Being in Ireland and travelling around the world a bit in the last years, I’ve seen a continuation of queues outside of banks next to the ATM’s. On any given day I estimated 50 people were queuing up at the ATM when I was in Argentina. In addition I’ve noticed especially here in Ireland that there have been unusually
long lines at the ATM’s on Friday’s.
I thought about that and it seems that most people don’t have a cash reserve and are dependent on the system.
A cash reserve is absolutely vital, especially if you’re in a ‘Western World’ country. Everything depends on cash or the electronic cash/laser/credit card system.
It happened to me in Germany at a gas station. I filled up the car went inside to pay and the card system was out of order. Thankfully I had enough cash on me. As you couldn’t tell from the outside that the electronic system was out of order because the sign ‘Sorry electronic payments are out of order’ was tiny, sticking next to the main door. Well in this case the sign said that ‘No electronic payments today!’ typical German impoliteness.
Ok, back to the story. research on circulating cash in the EU showed: According to the ECB there were 810,415 million Euros circulating in May 2011. The total money supply (M3) was 9,580,000 million Euros
that means 92% of all the money are digits in a computer. And further 90% of all the floating Euros are actually non-floating, meaning hoarded and 25% to 35% of the hoarded cash is in foreign countries.
That leaves a total of 81,041 million Euro in circulation. With 322 million people living in the European Currency Union, it’s not much. That’s about 252 EUR per person. No wonder why the ATM’s in the UK don’t allow you to take more than 300 quid out of the machine.
The allowances in Ireland are 700 EUR per day, in Germany 1,000 EUR per day and 3,500 EUR per week. With these allowances it’s no wonder that many ATM show ‘Out of Order – Sorry for the nconvenience caused’. For several weeks it was nearly impossible to get cash out of an ATM in Kinsale in the end of 2010. That means the system dries out easily.
If you like to withdraw over 2,500 EUR with the Bank of Ireland you have to indicate your request 24 hours beforehand. After you requested cash with AIB and you like to withdraw 5,000 EUR you can’t go on your lunch break as the rules of the bank do not allow you to get your cash between 12 and 2 pm.
That’s all a strange development that we can learn from. So the message is ‘Get a cash reserve’ as you most likely don’t want to queue up and read the sign ‘Out of Cash’ on the ATM. Keep in mind that these interruptions will occur more often. The banks will become more and more restrictive to individuals that want to withdraw their cash from the bank. Because cash in circulation can’t be controlled by the government.
If someone pulls the plug, that’s the end of paying gas with a credit card. We’re totally dependent on the system. With gold and silver and a bit of cash we’re moving away from the control and gradually becoming more free and independent from the moods of these western cowboys that pretend they know what they’re doing.
Because the truth of it is – they haven’t got a clue. The most important thing to understand is that gold and silver represents real money, not an investment.
Let’s go to the bank and get some cash, shall we?
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