In an alarming turn of events, the small nation of Cyprus is set to actually seize up to 10% of the savings of its citizens. Yea, step back and try to imagine that little number being played out on you. You see, Cyprus is in a financial quandary of its own doing, much like the rest of Europe, and they are searching for every conceivable way to shore up their government. Of course their citizenry is, well, to put it mildly, enraged. Funny how folks are all about big government and spend, spend, spend, until that same government comes calling for your personal dough. Look for this little stunt to be all over the world news for the next few weeks.
Of course the obvious question is could that happen in the United States? Well of course it can and in a way it has happened before. President Frankie Roosevelt attempted, by executive order, to confiscate personal gold from folks back in 1933. That didn’t work out so well for Frank but it scared the bejesus out of folks and has ever since. Not until the Ford administration was this issue finally cleared up. Now, history tells us, along with my deceased Grandparents, that they feared banks because of how funds got “lost” in banks during the Great Depression. And that little FDIC Insurance deal, well, its underfunded by a Kzillion bucks so don’t look for it to make you feel safe.
Lets take this little exercise a ways further. Most of us have substantial savings in 401Ks and such and feel they are pretty safe. We all accept the ups and downs of the market but lets suppose that somewhere in the not to distant future, a liberal president, say Hillary Clinton, figures we have a financial crisis and the United States Government taps into a percentage of your 401K. Could it happen? You bet your best marbles it could and it is rather likely given the financial disaster that continues to unfold in Washington. How you say? Well picture a Democratically controlled House and Senate simply passing a law that says they can do it. Thats how simple it happens folks.
The point of this piece? Well, once again I point out that Americans are humans just like the Europeans and simply because we have that USA symbol by our name doesn’t make us immune from making dumb mistakes. Hang on folks. It could get ugly.