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Greece: All Sides Walk Away As Greek Banks Run Out of Money Tomorrow

Sunday, July 12, 2015 10:11
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(Before It's News)

By: Voice of Reason



In the video below from just days ago, Peter Schiff once again joined Alex Jones on his radio show as one of the only voices of economic sanity still emitting from the airwaves. You may have already seen this clip with Peter, however this time when you watch it, there is a big difference than when it first aired. With under 24 hours until the banks in Greece completely run out of money, I can’t help but think of the preview I saw for my favorite TV show airing tonight, The Last Ship. In the preview, the Captain clenches onto something attached to the wall, and over the audio system he yells, “Brace for impact!” Right now I get the scary feeling that Greeks are doing just that: bracing for impact. 

As insane as it sounds, the final round of meetings that were scheduled for this morning between the Greeks and members of the Eurozone  were canceled at the last minute. The only reason cited was that the banking situation had become: “irreconcilable.” With less than 24 hours until the Greek banks are out of money, reports are saying that Germany is preparing to take the losses on the funds it lent Greece. All outward indications are that everyone is walking away. Knowing what you know now, from what I just told you and the article from CNBC below, listen to Peter again, since it appears we finally know how the Greece saga ends… sort of. I’ll come back to that.

In the video below, Peter does’t sugarcoat things at all. In all actuality, the U.S. has been in much worse shape than Greece for some time, and we remain that way right now. We’ve just managed to hide it a little better. Folks, in my view that’s worse for us on multiple levels, because the average American is still buying into Obama’s nonsense about a recovery, which means they are not taking proper precautions… and all the largest global depression in human history is looming around the corner.

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Ok, ready for the bad news now? As I have said in a previous post: The Eurozone has a GDP or approximately $16 TRILLION dollars with all the countries combined. The U.S. has a GDP of approximately $15 TRILLION dollars with all the states combined. As you listen to Greece’s potential fate, think of which states in our Union are on cruise control to be just like Greece very soon. Why? Because it’s coming! Think of Illinois, California, New York, New Jersey, all bastions of FAILED liberal wealth redistribution I might add.  

As Peter put it one day last week, right now,“Greece is just shuffling the chairs on the deck of the Titanic…” What’s my point? Where am I going with this? I’m going two places with this. As I see it, here is the first problem: The Eurozone has about a $16 TRILLION dollar economy. The U.S. has a $15 TRILLION dollar economy. Greece accounts for under 5% of the Eurozone’s GDP. How does that compare to states here in the U.S. like California, Illinois, New Jersey, or New York? Those are all  cauldrons of liberal idiocy, and every one of them is a financial disaster. Forget about cumulatively, take them as individuals. Would you agree any of them contribute far greater to our country’s GDP than Greece does? Now, add them up. 

The problem with Socialism, Communism, Progressivism, Liberalism, or whatever they want to call it: Sooner or later you run out of other peoples’ money. It’s happened everywhere it’s ever been tried. Guess what? The U.S. Petrodollar is over halfway phased out as the World’s Reserve Currency. Once that process is complete, and we can no longer fire up the printing presses… We’re going to be a bankrupt nation, with a worthless dollar, no one to lend to us, no way to print money like we have for decades, and then American’s will finally see what what has been staring us in the face. 

Now, the reason I said earlier that now we know how the Greek sage ends, sort of, is because there is one issue I don’t hear anyone talking about with Greece, and since the U.S. is still in full-on denial, you can be sure no one here is talking about it. When an economy collapses like that, there is going to be a vacuum. Does anyone need a history lesson on how power vacuums have worked out? Libya and Iraq come to mind. The big unknown for Greece at the moment, is who will be posturing to fill that vacuum? I am cautioning you to think bigger, and think about what happens when the Dollar implodes, and who will try to fill THAT vacuum. Scary isn’t it?



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The banks have been leaking cash at a rate of more than €100m a day even with capital controls that were imposed to restrict withdrawals, one banker said. There will be no money left for customers by Monday unless the European Central Bank agrees to lend them more money, this person added.

Echoing that assessment, the head of the Greek banks association told Greece’s Skai TV on Thursday morning that cash points would have money until Monday, but did not say what would happen after that.

As Greece’s crisis has deepened, its banks have emerged as the chief vulnerability that could soon force the country to leave the single currency. Without a deal with its creditors that provides some support for its financial system, the government would instead be forced to begin printing a new currency to recapitalise them or possibly raid customers’ deposits.

Read MoreThe world’s biggest sovereign defaults

As the pressure has mounted in recent days, bankers told the Financial Times that Greece’s banks were effectively passing cash among themselves. The system is co-ordinated by the Bank of Greece, which has been asking healthier banks to return some of their liquidity so it can be doled out to weaker ones.

“We don’t have a choice,” one banker said.

The Bank of Greece failed to respond to requests for comment. Greece’s four biggest banks — National Bank of Greece, Eurobank, Piraeus and Alpha Bank — all declined to comment.

Read MoreLive blog: Eurogroup meets to decide Greece’s fate

The banks are pinning their hopes on an eleventh hour deal between Greece and the eurozone that would allow the ECB to increase the €89bn in emergency funding that they have already drawn and also ease their borrowing terms.

Last week the ECB changed the rules so Greek banks were obligated to provide more collateral for every euro they borrowed from the ECB. The changes mainly affected collateral that was secured by a Greek government guarantee. One banker estimated about €16bn of collateral was “wiped out” by the ECB’s move.

If an increase is not secured, the banks “will be put under resolution and shut down”, one banker said.





By: Voice of Reason







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Total 19 comments
  • Seems to be a total disconnect between what the people want & what is negotiated on their behalf. The psychopath EU leadership hand in hand with the psychopath global banking leadership will do their utmost to negotiate ‘something’ either with IMF or BRICS (all the same). The leadership of Greece seems to be accommodating towards it’s slave master aka owner. This is a well practised game, don’t believe they have the guts to declare bankruptcy like Iceland & start from there. They just don’t have the balls to leave the Euro zone & going back to the national currency of drachma. Find the managed ”pressure-panic-push for decision in last second” mechanics laughable. Weakness of character & foresight is demonstrated – at least so far. Let’s hope, I am wrong, wishing the best for Greece & it’s nation. They should follow Iceland example to get back control & ownership of one’s own country. :idea:

    • Man

      there was a total disconnect when greece wanted to join the euro. Their economy was crap back then so they hid their debt.

      So if they didn’t hid their economy back then, they wouldn’t have joined the euro LOL

      now it is biting their asses again by voting Alexis Tsipras who was elected pledging to reverse budget cuts but can’t keep that promise

      so they are trying to be like South Carolina… the dumbest state in the US

      • Have you read a salon article you couldn’t jerk off to?

        “If they didn’t hid”. Lol. Illiterate Numbskull.

        You have no understanding of the situation beyond what headline you read at some leftists crap media outlet. I’d try and explain residential mortgage backed securities and credit default swaps to you, but I don’t think you’d even begin to understand something that isn’t MSNBC-ized.

        • Man

          I don’t even get MSNBC in Europe

          • well, as i said before hate is making blind to the needs of others or doesn’t allow any positive energy.

        • You hardly sound dignified !

          • the best way to be dignified to stop spewing out hate or wallowing gleefully in it!

      • yeah…it’s also not making sense to me just to mother the “so-called” victim as there are too many aspects in this case to be considered. can anybody explain to me why it’s so difficult to see only one greek smiling? i would say if a country is steeped in hate and racism it can never reach a higher goal such as liberties and personal freedom.

  • Why would anyone want put up real things of value so they can get digits created by a computer? Fake money, so why not just make your own?

    • They got admin’s spawn $ command in the console. People don’t.

  • How the Greek saved their arses. A tale that with an inherent serious suggestion.

    The government silently printed new money, we may call it nea-drachma. But I just for fun call it tsipra. 1 tsipra = 100 vakoufakis. It printed banknotes of 1 tsipra and of 5, 10, 50, 100 and 500 tsipras. Coins would come later. As soon as they were available, it was declared to be the valid national currency, but that during a first period, also euros would be accepted for payment. However, the change could only be paid in tsipras. Euros could be changed to tsipras in the bank. Shops and businesses were not allowed to give change in euros. The initial exchange rate was 1 tsipra = 1 euro, but this was expected to change as things develop.

    That way euro banknotes quickly accumulated in the Greek National Bank. It was suggested to put a stamp on each and every banknote, readable only in ultraviolet light: “Payment of Greek debt.” But this might involve too much effort because of the very high number of banknotes.

    When the inflow of euro banknotes into the Greek National Bank slowed down significantly, the whole load of them was against an officisl receipt given to a major European bank in Brussels or in Germany as a repayment of the Greek national debt.

    Greek life and business began to flourish with the new currency. The EU first hesitated to accept it, but soon realized, that they would loose all export business to Greece that way, and thus they had to accept the tsipra after some time. The exchange rate changed, but had to stabilize at a rate that keeps import from and export to Greece alive, in the interest of all partners.

    It did not take very long until Greece that way managed to pay most of its debt and still maintain its economy and its freedom from the euro mafia that had wanted to establish full control of the country and more or less enslave its inhabitants.

  • Greece has given the world so much that has endured through time: literature, law, theatre, Olympics, architecture, mathematics and many of thie higher philosophical principles discussed by the likes of Socrates, Plato and Aristotle.
    Money should be easy for them to come by!
    They need to explain to allthe Greek oligarchs who hide their monies overseas to avoid taxation that such behaviour is unacceptable and unsustainable if society is to flourish so either they pay up or their family becomes exiled -unable to return to their Motherland. That will bring money back.
    Shame on the EU for their double standards – how are normal folk supposed to behave if the only examples of modern behaviour come from a disfunctional, probably corrupt, inept and fickle Union of bully boys and girls gallivanting around from one luxury hotel to another luxury hotel and, inevitably, completely out of touch with every day existence.
    Greece is of huge strategic significance. The Islands have huge tourist potential and could be connected by floating cycle paths, zip-wires, monorails or even tunnels. Floating restaurants and hotels could sit off-shore. Classic holidays in the Greek Islands could provide activities and an education in Classics for our unemployed youth as the robot continues to manage more and more of the everyday workload.
    Crowd funding could be used to raise investment funds for tourism.
    Some Islands could even be leased out to raise finances.
    In short, Greece is an investment opportunity waiting to happen, IMHO

    • talking here about fake democracy as their ancient foreigners weren’t allowed to participate in this so-called democracy for dummies namely as their UNTERMENSCHEN! see how much racism their fellow citizens from sri lanka, bangladesh and african countries have to endure today! know it will be difficult to digest. but love instead of hate and dignity instead of racism is the only way out. so much sham almost wherever you look at.

    • would you ask your people to stop being nosey and stop asking people they don’t even know or saw for the first time about there whereabouts. also as the next question to check on their reasons they are in greece is strange.

  • How ironic, that the cradle of Dumbocracy, and the lie of representative government, should be where the New World Order will destroy democracy and institute a form of International Socialism. The world is broke, the Bankers hold the notes, they will wangle a deal (already well planned) for the whole world to hand it’s assets over to the UN to hold in a form of Trust, then the cashless and the chips.

    The listed world debt (not including derivatives, off the books debts etc) should hit about 66.6 Trillion by mid September. This will be the great wealth transfer idiot Xians got suckered into praying for – it will be like a reverse Jubilee, and the reason why God has allowed, even ordained it, is because of the simple irrefutable spiritual principle that if you do not forgive your fellow servant, you will be bound over to an unpayable debt and imprisoned…and if you want to know who ultimately will suffer most, it is those who are the least forgiving – if you are heartless, God will raise up an even more heartless one to come against you. And if you don’t like His judgment, you can go bite yourself and head butt the wall…

  • Stopped reading when i got to the words Alex Jones.

  • The only solution for Greeks is to print their own money. Drachma.

  • ” California, Illinois, New Jersey, or New York…… Those are all cauldrons of liberal idiocy, and every one of them is a financial disaster..”
    As a Californian, I will respond first including Cali in this group. Under Democratic Governor Brown, California has run 3 straight years of large budget surpluses and leads the nation in job growth.

    “California’s budget surplus soars to new heights; schools to benefit

    POSTED: 05/05/2015
    SACRAMENTO — In the clearest sign yet that the Great California Recovery is proceeding on pace, Assembly Speaker Toni Atkins announced Tuesday that the state’s revenue has climbed as much as $8 billion in the last four months.”

    Here was the news in 2014: “California’s state budget will accumulate more than $4 billion of reserves in the next two years…”

    Here was the news from 2013: “But Gov. Jerry Brown announced that his state has suddenly projected a surplus of $851 million.”

    Here was the news from Sept/2014: “California posted the biggest job gains in the nation during August…..

    Between July and August the state added 44,200 jobs, the EDD said, and it has added 313,900 jobs over the past 12 months, a growth rate of 2.1 percent. That outpaces the nation’s growth rate of 1.8 percent.

    “It’s by far the best in the nation,” said economist Stephen Levy, director of the Center for the Continuing Study of the California Economy in Palo Alto. “There is no question that we slid into a deep hole and this is a slow recovery. But Southern California and the state are now both outpacing the nation. This is a good report.”

    Last month’s job increase means that the state has now added just more than 1.4 million jobs since February 2010.”

    If California were a nation it would have the 8th largest economy in the world. It has problems, as do all states, but it is leading the nation in job growth and posting year after year of surpluses.

    California bashers have been predicting the collapse of California’s economy for many years…..but it continues to to lead the nation.
    There are a lot of people who WISH California would fail (sour grapes?) but it keeps disappointing them.

    New Jersey, run by Presidential Republican candidate Chris Christie IS in miserable shape. New Jersey saw very slow job creation, with a nonfarm payroll growth rate of just 0.74% between December 2013 and December 2014, far lower than the average change of 1.78%. It ranks 35th by Business Insider in terms of economic performance.

    Read more:

    New York is doing much better, with 47,400 Private Sector Jobs added in May 2015, the
    Largest Monthly Gain in 15 years. That is 3 times the average rate of job growth in the nation. With more jobs comes more government revenue and lower welfare overhead. NY has a Democratic Governor. It is ranked 12th.

    Illinois is ranked by BI at 15th.

    So the states mentioned as “financial disasters” run by Democrats rank 4th (Calif), 12th, and 15th, while the one run by a Republican ranks 35th.

    To compare these states to Greece is absurd. Greece is not running surpluses or adding jobs. And we do not know how the Greek situation will turn out: there may be a deal, there may not. If there is not, Russia and other nations are prepared to step in and help Greece, which just signed a a huge deal with Russia

    “Greece has admitted for the first time it is planning a €2bn gas pipeline with Russia.
    The move is likely to worry the US, which has stepped up its involvement in Greece’s debt talks with international creditors over fears the cash-strapped country could drop out of the single currency and come under the influence of its Cold War rival.
    Panayotis Lafazanis, Greece’s energy minister, said the move would be a key part of the country’s “multi-faceted” foreign policy and would create 20,000 jobs, the Financial Times reported.

    Reports in April suggested Moscow was ready to provide advanced payment to Greece for the “Turkish Stream” pipeline project, which will transport 47bn cubic metres of Gazprom’s gas annualy from 2018.”

    It is worth noting that Germany is also part of this deal which will allow Russian gas to bypass Ukraine, which is currently sinking in the undertow of violence, corruption, and bankruptcy.

    In addition, China, which is not the world’s largest economy, has offered to help Greece. “Feb. 13 — Premier Li Keqiang told Greek Prime Minister Alexis Tsipras that China is prepared to boost investment in the debt-ridden country.”

    If you look at the details of the deal offered by Greece, it does not impose great suffering on the Greek people but it does raise corporate taxes 28%, cuts the military by 100 million this year and 200 million next year, and raises taxes which are borne mostly y tourists. It offers to raise the retirement age to 67, but that is way to give the troika something to gloat over, but in reality, the retirement age was already raised to 67 this year—-so it’s just PR. The “sweeping pension reforms” have in fact already taken place, and Greek’s lavish pensions is a myth: the average age of retirement is the same as France, Germany, Netherlands, etc. and the average amount is half to one-third as much as these nations.

    This article is mostly propaganda, with little relationship to the facts. If Greece exits the EU, it will join the new emerging alliance of Russia, China, Pakistan, India, Brazil, and soon other nations as they find a way to escape the financial dictatorship of the West. :mrgreen:

  • This is about gaining control of Greek GAS reserves – To service the EU and cut out Russia – The GAS discovered in the Mediterranean rivals Russia’s capacity – Tapping these resources would also pull Greece out of DEBT – The Banks don’t want that though – They want to get the GAS for virtually FREE !

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