Hurricane Seismic Waves
Submitted by Atlas Indicators Investment Advisors on November 30th, 2017
When Hurricane Maria knocked out 90% of Puerto Rico's power, the populace found it necessary to revert to a cash economy. In the first month after the storm hit, all around the island there are still many places where credit cards don't work, debit cards don't work, ATMs don't work, bank wires don't work, electronic fund transfers don't work.
The largest bank in Puerto Rice, Popular, said corporate clients were requesting hundreds of thousands of dollars in cash for payrolls. But even when funds were available, security concerns (enough armored cars and qualified drivers) along with passable roadways hampered delivery efforts. What ATMs and banks did have actual cash saw all of it drained within a few days. People with cash began hoarding it, buying only the barest of essentials. Those stores that did have water or batteries often couldn't sell them because no one had money--at least not in smaller denominations.
Huge devastations like the one that hit Puerto Rico can happen anywhere, and most may not even have the early warning system in place that can alert you to a pending disaster. Atlas feels it is extremely important to remind everyone that they should have a disaster-preparedness kit, box, or backpack ready to go. Learning from the experience in Puerto Rico, be sure it includes some cash, enough to cover bare necessities for several weeks. And be sure it consists of smaller bills: ones, fives, and tens are preferable; twenties may even be too large at times. And try to never allow your car's gas tank to fall below half-full. If the power grid goes down, neither ATMs nor gas pumps will work. (by J R)