Greek banks to shut for six days; ATM withdrawals capped at €60 a ...

Message:
Hello from Greece. About the situation with capital controls.
-A lot of false information on media in Greece (TV, Social media etc.) is spread. You do not know what true or not any more is. A lot of rumors are presented as real news by people that benefit from the situation.
-People cannot use their debit cards for food or fuel. Most supermarkets and fuel shops only accept cash. The same goes for other kind of shops, although public announcements say otherwise.
-Those that had already web banking in use are luckier. They can use it to pay bills and shop online but only from stores within the country. No international shopping.
-Although the situation looked bad weeks ago, many people were unprepared for this and were left with 5€ in their pocket and no food or fuel.
-A lot of shops and companies put their employees in mandatory leave as they cannot get supplies to continue their production. So people that had a good steady job are left without income in addition to the already unemployed.
-Although the government says that capital controls will be withdrawn soon, this is not expected to happen but after many months.
Petros N.
Athens, Greece

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Hello Petros,
Thanks for your email letting us know about what’s really going on over there.
What you are describing in your letter is an exact copy of what happened in Argentina after the “corralito” went up in 2001. Officially speaking, the capital control is done to stop bank runs and money leaving the country, either because Greeks close their bank accounts and horde Euros under their mattresses or directly wire transfer money to banks abroad. Officially speaking, you can use your debit card to pay for food, gas and pay your bills, so you don’t really need a lot of cash. The problem is that’s not what ends up happening in the streets.
Speaking in practical terms, when you’re standing in line in a grocery store with a bottle of milk, some eggs and a bag of bread, you can’t actually force the shop owner or employee to take your debit card if he doesn’t want to. You can complain all you want, but you won’t change that person’s mind. With a country on the edge of collapse, it’s perfectly understandable that most businesses will prefer cash. This also happened in Argentina. The “cash only” signs went up almost instantly. Some of the larger retailers still accepted debit cards but for years gas stations operated on a “cash only” basis after the collapse.
As you say, a lot of people have been caught completely unprepared. We discuss these topics here all the time because we do prepare for these events and notice the red flags, especially such obvious ones as those seen in Greece. Still, the average person in Greece, just like the average person elsewhere, is not a prepper let alone a true survivalist. I think that in the following years, the two main concerns people will have will be the economy and crime. The economic mess you are already seeing and have experienced it for some time now. Crime will be the next stage. With growing poverty, social instability and lots of cash on the streets there’s no way around it you will see crime rise unless the government does and outstanding job in keeping it under control, which I don’t think they will.
You also mention people losing their jobs right now specifically because of the default. Again, the exact same thing happened in Argentina. You already had high unemployment, but this is like a dagger through the heart. Businesses just hold on until they figure out their next move, they downscale, they don’t want to sign any contracts or move any merchandise until they know what’s happening next. From a speculator’s perspective, why would I buy a ton of cheese if maybe tomorrow I can buy it for a lot less money under a new currency? I’d rather stick to my Euros and pile them under the mattress. I can later exchange those Euros for whatever new currency comes up, which will no doubt be worth a lot less and buy that cheese for maybe half the amount of Euros. With this kind of uncertainty, the entire economy just freezes.
Its going to be a bumpy ride in Greece from now own, even more than before. If you have been following my advice over the years it will sure serve you well. If not, then you probably want to start digging into the website archives because you’ll end up experiencing a lot of that sooner rather than later.
FerFAL

Message:
Hello there.
Another Greek citizen here.
I agree with most of the comments OP made:
-A lot of rumors / information is spread by politicians and journalists (both domestic and foreign). No body can tell who tells the truth and who lies and to what extent.
-Regarding credit / debit cards: I do not know in which establishments the OP tried to use debit cards. I can use my debit card in most major retail chains fr food / fuel in Patras. Smaller family held stores probably do not accept them though. This can change of course at any time.
-Web banking still works for Greek shops. Unfortunately web banking is not that spread in Greece.
-OP is probably right. A lot of people are left with little to no cash.
-No personal knowledge about mandatory leave. Have heard about it though.
-Capital controls are here to stay. Nobody believes these measures will be lifted next week. At the moment the limit is 60 Euros per day. This will probably get even lower.

In short things were bad before and now they are getting worse.

P.
Patras
…
Thanks for your message, it’s always nice to have another perspective.
I know what you mean about some stores still using credit cards. I think that big business are more likely to keep using them but even those too can end up demanding cash only. As you say, it can change at any time. While they accept it though, no doubt, it allows you to preserve cash for other things.
Greeks being fed up with politicians sounds extremely familiar. In Argentina the exact same thing happened. Back then, signs held by protesters read “que se vayan todos” , which somewhat translated into “ fire them all”.
FerFAL

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”.
http://www.themodernsurvivalist.com/archives/4281

Greeks being fed up with politicians sounds extremely familiar. In Argentina the exact same thing happened. Back then, signs held by protesters read “que se vayan todos” , which somewhat translated into “ fire them all”.

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Unfortunately this time it is the decisions of the people themselves and they who are now faced with the consequences.

They can't blame the politicians.  They have repeatedly voted for this path.  They voted themselves bread and circus.  Now the check is due.

"Bread and circuses" (or bread and games; from Latin: panem et circenses) is metonymic for a superficial means of appeasement. In the case of politics, the phrase is used to describe the generation of public approval, not through exemplary or excellent public service or public policy, but through diversion; distraction; or the mere satisfaction of the immediate, shallow requirements of a populace,[1] as an offered "palliative." Its originator, Juvenal, used the phrase to decry the selfishness of common people and their neglect of wider concerns.[2][3][4] The phrase also implies the erosion or ignorance of civic duty amongst the concerns of the commoner

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So have we, when is our check due???

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So, are the guys that stored Gold and Silver better off now?

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just saw this on the news. This guy. broke, sells his wedding ring to make a few bucks.
http://money.cnn.com/2015/07/03/news/economy/greece-crisis-referendum-polls/index.html
FerFAL

Quoted:
It's definitely happening in Greece right now.

News report on drudge says that the store shelves are being picked clean.

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They voted down the proposed austerity measures. Meltdown!

Quoted:
It's definitely happening in Greece right now.

News report on drudge says that the store shelves are being picked clean.

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The trouble with socialism is pretty soon you run out of everybody else's money!  

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Perhaps reading this forum has changed me, and my thinking is no longer normal.   I really find it difficult to

believe that anyone in Greece with a choice failed to prepare with food, fuel and cash. This situation has been

brewing for so long no one could possibly have missed it.  

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I'm guessing what happens now is:

German banks try to seize Greek assets outside of Greece.
The flow of foreign capital into Greece stops.
Greece begins to print Drachmas and uses them to try to pay debts.
Drachmas begin to inflate greatly.
Most imports into Greece either decline or cease.
Greeks on fixed Drachma incomes get seriously hurt by inflation.
Many Greeks leave Greece to live, work, and/or receive local benefits in other EU nations.

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IF what is happening in Greece happened in the US, I could probably last about a month, or two if I am careful, with my SHTF supplies. This could be like a Hurricane Andrew or something, but without all of the damages.

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So, are the guys that stored Gold and Silver better off now?

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Thus far, I am impressed that the Greeks haven't started breaking shit yet. They seem to just be quietly beginning their suffering.  Big cultural differences there could be in play - intact communities, multigenerational households, etc?

If those types of capital controls were imposed on Americans, all living hell would break loose. Every big box and grocery store would be emptied overnight.

What are the firearm laws like in Greece?

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Just give it a few days. I think many of the Greeks still believe their government is going to pull some miracle out of their hat and that everyone can just go back to living the Greek lifestyle.

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I am certain, Greece will go through what I went through in Yugoslavia. Civil unrest, economic collapse, then civil war.

Mark my words.

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I am certain, Greece will go through what I went through in Yugoslavia. Civil unrest, economic collapse, then civil war.

Mark my words.