Cyprus Bank Grab Happening in US, Slowly
Thomas Sowell: The fed is subtly making the money you've saved less valuable
By Kevin Spak, Newser User
Posted Mar 26, 2013 1:39 PM CDT
Cypriot students shout slogans as they stand at an entrance of the presidential palace in capital Nicosia, March 26, 2013.   (AP Photo/Petros Giannakouris)

(Newser) – When Cyprus came up with its plan to take money out of its citizens' bank accounts, many Americans were aghast. Could such a thing, they wondered, ever happen here? "Yes and no," writes Thomas Sowell at RealClearPolitics. "The US government is very unlikely to just seize money wholesale," he argues, but "there are more sophisticated ways for governments to take what you have put aside for yourself and use it for whatever the politicians feel like using it for."

The big difference between the US and Cyprus is that the US government can simply print more money when it's in trouble—and it has. The ongoing "quantitative easing" process is basically the Fed "creating money out of thin air," causing inflation. Prices rise, and "this new money buys just as much as the money you sacrificed to save for years." Meaning that, while all your money is still in the bank, it's less valuable. "Is that really different from what Cyprus has done?" Click for the full column.

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Mar 27, 2013 5:47 AM CDT
So says one of RealClearPolitics seven readers?
Mar 26, 2013 10:46 PM CDT
Mar 26, 2013 10:30 PM CDT
Cui bono ad absurdum? The Federal Reserve and its policies of printing trillions of money out of thin air and distributing it to the oligarchs, either directly or through low interest loans. Average income growth for the bottom 90% in America since 1966 is.............$59 (that is measured on the histogram below at one inch high) For the top 10%, by the same measures, average income rose by $116,071 (that would stretch 163 feet up on histogram) For the top 1% their increase in income growth would stretch up 884 feet and for the top 1% of the top 1% it would stretch up 5 miles Histogram: Who owns America?.........The top 10% own the USA with their wealth, income and power.........and mostly from the help of the Fed