Skip to comments.Cyprus bailout: Kremlin 'could punish Europe' in reprisal for bank levy [Prepper]
Posted on 03/24/2013 9:59:37 AM PDT by Vince Ferrer
Fears are growing of Russian reprisals against European businesses as EU authorities desperately seek a deal to save the Cypriot economy by imposing a 25% levy on bank deposits of more than 100,000.
As the island scrambled to put together a rescue programme, its finance minister, Michalis Sarris, said "significant progress" had been made on the latest levy plan in talks with officials from the European Union, the European Central Bank and the International Monetary Fund.
(Excerpt) Read more at guardian.co.uk ...
This is a good scenario to keep in mind for prepping. By closing the financial institutions, the economy is grinding to a halt, and things like food are increasingly unavailable at any price. So, food storage works in situations like this.
But beyond this, this is why having good old physical cash is actually better than having gold or silver. Using stockpiled gold is useless to pay for anything in a situation like this. What they need is cash, to keep paying their obligations and debts.
And while having physical cash usually isn't seen as an investment, because it is not earning interest, during a situation like this it can be used to buy assets that others must sell because they have no cash. Anyone with cash can get a steep discount for luxury goods, especially ones that others are still paying debts on. For anyone with their cash outside the banks in Cyprus, the country is like one big garage sale opening up.
German elections are in the fall. It’d be easy to dump fifty million in the midst of the German campaign with the Linke Party (far left) and the Alternative Party for Germany group. They could both take fifteen percent of the vote, and really screw up any type of coalition effort with Merkel.
>>This is a good scenario to keep in mind for prepping. By closing the financial institutions, the economy is grinding to a halt, and things like food are increasingly unavailable at any price. So, food storage works in situations like this.<<
Yep — the more I look at Cypress the more I am convinced it could happen here (as said before).
So do you propose to have the US rescue the EU? I think they’re big boys now, and have to deal with Putin themselves.
...and we all await the Palm Sunday Miracle in Brussels
The Guardian is providing updates.
good old “physical cash”?
you mean, paper printed by the govt with a promise on it?
like Confederate dollars?
If shtf and I am selling land, a car, a furnace, drilling you a well, or anything .... I take gold or silver coins over a wheelbarrow full of paper notes that tomorrow you need two wheelbarrows full of cash to buy the same stuff
And what about the times when you are buying, and no one wants gold, because they still have to buy things in cash?
I like beans, bullets and pullets
I just heard on Fox News an hour or so ago, that the next several hours would determine what would happen in Cyprus. I suppose that means some kind of meeting is going on right now to deal with this one way or another.
“If shtf and I am selling land, a car, a furnace, drilling you a well, or anything .... I take gold or silver coins over a wheelbarrow full of paper notes that tomorrow you need two wheelbarrows full of cash to buy the same stuff”
If it’s bad and there is no food or anything else, you might sell those items for food or soap or in exchange for medical care, etc..
There is a discussion here whether to have gold or silver or cash. I would add barter goods people need and have a mixture of all those means to be able to purchase. I would have more silver than gold.
I agree with you. I have a wide range of things...
Along with knowledge and a few skills. Those can be bartered with, too.
Selco talks about trading his EMT skills a number of times on his blog.
That's why I have beefed up medical supplies. Hard, more expensive medical equipment I had but had to add softer supplies to treat more than two or three people.
I don't spread around to people I was an EMT. However, a couple in these townhomes manage this place and I was talking to them and told them that background as they are an older couple and I would help them if I could if they got into medical trouble. The wife looked at the husband and said, "I'm going to tell her what happened last night." She told me what happened and I asked certain questions, then told her to go to her heart doctor the next day. She said she had seen him several days ago. Told her to go anyway because what happened to her sounded like a heart attack. She went and sure enough he did an EKG and said she had a mild heart attack and changed her medicine. She hasn't had another occurrence of that since then.
She had answered "yes" to every question I asked that indicated a heart attack and I knew she had one. I checked her vital signs and they were okay right then but she needed to go back to that doctor. So, sometimes it's not what medical preps you have, it's medical knowledge to know how to interpret signs of illness that is important.
When she began to tell me what happened, my mind automatically shifted into medical action mode and I started asking those questions and it was like the EMT training book was right there in my brain. I had also responded to patients with heart attacks before.
By the way, Kartographer, I can also deliver babies so if you need that service, I could do that.
I suppose folks have to think through whether, in a breakdown of the financial system followed quickly by a breakdown of social order, they plan to shelter in place or stay flexible enough to bug out
Me I prefer the latter scenario, therefore I can carry silver and gold coins for “barter” but I cannot carry toilet paper or bags of rice, etc. Junk silver coins for small stuff, gold coins if a big exchange item is needed.
Good for those who are pantry stocking as long as they think they can stay and defend their stockpile of rice, aspirin, soap, whiskey, batteries and toilet paper for a long long time. Not everyone lives miles out in the country on tillable land with water and easily take themselves off the grid so no roaming desperate citizens find them
Especially once local word gets out they got extra stuff in that pantry to barter with. Then how long can bullet owners stay up with one eye open, and truly how many men women and feral kids can they shoot before numbers turn
Me.... I think about going on the move if the situation gets out of control, and stop when and where it’s safe to do so. Liveaboard sailboat, maps, fishing gear, water purification, etc offers a getaway option if land travel not expedient
There is an art to know when it is safe to barter and you never do it from your house. And, you don't do it until things have calmed down and there is a safe place to barter. And, you use small items to use for barter, never anything that would say you have lots of “stuff” at your house.
I wouldn't have to barter for anything but I still have everyday items people need, to use for barter should I need to - bars of soap is one of those. Could also give medical care for items I might need.
Looks like Russians are gonna take a hit. Drudge has a link up top.
Cyprus is not like the U.S.. When the end comes there, the Euro will still exist and, you're right, a stash of Euros will be valuable.
But if the collapse comes to America, a wad of dollars will be worthless.
That is true. If the dollar collapses and they try to fix things by hyperinflating, or devaluing the dollar, then yes, holding cash is the last thing you want. However, I think that point is still a ways off. For one thing, Japan and now Europe are back in crisis mode, and China may not be too far behind. We are looking good by comparison, and so there are a lot of people around the world who will be trying to put money here. They are already buying up our real estate, Japanese companies are buying assets here, they are buying are markets. This makes the dollar more valuable. Gold should not be doing well right now, at least in dollars. Gold priced in Euros might skyrocket, but not in dollars.
Right now dollars are king, until Europe, Japan, and China fall, and they are at the bottom. Then we will fall last, and the dollar goes with it. In the meantime, by having valuable dollars, you will be able to buy other assets cheap, because they are falling against the dollar
I'm not predicting an imminent collapse, either, but the facts you mention, though they do make the dollar more valuable on foreign exchange markets, do not translate directly into increased purchasing power at home.
The higher value abroad is a very mixed blessing. It does bring investment [good], but it does encourage more importing of foreign goods, too [not good when it's caused by money manipulation]. Ugly times we're in, methinks.