Concern mounts as Greek banks are now closed until July 20th.
At the ATMs that are available, there is a 50 euro ($55) withdrawal limit. But many ATMs are closed. They are out of cash…and that problem is getting worse. The country is running out of cash.
Lines grew at gas stations too, as Greek citizens worried about their access to basic needs. Many gas stations and small business have stopped accepting credit cards. It's cash only in a country where cash is increasingly hard to obtain.
The U.S. is clearly concerned about global instability if Greece is kicked out of the euro zone. This past weekend President Obama and Treasury Secretary Jack Lew worked the phones urging European leaders to take every possible measure to keep Greece in the euro zone.
Please remember this warning when you go to the ATM to get cash… and there is none!
Our financial system could take a surprising and catastrophic twist that almost nobody imagines, let alone anticipates.
What we use as money today is mostly credit. It exists as zeros and ones in electronic bank accounts. We never see it. Touch it. Feel it. Count it out. Or lose it behind seat cushions.
A monetary system like this has never before existed. And this one has existed only during a time when credit was undergoing an epic expansion.
At some point, a debt correction is inevitable. Debt expansions are always –always– followed by debt contractions. There is no other way. Debt cannot increase forever.
And when it happens, ZIRP and QE will not be enough to reverse the process, because they are already running at open throttle.
The value of debt drops sharply and fast.
…and suddenly, no one wants to part with a penny, for fear he may never see it again. Credit stops.
House prices will be crashing. (Who will lend against the value of a house?) Stock prices will be crashing. (Who will be able to borrow against his stocks?) Art, collectibles and resources – all will be in free fall.
No. People will hoard the kind of cash they understand… something they can put their hands on… something that is gaining value – rapidly. They'll want dollar bills.
Also, following a well-known pattern, these paper dollars will quickly disappear.
You will go to buy gasoline. You will take out your credit card to pay.
"Cash Only," the sign will say. Because the machinery of the credit economy will be breaking down. The gas station… its suppliers… and its financiers do not want to get stuck with a "credit" from your bankrupt lender!
But no one will know the answers. Quickly, they will stop guessing… and turn to cash.
Our advice: Keep some on hand. You may need it.
P.S. Bill just did something he's never done before… He finally released the shocking research of how this will all end… How it will all come down to one sudden and disturbing event. If you haven't seen it already please DO NOT DELAY – see this immediately