Cyprus Can't Happen Here? It's already has...

Bruce Johnson

Governmental authorities dipping" into private savings accounts and removing 10% of their value is termed an "unthinkable solution" for banking issues in the United States.

For those who say, "It couldn't happen here" I ask, "Where have you been?"

The "dipping" has been more clandestine and complicated, but the trimming of 10% from the savers of this nation has happened none the less. It didn't happen in one day, but over the past 5 years. 

The Federal Reserve has kept interest rates, by most estimations, 2% below what historically would be expected in today's inflation environment. That percentage compounded over 5 years exceeds 10%.

The fair return on savings has been snatched from the savers in much the same way Cypriot authorities suggest value be snatched from Cypriot savers.  Quantitative easing and money printing are not tools Cypriot authorities have at hand.  Their robbery is more in broad daylight than hidden behind the central bank machinations that have occurred in the United States.

Resultant of this theft of value is the obvious ramification.  Savings rates are not sufficient in the United States, especially for those on the brink of retirement. 

The "emergency actions" by the Federal Reserve conducted at record high stock market levels must be, by all parameters, a crossroads of sorts.  Robert Johnson, the famous blues player from the 1920s, made a deal with the devil at a crossroads.  Has Bernanke struck such a deal with the 'soul' of the nation?

Bruce Johnson



Governmental authorities dipping" into private savings accounts and removing 10% of their value is termed an "unthinkable solution" for banking issues in the United States.

For those who say, "It couldn't happen here" I ask, "Where have you been?"

The "dipping" has been more clandestine and complicated, but the trimming of 10% from the savers of this nation has happened none the less. It didn't happen in one day, but over the past 5 years. 

The Federal Reserve has kept interest rates, by most estimations, 2% below what historically would be expected in today's inflation environment. That percentage compounded over 5 years exceeds 10%.

The fair return on savings has been snatched from the savers in much the same way Cypriot authorities suggest value be snatched from Cypriot savers.  Quantitative easing and money printing are not tools Cypriot authorities have at hand.  Their robbery is more in broad daylight than hidden behind the central bank machinations that have occurred in the United States.

Resultant of this theft of value is the obvious ramification.  Savings rates are not sufficient in the United States, especially for those on the brink of retirement. 

The "emergency actions" by the Federal Reserve conducted at record high stock market levels must be, by all parameters, a crossroads of sorts.  Robert Johnson, the famous blues player from the 1920s, made a deal with the devil at a crossroads.  Has Bernanke struck such a deal with the 'soul' of the nation?

Bruce Johnson