What happens when your country collapses to such an extent that it can no longer pay its debts, your banking system is bankrupt and the populace loses confidence in its government’s ability to mitigate the crisis?
The events taking place in Greece provide some insight and are a harbinger of things to come in America.
It was a seemingly normal Sunday — except it was anything but normal.
For many people in Athens, it was time to prepare for an approaching storm. A short walk from Plaka, a line of people waited to withdraw cash from an A.T.M., hours before the official announcement that banks would be closed starting on Monday. Some bank machines in central Athens had run out of money or were out of service, as screens blamed “technical difficulties.”
Elsewhere, some people had started hoarding gasoline and groceries. “We don’t know what the new day will bring,” said Katerina Vorreadi, who was among a group of retirees waiting in line outside the National Bank of Greece on Saturday night.
Source: New York Times
Uncertainty breeds panic and if there’s anything that will get people lining up at local venues that provide essential services like money exchange and foodstuffs, it’s the fear of not being able to acquire those items when they’re needed most.
And while some will argue that America is an advanced economy and Greece is not even on the same playing field, the fact is that as a country we are much worse off. In a country where nearly 100 million people are dependent on government monthly government benefits just to survive, even a short-term financial shock could lead to widespread panic.
Continues on FreedomOutpost