Monday, March 25, 2013

Operation Reverse Robin Hood

The government of Cyprus caused quite a stir last week by announcing that it would do openly what our government here in the US has been doing covertly:

Steal from depositors.

OK, you don't like me calling it stealing? Then let's call it an unlawful tax, because that's what it is.

Jonathon Trugman explains why Cypriot savers will still be better off than their American counterparts, even after the 10% tax on their savings.
Here it is (in dollars to simplify): If a Cypriot put $1,000 in an island bank four years ago and left it there, today the saver would have a balance of $1,250. Take 10 percent off, and the saver is still up $125.

If a US middle-class family put $1,000 in JPMorgan or Citibank four years ago, the balance today would be $1,010 — less bank fees, which means it’s probably closer to a $950 balance. That’s $9.3 trillion in US deposits getting nothing in return except the warm, fuzzy feeling of bolstering the banks’ balance sheets.

Add in the silent tax of inflation, and American savers are down over 6% for the same time period.

Feel poorer?  Feel like you're slowly being boiled in your own pudding, and there's nothing you can do about it?

You're in the Bernanke Stranglehold, and the Obama Administration thugs (who replaced the Bush Administration thugs) and the Wall Street Pirates are holding you down and kicking you as Bad Ben locks it in.

Meet the new boss...  Same as the old boss.

Historical CPI

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