Here's the problem: Printed bills don't even cover 10% of electronic assets.
Let that sink in.
If everybody wants their money at once, 10% at best can have it. Then it gets worse, because in the ensuing panic to withdraw, banks cannot meet fiduciary requirements of maintaining cash against outstanding loans, meaning THE BANK defaults.
In America its a little different: they dropped requirements to 0%. YES, the banks make loans now based on 0% of their own risk. Thank the fed, whose only job was to 'control inflation'. (They've only ever made it worse).
Here's the problem: Printed bills don't even cover 10% of electronic assets.
Let that sink in.
If everybody wants their money at once, 10% at best can have it. Then it gets worse, because in the ensuing panic to withdraw, banks cannot meet fiduciary requirements of maintaining cash against outstanding loans, meaning THE BANK defaults.
In America its a little different: they dropped requirements to 0%. YES, the banks make loans now based on 0% of their own risk. Thank the fed, whose only job was to 'control inflation'. (They've only ever made it worse).