Greece has run out of OPM

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April 3rd, 2016 at 5:45:01 AM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 62
Posts: 7831
ALL governments want to SPEND and thumb their noses at FOREIGNERS and BANKERS. Austerity? Greeks say let the IMF nations go on an austerity budget so they can give us more money to waste as we want to waste it.
September 25th, 2016 at 9:11:12 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 1068
Posts: 12569
Quote: Wizard
I'm following this story closely. As some of you may know, I used to have a foreign bank account out of Cyprus because I couldn't get paid by Bodog/Bovada through US banks. That bank was heavily vested in Greece, who defaulted on bond payments as I understand it, which led to a run on the Cyprus banks, which led to me losing a lot of money, which led to the sale of my Wizard sites.

This could be the beginning of a very major story. As I said, I'm following it closely.


Greek bank deposits went from 238 billion euros in September 2009 to 151 billion euros in June 2012. Since then they have dropped even lower. Much of the billions of euros were sheltered elsewhere in the EU. That kind of movement of capital is largely facilitated with banknotes, as capital controls prevent the easy electronic transfer of that levels of money. In the year 2000 when the Greece Drachma was fixed in value to the Euro, all the Greek drachma banknotes cumulatively were worth 8.9 billion Euros.

Think how much more difficult it would be to transfer that amount of capital with less than 9 billion in banknotes.In addition the largest banknote (10,000 drachmas) was worth only €29.35 .

After the 3 week bank shutdown in July 2015 when this thread began, ATM withdrawals were limited to €60 per day and €420 per week. But since ATMs are not stocked with €20 banknotes, that means taking out a €50 every day, and essentially €350 per week if you took the time to stand in line every single day and the ATM didn't run out of cash. In theory you could go to a teller and get the full €60 a day, but what kind of bank is going to open their doors to that kind of angry mob.



Sweden still continues to eliminate banknotes every month. Recently purchases of 200kr or less (~$23) no longer require a signature or a PIIN number. It makes it even easier to rely totally on electronic payments



Norway's Central Bank is going to introduce new 100kr and 200kr in 2017, 50kr and 500kr banknotes in 2018, and 1000kr banknotes in 2019. One of their arguments for this order is that the new 500kr banknote is the same width as the old 200kr banknote. So they want to eliminate and declare invalid all the old 200kr banknotes first as they are afraid of people fooling automatic banknote counters and/or the blind.

They don't explain why they would wait three years to introduce the most valuable banknote, the 1000kr~$123 all by itself when it is the banknote with the lowest circulation. I think the answer is obvious. By 2019 they believe they can persuade the Norwegian public to simply eliminate the banknote. Most of the 1000kr banknotes are invisible in normal transactions, so they must all be in home safes.

Current Circulation figures in Norway on per person basis
4.1: 50 kr
4.1: 100 kr
5.7: 200 kr
7.0: 500 kr
3.4: 1,000 kr ~ $123

If Scandinavia's real estate market crashes and they go into severe economic downturn, then they will not have to impose capital controls like Greece, because there will simply be no cash.
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