Imagine this for a moment: You would like to pay for something with $100 cash, so you go to the bank to withdraw your money. You have $18,000 in your checking account, which of course is plenty to cover the $100 you would like in cash. However, while it may be midday on Tuesday, the bank isn’t open. The line to the ATM is longer than the machine can supply, and you are at the end of it. Even if you can find an ATM machine, you are limited to only withdraw $68 per day, regardless of your account balance.
[special_text animation=”fadeIn” tagname=”h1″ pattern=”no” color=”#b02327″ font_size=”40″ font_weight=”bold” font=”google_web_font_Oswald” margin_top=”” margin_bottom=”” align=”left”]WELCOME TO GREECE.[/special_text]
With the current dollar/euro exchange rate, $68 dollars equates to the €60 currently allowed for withdrawal in Greek bank accounts.
While Greece may be a small country on the other side of the pond, we are seeing similar situations here in the United States.
[heading animation=”flipInX” type=2 border=”no” weight=”bold”]What do Chicago, Detroit, San Bernardino and Puerto Rico have in common with Greece?[/heading]
They are bankrupt and cannot meet bond payments and pension payments.
Will pension payments bankrupt more US Cities?
As the chart below shows, for every $1 state and city pension funds owe to their members, they have only 74 cents to cover payments!
- On June 24, Chicago borrowed $1 billion to make a pension fund payment.
- Detroit reduced pension payments by 18%.
- A Federal Bankruptcy judge has ruled that pension funds are not protected in a bankruptcy.
[heading animation=”” type=2 border=”no” weight=”bold”]Greece May Have an Easier Road to Recovery than Puerto Rico[/heading]
[button animation=”” color=”#dd3333″ text_color=”#ffffff” style=”filled” size=”regular” icon=”icomoon-newspaper” icon_upload=”” target=”_blank” url=”https://www.rmegold.com/greece-may-have-easier-road-to-recovery-than-puerto-rico/”]READ THIS ARTICLE[/button]
[heading animation=”” type=1 border=”yes” weight=”normal”]Bill Gross on “Market Meltdown”[/heading]
Bill Gross, former PIMCO bond guru and current Janus Group Fund Manager recently laid out the six ingredients of market meltdown:
1) A central bank mistake leading to lower bond prices and a stronger dollar.
2) Greece, and if so, the inevitable aftermath of default/restructuring leading to additional concerns for euro zone peripherals.
3) China— “a riddle wrapped in a mystery, inside an enigma.” It is the “mystery meat” of economic sandwiches—you never know what’s in there. Credit has expanded more rapidly in recent years than any major economy in history, a sure warning sign.
4) Emerging market crisis—dollar denominated debt/overinvestment/commodity orientation—take your pick of potential culprits.
5) Geopolitical risks—too numerous to mention and too sensitive to print.
6) A butterfly’s wing—chaos theory suggests that a small change in “non-linear systems” could result in large changes elsewhere. Call this kooky, but in a levered financial system, small changes can upset the status quo. Keep that butterfly net handy.
[heading animation=”fadeIn” type=3 border=”yes” weight=”normal”]Previous RME Articles Covering Greece Financial Crisis[/heading]
- Gold Back to $1200 as Greece Turmoil Continues – June 19, 2015
- Back to the Trading Range– May 29, 2015
Are your retirement accounts safe from raids and restrictions? Will your money be there when you need it?
[special_text animation=”fadeIn” tagname=”h3″ pattern=”no” color=”#b02327″ font_size=”18″ font_weight=”bold” font=”default” margin_top=”” margin_bottom=”” align=”left”]INVESTMENT-GRADE GOLD IS CURRENTLY IN SHORT SUPPLY, YET STILL TRADING AT LOW PREMIUMS . The current strength of the dollar is suppressing gold prices stateside, which provides a massive buying opportunity in gold and silver. How long will this last? Many analysts and market makers agree with us that it will not be for much longer. Call us today to find out how you can take advantage of these favorable market conditions. [/special_text]
[special_text animation=”” tagname=”h2″ pattern=”no” color=”” font_size=”16″ font_weight=”bolder” font=”default” margin_top=”” margin_bottom=”” align=”left”]SPEAK TO A PRECIOUS METALS SPECIALIST TODAY: CALL (877) 354-4040 or (602) 955-6500[/special_text]