Could Cyprus happen in U.S. or is it happening now?
Despite saying last week that they wouldn’t allow money to be confiscated from private bank accounts, Cyprus caved under pressure from the EU, taking up to 40% from accounts that have more than 100,000 Euros.
The Cyprus progressives have gone wild, left with no solution except to take private funds directly from bank accounts. The progressive socialist political system is responsible for this turmoil – deficit spending for years without any concern for the consequences – sound familiar?
Read about the closing of banks, loss of thousands of jobs, freezing amounts over 100,000 euros here. Private bondholders have already lost 75% on their investments a year ago.
The U.S. government would probably not take savings directly from our bank accounts but read here how the government is currently reducing our accounts through inflation, quantitative easing by the federal reserve, etc.
This new money (Quantitative Easing) buys just as much as the money you sacrificed to save for years. More money in circulation, without a corresponding increase in output, means rising prices. Although the numbers in your bank book may remain the same, part of the purchasing power of your money is transferred to the government. Is that really different from what Cyprus has done?
Take a look at the tactics Cyprus is using to avert a run on the banks – total government control in action. The government is even investigating people who took large sums of money out of Cyprus weeks before the bailout terms were determined.
Just get used to these tactics by progressive governments as they head toward a fiscal cliff of their own making, they confiscate citizens money to pay for their fiscal mismanagement.