It may not be the bank itself, but a nationwide currency shortage.
This is a risk I’ve been aware of for some time, that the US Bureau of Engraving and Printing, which has only two printing offices to produce our currency, has been pushed to the limit on capacity. As things stand now, they are only able to sustain 5% of the US daily retail exchange in paper currency, and that number is falling. Everything else is in virtual money.
To make matters worse, most of the bills they print are $1, with proportionately fewer higher denomination bills. Today, most of our $100 bills are shipped overseas to meet demand there.
The end result is that they cannot print *more* money, or higher denominated money, for the simple reason that nobody could make change for it. Even $500 bills are too large.
This means that either if there is a problem with virtual money: credit and debit cards and checks having a system failure, or retailers no longer accepting virtual money; or the public have a cash panic, and makes cash runs on banks, the economy is instantly in crisis.
In real terms, every bank branch in the US could be out of currency in a few hours, which could force a bank holiday, so that there would be a “currency split”.
This means that virtual money could be worthless or locked up and unavailable, while at the same time paper currency skyrockets in value. That is, instantly a nickel would be worth a dollar in purchasing value; but because of shortage would continue to appreciate. A penny might be able to buy what a dollar buys today.
I’m calling my broker, looks like aluminum foil futures will be on the upswing.