Greece Seeing Runs on Banks – Escalating

Making a Withdrawal - Of Everything

We’re seeing the beginning of the end for Greece.  The runs on banks area escalating even now.  People are beginning to panic as they realize their life savings are at risk, and they’re withdrawing the money so they can stuff their mattresses.  The problem is, hyper-inflation, which may be just around the corner, will turn their mattresses full of paper into worthless kindling.  There’s no point in pretending otherwise, as the Greeks have looted their own government and monetary system to the extent that it’s probably unrecoverable.  Greece is going down. Back in the 1980’s, as I listened to the first debates about the formation of the EU, I listened to opponents.

They worried that they were getting suckered into a bottomless pit of debt with the Mediterranean countries, that were well-known for their fiscal and monetary unreliability.   I feel badly for Europe, but guess what?  Our Federal Reserve and the International Monetary Fund have managed to link us to the same fate. Here are some tidbits from Bild via ForexCrunch:

“I come here to immediately pick up my pension € 300. Who knows what else happened today. My money is safe only when it is at home” said Pensioners Evagelos Dimitros age 73.

The head of an Athens bank branch told BILD: “More and more Greeks who still have some money come to get it from the bank. In my office there are a total of 5,000 customers, 2,500 of which either have their money transferred abroad or hoard it at home. If this continues, there will soon be no more money.”

This is a warning and an alarm bell ringing for all of Europe.  This is the beginning of the collapse of the European single currency, whether they realize it or not.  The British should jump ship from the EU Titanic if they wish to save themselves.  The Germans may be left holding the bag, and Italy is on the verge of following suit immediately.

Ladies and gentlemen, through a string of bad decisions, and suicidal policies that have promoted the growth of socialism, we have a true calamity coming.  Even now, as the  European heads of state meet to discuss what to do next, it seems they will fail to avert this crisis. Of course they will.  There’s no way around it.  Neither big government, nor even big, big, big government can fix this in any way but one: Slash spending.  Until the member governments are willing to do that, there’s no hope.

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3 Responses to Greece Seeing Runs on Banks – Escalating

  1. A rather gloomy analysis but sadly most probably completely accurate!

  2. Kitty says:

    How soon before the US joins the list?

  3. SeanStLouis says:

    "nor even big, big, big government can fix this in any way but one: Slash spending".

    Mark is absolutely right and this is something that the U.S. government, and most Americans, are unwilling to do. Not only must we slash spending, but we must begin dismantling the system that allows unlimited spending (The Federal Reserve) and seriously talk about sound monetary policy.

    The fact is that we are already on "the list" and it is only our ability to create money out of thin air that has allowed us to survive this long. If we wish to avoid the fate of inflationary spending then we must insist that our government immediately, and severely, cut spending, reduce the size and scope of government, and get back to the fundamentals of sound money.

    A correction must occur soon or it will be too late.