Greek people are doing exactly what I say anyone interested in avoiding the coming economic crash needs to do:
1. Extend credit privately instead of using bank credit.
2. Prepay all you can, since money gets more valuable the longer you hold it. That si counterintuitive, but think about it... if you can pay today or in 3 months, pay now, since what you have in three months will buy more then than it does not. Why sit on your cash? Pay now, while it is cheaper today, and than in three months. In fact, pay off all your debts now!
To wit:
So when this wind hits us, best to be in a position already where you are not using banks. Pay your bills as soon as you can, delay receipt of income as long as you can. This is 180 from what was best the last 40 years, and takes a change in reflexive thinking.
Get rid of any debt, delay receipt of payment. Wow, the world is upside down (or finally has righted itself) but in any case learn from the people on the outskirts who are first experiencing this storm.
Feel free to forward this by email to three of your friends.
1. Extend credit privately instead of using bank credit.
2. Prepay all you can, since money gets more valuable the longer you hold it. That si counterintuitive, but think about it... if you can pay today or in 3 months, pay now, since what you have in three months will buy more then than it does not. Why sit on your cash? Pay now, while it is cheaper today, and than in three months. In fact, pay off all your debts now!
To wit:
His firm has reached an accord with regional supermarkets to accept coupons or private scrip money in lieu of payment as soon as next week. His workers will then be able to use this paper as a parallel currency at the supermarket to buy goods.
In the meantime, people are trying to offload their bank holdings as fast as possible. (Electronic bank transfers within the country are still allowed). "Everybody is afraid of a haircut. Our clients are trying to pay us as much as possible, and transfer their problems to us. We, in turn, are paying everything in advance: taxes, gas, anything we can."
So when this wind hits us, best to be in a position already where you are not using banks. Pay your bills as soon as you can, delay receipt of income as long as you can. This is 180 from what was best the last 40 years, and takes a change in reflexive thinking.
Get rid of any debt, delay receipt of payment. Wow, the world is upside down (or finally has righted itself) but in any case learn from the people on the outskirts who are first experiencing this storm.
Feel free to forward this by email to three of your friends.
1 comments:
"His firm has reached an accord with regional supermarkets to accept coupons or private scrip money in lieu of payment as soon as next week. His workers will then be able to use this paper as a parallel currency at the supermarket to buy goods."
During the crash in 2008 an acquaintance of mine in the wine business did something similar to avoid going under. He allowed his restaurant customers to pay him in gift certificates to their restaurant ("scrip"), then he started paying his vendors with these same restaurant gift certificates instead of money.
Since most of his customers were going bust he got involved in helping them pay off their debts by offering their creditors gift certificates.
From these efforts sprung a little community of small businesses trading with each other with zero state fiat money involved.
From what I understand his community is still quite unique as usually these barter exchanges charge 12% cash on each transaction to keep things running. He was able to completely leave state money out of it. He has since then made reciprocal agreements with many other barter exchanges across the US and Canada, so other barter exchanges will accept his "scrip". He is up in Vancouver and a very nice man. His exchange is small but growing. You can find it here if curious: http://collectivecurrency.com/
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