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Greece Blows Up Negotiations – Bank Run Has Started – Some Banks Won’t Be Able To Open On Monday
Despite cautious optimism earlier last week about reaching a deal, the talks have suddenly derailed after Greek Prime Minister Alexis Tsipras announced he would organize a referendum in Greece about whether or not accepting the proposal from the three institutions. Strange enough, Tsipras received a standing ovation from his coalition partners when he arrived in the Greek parliament earlier today (see next image)
This was a huge surprise as this basically was sticking up another middle finger to the European Institutions. By instating a referendum (to be held next Sunday), Tsipras tried to accomplish two things. First of all, he wanted to arm-wrestle the institutions into giving Greece an extension of a few weeks (which obviously didn’t work), but secondly it also looks like he was trying to cover his (political) ass by putting the responsibility of the decision on the shoulders of the (uninformed) citizens.
Indeed, uninformed. Not only have the Greek citizens been influenced by demagogic statements (‘the three institutions only want to humiliate the Greeks (and Greece as a nation) and don’t care about an honest solution that works for everyone’), but on top of that, the question which will be asked at the referendum also isn’t really worded very fair. According to our information, the only question on the ballot will be ‘Do citizens of Greece reject the proposal by the three institutions? Yes/No’ and someone should call Tom Cruise because it will definitely be a ‘Mission Impossible’ to educate the Greek citizens about what exactly the proposal was about.
Even if we ignore the legal aspects of calling a referendum (our sources tell us a referendum can only be called on matters of national security and not for foreign relationships), it wasn’t just the Eurogroup and us who were surprised, the Greek population was also caught by surprise and a new bank run started on Friday night already.
Things only got worse on Saturday as several reports and images have reached us of tens of people are queuing at the ATM’s of the country and ‘several hundred’ (almost 10% of the) ATM’s all over Greece are now empty (see previous image), despite the Greek national bank stating the ATM’s are replenished ‘smoothly’. The Greek citizens obviously don’t trust the situation and if the current bank run continues, we expect some banks to be closed on Monday unless the ECB makes more funds available – which it refused to do on Friday.
Something WILL have to happen, and the ECB has called an emergency session on Sunday. If no agreement can be reached before Monday, we expect several smaller banks in Greece will have to keep their doors closed for the public. Pensioners are standing in line to withdraw their entire pension (which was deposited yesterday), and it looks like people will start to hoard cash. It would be very interesting to see some updated numbers on the demand for gold from the Greek citizens
The tension is rising on the streets of Athens and Thessaloniki and if the banks shut down on Monday, the always hot-tempered Greeks could be on the verge of rioting. Several European countries have already emphasized tourists need to bring a sufficient amount of cash money if they plan to travel to Greece, indicating a disruption of the complete financial system is a very realistic possibility.
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The same type of people who wouldn't pay $10 for a 10 oz bar of silver in front of a coin shop.
Direct deposit paychecks.
OK, for the *rest* of us, remember that old saying, about "not buying until there's blood in the streets"?
Well, get ready. The market is about to become very 'liquid', as they say.
Hey Greece, good luck finding a new tit.
Hey Greece, make up your mind. Are you a banker's slave who need banker's money to survive, or are you a soverign that can create your own money? You decide.
"Hey Greece, make up your mind. Are you a banker's slave who need banker's currency to survive, or are you a soverign that can create your own currency? You decide."
fixed it for you. Money and currency are not the same thing. We have currency whch depends of the collective acceptance of it as a medium of exchange. It is not a store of value so it cannot be "money".
Splitting hairs. A dollar isn't a buck sort of thing. We get it.
"Money and currency are not the same thing. We have currency whch depends of the collective acceptance of it as a medium of exchange. It is not a store of value so it cannot be "money". "
Exactly right, but one problem: the terms "currency" and "money" have become absolutely equivalent in the mind of the general public, and nothing is going to change that. Goodness knows, I've tried. I'm thinking the best bet is simply to talk about things that contain intrinsic value, like precious metals, versus things that require some entity to back it, such as currency.
In the US the Banksters create the "money" not the so-called "sovereigna". The truth is that the People are the sovereign and the government is the agent.
"A spoonful of ouzo makes the medicine go down, medicine go down, medicine go down, as spoonful of ouzo makes the medicine go down in the most delightful way!"
Never had a spoonful of Ouzo. Never saw the point. I drank my Ouzo in 12 oz glasses.
Dont you mean a bucketful of liquefied shit ?
This is going to end truly bad.
Given that ouzo is flavored with anise, it's pretty much the same thing.
we call it "Liquid GOOD 'N PLENTY"-you know-the candies
Those candies were great ! Can you still buy them some place ? I managed to find "Blackjack Gum" an Smith Brothers Cough Drops but not Good and Plenty candies. Also a fan of Ouzo, Sambuca, and Anisette especially in cookies. Metaxa now thats rough.
Ouso is an aquired taste, sort of like thinking debt is an asset.
Usury - the hangover that never goes away.
Once you've "booked the debt" (meaning sold the note and recieved cash) then for all intents and purposes debt is indeed an asset.
Think of the obverse: "imagine running an entire economy without debt"?
Talk about "limiting"...you would in effect have no market for cash.
Would definitely limit the size of Government though!