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Greek Banks To Run Out Of Physical Cash "In A Matter Of Days"
Over the past several weeks we’ve documented the acute cash crunch that’s crippled the Greek banking sector and ultimately brought the country to its knees.
Since March, Greek banks have subsisted on a slow liquidity drip administered by the ECB through the Bank of Greece. Once Syriza swept to power on an anti-austerity platform in January, it quickly became clear to Mario Draghi that accepting collateral backed by the full faith and credit of the new Greek government in exchange for cash loans wasn’t a safe bet and so, the ECB shifted the burden to the Bank of Greece, making it more expensive for the Greek banking sector to obtain emergency funding.
As the crisis unfolded and Athens’ negotiations with creditors became increasingly contentious, Greek banks began to bleed cash. Eventually it became clear that the banks were relying entirely on the Eurosystem to meet outflows.
Meanwhile, banknotes in circulation surged, as cash usage jumped 44%, prompting Barclays to note that “the amount of banknotes in excess of the quota for Greece represents a liability of the BoG to the Eurosystem.” Essentially, we said, Greece was quietly printing billions of euros.
Now, with the ECB holding steady on the ELA cap and the banking system still hemorrhaging deposits despite the imposition of capital controls, Greek banks are running out of cash — literally.
WSJ has more:
How long the remaining cash lasts and how unsettled Greeks become will be big factors in Sunday’s referendum on creditors’ demands for more austerity in exchange for more bailout funds. The tighter the squeeze, the more Greeks might vote “yes” to reconcile with creditors, analysts say.
As of Wednesday, Greece’s banking system had about €1 billion in cash left, according to a person familiar with the situation. Even with the €60-a-day limit on ATM withdrawals from Greek’s closed banks, “it’s a matter of a few days” until the money runs out, this person said.
By Wednesday, many ATMs in central Athens had constant lines of people waiting to withdraw their daily limit. The crunch has suffused the economy. Merchants report lower spending. Wholesalers can’t pay for supplies. Importers’ foreign counterparts won’t trade.
Greece’s cash crunch hit small merchants first. They are less able to get credit from their suppliers, especially those dealing in perishable products that are continually imported. Christos Georgiopoulos owns a gourmet supermarket in Plaka, a picturesque Athens neighborhood frequented by tourists. He sells Champagne and Russian crab legs.
Nobody is buying. “I haven’t had a single customer in two days,” he said Wednesday. He is shutting down his shop and says he doesn’t know when he will reopen. He gave some crab legs to his workers and is taking some home. “I haven’t paid my staff and don’t know if and when I will,” he added.
Cash is king. “Now you have almost every cardholder going to the ATM every day,” said Stefanos Kotronakis of payment-processing provider ACI Worldwide in Athens, which operates systems that drive ATMs. “Cash has a higher value now.”
Ellie Tzortzi, a partner at a Vienna-based digital-design and market research firm, is flying to Athens this weekend to pay her employees here in cash. “The last time I traveled with a wad of cash to pay someone’s salary was 10 years ago in Kosovo,” she said.
And AFP has more color on the crisis facing Greek businesses:
Greece's dive into financial uncertainty is forcing struggling businesses to take unusual steps to survive, including hoarding euros in cash.
The government's announcement it was closing banks this week to stem a panicked rush to withdraw money, left many ordinary Greeks high and dry.
"I put aside as much cash as possible" in advance, said an Athens baker Taso Paraskevopoulos, who had expected the controls to be imposed as the country staggered towards a default on a debt repayment to the International Monetary Fund.
"I sometimes need hundreds of euros a day to pay suppliers and expenses, I can't allow myself to be caught short," he said, making it quite clear he blames the radical left ruling party SYRIZA for the crisis.
The capital controls forbid money transfers abroad, except by express permission from the Finance Ministry.
Businesses which import their raw materials have been the hardest hit, says Vassilis Korkidis, head of the National Confederation of Hellenic Commerce (ESEE).
As unease spreads, getting ones hands on cash has become a sort of national sport, with businesses from restaurants to car mechanics telling customers paying by card is no longer an option.
And what if the crisis drags on? asked Sotiris Papantonopoulos, head of online insurance broker Insurancemarket, which employs 70 people.
Launched in 2011 despite the financial crisis, the company was in expansion and had intended to take on other 60 people in the coming months, "but now everything is on hold," said Papantonopoulos, visibly upset after having to ask some of his employees not to come to work this week.
"If the measures remain in place for two months, well close, it's over."
So there you have it. The unthinkable — which we have of course been warning about for months — is unfolding before Europe's very eyes.
The crisis has officially moved beyond the negotiating table and has now manifested itself in a shortage of physical banknotes and the inability of Greek businesses to stock the shelves, leaving all of those who accused the tin foil hat crowd of fearmongering to look on in horror as the ATMs go dark, imports grind to a halt, and Greece rapidly descends into the Third World.
This is no longer speculation, it is a stark reality, and as Constantine Michalos, the president of the Athens Chamber of Commerce and Industry told WSJ, "in one week, two weeks, three weeks, it will be finished.”
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How to get a YES vote ... please please please make us debt slaves at any cost...
If the Greeks can't see this blackmail by the EU bankster bullies then they deserve their servitude
"in one week, two weeks, three weeks, it will be finished.”
Uh, it's already finished.
Have they run out of paper and ink too? Amateurs....
Sovereign debt is a global pandemic which is constantly fed and then re-fed to itself as a necessity. The IMF has only money to work which is like having cancer to heal another cancer. We must get the money groups out of this process and find a cure that prevents people, like those in Greece, from suffering its controlling consequences and punishes those who put countries/nations in those circumstances.
Gold for bread
https://www.youtube.com/watch?v=MSYrCoD-8FY
Looks like the "war on cash" is Dead on Arrival... Long live black markets, and under the table arrangements (tax free !)
Quota on cash??????
Fuck you London you cheap fucking whores!
Just print the fucking paper you fucking jerkwads...
You cannot print what you don't have (aka somebody's else currency)...
Import the Cotton from your Egyptian Slaves and the ink from Switzerland.
Doesn't sound complicated...
Dude, just stop.
"Bring out your dead, bring out your dead."
"Not quite dead. I could pull through. Actually, I think I'm getting better." [whack!]
Monty Python quips aside... As I said earlier today (Thu, 07/02/2015 - 14:26 | 6263139 Kirk2NCC1701)
They can and probably will use a basket* of currencies as Cash, as has happened in other countries in a similar situation.
* EUR, USD, RUB, TRY, CNY,GBP. (see http://www.xe.com/iso4217.php for country codes of currencies)
The Greek Government could (if Varoufakis has the imagination and courage) repeat the move of Germany's Hjalmar Schlacht of the 1930s, when they issued Government Notes for business and industry: Just issue Greek Meffo bills. Call them FETTA1 Bills, if you like. Hopefully the irony will not be lost on the Greeks or Germans.
[1] FETTA: Free Enterprise Temporary Tokens of Assets
Too funny.
Can't even counterfeit?
What kinda Greeks are you anyways????!!!!
"Say hello to ten million tons of pistachio's from Albania...
THIS IS SPARTA !!!!
Now kick the E.U. into the well.
"First it was all about a potential Brexit from the EU, while recently attention has turned to the possibility of a Grexit. But now there is talk of another rebellion with Austria to debate the possibility of having an EU In/Out referendum, after an anti-Europe petition gained widespread public support. The question of a European Union membership referendum must now be discussed in the Austrian parliament after a petition calling on Vienna to leave the bloc surpassed 100,000 signatures – the required amount to facilitate parliamentary discussion. In fact, the petition secured well over the quota, with more than 260,000 Austrians – equivalent to 4 percent of the electorate — putting forward their names to put pressure on the government to have a debate on the matter. Rauscher said she believed sentiment for a referendum was higher due to the current standoff between Brussels and Greek officials over debt-for-reform negotiations.
Euroscepticism on the Rise
Anti-European sentiment and a general sense of EU disillusionment is thought to be on the rise in Austria, with December’s Eurobarometer poll revealing that the country was the third most Eurosceptic nation, behind only Greece and Cyprus – countries badly affected by EU bailout and austerity measures."
http://sputniknews.com/europe/20150702/1024133686.html
When exactly did ZH get corrupted?
Pick me...pick me,, I know know when ZH became corrupt.
The Greeks are agrarian and touristic.... Long DRACHMA!
Greece will see a resurgence in capital investment, after the default. (can kicking ends)
Greece, you are the originator of democracy, show you are the source of the phoenix for democracy that has long since died
How to buy and sell BitCoins in Europe.
https://support.coinbase.com/customer/portal/articles/1767231-how-do-i-b...
Any evidence that Greeks are turning to BC to reboot local economies?
Because if the Greeks don't do it - I have my doubts about anyone else doing it.
Why didn't people of Greece see this as an obvious outcome of their debt dependence?
Since when did these Greek politicians, doing back room deals with bankers, EVER represent the interests of the people?
Oh wait...
Most countries, including the US have the same problem.
So the Greeks did not ask for this, and bankers are doing this to every country in the world.
No one asked the Greek people. They did it to them.
Hey Greece, let's have a referendum! Should we cook the books so that we can get into the Euro Zone? Yes or No.
Shall we take on debt that we are not capeable of repaying? Yes or No?
Nope, didn't see that vote.
MsCreant, you just missed it. It was taken in the backroom by every money grubbing SOB that was willing to kill his fellow Greek to become rich. Evil is in this world and weeping cheetoh, Mitch McConnell and the black robed mafia will be happy to provide you and yours with the same, while providing a nice dose of theater to keep the trebuchets and guillotines at bay... for now..
" Run, Forest, Run! "
https://www.youtube.com/watch?v=v3qlBM9vAW8
Take some the 100 tons of gold that you broke dumbasses are pretending not to have and buy say 1000 ton of silver and mint the New dracmas like Hugo Salinas Price practically begged you to do 5 years ago. You will instantly have the whole of Europes worthless Euros come flooding in trying to do any type of trade to get your coinage. You will have fiat cash running out your ears and Joe crab legs will be sold out collecting 50 euro notes just to get the 15 dollar coin in change. Problem solved.
Quit being idiots. No sympathy NONE
Get off your knees and quit groveling Greece. Grab your place in history and DO IT NOW.
But then what are you going to do with all that foreign painted paper???
While your correct silver coins are real money and unprintable they don't fold and wear holes in the pockets, not to mention the number required for a date with a hooker
Hand it back to the same european countries that printed it for anything your heart desires they produce or do like China and start buying up the place . Come on dude the Euro is still the 3 or 4th most widely accepted currency in international commerce. My first pallet load would go straight to Brussels with a Giant Silver Bow and a gift card to Mario that read "So long and thanks for all the fish".
And if your in the habit of buying curb crawling hookers pay her it Euro"s, or a silver cetificate. You probably will be suprised which she would prefer after another round or two of QE. Hookers are not dumb, Its their customers who are the idiots.
+42
It might be a great time to plan your vacation in Athens. But you might want to BYO food. On the plus side, BJs might be cheap.
If your'e going to consider bj's in foreign countries you had best get the three shot series for HPV (Guardasil).
The average hooker probably carries two dozen or more strains of HPV in her mouth/throat/vagina. Many of the most "popular" ones are those responsible for Cervical Cancer and guess what? The rate of esophageal cancer in men is going through the roof.
Nasty, nasty way to die.
And to think a mere 20 years ago we were focused on the gallon usage of toilets and 100 watt lightbulbs, oh to go back to those halcyon days of yesteryear.
<- As a greek I would vote NO
<- As a greek I would vote YES
The Greek government should print up a bunch of "euro IOU" bills and make these legal tender for all debts and payments. Meaning Greeks are legally required to accept these IOUs just as if they were euro bills of the same denomination. These are not subject to ELA limitations, so the Greek central bank can lend these IOUs to banks, taking the place of the ELA and the banks could put them in their ATM machines just as if they were euros.
Getting out of the euro would be positive for Greece, but the exit needs to be well managed. I don't really see evidence of that at the moment.
The problem is the same, no foreign entity would accept the greek IOUs. So while you can mandate that all debts under greek jurisdiction can be met by payment with a greek IOU in a 1:1 ratio to Euros, the same isn't true for outside of Greek jurisdiction. The government could pay salaries and pensions in IOUs, and Greeks could pay their utilities and rents in IOUs, no one would be able to get imports because they would not be able to pay foreigners with the Greek IOUs. Foreign trade would still grind to a halt as Euros disappear and the private sector would soon follow as no one will show up to work to be pain in Greek IOUs that can't buy anything of value. They would be Venezuela very quickly.
See below (tm) and "yes, if Tsyprus had left the Banks and Stock Exchange open" this might have worked (Cali did it in 2008 actually)
Instead these clowns shut down their entire financial system and now can't even print paper ballots that say "Yes/No" on them!
Talk about SURREALISM!
Greeks would collect euros , dollars, etc from exports and from tourists. And these could be used to pay for imports. Greece could then offer to repay foreign debts using these IOUs, so they would no longer need euros for that. If creditors don't like it, too bad!
Gresham's law would cause euros to disappear from circulation within Greece and the IOU's would become Greece's de facto currency.
This has always been the solution but it scares the money changers so much they would go the Nuclear option to avoid it. Simply because it takes away their power. No need for IMF no need for ECB no need for debt usury
http://www.michaeljournal.org/guernsey.htm
https://www.youtube.com/watch?v=YRouPMT8xow
and the original
http://www.google.com.au/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&ved=0C...
Bennie,What you are suggesting is already going on in the sense that the ECB when printing euros denotes country of issue/general use by a designated letter used at the begining of notes serial number.
Cash is king. Kind of a beautiful thing. Cash is not going to disappear into a black hole like ETF funds do with interest, it will keep cirulating (until it wears out), and the local economy wil re-price itself to work with the amount of cash in circulation. As long as small business only accept cash, and pays their workers in cash, the show will go on.
Only Senators from Arizona keep proposing bills to eliminate cash.
Coins are highway robbery because they're really easy to make and debase...something Arizonians are very good at I might add.
Making paper money on the other hand is VERY expensive...and if done right can be almost impossible to couterfeit.
The English of course are notorious counterfeiters...
Step one : create a product the populace must use then deprive them of the very same.
Step two : deprive the populace till exasperated
Step three : promote strife and violence
Step four : create a external solution to invade and secure the populace all the while confiscating the primary wealth reserves.
Step five : proclaim mission accomplished and exit.
Bitcoin $255.47
If you are under the illusion that 75 year old retired Greek couples who can't find food, or even get money to buy food, are suddenly taking their remaining dignity ($$) and buying Bitcoin.. you're nvts. Unemployed 22 year old grads living in their parents basements are the only people buying bitcoin right now.
75 year olds won't buy bitcoin anyway, no matter how rich they are. The bank run in Greece is going on for many months and now there are capital controls, so no way to get the cash out of the country.
Tell us. How can greeks buy bitcoin? The banks are closed for ALL transactions.
Also, Bitcoin 2 years ago was $1200, last year, $650, and today $250? Wow, what a great place to park your money. NOT.
Gee golly gee...
Jan 2011 silver was $48. 2012 silver was $35; 2013: $25- per ounce; 2014 $17-, 2015: $15 and change.
What a great place to park your money....
Ok Anophelese, just where do you suggest it be parked?
Also, Bitcoin 3 years ago was $13, 4 years ago was $31, 5 years ago was $0.08.
Bit coin is the biggest peice of shit ever imagined.....pure and utter no intrinsic value medium of exchange, dictated by virutal logic. As if the CIA langley fcks aren't in bedwith the Hikoshima dude who invented it (or whatever his name is).
I don't claim to understand it 100%, but you'd be mad to elect to invest your blood sweat and productivity for nothing more than bits and bytes...haven't we learnt anything after 100 yrs or so of the Jekyll Island fiat con game ponzi scheme.
You don't get it. Just like when paper money started becoming popular, all the ignorant people laughed. Well, what's in your pocket right now? Paper currency.
"Paper money? No one will ever trade gold for paper! Paper money is the biggest piece of shirt ever imagined!"
"Paper money? No one will ever trade gold for paper! Paper money is the biggest piece of shirt ever imagined!"
Yeah, I agree with this guy, I did then and do now..
Get to work, Draghi.
Today marks the 111th day without a US debt ceiling.increase
I'm all over that one/ That's another thread.
Thanks for taking charge... I guess those, "extreme circumstances", are limit~less?
The USA could produce trillion dollar surpluses given this energy boom.
By next year would appear.
"There goes your debt."
POOF!
Anyone who left deposits in Greek banks (to collect zero percent interest) and didn't pull all their cash out months ago deserves what comes to them.
You have a problem? Solve it - there is NO other way out....except death...
You have a problem? Solve it - there is NO other way out....except.. death?
I thought that if I had a problem, in order to "solve" it, I was supposed to check out my DJ while he resolves it. No?
3 weeks is pretty optimistic Michalos. Godspeed.
Uh...and what does "It's finished" really mean?
Everyone, young and old in Greece simply rises, gasps one ragged breath and dies?
No. Life goes on, perhaps a ragged life, but it will still go on.
Sorry, "It's finished" is hogwash.
I totally agree
Strippers and valets been getting killed over there.
Greece lives. Greece dies. Greece lives again!
Is anyone commenting here who actually lives in Greece? Im really curious when the transition to cash "paychecks" happened. When did business decide not to take visa and just want paper? How the heck is the government supposed to collect tax if everyone is using paper? Is that the point? Many questions.
I second your questions. Are credit cards working? How about paper checks? Can people pay their basic bills? Why the emphasis on taking cash out of ATMs? Many people very rarely take cash out of ATM's, or pay cash at all.
Not sure why it's seen as a bad thing to ask questions!
Quick, more sanctions against Russia someone... FFS , someone start a war somewhere, anywhere
supply chains disruptions due to distrust is THE REAL PROBLEM AT THE MOMENT IN GREECE
Bitgold is not at all like Bitcoin. Bitcoin is BS. I own lots of BitGold. People need to look into BitGold and THEN form an opinion.