[Ripon]

Cyprus banking / confiscation fiasco really only had the potential to ruin our way of life "emotionally.". There was going to be very little impact on people outside of Cyprus, but the potential for the EOTWAWKI was in the response. To that end it might be beneficial main stream media ignored it. While I prep, build for, and expect the inevitable collapse of our currency I don't want it to happen, and unlike some I believe it is preventable. An "event" like the Cyprus one is just that an event, and in a world of open communications an event has the potential of becoming a domino and causing "effect.".

I've stated in the thread started by our local Cyprus resident that I wished that I could see the stats for the US banking system and International banking systems on Mondays deposits / withdrawals. My guess is there was a small run on banks by people like us - that pay attention. Now in case you have not paid attention to some past posts with links to the St. Louis Fed Reserve stat page on bank reserves they have changed some since 2008. Perhaps that is actually a good thing. In 2007 they were 80-100 billion dollars. The last I looked they've exceeded 2 trillion now since 09. Yes a 20 fold increase. That makes for an interesting issue if there was a "run" on the banks - the banks do have the money!

Cyprus has or at least had the potential to instill fear. Fear as we all know causes problems. If the fear grows and we have the elites withdrawing cash then we have a crisis on the edge. If they consider it an isolated little issue with no legs outside Cyprus it's not the EOTWAWKI.

 

[9UC]

On numerous occasions I have even heard that our current government has given thought to this idea. A number of the group to which I belong have moved money out of banks and have bought metals and or Store cash..

 

[hayden]

I have a motorized sat dish and a free thru air reciever and I saw this story a couple days ago about the banking crisis in Cyprus and I'll have to admit while I was out running errands I did stop at an ATM and pick up $200 cash. I might do it again today. There is a 200 dollar limit per day at the ATM. My credit union doesn't pay hardly any interest on my money so maybe I'll just withdraw most of it and stash it under the mattress.

 

[Verteidiger]

I would agree that Cyprus' situation will be solved - the need for capital infusion for their banks will be collateralized (secured) by the gas field and energy sales from that will allow the loans to be repaid.

What Cyprus does do, for me at least, is confirm just how quickly the S can HTF as far as economic crises are concerned. Cypriots woke up to their money being confiscated by governmental authorities, their accounts frozen and banks locked closed. If that does not cause concern, I do not know what would. Thankfully reasonable minds prevailed, but the lesson is - this is how the finance capitalists may make their move.

We all know how indebted some countries are. Some can just print more money to delay actually defaulting on their debt obligations. Other countries cannot, and so the EU and IMF came up with a different scheme to collateralize the capital infusion, and a bankrupt government that cannot print Euros was forced to agree to skim depositors account for their "down payment" on the larger loan.

What troubled me was the "trial balloon" aspect. The worldwide and Cyprus-wide reaction was stronger than anticipated, I am sure. But to me it foreshadows what could happen in the future. The USA has faced its own default situation more than once. Deficit spending continues as the norm (4.5 years, still no budget). Either they tax the wallets right out of our pockets, or they decide to "tax" or "bank levy" accounts held on deposit, or decide that what is supposed to be tax-free (municipal bonds) or tax-deferred (retirement accounts) are now subject to imposition of taxes. This has already been discussed in our Congress.

Now they want to eliminate the mortgage interest tax deduction, one of the last tax shelters.

Analyze what you really pay in taxes. Fed and/or state income tax, property tax, sales tax, gasoline taxes, etc. Government taxes, all accounted for, can run between 40 to 60 cents on every dollar, or higher.

Then they come after what was supposed to be after-taxes money? And people cannot stop it unless they riot? WTF?

So, that is why it caught my attention. I think the finance capitalists just tipped their hand. I know I saw one of their cards.

And I did not like what I saw, and now I am planning what to do about dealing with what I just saw.

I contemplated emptying my accounts, cashing out all of them. I will be honest. I did not, yet.

But my analysis of the situation is not yet complete.

I hate having my money being controlled by the finance capitalists and government, I really do.

This was a real eye opener for me, not because Cyprus is the model, but because of what happened to Cypriots, and to Americans here when their banks went under and their accounts were frozen and then restored by the FDIC.

It can happen tomorrow. Even if others don't acknowledge it - I have seen it happen before, as others have.

Now I just need to decide what I plan to do about it.

 

[Ripon]

We have even had a US Senator suggest its not a bad idea. However most of the chatter was about retirement accounts
when obama hired some woman who wrote an essay on the topic of taxing retirement savings at 10% once every 10 years
to help out social security.

There are some in the conspiracy community who have tossed out the idea Cyprus is but a "trial run" to see how it goes.
I don't keep very much in a bank, but I do some since I don't use credit cards and prefer debt - and sadly still need a piece
of plastic for online purchases and such. I doubt I'd lose 500 in a crisis even if the banks shut down completely.

The thing domino effect hysteria. If this action had driven the people of Greece, Italy and Spain to make a run on the
banks, then France, Germany and England - it would domino right over to the good ole USA and we could easily be
in a "SHTF" crisis in a matter of days.

On numerous occasions I have even heard that our current government has given thought to this idea. A number of the group to which I belong have moved money out of banks and have bought metals and or Store cash..

 

[AquaHull]

I have a motorized sat dish and a free thru air reciever and I saw this story a couple days ago about the banking crisis in Cyprus and I'll have to admit while I was out running errands I did stop at an ATM and pick up $200 cash. I might do it again today. There is a 200 dollar limit per day at the ATM. My credit union doesn't pay hardly any interest on my money so maybe I'll just withdraw most of it and stash it under the mattress.

I'll just keep it in my front pocket. It's guarded at all times.

 

[JPARIZ]

I tried to take a large amount out of my savings account and the teller insisted that I give her a reason why I wanted some of "MY" money. I reminded her that it was none of her business. She said she needed to know then asked if I was buying a car or paying off a mortgage. I asked for the withdrawal slip back so I could change it. When she gave it to me I gave her a new one for the full amount in my account. Of course she asked why. I told her that the reason I wanted all my money was because she was too damn nosy and I was changing banks. She said "Thanks, that was all she needed to know. WTF?

 

[paraquack]

I agree with you Verteidiger, I am very concerned over the money I live on for retirement. The real problem is paper isn't worth the paper it's printed on and going to gold or other precious metals scares me too. Can't eat gold, you know. Wish I had pulled my IRA out a couple of years ago and invested in copper plated lead. Now that is something that seems go up in value faster than gold. Haven't figured out what to do yet, either.

 

[Seneca]

Prepper 101...keep some cash on hand...20's and smaller. If the economy tanks many places will refuse credit and debit cards before they quit taking cash. I know paper is basically worthless but if they freeze accounts paper will trade for a while where plastic won't.

 

[pharmer14]

I have a motorized sat dish and a free thru air reciever and I saw this story a couple days ago about the banking crisis in Cyprus and I'll have to admit while I was out running errands I did stop at an ATM and pick up $200 cash. I might do it again today. There is a 200 dollar limit per day at the ATM. My credit union doesn't pay hardly any interest on my money so maybe I'll just withdraw most of it and stash it under the mattress.

Putting it under a mattress doesn't make much sense to me. I think it's a time to bump up the prep budget a little more. After all, what good is money if we become the Banana Republic? It will be useless. This is the worst time to try to protect money. Take a class to gain a new skill. Carpentry, electricity, gardening, whatever... Stuffing money in a mattress just seems like way too passive of a reaction to me... unless you're short on fire starting material that is...

 

[inceptor]

Putting it under a mattress doesn't make much sense to me. I think it's a time to bump up the prep budget a little more. After all, what good is money if we become the Banana Republic? It will be useless. This is the worst time to try to protect money. Take a class to gain a new skill. Carpentry, electricity, gardening, whatever... Stuffing money in a mattress just seems like way too passive of a reaction to me... unless you're short on fire starting material that is...

I can't argue that one. If money is gone only barter is left. Skills can be bartered along with goods and metals.

 

[Seneca]

Economic collapses happen in stages, and there is a peroid of time between WTF and OMG where cash will spend.

Having cash in hand, sure beats standing in line outside a bank that isn't going to open...or if the bank does open standing in line hoping to be able to withdraw cash from your account.

With a little prior planning one can avoid that scenario entirely...how much cash should one have on hand? I imagine that depends on what you want to do with it before it become worthless...

 

[pharmer14]

Economic collapses happen in stages, and there is a peroid of time between WTF and OMG where cash will spend.

Having cash in hand, sure beats standing in line outside a bank that isn't going to open...or if the bank does open standing in line hoping to be able to withdraw cash from your account.

With a little prior planning one can avoid that scenario entirely...how much cash should one have on hand? I imagine that depends on what you want to do with it before it become worthless...

I agree. There will be a few people out there gullible enough to sell off items for cash. I'm not opposed to having some laying around, but I wouldn't pull the entirety of my savings account or anything.

 

[PaulS]

You should put your money into:
1. a stable and growing foreign currency - that will protect you from inflation and make some money.
2. Gold or Silver - which will only protect you from run away inflation but it is better than the bank or your mattress.
3. foreign stocks - which can be very risky and you might lose money if something happens to those companies.

Aside from this you should have at least two skills that would be able to be used without power or fuel to make something that most people will find useful (indispensible is better).

 

[IngaLisa]

On 9-11, I went to the bank, with a check I had for over $6000 and I wanted cash. It was a small town bank, and they thought I was crazy. They threw a fit. They didn't HAVE that kind of cash they said. I insisted, and I did leave with my cash. Turns out it was all worry for nothing. I beat any run on the banks, and I am sure other people followed me, but getting money wasn't a huge issue. That said, the problem with having 'cash' is, it could be worthless. Water, food, weapons and ammo, pharmaceuticals, and skilled services such as being a nurse or doctor, or person who can repair things, will be currency if things go bad. I am a strong believer in sustainability. If you can't regenerate your food, eventually, you end up like every one else, begging or stealing it. I assume if things ever get that bad, what is 'yours' is what you can defend. Unfortunately, most of our money comes from a pension these days. It's the best run pension system in the country, but if things go belly up, it will too. We have some money saved right now, but, I am not going to buy gold right now, while it is high. With the stock market getting this high, I can't help but think it is going to crash soon. I dunno....I just keep working on making things here sustainable, chickens, eggs, garden, saving seed, collecting unmechanized tools, and hoping for the best. BTW, I am not one of those back-to-the-landers who is under the illusion that I don't need a weapon....heck, a skunk tried to steal my eggs yesterday, can you imagine? Some stinkers you can't negotiate with.

 

[paraquack]

Can't even use it as TP, at least I can't (or won't).

 

[Seneca]

I agree. There will be a few people out there gullible enough to sell off items for cash. I'm not opposed to having some laying around, but I wouldn't pull the entirety of my savings account or anything.

Yeah...I think you get it. Just a little stash of rainy day cash...nothing that will break the piggy bank or your back...just enough to come in handy should the need arise.

 

[LucianoPavarotti]

@Verteidiger, I really feel the same thing, the fact is our properties in banks are being manipulated, and there is always the potential danger of confiscation of either cash or precious metal deposits, especially that confiscation of bank deposits in the US is absolutely legal, it really freaked me out when I read this article Security Safes, A Cyprus Bank, And You | Fire Proof Safes the issue is that bankers consider our deposits as if these deposits were wheat or cotton deposited with warehouse owners, all wheat is the same, all cotton is the same, in the same context all the money are the same, and so, money can be "taken" at some time, and then maybe "replaced" at a later time or simply never returned back to us, nobody knows.
so I made up my mind to cash out my account, and put my money and documents in a home fireproof and waterproof safe.

 

[esaf]

I got into gold (GLD mutual fund) before the run-up and just sold two weeks ago before it crashed, so my timing was very good. But I am concerned that the stock market is nothing but a scam at this point. Here is an article of the Drudge Report today that is frightening if you are worried about the stock market: $2 Trillion Underground Economy May Be Recovery's Savior