ECONOMIC RESET AND RELATED INFO:
I just remembered a few additional things from the readings that I did on Venezuela and Argentina etc. With respect to precious metals and economics. There were Kiosk style vendors that sprang up to handle the metals to currency conversion.
Hyperinflation was so rapid that the price changed by the time people walked to the cash register to pay for the items they picked up.
Pensions-Checks continued to be deposited in the same amounts. However, people had to wait in line for hours, and banks restricted the amounts that could be withdrawn. Inflation quickly rendered the monthly check only enough to buy items for one meal.
Mortgages-From the USA during great inflation-Most banks have you sign a demand note. That means that they can call the entire loan due in full at any time. Mortgages with 8% or less rates were called and refinanced at 15% in our area.
Savings and loans during that time were hampered by regulations which did not allow them to adjust to the inflationary rates. Their main product was home loans and those were fixed rates. So many S&Ls failed. I’m not sure how regulations changed due to this. Check your loan documents - fine print and any note you signed.
Cypress and Greece -2008 crisis - reaction 2013&2015:
Illustrates that Bank deposits are not CASH-they are unsecured liabilities of the banks-Banks were closed, ATMs were shut down, Cash was in short supply. Cyprus-deposits were converted to Bank Stocks-forced. Greece-local credit cards could not be processed-quasi-barter system emerged.
Well, that’s enough for now. Will see if I can get some sleep.
“Hyperinflation was so rapid that the price changed by the time people walked to the cash register to pay for the items they picked up.”
What happened in post-World War I Germany. I remember reading that a man paid on an insurance policy for twenty years, it matured, he got the money, and went and bought a loaf of bread with the entire proceeds.
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