Are The Banks Going Bankrupt?
An odd thing has begun happening on the NSW central coast and in other communities around Australia.
Signs are going up outside bank branches notifying residents of ‘temporary closures’ of banks and suggesting that some services may be available at the local post office branch.
These aren’t minor banks either. One example at The Entrance NSW was the Commonwealth Bank. The outlet has closed and has taken one of the area’s two ATMs with it. The Entrance is a pretty big place. The next place over is Bateau Bay, 15 minutes down the road. And there are no ATMs there either.
This isn’t a one-off or a rarity. B Invested founder Nathan Birch has personally witnessed more than 30 of these signs on his travels in the past year.
Norwest shopping centre is another. Westpac and St George Bank have both removed branches from that centre in recent times. The signs all say ‘temporary closure’ or ‘renovations’, but the banks never come back.
What does this mean?
It is all part of a wider trend. Bricks and mortar banks closing down and ATMs disappearing is simply bringing us closer to a cashless society. We will have to use digital currency, which is trapped inside a network that can be manipulated.
Nathan even came across one brand new bank branch that had opened in the place of a former bank site in his local area, only to discover that the new bank didn’t keep any money on the premises.
The staff were lovely, but the whole point of the branch was to help the elderly learn how to do their banking digitally. It was more like walking into an Optus store or an Apple store.
That bank had set itself up in a new space, much smaller than a regular branch, with just two tele-staff and two meeting rooms. New banks like this have no money and they are sending us cashless, so it’s time to make sure you’re looking after yourself.
What should I do?
As we move further towards a cashless society, don’t be fooled. Make sure you have assets and have liquidity outside of that system. If your money is in that system, it’s no longer truly yours. You may think you have money in the bank, but really you are a creditor of the bank. If the bank goes bankrupt, you will be on the creditor’s list of the insolvency and administration process.
Banks are dropping like flies all over Australia because they’re going completely cashless, they’re teaching us how to live in a digital world and accept a digital illusion of our wealth.
Nathan chooses not to have money, but always to be broke… Who wants to have real money? If you had $100 it would buy you less than what it did last year; less than even six months ago. Everything is getting inflated away.
So Nathan remains broke, but with plenty of cashflow coming through. He puts that cashflow into assets that are going to create more and more cashflow.