Cyprus- Let's wargame it...

[rockriver]

reading these posts... i get the feeling folks are making withdrawals..
if not readers here, then listeners to the tv news...
a few folks are beginning to wake up on main street, usa.

the idea that the gov't will steal their hard earned money hasn't settled well.
bottom line.. only solution i'm hearing is
"take most of your money out of the banks"

so,,, if you take it out and don't go to another bank with it... then that means
you either went and bought a gun, truck, bol, etc.. OR
you buried it in a tin can in your back yard or your safe, or under your mattress.

so... what will govt' reaction be??
i think we are looking at a new currency.
a trade in the old for new currecny.
there will be lots of talk about we've got to weed out the counterfeiters
and talk of drug dealers hoarding dollars, etc..
and both of these are good talking points, but the main reason will be to get folks
money out of their tin cans..

[Benn Gleck]

RR, maybe they're not putting cash in tin cans. Maybe they are buying things like PMs, water filters/pumps, food, ammo(if they could find it), fuel, tangibles, things you can touch. It'd be kinda hard to turn those things into the .Gov. If people were smart thats what they'd do. IMHO

[Lowdown3]

Anybody remember the savings and loan debacle of the 1980s? Well I do, I had a sizeable amount of money in money market certificates that was frozen along with a savings account. I couldn't touch that money for over a month. When I finally got access I took it out and bought a house. I also vowed to never have all my eggs in one basket again. Now I have accounts with three banks two checking and two savings but very little in any of them. Will this help if a Cyprus style theft occurs here? No. But it might lessen the effects as one of the banks is a small town bank with just two branches.
The only plan I have is the same as most people on this forum have. I have a small place in the country that I have been beekeeping, gardening, orcharding(is that a word?), stockpiling food, fuel, ammo and p.m's on. I've been working on skill sets,debt reduction and most of all trying to develop a closer relationship with God.
The reason I don't post here much is most of my spare time is at the BOL trying to get it ready so I can sell my home in the burbs and move there. I don't watch TV there or have a computer there, seem to get more done that way.

Love you all, Benn

+1,000,000

COLMOLLIIN

Money still and will continue to have a major part of daily life, but everything we can produce ourselves lessens our dependence on the system and lessens our NEED for cash. No electric bill means no need for $150. or so a month to go to the electric company. No debt means no thousands needed to go to banks for house and car loans, etc.

Good preparedness and homesteading makes financial sense.

[Lowdown3]

http://www.bloomberg.com/news/2013-03-25/cyprus-to-chop-banking-system-to-win-aid-avoid-default.html

More bad news for the people of Cyprus.

Six months of emergency CASH outside of the bank hopefully looks smarter and smarter to people now huh?

[rockriver]

an assoc. called last night saying that part of the cyprus bailout included a takeover of retirement accounts. i haven't seen that on the news.
the assoc. sometimes just likes to "crank my tractor" i suspect all he was doing was
stirring the pot.

[Lowdown3]

How many with no cash or just pocket cash, putting all their hopes in PM's ALONE would be "down there at the pawn shop" right now taking WHATEVER THEY WOULD GIVE THEM to get some cash?

Balanced approach includes some cash. People may start fires with it LONG LONG LONG into the collapse, but early on, people will take it and recognize it still as a measure of value.

[Not_Yet_Prepped]

How many with no cash or just pocket cash, putting all their hopes in PM's ALONE would be "down there at the pawn shop" right now taking WHATEVER THEY WOULD GIVE THEM to get some cash?

Balanced approach includes some cash. People may start fires with it LONG LONG LONG into the collapse, but early on, people will take it and recognize it still as a measure of value.

I agree. PMs are wealth protection only very long term (multi years). Also tons of cash on hand is possible problem. I spent a year in a country that was once behind the "Iron Curtain" only a few years after it fell. I spook to a few different 'elders' about the changes going into communism and coming out of it. You had limited time to convert your cash to the new currency and during that time the value of the currency was "adjusted". So if you had a large amount of cash stored it was suddenly worth whatever it could buy in the new currency only. And you must exchange it or it was worthless once you hit day x... Also about PMs, going into communism they issued a "collection" of all PMs, not just currency but all (some minor jewelry was excluded). Armed Men searched every house, door to door, collecting the PMs. So if you are buying PMs I hope you are Hiding the PMs.

[Lowdown3]

Yes, every option has pitfalls.

If BG's or the gubmint is going "door to door" jacking cash and/or PM's, we got much bigger problems than money....

[Not_Yet_Prepped]

Lowdown,

I was agreeing with your "Balanced" approach idea, I was pointing out one of the problems with too much cash...

A Currency "exchange" will make you "buy" the new currency under a time constraint and they MAY even decide to "tax" that cash... "Oh you are turning in $20K so you owe money on that savings" or maybe they will say "you are suspected of funding terrorism because you had over X amount of cash, we will not let you take this cash until we clear this up."

[Patriotic Sheepdog]

Okay, I've read some reports that are saying anyone with over 100,000 euros in the bank will get a significant haircut of 40%-100%. Has anyone here heard the real amount, although any % sucks. I heard that the way the "deal" was structured, even the parliament couldn't vote on it...it was a deal between banks and the IMF. I feel this is a trial balloon. Spain is now talking some same crazy ideas. Who's next after that? Italy, Portugal, Greece? Or US?


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[seraphima]

This is the best article I have seen on the Cyprus situation- much fuller:

http://www.independent.ie/opinion/analysis/colm-mccarthy-shocking-treatment-of-cyprus-has-exposed-eurozones-inherent-flaws-29150368.html

[miked2345]

I was talking with some co-workers last week about the Cyprus deal and possible bank-runs there when they re-open. The common thought at the office was "No worries... We got the FDIC to protect us if there's a bank-run!"

Umm, yeah.... about that.

I read the other day that the FDIC fund is aprox 25 Billion. Just JP Morgan Chase alone has over 1 Trillion in deposit accounts. So I don't feel real re-assured anymore about that FDIC sticker on the front door of my bank!!

[Patriotic Sheepdog]

So, it's been about 11-12 days since the banks have been closed despite the gov saying they would only be closed for two days. Wonder how many people were wishing they had some stored food and some extra cash under the mattress?


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[Lowdown3]

Ahh come on now, we can always trust what the gubmint and media tells us right!!! I mean, so many of us think that we will be able to watch the TV and get "early warning" to bug out right? LOL

"A mushroom cloud was seen over six cities this morning, nothing to see here people move along. On Amerikan Idolatry last night the winner of the get jiggy dance contest was...."

[Rmplstlskn]

News I heard was that they were raiding the 100,000 euro and above accounts by 30% or higher... If Cyprus truly has lots of dirty criminal money, I will not be surprised if the account owners put hits on those EU leaders involved... Steal 30% or more of a mobsters money is a quick way to take a dirt nap in a very painful, drawn out way... Time will tell...

Rmpl