Bank Run Fears: Customers Being Forced to Provide Evidence For Why They Need CashMac Slavo What happened in Cyprus was big news all over the world, but within a few news cycles, once European and American officials assured the people it was a limited-scope event, the general population swept potential fears under the rug. No one really reported on the fact that the European Union quickly instituted new regulatory policies that would force bail-ins across the entire continent should such a crisis take hold again. Likewise, Federal Reserve Chairman Ben Bernanke assured Americans that the crisis in Cyprus and Europe posed no risk to the US financial system, citing FDIC insurance for U.S. bank depositors as the safety net that would prevent a similar situation in the United States. The United States, Europe, China and all of the worlds developed economies are, if officials are to be believed, completely immune to what happened in Cyprus. The current belief by the best and brightest is that these countries are simply too big to ever be faced with a total collapse of their banking systems. But what if they were wrong? What if private debt reached such obscene levels that the loans taken on by lenders could never be repaid? What if a country like China, which holds trillions of dollars in cash reserves and has modern central banking regulations, did face such a problem? It turns out, thats exactly what is happening right now, as Chinese banks struggle to cope with nearly $23 trillion worth of potentially bad loans. Yes, thats Trillion, with a T. The Chinese, it appears, have mimicked the exact set of circumstances that led to the 2008 crisis in America. Remember all of those empty cities and malls in China they housed no people or shopping venues, yet cost billions of dollars to develop?It looks like all those bridges to nowhere are catching up with the Chinese. And the panic has begun, as evidenced by capital controls and restrictive withdrawal policies now being implemented by one of the largest banks in the world all across China. Want to know how a bank run starts? Look no further: Via: Zero Hedge As in China, the debt party in the United States has returned in force. We are now very close to the same levels of personal and commercial debt as we saw prior to the crash of 08, but rather than being concerned the experts say dont fight it, embrace it. But, as is the case in China, the debt party will soon be coming to an end in the United States as tens of millions of Americans see their wealth and jobs wiped out. Like the people of China who took on loans they cant repay, Americans are under the gun. And in the near future, the same credit problems that gripped the world before will do so again. And this time well be footing the bill directly from our bank accounts (rather than the Federal Reserves printing presses). We may not yet have official regulatory or bank policies for restricting cash withdrawals here in the USA, but just try to head to your local bank and withdraw $5,000 or $10,000 and see what happens. You will invariably be met with stares from bank employees and questions about your intentions and why you need that much cash. Weve already seen how fast they can lock down the entire banking system. Itll only take a push of a button and everything you think you have in your personal bank account could be seized. But, then again, as Ben Bernanke has said previously, there is no risk to the financial system. So, no need to worry, because the governments got your back (and they would NEVER think of using your deposited funds to offset any bank losses). But even though it is impossible to conceive that such a thing might happen, we recommend preparing for it just in case. We know FEMA will be there to provide emergency cash, food and recovery tents. But in the off chance the credit system locks up again, ATMs are limited to minimal withdrawals, and the banks do seize your money, you might want to have some food, supplies, gold, and reserve cash on hand. We realize such a thing could never happen not in the worlds most developed and richest economy. Ben Bernanke, Janet Yellen, government officials and TV pundits say it cant. So, these extra supplies would be just for fun and entertainment something to show friends and family when they come over so you can have a laugh about all these crazy Doomsday scenarios. You can read more from Mac Slavo at his site SHTFplan.com, where this first appeared. 