What would happen if everyone in the world pulled their money out of the banks?

Question

What would happen to the World Bank, the richest people, and governments?

Would it restore the balance of power to "the people"?

Answer 1

Mo. It would just result in a lot of lumpy mattresses.

Answer 2

It's what called a 'Bank Run'. There's one in Mary Poppins! Banks never hold all their money in reserves (in fact, money itself was originally only a bank receipt for gold in reserve), and they frequently create money out of thin air just by loaning out more than they have in. Some say this is an evil financial conspiracy, others that their just stimulating the economy.

Anyway, as soon as people here there might be a bank run, they rush to get their money out before they lose it all, and warnings of a bank run can become a self-fulfilling prophecy (like with petrol crises, etc). If theres a run on all the majot banks in a country, the economy collapses. Worldwide, unimaginable. It'd be the worst disaster in human history (weird, because only numbers on paper (or computers) have switched around). Some forms of wealth would remain, of course, if you have a car, house and computer, you still have them after this economic apocalypse.

Answer 3

There would be a massive depression the likes of which has never been seen in modern history.
How will it effect the rich?
Not as much because most of their assets are not in banks.
Since the U.S. finances the World Bank, I imagine the U.S. would be better off without a World Bank.
On the other hand you could expect LOTS of violence on a world wide scale from those who can't feed their families.
The World Bank is a device used to "bribe" or "buy-off" some societies for the purpose of preventing wars designed to gain monetary relief.

Answer 4

A) The banks wouldn't have enough actual cash to support such an activity

B) Lending would cease, basically shutting down the world economy.

C) All outstanding loans would be called in, doing further damage to the economy.

D) The average person would suffer the most, as they'd no longer be able to borrow for their daily activities, or more important purchases such as homes, cars, or education.

Answer 5

i'd like to assume that it would be all beer and Skittles, in spite of the incontrovertible fact that historic previous teaches another lesson. We tried the isolationist course in the years important as much as WW2. i'm happy that we are greater advantageous off being proactive and combating our enemies distant places while they 1st become aggressive than looking forward to a extensive force to expose up on our borders and then could wrestle a conflict among our very own properties. Appeasement very just about fee the international a loose Europe and Asia, and the German / jap led armies would have invaded American soil if we had now no longer completed what we did. ( Nuclear weapons would have staved concerns off until finally THEY outfitted them.) Now in the 21st century there's a sparkling fascist action it relatively is only as damaging. Radical Islam will could be dealt with. i prefer it was once now no longer via means of force of arms, in spite of the incontrovertible fact that i'm happy it is going to likely be. we are no longer waiting to assuage them, they prefer to harm us and our way of existence. there should not be any "stay and permit stay" to it. we've the alternative of wherein now, yet as quickly as we withdraw, then that option would be made via means of others who would not have our useful interest at center. As far because of the fact the UN, what a shaggy dogs tale. those adult adult males would'nt referee a snowball wrestle, plenty much less a conflict. i'm now no longer delighted that Iran was once the useful project to start, in spite of the incontrovertible fact that there we are. we are gonna could wrestle. that's the character of the international we live in, and our enemies.

Answer 6

Oh, i think that's unimaginable, all bank will be bankrupted,

maybe money was useless at that situation. you can pick up

money you want if you stoop down! It is only a joke i think

Answer 7

A world-wide depression and many economies
would be ruined!!

Answer 8

1 - The banks wouldn't have any money in them

2a - Dunno.
2b - Very little, if anything.
2c - They'd make us put it all back in.