Agreed. In fact, JP Morgan and John D. Rockefeller, with the help of Rockefeller's father-in-law, then Senator Nelson Aldrich, alone crafted the Federal Reserve Act. I've read it speculated top among the reasons Bear and Stearns had been bailed out by the FED is because JP's want to aquire it on the cheap. Talk about a value play.
I'm afraid you're missing the point when you are talking about creating shells to maximize FDIC insurance or spread the risk over multiple accounts, assuming that is even legal. The big threat is inflation because if the entire system collapses, the government is going to have to print money to replace all of the money that was lost. The government will be paying you off in monopoly money. I suppose if you need a place to stash millions of dollars in cash, you might as well just put it into treasuries because if the FDIC runs out it's going to come out of the treasury anyway. But it's still going to be worth only a fraction of its value today if this turns out to be a 1929 redo. The real question is what is the safest alternative to cash that can be expected to hold its value. Gold or crude I suppose, but those are pretty risky right now too. Personally, I'm thinking about buying real estate this winter if I can find a bargain because it will always be worth something even if you need a wheelbarrow full of dollars to buy a loaf of bread.
If the whole system blows up, we're all in the same boat. It's not clear to me that you can really prepare for such a dire scenario. Maybe you can preserve some wealth with the aforementioned strategies, but can you secure all of the other basic necessities if everyone went broke? If you are worried about hyperinflation, why not invest in TIPS?
I'm not sure if the OP is trying to say that you need to create LLC's to extend FDIC protection beyond $100k but just to be clear, its very easy to get as much FDIC protection as you want and you don't need to create dummy companies to do it. Two choices (that are not mutually exclusive): (1) Open accounts at multiple institutions: the $100k limit is not a total across all banks so keep $100k per bank. (2) Open multiple accounts at one bank but title them differently - Example: A single savings account with 4 payable on death beneficiaries has an FDIC limit of $400k, not $100k. http://www.fdic.gov/deposit/deposits/insured/yid.pdf
Oh my. Stupidest thing I heard. If you own an LLC that has only cash, then the stocks of the LLC will worth exactly the amount of that cash. Anyone trying for your money will go after the stocks in the LLC you own. And guess what? Ownership of legal entities is registered, so it might take up to 5 minutes to find all shells. If you own an LLC and it is not registered on your name, then its a federal crime (actually, since the Patriot Act, it's also an act of terrorism), and a good p.i. can still find out about those, let alone feds or your friendly taxman. If you have money that you want to hide, your options are very limited, and none of them are cheap nor available for Johnny Goodfella.