Now as far as the bank closures or bank holiday that Greece is currently under I have no sympathy for those people effected by this situation. These people deserve what is happening to them and their bank accounts. The one notable exception is the extreme poor in Greece. They are caught in the middle of this and were not able to prepare for this in advance due to their lack of wealth. Everyone else has no excuse.
Why the Greek people continued to keep their money in the Greek banks is beyond me. Two years ago this same situation happened in Cyprus, a country not too far from Greece. The situation in Greece has been known since 2008 when the world financial system crashed and began to deflate. The people in Greece have seen their pensions cut and taxes raised to appease the bankers.
For those of you who follow current events you know what has been happening over there. What most people don't understand is that this situation in Greece is a good situation not only for Greece but for the world in general.
First of all I want to address the debt situation in Greece. While its true that the Greek government does owe on its debt, not all the debt belongs to the Greek government. Most of this debt is debt imposed by the bankers in the form of derivatives. Derivatives are basically bets placed on some other debt or asset. For example if I borrow $1000 from you, then I owe you $1000 plus any interest that is agreed upon. The debt I owe is a liability to me because I owe you the $1000. Because you are making the loan you now have an IOU for that $1000. That $1000 is an asset on your balance sheet.
Now if you go out and borrow $10,000 from a bank and list the $1000 you are owed by me as an asset or cash reserve, you have created a derivative. The $10,000 you are borrowing is backed in part by the loan you gave to me. This is a derivative because the $10,000 loan is deriving part of its value from the money I owe you.
In Greece, like every other nation in the world, The Greek government is the one who borrowed the $1000. The Greek banks along with other banks and financial institutions around the world have borrowed sums greater then that $1000. The banks are unable to cover their loans and have gone back to the Greek government claiming the Greek government owes all $10,000 borrowed against the that original $1000.
This is how central banking works. Its objective is to pas on the losses of the private banks onto the taxpayers of any given nation. Since 2008, Greece has basically been picking up the tab on losses incurred by their private banks and other financial institutions around the world who bought Greek debt and placed bad bets in the derivatives markets.
Because these numbers are so high, and government in general will do whatever they can to save the banks from going under, will bow to pressure from the finance industry to go along with the bailout. What people do not understand is the entire world has a debt based monetary system. The money comes into existence as an instrument of debt. If debt is wiped out, then any money created out of that debt is also wiped out. More then 90% of the entire worlds money supply is created not by governments, but by the banks themselves. Its called fractional reserve lending or banking.
In September 2008 when the financial system began to collapse the total derivatives debt market was $750 trillion USD. Those derivatives were dropping quickly and financial institutions were loosing cash as a result of the people selling financial assets to deleverage. Governments around the world began bailing out the banks to keep them from collapsing. In January 2009, Rep. Paul Kanjorski (D) who was on the banking and finance committee, in an interview on C-SPAN, defended the original emergency actions taken by the United States government to halt the 2008 financial crisis in September 2008. Kanjorski stated that the move to raise the guarantee money funds up to $250,000 was an emergency measure to stave off a massive money market "electronic run" on the banks that removed $550 billion from the system in a matter of hours on the morning of September 18. He further asserted that, if not stopped, the run would not only have caused the American economy to crash immediately, within 24 hours it would have brought down the world economy as well. When Kanjorski made these statements, he was spilling the beans and revealing something that he wasn't supposed to. Jut like in 2009, we are no better off today in 2015 then we were in 2008 and 2009. In fact the problem is much worse today. https://youtu.be/pD8viQ_DhS4
"The derivatives genie is now well out of the bottle, and these instruments will almost certainly multiply in variety and number until some event makes their toxicity clear. Central banks and governments have so far found no effective way to control, or even monitor, the risks posed by these contracts. In my view, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.”
What we are seeing in Greece, Cyprus, Iceland, and Ireland to name a few are the effects of the derivatives and government debt bubbles popping. All the banks in the world are effected by this. As a result none of the worlds banks are solvent. Not even yours.
Looking at Greece should tell people something. There are steps you can take to weather a bank holiday. The United States had a bank holiday in 1933. Some of the same things going on today with the banks were what caused the Great Depression. President Roosevelt the day he took office declared a bank holiday. The first presidential radio address or "fireside chat" was about this bank holiday. Roosevelt stated flat out that once you put your money in a bank it no longer belongs to you. It belongs to the bank. The bank and government will tell you when and if you can have access to your money. In the eyes of the banks and the government they will define what is or is not a legitimate purpose for you withdrawing some or all of your savings. After this banking holiday 71% of all the savings in the United States was confiscated and transferred to the government. This is the history not taught in school. Listen to the first fireside chat and see if anything has changed. I will point this out, Roosevelt did correctly state that "We do not want and will not have another epidemic of bank failures." This is why the government will bail out the banks and financial institutions at the expense of the tax payer. And if that means inflating the currency, imposing new taxes, confiscating bank deposits, or retirement accounts/pensions then they will do it. Roosevelt laid it all out in this 13 minute speech.
Lessons that should be learned from Iceland, Cyprus, what is currently happening in Greece and our own banking collapse in 1933 are the following.
(1) You can not trust the banks. Don not keep all your money in them. Remember you don't own the money you deposit in any bank. The bank owns it. As Roosevelt said the banks put your money to work. They don't put it to work for you. They put it to work for the banks.
(2) Government and the banks can and will limit your access to money at any time.
(3) Banks and the government will confiscate your bank deposits if need arises.
(4) The government will protect the banks at all costs. They do not give a fuck about you. The banks don't give a fuck about you either.
(5) Inflation is a tax. It is the most regressive tax there is. You need to protect yourself from inflation to the best of your ability.
(6) If there is one lesson to be learned from what is happening in Greece it is this. YOU NEED TO HAVE AN ADEQUATE SUPPLY OF PHYSICAL CURRENCY ON HAND OUTSIDE THE BANKING SYSTEM!!!! I would have at least several months saved up in $5.00, $$10.00 and $20.00 notes. During a baking holiday access to ATMs and bank branches will be restricted or limited. You need the cash on hand to survive.
(7) You should own gold and silver coins. For this purpose you should have only gold coins issued by the mint of the nation you reside. That means Americans should only own US gold eagles 1986 - Present, and pre 1933 US gold Liberty's, Saint Gaudens, and Indians. For silver you should own in the US American silver eagles 1986 - Present, pre 1965 silver coinage. These include dimes, quarters, half dollars, Morgan dollars, and Peace dollars. Silver war nickels from WW2 are acceptable too. Also Canadian silver maple leaf coins are acceptable too.
(8) In the US if you live in a border State that borders Canada you should have PHYSICAL CANADIAN CURRENCY. I have been advocating this for years. And for good reason. First of all having Canadian currency is a hedge against the US dollar. When the dollar is strong like it is now you can buy Canadian currency for $0.80 USD. When the US dollar is weaker those Canadian dollars will be worth more then you paid for them. Its a way to help beat inflation. In addition and more importantly, if you take note of what is happening in Greece right now you will see the store shelves are empty. Even if you have cash it may be difficult to buy food or other essential items you need to weather a financial storm. With physical Canadian currency you can go to Canada and you have their currency to either stay there until the financial system is working again or you can just by food to survive and take it back across the border. Anyone who knows me will tell you that I've been beating the drum on having a foreign currency reserve for years. My logic all these years is sound when looking at Greece.
(9) You should always keep a store of food on hand. During banking holidays. Shipments may be limited. If you do find stores open and stocked you are going to find the prices will be higher. The stores have to raise prices to obtain cash to get new shipments in. The rising of the prices is not a factor of greed but businesses wont have easy access to cash from banks so supply and demand will take over. I would expect prices in Greece are 20% to 70% higher for available essential items. You need t take this into account when deciding an apocopate amount of physical cash to store outside the banking system.
In closing I do not believe that Greece will exit the European Union . The New World Order sociopaths cant allow that to happen. If they do then it will set a precedent for allowing other nations to leave the European Union. Just like what happened with the Soviet Union in 1990, if one nation leaves others will follow. It would only be a matter of time.
The economic and financial terrorism that has taken over the world will continue until the people of the world wake up and say enough is enough. Until the rest of the nations of the world do what Iceland did in 2009 and arrest the bankers, nations 1 by 1 will continue to be held economic hostage.
I expect Greece will be allowed to default. I expect Greece to stay in the European Union. These "pin striped bandits" in the financial system will convince the other nations in the Euro to absorb the losses from Greece. Greece will suffer some losses. Their government will seize bank deposits like the government in Cyprus did. They will do what they can to keep the Ponzi scheme going but I don't see the banksters allowing Greece to leave the EU. Their whole system would fall apart if they allowed Greece to go at it alone. And they know it. Some last minute deal that fucks more of the Greek people and the EU will be announced in the coming days. But in the final analysis, people in Greece were warned ahead of time and they still kept their wealth in those banks. I cant feel sorry for them. Had they bought gold, silver and kept cash at home they wouldn't be in the situation they are in. Or at least not to the same extent.
Greece is our wakeup call. Take action now. America is in far worse shape then Greece. Our day is near. Don't say you haven't been warned.