Greece: Next (before the exit) ? IOU’s will start to be traded (prior to forming a parallel currency)

LessThunk comment: The central bank cannot cope with the outflow and also support all governmental (and general) liquidity requirements. Huge-scale slowing of deposits (plus outflow still increasing) have already pointed the Greek banking system to the exit. Deposits have steadily declined since 2009 (over 40%) to around 150 billion euro.

In 2015 nett outflows have already topped 30 billion euro. We expect restriction on capital flows in the next days.. then IOU’s are next..and they will trade very cheap.

If and when this happens..buy Gold !




Categorised as: economy

Posted by: Phaedrus

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