071 – War on Savings, Cyprus “Haircut”

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Many farmers and ranchers are savers.  cyprus bank

Now as a whole we do spend a lot of money.  The amount of capital needed to be in modern commercial production agriculture is huge, but we do try and save some as our business progresses so we can eventually become self-financed.

I am certain that there is a war on savings right now.  Whether intentional or not that is what is happening.  I know the “top” policy makers want us to spend money and make the economy grow, their policies have also destroyed many plans of people who have saved their whole lives to better themselves.  Interest rates below the rate of inflation destroys savings.  Depending on the spread it may take a lot of time or very little.

A very good example is back in 1982 people I knew put money in an insured bank CD and received 12% over a three year period which meant with compounding for every dollar they put in they got back $1.51.  Today after 3 years you would be lucky to get back $1.04.  Now maybe 12% was a bit excessive, but how many people saved their whole life waiting for retirement and expected at least a 5% return on their money, only to have to use the principle just to survive.  No wonder farmland is selling for record prices.

Now the Europe elites are trying to force the nation of Cyprus to take up to 10% of bank deposits as a “one time” tax to fund a bailout of these same banks. 

Is a Worldwide Wealth Tax next???

Have all the other bailouts failed?  Is this also about German taxpayers and voters not wanting to bailout Russian deposits in Cyprus.

So what do we in American agriculture do?  Will it at least in the short term make the US dollar go up in value?  Which would make our ag goods harder to sell to the world.

Is this a breach of fundamental property rights?

Where does it go from here???

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