What happens when a country runs on of money ?

2015 has been a tough year for some countries where commodities price fell to it’s knees and some which are unable to repay it’s debts. Here are some ugly scenes from around the world when country runs out of money

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Giorgos Chatzifotiadis was crying as he was unable to withdraw pension on behalf of his wife

8 .Austerity( Spending cut)

What does austerity really means ? When a country runs on large deficit(over spending). The government will be forced to cut spending to the people and increase tax rates. The spending cuts may includes benefits to the people such as pensions funds, subsidy and health care. Businesses and the citizens will also be burdened with extra taxes. As the result, the people’s living standard will be reduced so that the government will have money to repay debts.

Toilet paper crisis in Venenzuala(Reuters)

7. Supply Shortage

It’s perhaps another scene from “The Walking Dead Series”. As the supply of money is reduced so do supply of basic necessities. Stores will be empty as people grabs for supplies while prices of goods will high rocket. Queue will be miles long for the last bag of rice. Imported supplies will dwindle and runs out slowly. Imported medical supplies will be harder to find. Supermarket and petrol stations in Greece dried out recently(205)

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6. Unemployment will rise

Lack of money will causes the Government and the people spend less. Government will cut it’s staffs while  Employers will not be able hire people. Unemployed rate for Greece stood as much as 26.6%. Imagine 3 of out 10 adults who do not have a job.

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Condoms cost as much as $755 in Venezuela     Photos: DANIEL MUNOZ/REUTERS

5.  Condoms will cost much more

Not, not just condoms. Everything will be much more expansive especially if a country relies heavily on import for it’s supplies. A lot of medical items will be in short supply. Basic healthcare crumbles while this leads so increase of disease and mortality. Greece healthcare was at par with developed European countries before the debt crisis while it has been totally destroyed on 2015.

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Business will be forced to close down with weak consumer market.

4. Businesses will be closed down

As there are very little wage earners or people are willing to spend. Many businesses that are not able to sustain and will be forced to close down.

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3. Poverty of the rise

There are as many as 44% of Greeks who are living in poverty in 2015 as compared to 5% in 2009. People who are not able to repay debts and mortgages will find themselves living on the streets.

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2. Demonstration and protest on the rise

Dwindling of supplies, increased cost of livings, reduced living standards, unemployment means unhappy people. Unfortunately, unhappy people takes on the streets more often. This can been seen in streets of Athens and Caracas.

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1. Banks with be forced to close

As a last line of defense, Capital controls will be put in place as Banks run out of money to prevent people from withdrawing money as there are very little money left in the system. In a nutshell, you will not be able to use or withdraw your money even if you have millions in your bank. Greece recently also limits each withdrawal and credit card usage to 60 Euro per day which is perhaps sufficient for the day living.

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