An incomplete step in the right direction

Over on the Huffington Post, Arianna Huffington and Rob Johnson propose a practical step to reduce the harm caused by the banking bailouts while sending a powerful signal to the Washington establishment.

Unfortunately, the Huffington's of the world still don't quite get it. They complain that the bailed out banks are lending less to businesses. But lending too much is one of the primary causes of the banking crisis: banks were pressured and persuaded into making loans that they normally wouldn't have. These loans were riskier than the banks normally would have underwritten, and when they started failing it cascaded into a crisis.

A much more powerful message can be sent to Washington and the banks by withdrawing from their system altogether. Withdraw as much cash from your bank, any bank (since they're all part of the Federal Reserve system and thus complicit in its crimes), as you can. Leave only as much as is required for "in the system" needs.

Of course, if a significant amount of cash is withdrawn from the banking system, it will either cause a serious contraction of credit (loans) or cause the Federal Reserve to openly display just how low the reserve requirement of banks has become - perhaps even eliminating it entirely, thus switching the banking system to an entirely virtual currency.

We here at Shire Silver would hope that people take it even one step further: as much as possible, get out of Federal Reserve Notes (i.e. U.S. Dollars) altogether. By using alternative currencies like silver and gold bullion, people can preserve their wealth while letting those who would rule us that we are not going to play their game.