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The Fox is Bailing Out the Hen House

March 25th, 2013 - 5:41 am

Jonathon Trugman on the similarities between Ben Bernanke and Cyprus:

The Fed has orchestrated a massive transfer of wealth in America from the middle class and the poor to the wealthy. You could call it “Operation Reverse Robin Hood.”

Naysavers will object, “That’s outrageous!” I say, “Do the math.”

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.

This does not excuse the ECB action, but it puts into context what Ben Bernanke’s Zero Interest Rate Policy (ZIRP) has done for Americans. The Fed chief or the Obama administration would never be as blunt as their EU counterparts and call it a tax, but if Uncle Sam — through his policies — is reaching into the pockets of Americans . . . it’s a tax.

And what is this ZIRP tax for? A bank bailout just like Cyprus’.

You’ve been had. The only difference between Cyprus and here is, the thieves in Cyprus were open and honest about what they’re doing.

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Inflation has always been a tax on low-information people because it's so hard for them to "see". The nominal value of one's account kept going up (at least it did before ZIRP, anyway) and $1000 becomes $1100. But the real value has gone down to $900 or less, a fact that does not get blamed on the government but on the gas station, the grocer, etc, etc, because they "keep raising prices, the greedy bastards." It's the idea racket - the crooks steal from people who blame someone else.
1 year ago
1 year ago Link To Comment
The Cypriots call it tax, we call it ZIRP; the Chinese call paying off politicians bribery, we call it campaign contribution; the communists call taking your assets confiscation, we call it paying your fair share; the Germans call paying taxpayers' money to your cronies corruption, we call it "stimulus"; the Soviets charged huge fees to let the Jews exit the USSR, we levy an exit tax on all your assets when you decide to quit being American.

Americans are living in their American Dream of bliss and ignorance, like the little frog relaxing in the cauldron of warming water counting its blessings.
1 year ago
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