The incredible theft and destruction of property rights that occurred in Cyprus today is part of the ever increasing effort and desperation to sustain an unsustainable system that is built on debt.
What happened in Cyprus with the theft of 40% of deposits over 100,000 euros will not happen in the US.
It will be much worse.
Cyprus along with Greece, Ireland, Portugal, Spain and Italy do not print their own currency. They gave away their sovereign right to the European Central Bank. As a result they will suffer a deflationary depression as all of the real wealth is sucked out of those nations. It will come in the form of austerity or out right theft like we saw in Cyprus today.
This will not happen in the US as we print our own currency and the government would not need to rile the masses and steal from their bank accounts. They can simply print more money which has the same real effect of destroying the purchasing power of those dollars. This is why the price of everything is going up as more dollars chase after less goods. Truth be told it is not the prices that are rising, it is the value of those dollars that are dropping and you need more “worth-less” dollars to by the same amount of goods.
There will ultimately be no real recovery in the economy or employment until the all of the debts of the world are either hyper inflated away or outright defaulted upon.
The solution is to have real assets that would be immune to the inflationary or deflationary forces that are at work in the global economy.