Monday, March 18, 2013

A rant about CHITS and withdrawal limits and CYPRUS

    I go to work and provide a service to my employer and patients.  In return for providing my goods and services I am compensated in chits, shown above.  These chits are deposited into my bank account by my employer.  If I had no bank account they would issue me a "cash card" that they could deposit my chits into so that I may access them for a fee.

    I purchase goods and services from others by exchanging these chits for said goods and services.  To do so I typically withdraw my chits using a debit card at an ATM.  I prefer not to use my card to make purchases and I don't have checks.  For some goods and services I have no choice but to use online bill pay but that is another topic for another day.  

    My bank sets a daily withdrawal limit of 600 chits.  This may not appear to be a problem on the surface but it is.  Say the good or service I want to exchange my chits for is 601 chits or more.  My bank will not allow me to access this amount or higher in a business day.  Who is the bank to tell be how many of my chits I can access?  These are my chits!  They are a representation of my goods and services that I have provided.  How dare my access to them be limited!

    This has bothered me for quite a while, then it struck me today,  CYPRUS.  These people are about to take up to a 10% haircut because of the incompetence of their government.  If this were to happen here the daily withdrawal limits would make it impossible to get to your chits before the government does.  I am sure a bank holiday would be called making in-bank withdrawals impossible and the ATMS would be empty before the banks reopen and your chits have already been re-appropriated by .gov

    My advise is to convert your excess chits into tangible assets outside of the banking systems.  Buy gold.  Buy silver.  Buy bullets. Buy anything of intrinsic value that can be converted to feed, shelter or clothe you and yours.  Be able to barter and exchange  By all means continue to use banks and chits to pay taxes, mortgage/rent and such.  But don't leave any excess chits in there.  Get them out and exchange them, NOW.

H/T to ninetymilesfromtyranny from tyranny for the above graphic and inspiration.

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