Lessons From The Greeks

[Tarrel]

The last 24 hours have presented a vivid picture of what happens in a financial crash.

Banks closed, effectively, until further notice. Cash withdrawals limited to €60. Queues building at ATMs, supermarkets and filling stations. Suppliers, including the likes of BP, saying they won't take credit cards.

Ten of thousands of Greeks are waking up to the consequences of preparing too late, or not at all. Imagine your predicament if you were in Greece and had made no preparations. Only €60 per day available to buy food, fuel, etc. Having to queue to obtain said €60, with no guarantee that there will be money in the ATM by the time you get to the head of the queue. Possible difficulties in obtaining necessary medication, getting to work, travelling to family in need, etc. etc.

All this in a developed European country familiar to many of us.

IMO this is a powerful lesson in making basic financial preps; if possible, holding enough cash on hand to cover a month's worth of routine expenditure. Keeping a decent stock of food, and fuel tanks topped up to reduce the need to use said cash. Keeping oil/coal/wood stores topped up (if relevant) to provide a buffer stock of heating fuel.

Ideally, one should be able to respond to a crisis like this by shutting the door and falling back on the preps until the situation normalises.

If Greece defaults tomorrow and, by any chance, contagion spreads through the banking system to the UK, how would forum members be placed to face a situation like the Greeks faced this morning?

[Straight Shooter]

I am sorted thank you , i have given this scenario many times on here...Cyprus is now being played out in Greece .....and for the last time.....bail in documents exist in the EU, USA,Canada,Japan,and HERE in the UK....keep a very close eye on this...the potential for fast and i do mean fast pace, spread of fall out, will effect US all...be aware !

[Steve]

It has been my number one scenario for some years, so I'm well prepped for it.

[CharlesHarris]

In the US we are also looking at the territory of Puerto Rico defaulting on its bond payments. Because it is not a state, it isn't eligible for a Federal bailout. Its liberal Democratic government has been floating unsustainable welfare programs for years and now it is time to pay the piper. Those who are able will immigrate to the US, as they are US citizens and can readily do so. America needs more dishwashers and busboys.in New York City.

[Mortblanc]

Different situation with PR.

While not a state they are under direct Federal control and are the responsibility of the Federal Government. Their Governor is appointed and not elected and has veto power on legislative decisions, so the failed economy is directly the responsibility of the Federal Government.

Many PR citizens looking for more and better choices have already immigrated to the mainland and are well educated and living a middle class lifestyle.

Besides, PR is not the first state to go bankrupt, nor does it carry the greatest debt load.

Chicago's pension debt, near default itself, is probably larger than PR's total default risk.

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Then there is the Michigan thing.

[bigpaul]

Greece should never have joined the Euro, their economy was never up to it. in fact the Euro itself is probably heading for a fall, one size does not fit all and its crazy to even think it will, but that's unelected commissioners for you they think they know better, when it all comes crashing around their ears maybe they will realise their error, but don't bet on it.

[Straight Shooter]

Yeah BP thank Goldman/Sachs for their help in getting them in to the Euro.

[Scythe13]

It was this situation that made me really get into prepping. There are multiple options that I foresee.

As for cash in the hand…not really a massive concern if you've prepped well. No point making massive withdrawals. Small and frequent withdrawals won't highlight your behaviour to anyone. All the bags I own have £100 in them, so if things go sour, any bag I pick up will have a little cash ready. People are using cash less and less, so having a wedge of cash will attract attention. Best off getting a few notes at a time, leaving them in your pocket, scrunching them up, and making them look old. A solid crisp chunk of cash looks suspicious. A few notes battered and buggered looks like that's the last of your stores.

With fuel and the alike, same behaviour. But a little bit now and again…when you don't need it. Like at the garden centre, pick up 2 BBQ coal bags, and one normal (house - smokeless if available) coal. Then drop the comment, "2 for cooking and 1 for after". Same with wood. Any fuel stops, have a Jerry can, fill it up, then empty it into a small storage container in the garden, far from the house. For legal reasons though, don't go over your legal level of fuel storage. Try and fill up at different fuel stations if you're doing this. No point having 1 station know you're always picking up fuel. Whenever I pick up extra, I just say "The fun of working on a farm hu?" Then make sure you get a VAT receipt "For the boss".

But the above are just common sense preps. Below are my more specific ideas for financial prepping.

Firstly, have a bank account in a country that is not the UK, and is not in financial difficulty, and not in the EU. Is that a risk? Only if you do not do your research. Think about all the Jews that used Swiss banks in WW2. Transferring money over to a Swiss account is 100% legal, but there has been a fair old bit of scrutiny recently for tax evasion. But there are ways to prep for financial relocation. Maybe a country that does not allow bank details to be accessed by the government. Yes there are places.

Secondly, as said previously, a store of cash, but also a store of value. The 2 are very different. A store of cash would be helpful in the short term. But check Zimbabwe if you want to understand the difference between a store of cash and a store of value. I prefer silver, as you all already know. For cash on hand, I try to keep about 50% as much again in PM's. Not always as easy to do with fluctuating PM values.

Third, get in the queue's. No seriously, if things go Cyprus or Greece and you're rationed at £60 a day imagine how dodgy it would look if you didn't do that. You don't want to alert people to your level of comfort. One part of this would be playing your neighbour's. Personally, I'd drop hints about what I 'would do if I thought it was going to last…but I think it'll be short lived' sort of thing. For example, "It's tempting to stock up on food and water, incase this madness lasts long. But I seriously doubt it will, so I'm getting in the beer's" or something like that. The idea is to get the neighbours to stock up, even if it's just a little. Will they listen? Probably not, but if a few do, then that's less risk on your side. Plus it tells people you're not already prepped.

Fourthly, look towards leaving the UK, if things are better elsewhere. But that would take much prior planning, for example, fluency in another language, friends in foreign countries…Hi MB, how's it going buddy? About that spare room..., and things like that.

Fifthly, look to have no debt, or to claim bankruptcy. One or the other will happen if finances go crazy and your debt gets called in. Either you can pay it off, or you're in trouble. Ideally, pay it off before everything goes wrong. If that's not an option, then work out what damage claiming bankruptcy would have on you and your life. Maybe going into a debt management system would be preferable, but there are chances these will not be available for the masses if everyone is headed that way. Personally, I have prepared everything to go bankrupt, but am paying off debt everyday, and I understand the debt management game alright (I'm no expert, but I have the basics sorted and know who to go to if I see things headed that way). I prefer debt free though.

Sixthly, have your finances in order. The assets and liabilities of a prepper should be clear, written out, and documented. I mean LEGALLY documented. If you have liquid assets (assets you can quickly convert to cash), then you'd best be in a position to change them over if you think you'll need to. When things go wrong, depending on the assets you could expect a drop in what you'd get for them. Think of it as being a lack of people willing to buy what you have (basic supply and demand). Then there are the non-liquid assets, e.g. property and the alike that are a much slower conversion to cold hard cash. There may even be some investments that you'll have to say good-bye to, e.g. long term bonds. Be willing to do this, or you could be in trouble. But again, if you see issues coming before they happen, you could start the conversion process early.

I hope these ideas help. They are a part of my plan. Not all have been done, many are in progress, and more in the pipeline. But I see these as being very simple options that can be actions very quickly, and by nearly any prepper.

Learn financial literacy! This will up your capabilities MASSIVELY!!!

[Midnitemo]

sorry S13 but telling all your casual acquaintances these pony stories is just going to make people think you're a bit "special" and as for having a ton in each of your bags that makes no sense just keep ton on your person and make better use of the rest of it...debts/good's/stock/kit etc etc ... and other preppers home or abroad aren't going to throw open there doors to you unless you can enhance there position in some major way.

[Scythe13]

(2 July 2015, 20:22)Midnitemo Wrote: sorry S13 but telling all your casual acquaintances these pony stories is just going to make people think you're a bit "special" and as for having a ton in each of your bags that makes no sense just keep ton on your person and make better use of the rest of it...debts/good's/stock/kit etc etc ... and other preppers home or abroad aren't going to throw open there doors to you unless you can enhance there position in some major way.

With sounding special…so what. I don't care if they think I'm an idiot, as long as they don't think I'm prepped up.

Money in the bags is simple logic. If something drastic happens and you don't have your wallet on you then it's not an issue. Also, I seem to burn money in my wallet, but not if it's in a pocket in a bag I'm carrying. Maybe you're right. Maybe I am special! haha

Never said anything about it being another prepper in another country. I have friends and family in various countries in and outside the EU. My sister is in Australia for example, so that'll help with getting a Visa, instead of just going refugee, I could potentially use that as an escape plan ahead of time. I'd sure hope my own family or close friends would open the door for me, even if just for 1 week. But that's a part of planning ahead and keeping close contact with those that matter, not just as friends, but also as potential prep's. My cousin in HongKong is an important family member to me, and we're close. But he's also very helpful to know if I have to leave the UK.