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Greece and its "troika" of creditors – the European Central Bank (ECB), the European Commission, and the International Monetary Fund (IMF) – have finally agreed on terms for its latest bailout, worth about €86 billion ($95 billion).
Athens will pay a heavy price in sovereignty, becoming a "debt colony" of sorts. The terms require Greece to surrender policymaking power over huge swathes of its economy and, indeed, its entire society, to the troika.
There's little wonder outspoken former Finance Minister Yanis Varoufakis says it's not going to work.
This is clearly a bad deal for Greece – and it should worry anyone who believes in the age-old principle that a nation's own people should be firmly in control of its destiny.
But it's nothing compared to the alternative that Greece was preparing in case negotiations failed and no bailout was forthcoming.
That contingency plan, with all of its "bail-ins" and draconian measures, is truly terrifying.
And it gets even scarier when you realize that we've actually seen glimpses of how governments will reflexively grab their people's wealth to save their own skins.
So, more than ever, I'm convinced that we need to prepare a "financial survival kit" as global debt hits record levels.
I'm going to show you how to do that today…
As Greeks Suffered, Syriza Kept "All Options on the Table"
As Greece and its creditors played hardball with each other, the average Greek citizen was shut out of the stock market and barred from his own bank accounts, in most cases limited to just €60 in withdrawals each day. In many places, lines exploded and machines simply ran out of cash.
That was far from the worst of it…
Greeks were absolutely forbidden from sending money out of the country without government approval. Simple things that required sending money out of the country like, say, buying a song on iTunes, just stopped working, as did services like PayPal and cloud storage.
Naturally, Greek tourists overseas were left high and dry. The New York Post reported honeymooners Valasia Limnioti and Konstantinos Patronis were on a "dream trip" to New York when they found their Greek-issued debit and credit cards declined and useless.
Fortunately for the couple, two local Greek Orthodox congregations stepped in to help. Their own politicians wouldn't help, and their relatives certainly couldn't – unless they could prove to the government's satisfaction that they were sending the funds "on an emergency basis."
Supermarket shelves ran empty, too. At least drug companies promised to keep Greece supplied with critical medical supplies – despite being owed billions by the government.
We know now that, as this tragedy unfolded across Greece, Greek politicians were already deep into backroom subterfuge.
Details have recently emerged about dramatic plans certain Syriza party members were pushing their government to approve in case bailout talks failed…
Greece's Terrifying "Plan B"
Hardliner and former Greek Energy Minister Panagiotis Lafazanis told RealNews Daily that he'd pressed his government to access Bank of Greece reserves. He said the goal was to allow the payment of pensions and civil servant wages should Greece exit the euro.
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About the Author
Peter Krauth is the Resource Specialist for Money Map Press and has contributed some of the most popular and highly regarded investing articles on Money Morning. Peter is headquartered in resource-rich Canada, but he travels around the world to dig up the very best profit opportunity, whether it's in gold, silver, oil, coal, or even potash.
You discussed the proposed Greek "deposit haircut" but suggest holding cash as a bank balance to prepare for the next crisis. Please explain.
Dittos Micheal . I was wondering the same thing.
Shouldn't we be running from the banks ?
Not depositing up to FDIC limits.
Best to keep cash in a safe place at home.
Unbelievably uniformed. The whole thing rests on nogrexit. If there was one your article doesn't say much. Also, why in your opinion the Greek government is not able to change Pins of the taxpayers particularly if the relevant part of the ministry is headed by a troika appointment and as it was discovered the Greek government software is operated by troika. How would you feel if something like this was happening to your country? Except if you think that a country which started with 120%dept and was made to own180-200%to save the euro and the banks deserves to become a German colony. Just wait
My thoughts are that it is time to start holding Government accountable for the predicaments Greece is in and that other countries are heading towards.
I recall hearing hearing one financial reporter saying (i)it's the people of Greece who allowed themselves to get into this debt situation(/i). Unfortunately, Governments of every nation seem to be allowing this situation. We, the people, need to let the elected officials know we're not accepting poor financial management.
At least if we are going to operate with this flawed fiat currency and central bank scheme that is in place, there has to be controls in place and a country can't run deficits. PERIOD.
Reading this …article of the said money specialist I dare make some comments:
1. It is obvious that the article is outdated as capital controls has been easy at a great % and Greek people not only are not queuing but also have start returning the money back to the banks. Slowly yes but started.
2. The sources that the writer base his comments are of a certain political direction . All of them against the Greek government . So no wonder this manipulation and mis-leading of the readers
3. Yes the agreement is a failure and probably will heat the development of the Greek economy. But this is something remain to be seen. Only then one can criticize the government. Not before . This indicates the lack of expertise and the will of shifting opinion against.
4. I wonder how and why a serious site such as money morning post such articles before checking the content
5. I am not a leftist or even worst a communist . I am an international expert who lives in Greece and has a real picture of the situation. Does the writer has this picture as well? Or he is selective to only these facts he suit his thoughts and actions.
6. I am sorry for the site . The readers should be informed correctly of the reality .
7. I could easily write some more but the idea is simple. Get the facts (current not history) , tell the truth and suggest something realistic. i.e you suggest opening an account outside the country when is known that is more than difficult to open any count anywhere nowadays.
Dr. Theodore Kokkoris