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Greek news is on all media channels, worldwide. After capital controls had been imposed, a one-week bank holiday announced, and a referendum set up to vote against austerity measures, it seemed that the government Tsipras had a clear plan. However, today it became obvious that there is no plan. On the contrary, the Greek PM is going back to the European Union to ask for a bailout program, and is showing its dependence.

Greece is bankrupt. The government is addicted to debt. The Greek banking system has been relying on special liquidity support from the European Central Bank (ECB) in the face of a spate of withdrawals by worried citizens.

The country finds itself caught between a rock and a hard place. There is no easy way out, and there is not a single instance in history on which the Greek government can rely to get some insights and learnings.

I spoke with The Daily Coin about the problem in Greece, in particular how Greece got into this situation (hint: irresponsibility of previous governments and the Big State they created), the ongoing propaganda machine, and the joke that the referendum is.

Greek banks are expected to be closed all week, and there will be a daily 60 euro limit on cash withdrawals from cash machines, which will reopen on Tuesday. Capital controls are likely to last for many months.

Since the start of the year, there have been several weeks in which more than a billion euros have been withdrawn from the banks. Past Saturday alone, around 600 million euros were withdrawn from the banking system. Until last weekend, the “system” absorbed that quite well because the ECB allowed Greek banks to draw emergency credit from Greece’s central bank. However, the ECB has frozen the support.

This is one of those textbook examples in which the drawbacks of the current monetary system become obvious.

Cut The Holdings

We can expect that more bankrupt governments will be forced to implement this type of dramatic measures: capital controls, exchange controls, confiscation of deposits, etc. That simply happens when governments play with debt.

The drawbacks of a cashless society become clear in this situation as well. People should open their eyes, and look at what would happen if they have all their money on bank deposits. The bankers and central planners have full control to implement, every moment of the day, whatever measure they want to cut the holdings of depositors.

Last week, we got another confirmation that physical gold is and remains the ultimate monetary protection.