Should you prepare for a run on the banks?

As the world continues to become more and more unstable, people continue to live life as if everything is going along just fine. Banks, however, are aware of just how unstable the globe is financially. The IMF has warned policy makers to prepare for massive ‘runs’ on the banks. Can that really happen?

The IMF has come out and said, "The extended period of monetary accommodation and the accompanying search for yield are leading to credit mispricing and asset price pressures, increasing the chance that financial stability risks could derail the recovery."

So what does that mean? Glenn explained on radio that it means prepare for a run on the banks.

Below is a transcript of this segment

Glenn: Here's what's happening. We have a shadow banking system. And we've told you about this, that the way we do banking credit, the way we are not shoring up the assets that our banks claim they have, it's all bogus. It's all bogus. You know, we thought we were in trouble and we thought we would clear this up. We didn't clear this up after 2008. We made it much, much worse. We're going to be doing a show on this later this week. But how we have made this much worse than it was in 2008. And so now there's a growing share of liquid credit in mutual fund portfolios. What does that mean? That means your mutual fund says it has all of this stuff, but it's a illiquid.

In other words, if they had to liquidate it-- you don't have money -- for instance, how much are you worth? Well, what you're supposed to do is say, how much money do you owe and then separate that from how much money do you actually have and then you'll see if you're upside down or not. If you actually have anything. And then how much of that is liquid?

So in other words, let's say you have your house paid for. You're really fortunate. You have your house paid for and your car paid for. Okay. Those are assets but they're not liquid assets. Those aren't things that you can actually go and say, hey, I need some money. Okay. Well, here you go. Here's the money. No, I have to sell my house or sell my car and so it's only worth what I can get for it at that time. And there's no fast way to get out of that. Let's say the credit -- the banking system starts to fail. And everybody says, who has a mutual fund, your 401(k), you start to fail and you say, okay, well, I got to get my money.

Here's the problem. The mutual funds are illiquid, meaning they can't get that money. They don't have access to that money. There's not enough money. It's growing illiquid. And so you can't go in and get your money at the bank. You can't turn it in. And so what's going to happen is they'll have to close these mutual funds and say, wait, wait, wait, do your Jimmy Stewart. But you don't understand how this works.

So that's what -- that's what they're saying. So now they're saying, you better prepare for runs on the bank, because when it starts to happen, and people start to say, well, I need my money, the banks are going to say, well, it's not here. It's not here. And that will make them run to their other bank, not their mutual fund, not their 401(k), but they'll start pulling money out from anything that they have, which will drive the price of housing town, drive the price of assets down, because everyone will be selling.

PAT: And in a savings and loan like with the Jimmy Stewart movie, it's -- it's suppose to be that way. Because you sign an agreement with them at the beginning that, okay, if you ever want to get your money back, you sign this agreement and then there's a certain period of time the bank has to return your money --

GLENN: That's why he said in the movie --

PAT: That's why he says, you sign right here and you'll is have your money in 20 days.

GLENN: That's what you -- that's --

(overlapping speakers).

PAT: And they didn't care because it was a panic and they want their money now. With a bank, though, you're suppose to be able to go get your money because it's suppose to be cash.

GLENN: Here's the problem. Here's how bad the banking system is. In our business if I were only 30% liquid in my business, if -- if I had crushing debt that everything was 70 or 80% a liability, and I didn't have -- I didn't have any real cash or any real assets, if it was all leveraged assets, I wouldn't be able to do business. I just wouldn't be able to do business. And I don't know -- I don't remember the ratio, but I think it's like 70/30 for average businesses. 70/30 you have to have the hard assets. And that's a healthy business. The banks are like at 10 and 20%. And that's raising it up from where it was. So the banks are not even doing business like regular businesses would do business. Any business would go out of business if we did business like the banks do business.

So now what they're doing is they're doing a run. Now, this is the first real international war game that they have ever done that we know of like this. And they're doing it this week. And what they're doing is if the banks fail in Spain, what happens to the banks in Germany? And if the banks fail in Germany, how do we shut things down so it doesn't spread to England? And if it goes to England, how do we shut it down so it doesn't come to America?

And they're going to do these things and they're trying to try to make everybody feel better but it won't work because it's all a shell game.

Now the International Monetary Fund is now warning a run on the bank -- this is the quote. Expect runs -- prepare for runs. Now, that's what you're reading if you're reading a website like Zero Hedge, which if you -- it will make your head hurt, because anybody who reads Zero Hedge, the way I've just tried, and everything else, I'm making their head explode. But I don't claim to have an expert on any of this stuff. I barely can keep my head above water on this stuff. And I read Zero Hedge and I only get about 30% and only understand about 30% of it. But that 30% is enough to give you the indication of the truth of what's coming.

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Protests following the fatal police shooting of Walter Wallace Jr quickly devolved into violence, rioting, and looting in Philadelphia, and BlazeTV's Elijah Schaffer was there to document what the mainstream media won't. But while filming the carnage inside a Five Below on Tuesday, Elijah was surrounded and attacked by looters.

Elijah joined Glenn Beck on the radio program Wednesday to detail his experience and to explain why mainstream media efforts to downplay the violence just show that independent media has never been more important.

"Unfortunately, [the attack] escalated from one person to about a dozen very quickly," Elijah explained. "I'm actually really happy to be alive. Because in that same shopping center, right there, there was a 15-year-old girl who was shot, according to reports. And I heard multiple gunshots throughout the night. Another individual is reported to have heard a gunshot as well, so we try to confirm. I watched people get pummeled beyond belief."

Glenn asked Elijah to respond to mainstream media claims that conservatives are exaggerating the looting and violence in Philadelphia.

"It's so funny to hear people that aren't there try to counter what we're reporting," Elijah replied.

Watch the video below to catch more of the conversation:

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In the final days before the 2020 election, President Donald Trump is gaining among black voters, particularly men, because his record of accomplishments "speaks for itself" and the "façade" that President Trump is a racist "just doesn't ring true," argued sports columnist Jason Whitlock on "The Glenn Beck Radio Program" Tuesday.

Jason, who recently interviewed the president at the White House for OutKick.com, shared his thoughts on why he believes many black Americans — notably celebrities such as Kanye West, Ice Cube, and 50 Cent — are breaking from the "façade" that President Trump is a "flaming racist."

"I really believe the facts are starting to speak for themselves, and that Donald Trump's record of accomplishments, particularly as it relates to African Americans, speaks for itself," Jason told Glenn. "He actually has a record to stand on, unlike even Barack Obama. When [Obama] was president, I don't think he had much of a record to stand on, in terms of, 'Hey, what did he actually deliver for African Americans?' President Trump has things he can stand on and, you know, beyond that I think black people understand when he starts talking about black unemployment rate. And America's unemployment rate. And then, when you add in for black men, the façade we've been putting on [President Trump] … you know, this whole thing that he's some flaming racist, it just doesn't ring true."

Jason suggested that Trump's fearlessness, unabashed masculinity, and record of keeping his promises resonates with men in the black community. He also weighed in on how media and social media's bias plays a huge role in convincing people to hate President Trump while ignoring Antifa and others on the Left.

"I keep explaining to people, Twitter, Instagram, Facebook, they're some of the most secular places on earth. And we've reduced everyone to a tweet, that we disagree with," he added.

Watch the video below to catch more of the conversation:

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Megyn Kelly is not happy about the "disgusting" media coverage of President Donald Trump, specifically pointing to Lesley Stahl's "60 Minutes" interview on CBS Sunday.

On the radio program, Megyn told Glenn Beck the media has become so blinded by the "Trump Derangement Syndrome" that they've lost their own credibility — and now they can't get it back.

"It's disgusting. It's stomach-turning," Megyn said of the media's coverage of the president. "But it's just a continuation of what we've seen over the past couple of years. Their 'Trump Derangement Syndrome' has blinded them to what they're doing to their own credibility. They can't get it back. It's too late. They've already sacrificed it. And now no one is listening to them other than the hard partisans for whom they craft their news."

Megyn also discussed how she would have covered the recent stories about Hunter and Joe Biden's alleged corruption. Watch the video below to catch more of the conversation:


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