German authorities are bracing for what they describe as “aggressive discontent” amid a blackout this winter. Banks are stepping up preparations for emergency cash deliveries in case of power cuts in order to keep the economy running.
The possible power cuts are being blamed on the war in Ukraine, according to a report by Reuters. The media outlet went on to say that even though German authorities have publicly played down the likelihood of a blackout, the discussions show both how seriously they take the threat and how they struggle to prepare for potentially crippling power outages caused by soaring energy costs or even sabotage.
The plans for preparedness for blackouts include central banks’ attempts to keep the economy running. The plans include the Bundesbank hoarding extra billions to cope with a surge in demand, as well as “possible limits on withdrawals”, one of the sources said. And if you think crypto investors are angry when they can’t access their digital tokens in a bankrupt exchange, just wait until you see a German whose cash has just been locked out.
According to ZeroHedge, officials and banks are looking not only at origination (i.e., money-printing) but also at distribution, discussing for example priority fuel access for cash transporters, according to other sources commenting on preparations that accelerated in recent weeks after Russia throttled gas supplies.
As everyone familiar with the recent history of
the Weimar RepublicGermany knows, access to cash is of special concern for Germans, who value the security and anonymity it offers, and who tend to use it more than other Europeans, with some still hoarding Deutschmarks replaced by euros more than two decades ago.
According to a recent Bundesbank study, roughly 60% of everyday German purchases are paid in cash,and Germans, on average, withdrew more than 6,600 euros annually chiefly from cash machines. –ZeroHedge
There was a rush for cash at the beginning of the scamdemic in March 2020, when Germans withdrew 20 billion more euros than they deposited. That was a record, and it worked generally without a hitch. But a potential blackout raises new questions about possible scenarios, and officials are intensively revisiting the issue as the energy crisis in Europe’s largest economy deepens and winter nears.
In the event of a blackout, cash would be the only official payment method that would still work, said Thomas Leitert, chief of KomRe, a company that advises cities on planning for blackouts and other catastrophes.