Greece could be forced to lock down savers’ cash as debt crisis worsens
Athens could impose capital controls, limiting the amount that savers can withdraw from their accounts and curbing transfers of money overseas
Greece’s central bank has issued the clearest warning yet that the country is on course to default on its sovereign debt at the end of the month and crash out of the single currency, while finance ministers across Europe also confirmed they are making contingency plans for a messy ending to the crisis.
Athens is due to repay €1.6bn to the International Monetary Fund on 30 June but will be unable to do so unless its creditors release a €7.2bn bailout payment before then.
Talks between Greece and its eurozone and IMF creditors over a “cash-for-reforms” deal have stalled, with the country’s Prime Minister, Alexis Tsipras, accusing the creditors of “pillaging” the country over the past five years.
“Failure to reach an agreement would …mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country’s exit from the euro area and, most likely, from the European Union,” the Bank of Greece said in a statement.
If you have not been paying attention to what is going on in Greece, you need to be.
Because this is a foreshadow of things to come here in the US.
Here is a new acronym you need to learn. SHTF = Shcumar (crap) Hits The Fan.
Folks, many people out there have bought into the Hollywood scenario of the apocalyptic world of Mad Max and the Thunder Dome.
When the SHTF, we are not going to resort to being Will Smith in “I am Legend” world.
You know what is going to happen?
Life will go on as soon as the main crisis slows down.
What people do not realize, it will be a completely different world from the one you used to live in.
Those who have prepared will make the transition, those who don’t will fall by the way side and become a casualty of the crisis.
Everyone is worried about EMP, or a Nuke attack and zombies. Can these things happen? Sure, well not the zombies, but the odds are pretty high to possibly not happening at all.
But the odds of a financial crisis hitting this country is very good. In fact I am going to say that it isn’t a matter of “IF”, it is a matter of “WHEN.”
One of the greatest teachers is history.
It is a teacher we often ignore.
Ecclesiastes 1:9 (KJV) The thing that hath been, it is that which shall be; and that which is done is that which shall be done: and there is no new thing under the sun.
What we are seeing in Greece is a repeat of history. This is the same thing took place in Bolivia, Zimbabwe and in Argentina just in the last decade.
Folks, a financial crisis is here, the masses just don’t know it yet.
It isn’t zombies that you will be fighting, it will the crime, the high price of everything, sporadic water services, sporadic electricity, all the while everything is breaking down around you and nothing getting fixed or replaced.
Again looking at history and those countries that have come before us we see what will take place.
But out of all of it, it is the crime that will sooner or later be like nothing you’ve ever seen before. Again history and just knowing the sin nature of man will show this to be true.
When the SHTF, you’ll feel a real, urgent need to increase your security habits and find means of self defense. Problem is that the million or so other people that live in your general area will have the same real urgent need.
Wanna get a gun? The shelves will be empty. That or the cost will be so high that it will be basically impossible. Those who are prepared will have already taken their personal, family and home security into consideration and have already acted. This is why I highly encourage you to get a Carry & Conceal license now. On top of that, take at least some basic fundamental classes on how to handle the weapon and even some close quarter tactics. They are out there, call your local gun shop owner and they can usually hook you up.
What about any sort of home alarm system, security system, even automatic lights? You will see the prices go through the roof. But not only because the money you are using is basically worthless, but the fact that you are now competing against the million or so masses who are looking for the same things you are. Those who are prepared have already set this up as well.
When the SHTF you will not be able to make ignorant mistakes, they will cost you in money and God forbid, possibly your life if you are too foolish.
In his book “On Killing” Lt. Col David Grossman noted that people are divided into three groups. There will be the “sheepdogs” and there will be the “sheep.” The third group, they are the wolves. It is the wolves who the sheep and the sheepdogs will need to contend with.
What About a Job and Food?
Like during the great depression, people will be job hunting for months, even years. Competing for a job will become an art form of its own. Monster and the classified adds in the newspapers will be a joke. Those who are prepared will already have friends of friends, networks and abilities to help secure a much coveted job.
In fact, just getting to and from work will be an exercise in logic, tactics and nerves of steel. You will have riots, roadblocks, fires, carjacking, kidnappings, shootings and looters to contend with. That’s just to name a few of the obstacles.
Grocery stores will have very limited supplies and when they do, getting in and purchasing food will be like walking the gauntlet. You will be on alert getting to and from your car with pepper spray or other means to keep the wolves at bay in hand.
Once inside you will have to contend with the prices being 200%, 300%, possibly even 700% higher.
Do you know that today it costs 32 billion Zimbabwe dollars just for a dozen eggs?
But that is not all.
The banks are going to be closed and when they do open they will limit how much you can withdrawal.
The Reserve Bank of Zimbabwe, the equivalent to our own Fed Reserve has fixed the daily withdrawal limit at Z$100 billion. Folks, that is roughly US$1.25 per day for individuals. Newsflash – that doesn’t even cover the average day to day cost of living for people. Not to mention that they are living in the world’s most inflationary country on the globe today.
Want a shocker, a loaf of bread costs Z$100 billion, meat sells for Z$450 billion a pound. (about US$5.60) and a half-gallon of milk costs Z$200 billion (about US$2.50). These items are all fixed priced by the government by law too. If they weren’t the cost would be astronomical.
In Zimbabwe, local shops that are open associate a fee just for using Z-dollars, and although these fees differ, most charge about 15% commission for cash.
Why? Because the hyperinflation is so bad that within 24 hours, they have lost money due to prices going up higher and higher.
Those who have prepared have protected their wealth by putting it into silver, gold, jewelry, hard based assets. They may even have other hard currencies on hand like the Swiss Francs, Chinese Yuan or other currency that has not lost value in the worlds economy.
They in turn can trade these items in and will be able to afford food to feed the family, gas to go to work, and other day to day expenses and not have to worry to much about the bank limits set upon them.
People, you have time right now to decide who you will be. Take this opportunity so that you can prepare for this situation now.
Life will go on after the SHTF, but it will be the end of the world as you know it and be an entirely different world the next morning with new rules and new attitudes.
Here is what they have already done…
They have purchased food and have a well stocked pantry – they see food as an investment.
They have provided means to protect themselves, their family, their home with as many means as possible.
They have chosen to be the “sheepdog” instead of being the “sheep.”
They blend into the crowd, walk with a purpose and completely alert to their surroundings before they even step outside their front door.
There is nothing new under the sun.
The key is will you take the time to learn and be a sheepdog or will you ignore it and become one of the sheep.
The wolves will be out there and you will have to learn how to contend with them either way you look at it.
Take the time now and learn from Greece, Zimbabwe, Argentina and the others. It is not a matter of “IF” it is only a matter of “WHEN.”
Special Thanks to Lt Col Dave Grossman for his insight and his great article On sheepdogs, Wolves and Sheep.