One of the articles in the BullionBuzz this week focuses on the global banking system. Here is an excerpt:

Global Collapse of the Fiat Money System: Too Big to Fail Global Banks Will Collapse Between Now and First Quarter 2011

Matthias Chang

Fed Chairman Ben Bernanke recently noted that the outlook for the US is uncertain and that “the economy remains vulnerable to unexpected developments.”  Chang believes he is referring, in ‘Fed speak’, to the collapse of the global banking system. There has been much misinformation about the objectives and the consequences of quantitative easing; it was supposed to enable banks to lend money to cash-starved companies and jump start the economy, while low interest rates would encourage borrowing, consumption and investment – that hasn’t happened. Some worried that unrestrained money-printing would lead to hyperinflation – that hasn’t happened, either. Chang explains exactly what did happen in step-by-step format. He believes the Fed and the other central banks are praying that asset prices will recover and achieve their pre-crisis values, but it will not happen. “The patient is in intensive care and is for all intent and purposes brain dead, although the heart is still pumping albeit faintly,” writes Chang. “The Too Big To Fail Banks cannot be rescued and must be allowed to be liquidated. It will be painful, but it is necessary before there is recovery. This is a given.” In 2011 at the earliest, he expects massive bank runs. The Fed and other central banks will try to preempt this by: limiting cash withdrawals from banks; limiting cash transactions; restricting precious metals transactions; imposing capital controls; passing legislation that requires most daily commercial transactions to be conducted through debit and/or credit cards; passing legislation that makes any contraventions of the above criminal offences. The solution?  Maintain a bank balance sufficient to enable compliance, and start diversifying away from dollar assets. Prepare for round two of the financial tsunami.

Is Matthias Chang correct? Read more here: BullionBuzz