In my humble opinion, this week might be the start of cash withdrawals from all Euro countries as citizens put cash under the bed in case of an emergency such as what has happened in Cyprus.. This will mean a severe downturn for business and a rise in inflation as more euros will be needed to make up for the cash horded. Cash hording could well spread to other countries. Could this scenario become a reality in the next few weeks . What do you think? Regards Errol 43
I'd be watching Spain in the next few weeks very carefully. If there is a major bank run, I reckon after Cyprus it'll spread there.
It would not cause inflation, as it is just conversion of electronic euros to physical paper euros. Short term the system may run short of physical cash - they can print as much as needed but that takes time. No, the primary potential problem is if too many people try to get their savings out at the same time, that may cause a bank run. Obviously there is no way banks can stay open if all depositors withdraw their money at the same time.
I dunnoh errol. People are pretty stupid. even despite all the warnings and evidence the Germans were coming (the last time), these Europeans didn't do anything till the last minute...
The next logical step is capital controls spreading all over Europe. A kind of "financial martial law". That was probably one of the objectives of this crisis in the first place. PROBLEM > REACTION > SOLUTION They have been quite clear about their final objective, so these events fit right in.
I doubt it. If they notice a certain level of cash withdrawals, they gonna do the same as in Cyprus and years ago and the historical occasions. And the EU side has since august 2012 400 billion new euro's ready as cash as excess reserves. Of course they won't just allow it all to slip into home/wherever ownership beyond their control to sterilize/regulate. The answer also depends on how you define cash problems. In the end, all they care is that papermoney doesnt leave en masse, you can still pay electronically any amount, since that is just a shift between accounts or banks, and their control level is the whole of it, so they dont care much.
I think there will be a global domino effect. The smart people will withdraw their cash now and the ones that wait too long will wish they did. Amazing how the big players can manipulate things to their advantage. Lots of people will lose and the Rothschilds or Rockerfellers will making another killing. Withdrawing all our cash from the banks will cripple the fractional money mechanics system. That is inevitable.
Unlikely. The lender of last resort policies of central banks means if there is a run, they will simply back up another armoured truck full of cash to be given to deposit holders. Only about 8% of deposits are actually held by banks as cash (in Australia anyway) so if 9% of people chose to take out their money, the bank would theoretically be unable to pay depositors. But in reality the central banks will just keep the cash physically flowing into the banks so it can be paid to those wishing to cash out. Under such circumstances, only an inability of a central bank to actually print the notes would see a bank fold.
People all over the world are waking up to the fact that they have been conned by the whole fiat system. We may not wear balls and chains but we have never been more enslaved than any time in history. It will be our choice to want out or not. I think we need to follow Iceland's lead and arrest and kick out these evil banking institutions and forgive all debt and start again. Iceland is doing much better after taking such drastic measures.
Unfortunately I haven't seen any concrete evidence of that in ordinary people around me and most have no interest in this and for the few that go one step further, they end up thinking: glad this is not happening in oz and that's where it stops. Outside of the stacker community, people have just no clue and they just don't give a crap unless they are directly affected. This is from observation, but I too hope this can trigger a realisation that the system isn't fine.
Will the people who are in the Euro fiat system, take their savings from the banks..That is the question??? If I lived in Italy, France, Spain or Portugal, I would be stacking a few euros as well as silver. Regards Errol 43
Would you stuff your mattress with euros or would you try to convert it into US dollars? Is it just the banks you don't trust or the whole euro currency? We are talking the money out of our offset account and using it to pay down the mortgage, no point in having it sitting around in a bank account to be stolen at the whim of the banks or the government. Plus I got my wife to see that we had become slaves to the bank, only took five years, there is hope for Australia yet. EDIT: I think the cotton rag content of the US Dollars would make them a better mattress filler.
The US I believe can outlast the Euro due to being one voting nation plus the one controlled military might. Where as the Euro has all these members that elect their own, sort of the "too many cooks spoil the broth" situation.
