{"id":9856,"date":"2015-07-09T07:40:58","date_gmt":"2015-07-09T12:40:58","guid":{"rendered":"http:\/\/olduvai.ca\/?p=9856"},"modified":"2015-07-09T07:40:58","modified_gmt":"2015-07-09T12:40:58","slug":"a-lesson-from-the-greek-crisis-safe-deposit-boxes-are-not-safe","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=9856","title":{"rendered":"A Lesson From the Greek Crisis: Safe Deposit Boxes Are Not Safe"},"content":{"rendered":"
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A Lesson From the Greek Crisis: Safe Deposit Boxes Are Not Safe<\/a><\/h3>\n

Last week the Greek government imposed\u00a0capital controls<\/a>\u00a0to prevent cash from escaping from the Greek banking system, which is on the brink of collapse. \u00a0These repressive financial measures, which were invented by \u201cHitler\u2019s banker\u201d\u00a0Hjalmar<\/span>\u00a0Schacht<\/span>\u00a0in the\u00a01930s<\/span>, include the closing of banks, \u00a0limiting cash withdrawals from ATMs to 60\u00a0euros<\/span>\u00a0($67) per day, and the banning of all money transfers via credit and debit cards to accounts held in foreign countries. \u00a0Despite these Draconian\u00a0controls, Greek banks continue to hemorrhage cash and, after yesterday\u2019s referendum, it is probable that\u00a0the daily limit on withdrawals from ATMs will be tightened<\/a>. \u00a0Worse yet, the reeling Greek public suffered another shock yesterday when\u00a0Deputy Finance Minister Nadia\u00a0Valavani<\/span>\u00a0revealed to Greek television that the government and banks had already agreed that people would also not be allowed to withdraw cash from safe deposit boxes for as long as the controls were in place. \u00a0This may be part of a fallback plan if theECB<\/span>\u00a0ends its bailout of the Greek banks. \u00a0The government with the\u00a0banks\u2019 connivance would seize the cash\u00a0euros<\/span>\u00a0stored in these boxes and compensate their lessees by crediting an equal sum of\u00a0euros<\/span>\u00a0to their increasingly inaccessible checking deposits. \u00a0The cash would then be fed into ATMs to postpone the day of reckoning for Greece\u2019s zombie fractional-reserve banks.<\/p>\n<\/header>\n

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\"Bank<\/a><\/p>\n

In the meantime, the market has been working to provide a private,\u00a0nonbank<\/span>\u00a0alternative for Greeks to safely store cash. \u00a0In Dublin, Ireland enterprising\u00a0diamond dealer Seamus\u00a0Fahy<\/span>, who owns\u00a0Merrion<\/span>\u00a0Vaults<\/a>, is offering a 15% discount for Greeks who are able to evade the fascist capital controls and smuggle their cash out of the country. \u00a0<\/span><\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

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A Lesson From the Greek Crisis: Safe Deposit Boxes Are Not Safe Last week the Greek government imposed\u00a0capital controls\u00a0to prevent cash from escaping from the Greek banking system, which is on the brink of collapse. \u00a0These repressive financial measures, which were invented by \u201cHitler\u2019s banker\u201d\u00a0Hjalmar\u00a0Schacht\u00a0in the\u00a01930s, include the closing of banks, \u00a0limiting cash withdrawals from […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[6805,6224,61,63,110,124,233,280,1708,1167,6811,536],"class_list":["post-9856","post","type-post","status-publish","format-standard","hentry","category-economics","tag-atms","tag-bank-holiday","tag-banking","tag-banks","tag-capital-controls","tag-central-banks","tag-ecb","tag-euro","tag-fractional-reserve-banking","tag-greece","tag-greek-crisis","tag-money"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9856","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9856"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9856\/revisions"}],"predecessor-version":[{"id":9857,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9856\/revisions\/9857"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9856"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}