about some truths?
Lot's of people are predicting bank runs in Italy and Spain. I believe this is in the process of happening. People are slowly, or quickly withdrawing money.
In Greece the citizens are so worried about switching over from the Euro to the Drachma that they are pulling out millions of dollars worth of Euros each day and stocking up on long storing foods like pasta and canned goods. This is a real bank run!
Spain is selling bonds and their banks have recently been the biggest buyers of the bonds. Let's see, the banks are buying the bonds with "money" they are borrowing from themselves. That doesn't sound like their bond sales are really working the way they are supposed to be. It's a good way to crash Spain's banking economy and it too is already on a downward spiral.
Survivalblog made a big issue of this banking "holiday". Last year there was another rumor of banking "holiday". Sure, the bank was closed on that day because it was a real holiday, not a shutting down the bank because we are having a bad day and need to regroup. If this really happens in any European country our stock market would be going crazy, so would the gold and silver prices. They are going up and down but no huge jumps or crashes.
Guess what folks? I predict on the first Wednesday of July in 2012 the banks will shut down here in the US. Better pull your money out now even though they will only be shut down for a day. But, some of the ATMs may run out of money, especially if my post panics everyone! (Never mind that the 1st Wednesday is 4th of July, a federal holiday - when banks close.)
I 100% agree that instead of socking away tons of cash, either in the bank or under your pillow, you should invest in food, household supplies, a good reliable vehicle, ammunition, silver or gold, your property and backup property. This isn't to say that you should not have good old American dollars. You still have to pay your bills and at this time greenbacks are what's required.
Depending not only on your income but also your expenses will depend on how much money you feel you need to keep on hand. Me, I have money in my 401k and also work has a retirement plan for me. I have some money in an IRA but I'm not putting any more money into that. I've even cut back on the 401k. Instead I'm saving the money in cash at home, in my Liberty safe not under my pillow. When I save $1500, which takes a long while, I will buy silver dimes and quarters. Why $1500? In California they charge tax if you purchase less than that, so instead of losing almost 9% right off the top I save it up. If you aren't any good at saving up your money then buy four dimes each week. That will cost you about $10. It's a start!
I don't have tons of silver coins saved though because when I have extra money I put it into the property or supplies. To me, spending $20 on a fruit tree that will provide $20 worth of fruit almost every year after its first few years in the ground is the best use of my money. Where else can you get a 100% return on your money year after year after year after waiting only a few years for the first payout?