Monday, July 27, 2015

Greek Capital Controls Lessons Learned

Dear ferfal here is a link to the observations o fmine on the subect.

Thanks Greekman. This very much confirms what we’ve been observing and commenting in previous posts regarding cash being king, the problem with importations and how invaluable a bank account abroad can be in times like these.
I’ve also read that many Greeks are using Bitcoin to get around the restrictions.
Digital Dodge: Some Greeks Using Bitcoin to Evade Currency Controls
This could be yet another tool in the tool box, both to avoid the problems with closed banks as well as keeping savings in a different denomination. This advice may be particularly useful for people using weaker currencies or those concerned with fiat currencies in general and looking to diversify for greater security.
Fernando “FerFAL” Aguirre is the author of “The Modern Survival Manual: Surviving the Economic Collapse” and “Bugging Out and Relocating: When Staying is not an Option”.


Don Williams said...

1) Why isn't there a lot of smuggling going on? I mean, Greece is right next to a lot of other countries, both Euro and non-Euro. If tens of thousands of refugees can cross the Med, the why not a few dollars, euros, and yuan as well? Plus high value products like medicines?

2) Here in the USA, New York imposed high taxes on cigarettes decades ago. And in response, a lot of tractor trailer trucks --and people on vacation - started smuggling cigarettes up from North Carolina.

3) A few weeks ago, there were news reports of the Greek government considering a haircut on Greek banking accounts -- confiscating 30 percent of deposits over 8000 euros. If the bankers' politicans become outright thieves then what moral authority will their laws retain?

David The Good said...

Fruit trees are my investment right now. The paper system is so shaky I can't stand keeping much of anything in the banks - and especially not the markets.

Anonymous said...

Greekman's post about capital controls was interesting.

He mentions using prepaid (gift) cards. I have often wondered if a Walmart card is a good store of $ prior to a crisis. But they do expire.

Another thought is to prepay bills like water and electric. Does that make sense?

The gold part I had guessed - who can give you cash for gold when there is no cash? I like Ferfals idea about using junk silver and gold but it still means someone has to accept it and offer goods or cash.

Anonymous said...

Yes - Ferfal's idea of purchasing a 'gold-link' bracelet or necklace, and then you cut off one link at a time to make purchases. The smaller the unit of Gold or Silver, the more likely you will be able to trade in exchange for what you need.

GreekPreparedness said...

Regarding bill prepayment, this was done in a large scale with businesses, right aroudn when there were roumors for a coming haircut.Caught with no access to their bank account, they rightly judged they better spend the money now, than get haircuted or locked and Drachma comeing. Their value would sink and it would cost them twice as much to pay them.
Ina different sale even the people with a considerable sum in their bank account spend as much as they can on their homes, from fixing to even renovatting them.
The purpose of course is to get the most value out of your money.

thank you all for you interest, I am here to be any help I can....

GreekPreparedness said...

@ Anonymous

That is very situation specific. Over here one would loose a lot of value. You buy with the price of a jewelry and sell at the current gold price with an aditional discount.

Indeed the smaller the value of the precious metal the easier to re-cell. For thsi i nvy the Americans with their silver dollars. The British gold pound worths 294 dollars today.