So this banking, "fanking," everything will collapse automatically. There is no money, who is going to keep money in the bank?

"Banking, Fanking" - Banks will Collapse

Banking experts say there is one thing that will save your money if your bank goes under. That's FDIC insurance. "It's the gold standard," says banking consultant Bert Ely. "The FDIC has ample resources. It's never been an issue," he says.

As loan delinquencies rise, and bank failures increase, the FDIC is shoring up its reserves.

If your bank bites the dust, there's nothing to fear according to the FDIC. A healthier banking institution normally buys the failed bank according to Barr. "There is little or no interruption to the consumer," he says. "If you go to bed one night as a customer of a bank, and you wake up as a customer of a new bank, there is nothing you have to do." Your checks will still clear, you can still use your ATM card.

Back to self-sufficient communities, in Krishna consciousness

PRABHUPADA: And what is this nonsense, keeping some paper and thinking he has got money? How cheating it is going on, from government's side. And therefore artificial inflation. You can print, so the price is increased. Because you haven't got to pay him real money, you print and pay him, and he will ask, "Give me this money. Then I'll supply." "All right, take." You print and pay.

RAMESVAR: It's definitely a means that the government has for controlling. Because they can withdraw money, pull it back out of circulation by increasing the interest the banks give, or they can get more money in...

PRABHUPADA: Anything done artificially.

RAMESVAR: They control the amount of interest on loans. It's all standard ized from what they call the Federal Reserve system. This was introduced during the Depression by the bankers.

PRABHUPADA: Whatever they do, when you receive money in the paper it has no value. Bad money. It is bad money. It is not good money.

RAMESVAR: Actually most purchasing in America is done on credit now. Even a step beyond paper money is credit, no money, buying on no money, loans.

PRABHUPADA: That is in India also.

RAMESVAR: We don't find these things in Vedic culture too much.

PRABHUPADA: There was never paper money.

HARI-SAURI: No. They used to...

PRABHUPADA: That barter system. You have got rice; I have got something else. So I give you something; you give me something.

HARI-SAURI: But isn't inflation possible even with coins? Even if you have gold coins, isn't inflation still possible?

PRABHUPADA: No, gold is acceptable by everyone.

RAMESVAR: The main point is the barter system.

HARI-SAURI: Yes, well its value is recognized by its purchasing power.

PRABHUPADA: Yes.

HARI-SAURI: So you can alter... Say, you have one gold coin. You can alter what it...

PRABHUPADA: No. If you introduce real metal coin, then there will be no inflation.

HARI-SAURI: There's only a certain amount of metal.

PRABHUPADA: That's all right. The exchange... The more demand, more price. So suppose here is a spectacle. I am demanding ten rupees. So both of you are customer, and you are asking for this spectacle. Then I am increasing my price. So if you can pay me by printing paper, you'll accept any price. That means artificially price is increased. Is it not?

RAMESVAR: Yes.

HARI-SAURI: So the idea is that with coins the man who has the goods, he can't...

PRABHUPADA: Therefore... Suppose he has got ten coins; you have got ten coins. I am wanting fifteen coins. So there will be no competition. I have to accept either from you or you, ten coins.

HARI-SAURI: Right. Because there's only that much money.

PRABHUPADA: But if I increase price and if you print... If you have got power to print, "All right. Take fifteen coins, er, fifteen rupees." But you [can] print and pay me. But if the gold, the coin, is there, you cannot increase on that. HARI-SAURI: He can't increase the price of the product, and the man who got..., 'cause there's only a certain amount of money there.

PRABHUPADA: But I can increase the price provided you pay me. But by printing, it is easier. But if you have to collect coins, that will be difficult, so there will be no artificial increase of...

HARI-SAURI: Yes. Coins is a check...

PRABHUPADA: Yes.

HARI-SAURI: ...on charging too much.

PRABHUPADA: That is wanted. And these rascals, they are artificially printing paper as money. And I am a rascal; I'm demanding more because I have got customer.

RAMESVAR: The difference between Vedic culture and..., the Krishna conscious culture and the modern culture is very, very dramatic, very big difference. So the transforming of society...

PRABHUPADA: And besides that, if we concentrate in farm project there will be no need of exchange, because I'll be satisfied with my products. That's all. There is no need of exchange. Whatever I need, I get in my farm.

RAMESVAR: Weaving, cloth.

PRABHUPADA: Everything I get. So I haven't got to go outside for exchange. If you are satisfied in your farm—I am satisfied—then where is question of exchange? There is no need of artificial... So this banking, "fanking," everything will collapse automatically. There is no money, who is going to keep money in the bank?

HARI-SAURI: Who needs it?

PRABHUPADA: [laughs] So this artificial way of banking, that will be also collapsed.

HARI-SAURI: This is revolutionary.

RAMESVAR: It's very hard for the mind to...

PRABHUPADA: No, simply do this.

RAMESVAR: Such a dramatic transformation of society.

PRABHUPADA: Yes. Whatever it may be... We should be satisfied locally by our food, by our cloth, by our milk. That's all. Let the whole world go to hell. We don't care. If you want to save yourself also, you do this. Here is an example. If you want artificial life, city life, and hellish life, you do. But we shall live like this. This is the ideal life.

HARI-SAURI: But still, we're going out to attract people to come to our life-style.

PRABHUPADA: Hm?

HARI-SAURI: We're still going out to attract people to come and live like us.

PRABHUPADA: Yes.

RAMESVAR: Well, even more than that, we know that we have the secret to real life, so it's our duty to actually... Just like you say...

PRABHUPADA: That is preaching. That is preaching.

RAMESVAR: ...the surgeon, he must cut.

PRABHUPADA: Yes.

RAMESVAR: The doctor must...

PRABHUPADA: Yes.

RAMESVAR: ...save the patient. It's his duty.

PRABHUPADA: No artificial dealing. Purge out.

HARI-SAURI: When one actually has the power, he can do that.

PRABHUPADA: Yes.

HARI-SAURI: So by our preaching now, we have to try and establish a Krishna consciousness government first through the democratic system.

RAMESVAR: You said, "Think in terms of the whole world, not just one nation. That is our preaching." So you are training us to think very big, global.

PRABHUPADA: We keep the ideal style of life. You learn and do it. I am not encroaching upon your independence, but if you want to be happy, you follow. This is our process. Apani achari' jive shikhaila bhakti. [From Chaitanya-charitamrita Madhya 1.22: "...Through His personal behavior, {He} instructed all living entities in the mode of devotional service."] You be happy, very ideally, and people will learn. But this can be possible only on the basis of Krishna consciousness. If you make minus Krishna consciousness this thing, it will never be possible. Then it will not be possible. All these schemes will be successful if there is Krishna consciousness.