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Back You are here: Home Columns Weekly Columns For Your Consideration For Your Consideration: Cyprus

For Your Consideration: Cyprus

By CHARLIE ALLO
Contributing Writer

The little country of Cyprus, located in the eastern part of the Mediterranean Sea, has become the story of the week as a result of its government’s intent to extract taxes from the bank accounts located within the country. This action is being proposed as a result of the county’s request for loans from the European Union; the government’s intended action has raised concerns in many nations around the world. There is a fear that other governments will employ the same tactic to resolve their fiscal problems. The European block of nations do not have the ability to print their own currency, this is in part due to the diversity of governments within the union of nations that are part of this block.
The politicians have assured the United States’ citizens that the action being suggest by Cyprus could never be applied here because the population would not put up with this form of confiscation, but the real truth is that there is no need to employ this tactic because there are more effective ways of taking money from citizens, and these methods don’t set off any alarm bells. The Federal Reserve can print all the money we need and the current chairman has said he will continue to print eighty-five billion dollars a month until he sees that this action is creating inflation; one has to wonder what benchmark the Fed Chairman is using for inflation. The money is not going directly into the economy, but it still has an impact on how other nations interact with the U.S., they are well aware of the fact that the Fed's are devaluating the dollar, and they are making adjustments to compensate for this devaluation so there is no loss of capital in their transactions with the U.S.
There are many businesses within the U.S. that are trying to make corrections in their pricing in order to maintain some stability in the revenue matrix related to their product or service.
Another example of how the government is helping itself to the fruits of one’s labor is the use of the inheritance tax, which extends far beyond the confiscation of capital that is being employed in Cyprus; this tax evaluates the value of all possessions.
Little comfort can be found in the fact that this action does not kick in until the value reaches a point that many would consider very well off. The government is playing its game with this aspect of the law, while the value of the property goes up over time as a result of the devaluation of the dollar, the level for activation remains the same, this means that the government is going to take more from the individual and leaves the individual with a lesser amount to function with. This paradigm is utilized in a number of structures that are related to either paying or collecting money.
One should really question the motivation behind the government’s actions, the politicians are continually saying they want to help the middle-class, and yet almost everything they do is impeding the individual’s ability to move vertically in our society. The government is designed to continually grow, and yet it is becoming more dysfunctional with each new period of growth; what is even more disturbing is the fact that the elected representatives are passing most of the operational control to the unelected bureaucrats with very little oversight.
The electorate can remove their representatives, but it would appear that it is almost impossible to remove a member of the bureaucracy that has been installed by the bureaucratic system. The system has learned how to divert the electorate’s attention, and while we are running around in circles chasing our tails, we fail to note that the real problem is the infestation of fleas that are sucking the blood out of our bodies.