GREEK DEPOSITORS MAY LOOSE 30%

GREEK DEPOSITORS MAY FACE 'HAIRCUT' OF 30%

Citizens respond to food, cash, medicine shortages with riots, tears, gardens

In what appears to be an inevitable scenario, Greek depositors are being warned a Cyprus-style haircut of “at least” 30 percent for deposits over 8,000 euros – about $8,900 – may be imminent.

The Greek banking system has been brought to its knees by the acute cash crunch, and the Greek government is desperately trying to implement capital controls to stem the flow.

Prime Minister Alexis Tsipras had promised “deposits are safe,” but with ATM liquidity expected to run out by Monday and the country’s future in the Eurozone still undecided, the promise will be difficult to fulfill.

Anywhere from 25,000 to 50,000 protesters gathered in central Athens preceding Sunday’s referendum on whether Greece should accept creditor’s demands for more austerity in return for bailout loans. Some pockets of violence broke out, with police using pepper spray to deter several dozen anti-establishment protesters from throwing rocks and smashing property.

Protesters were divided into “yes” and “no” factions regarding the referendum. Tsipras spoke to the crowds and urged a “no” vote to “live with dignity in Europe.” He rejected EU leaders’ warnings that a rejection could see Greece forced to leave the Eurozone. Analysts have stated the future of the entire Eurozone may depend on the outcome of the referendum.

The real cost of the Greek referendum campaign was illustrated by an elderly pensioner, lined up outside a bank since dawn, who collapsed and sobbed in despair when told he was restricted to withdrawing just 120 euros this week. Other depositors are limited to 60 euros per day.

Greek businesses are being hurt because a halt to international payments from Greek bank accounts is threatening supplies of vital goods such as food, clothing and medicine. Shoppers have been stocking up on essentials such as flour, pasta, sugar, beans, rice and canned goods. Many gas stations and small businesses are declining credit and debit cards.

Most retailers have inventory in storage and have been able to keep their shelves full. But capital controls put in place after Greece defaulted on a loan to international creditors have frozen cash flows and credit for many companies, which means goods are in finite supply. Citizens rushing to stock up at supermarkets means shortages may be imminent, although budget constraints are limiting how much people can buy, which is providing some cushion.

With no international bank transfers, imports and exports have been clobbered and there are fewer raw materials and less gasoline available for deliveries. Sellers of perishable items such as fresh fruit and vegetables may experience losses as shipments are stalled.

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A Greek couple honeymooning in New York City found themselves broke and stranded after their credit and debit cards were declined due to the financial crisis. Two Greek Orthodox churches came to their rescue and gave them survival cash until their flight home. The bride also faces unemployment once back in Greece after the small business for which she worked failed.

Meanwhile, rural Greeks are raising bigger gardens and more goats and chickens to soften the blow of food shortages.

“I have my lettuce, my onions, I have my hens, my birds, I will manage,” said Ilias Mathes of Karitaina. “We will manage for a period of time, I don’t know, two months, maybe three months, because I also want to give to our relatives. If they are suffering, I cannot leave them like this, isn’t that so?”

Mathes can no longer access his full pension payment because of government controls imposed six days ago.

But while growing or raising extra vegetables, fruit, milk and eggs offers a buffer to rural people, fuel shortages and other austerity measures such as buses shutting down mean supplies won’t necessarily make it to urban areas. Although the financial crisis is impacting rural Greeks just as strongly as urban people, the ability to grow and raise food, as well as a long tradition of hospitality and mutual assistance, means those living in the countryside can band together and survive, just as they’ve done through World War II deprivations and natural disasters.

However, a taxi ride from some rural areas to the nearest bank ATM can cost 40 euros. With withdrawals limited to 60 euros, making the trip is not worthwhile for many people. This leaves rural areas desperately short of cash, a situation most Greeks don’t see improving any time soon, regardless of the outcome of the referendum

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My comments: Greece DEMONSTRATES that godless, Socialist, Secular Humanism DOES NOT WORK--IT HAS NEVER WORKED! And America is following in the footsteps of Greece. It Never Works because it is Against God and His Word.