Wednesday, December 1, 2010

Disappearing Bank Accounts

If you don't have money outside the computerized banking system, you should do so now. You just never know when the system is going to go down. At such a time, the person, who does have cash, will be calling the tune. Remember, "He who has the gold makes the rules." Below, Simon Black reports on the major malfunction at one of Australia's largest banks-RW

By Simon Black

It all started a week ago. National Australia Bank, one of the largest in the country, had a technical malfunction in its core system. Within hours, a simple problem had practically brought a large part of Australia's banking system to its knees. It was a crazy turn of events.

You see, banks don't use regular operating systems or database applications; they run specialty software that is intended to synchronize complex operations like cash deposits, overnight interbank drafts, central bank facilities, electronic transfers, credit card monitoring, and a host of sensitive data.

When something goes wrong, it can throw the entire system into disarray, and customers end up getting hurt.

In NAB's case, a corrupt file overloaded the bank's payment system, and this single failure eventually cascaded to other parts of their operations.

Much to their surprise and fury, many customers found that their account balances had been blotted out, automatic payments (mortgages, car payments, insurance premiums) had not been drafted, and payment cards no longer functioned.

Because of NAB's relative size in the country, the bank's infrastructure handles transactions for many of Australia's smaller banks, so those banks' customers were affected too.

This is similar, for example, to how Citi in New York processes international transactions on behalf of many small community banks in
the United States. If something happens to Citi's technical architecture, all of the other banks are affected.

I met several folks over the weekend who were hit by NAB's system failure-- the stories were generally the same... people with a cart full of groceries at the checkout line unable to pay for their food. Needless to say, the ATMs weren't working either, and no one would accept checks.

NAB worked feverishly all weekend trying to fix the problem, and locals prepared for a lean couple of days while they waited for access to their cash. Even today (a week later), several thousand NAB accounts are still frozen, and people are unable to withdraw their own money.

It's unclear yet if the ultimate cause was a pure technical glitch or a malicious attack. Bank IT security systems are far from impenetrable, and the recent StuxNet virus (which can bring down complex infrastructure control systems) shows how sophisticated some electronic attacks are becoming.

Now, I'm not one to live in a state of fear and paranoia for what may or may not happen in the future... but it would be outright foolish to dismiss the possibility that many of the basic systems we take for granted may experience failure.

Read more here.

24 comments:

  1. Sounds like they "forgot" to test this all of a sudden corrupt input file, before they applied it to the database. Mayor blunder if not criminaly negligent.

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  2. All yore moola are belong to US!

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  3. Actually, I took all my cash from my bank 2yrs ago but for different reasons. For those that understand "fractional reserve banking", I pulled my money to deprive the beast of additional funds to lend at usurous rates.

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  4. Yep. I took my money out of the system also and bought physical PM's. Any cash I have sits in the safe at home. Starve the beast!

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  5. Buy gold or silver - STAT.

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  6. Excellent insights here. Again, it seems like something far fetched, but it's going to be one of those things, that when it happens, it happens in an instant.

    Good piece Simon.

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  7. I, too, stopped supporting a corrupt system. Took all but $100 out, just to have the ability to write checks if needed, and put most of the fake dollars into Gold and Silver. The balance of paper money is kept safe and only used for essentials. I truly can't believe so many people trust a system that is corrupt to it's core. Unbelievable.

    Remember: drink pure water, eat organic non-GMO foods, get plenty of rest, exercise daily, and hang out with like minded friends. We are entering a very dangerous time in the history of our planet and you will need great clarity, purpose and fortitude to make it to the other side.

    Also: don't allow yourself to be "imprinted" by being exposed to what is now being shown on TV. It is poison and you will die quickly.

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  8. You know we live in an interesting world. We've all been cajoled, manipulated and brainwashed to buy all sorts of insurance. What about insurance for your 'bank holdings.' And I'm not talking about Ponzi-scheme so called 'deposit insurance!' I'm talking about "REAL INSURANCE" for your paper money - which is commodity money - ie: precious metal.
    If everyone world wide would remove just 3-5% of any bank account holdings & buy some "real insurance" in the form of some silver or gold bullion, this would be a good thing. If you can afford more, do that. Kudos to the commentator who pulled some money out of the system to 'deprive' the beast of additional funds to pyramid! Go on....go buy some "REAL INSURANCE!"

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  9. My question is can you buy a loaf of bread with gold? No! What can you buy with it if the whole system is gone? Nothing! Now cash and ammo will buy that bread and if they won't take cash then shoot them and take that loaf.

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  10. Anytime you have a gold coin (even a tenth ounce) and want a loaf of bread, come see me I will gladly do the trade.

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  11. So will no one every explain how buying gold or silver through a broker - where you cannot physically possess it, is better than trusting a bank??

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  12. @wild thang, in Zimbabwe, they did actually buy bread with grains of gold - because the Zimbabwe dollar, which used to be stronger than the US dollar, was worth an infinitesimal amount; I happen to have a $100 trillion Zimbabwe note.

    That said, I advise people to have a mix of gold and silver coins, and also paper us dollars. This insures against a lot of problems - bank outages, systemic failure of the electronic system, loss of value of the faith-based paper dollars.

    I've been around long enough to remember gasoline for 30 cents per gallon. It isn't the gas which has gotten more expensive; it is the dollar which has lost value. Those pre-1964 silver coins are worth over ten times their nominal face value nowadays. A pair of silver dimes will get you a good loaf of bread.

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  13. wild thang said...

    My question is can you buy a loaf of bread with gold? No! What can you buy with it if the whole system is gone? Nothing! Now cash and ammo will buy that bread and if they won't take cash then shoot them and take that loaf.

    - interesting take on it. I guess you just DESERVE that loaf of bread so much, huh?

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  14. Hi Robert
    I might not give you a gold coin for a loaf of bread but I know a lot of people will accept a pre-1964 dime or quarter for it. That is real money.
    A silver quarter from 1964 today buys the same amount (or more) goods and services as it did in 1964.

    With a '64 Washington quarter I can purchase FRN$5 worth of bread, milk, gas, hot dogs or anything else.

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  15. So will no one every explain how buying gold or silver through a broker - where you cannot physically possess it, is better than trusting a bank??

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  16. Gold-silver is the right route to go. The global banking system and the U.S. Roman like empire are cheaters, liars, and murderers too. It will be a matter of time when it collapses permanently. I believe wikileaks have more documents and leaks detailing the misdeeds of the banking system. I can't wait to see what happens.

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  17. "wild thang" you are looking at the problem on the level of the problem. Not on the level of solution. Which makes me believe you probably don't have any money to purchase gold, so you come out with the typical "can you eat gold".

    There are many ways to prepare for the Feudal state that we are presently on course towards. Buying Gold and Silver is for those who "already" have the ammo, food, and other "tangible, sustainable assets" in their possession. Once the dollar crashes and burns, a "new" currency will be established. Gold and Silver, but especially Gold will be the way to exchange for that new paper, if paper is what it is.

    Anyone who would use "ammo" to barter for someone else's bread is walking into the same kind of person that you are; "shoot them and take that loaf". You, wildthang, are an absolute sitting duck (just in the first week) and will be the first to go when the revolution begins.

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  18. Wild thang like the previous poster said you forget that when it gets to that point the wild west of anarchy will prevail and that justice will swiftly be served you at the end of the other guy's barrel. There will be no more of lil wild thangs. Bet you never thought that somebody else also had a gun? But better you think that any store would be selling bread to you anyway, those stores that remain open past the 1st day of rampaging will be hard targets simple minded little fellow. And you sir will be a dead man walking living on borrowed time. You will be damned if you do and damned if you don't. You're immaturity and simple mindedness will quickly evolve you out of the breeding stock. I think you watch to much TV and play to many video games kiddie now just go on with your entertainment and eat your poison and take your medication.

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  19. I hate to break it to everybody, but taking your money out will not starve the beast.

    There is a proposed banking regulation that will eliminate the reserve requirement. This means banks will be able to lend without regard to how much they have in deposits.

    They are always ten steps ahead....

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  20. Lol @ ksmith. They are not ten steps ahead. They are clearly barely hanging on.
    @ RacMac. Buying gold and silver from a broker is fine as long as wall street keeps the house of cards up. You will be able to profit that way. If TSHTF... Yes... You lose everything. I recommend a reputable coin dealer like Camino Coin or if you happen to live closely to a private minter like Northwest Territorial mint... Do your buying there.

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  21. K Smith has a point--no matter what you do, they will always be 10 steps ahead. Also, you can take out your cash, but if they devalue the dollar, it won't matter.

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  22. When you buy gold or silver make SURE you take custody of it in your hands. Never leave it in storage or on deposit. When TSHTF you will find the banks or storage places closed and you will not have access to your PM's unless you already have them in your control.

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  23. Keep in mind that you need to buy gold and silver while you can. Also buy your long term food and supplies while you can. Also pre-pay your bills for 1 to 3 months so you're the last to feel the change. Also arm yourself the best you can. Buy your seeds now while you can. Buy your vitamins and first aid kits, while you can. You may wake up one morning in the very near future realize your regrets and no longer have the ability to prepare. You will find yourself sitting on the sidewalk like the people in Katrina wonder "WHAT DO I DO NOW, I AM SO F'ed". So remember while you can is now, don't think just do it, for if you don't your chances to make is slim to none.

    I forgive all of you who damn me or my msg. Perhaps we live a future where we can be friends and have a beer.

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  24. I agree with all you except for wild thang. But, beyond all that, does this not have the earmarks of the type of false flag needed to convince the masses of the net regulations that they need to control & censor this last frontier of free speech?

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