Last week, the Greek government declared a “bank holiday”. Simply stated,
they closed all the country’s banks. Bank customers understandingly are scared
and tried to withdraw their money, creating a panic. No customer has access to their money
regardless of how much they have in their bank account. The government is allowing
bank customers to withdrawal an equivalent of $66 dollars a day maximum.
They can do so only at ATMs. The problem is that the ATMs run out of cash quickly and
mot are unable to get any funds at all. What enters the minds of most is could a bank panic
happen here. Let’s examine the reason Greece is in trouble.
Greece Is Broke
Greece’s debt is 177.1% of its annual income. For a country to be this far in debt is like
you and I having an annual income of $50,000 and owing $89,000 in credit card debt.
What bank would be willing to extend us another line of credit? Under these circumstances,
Greece is unable to pay it’s debts which triggers a depressionary panic. No money, no economy.
The question is what is the one commodity every Greek is seeking? What is there a shortage of?
The U.S. Is Broke
America’s debt is 101.5% of its annual income. Terrible, but less than Greece. However, we have
unfunded liabilities of 100 TRILLION dollars! In other words, we have cosigned loans for others
totaling over 20 years of income. This means in a panic, we can’t possibly pay those debts.
We are, in fact, in worse shape than Greece.
Can A Bank Panic Happen Here?
Absolutely. It is not a matter of if, it’s a matter of when. Every person should be preparing by
implementing a simple plan. START SAVING CASH. Real cash, not an image
on a computer screen. It is recommended we have three months worth of income in cash.
This may sound a little uncomfortable now, but if a bank run happens, you’ll be able to
pay your bills and purchase staples. Those who haven’t prepare will be in serious trouble.
What If I Don’t Have Any Cash?
Liquidate household assets that aren’t being used, such as jewelry made of silver, gold,
or diamonds. Sterling Flatware is good also. These are easily sell-able items that have a high value right now.
Hold a garage sale. Save your change. If motivated everyone can do this.
Cash will Be King
Take a look at what’s happening in Greece. It is a foreshadowing of what is coming for us.
We see images of people standing in line clamoring for what? CASH! That is the commodity
we will begging for. Don’t misunderstand, there will be hyper inflation eventually,
after the Fed creates the money to pay you back out of thin air. But first we have to
survive the coming deflationary cycle. That will be the time for silver and gold.
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