Cyprus, The Tip of The Iceberg

Through the last weeks Cyprus has declared its horrible economic situation. And it has proposed some radical measures to balance the Government’s budget.

One of the measures that the Cyprus Government wants to make is a deposit tax and some others taxation, driving the people to run to the banks. Many are outrageous with the Cyprus measures, and some others are saying that it is just the beginning of the fall of the European Union.

The outrageous about Cyprus is an indicator that part of the American People are not aware that the same calamity is going on in America.

For every dollar that the Government spends that they don’t have it, the people will pay for it, through tax increases, inflation, and passing down the debt to future generations. While Cyprus is finding ways to invade people’s bank accounts, in America they are doing it through massive inflation, because the FED is monetizing the Debt and printing money that they don’t have. It’s a mistake to think that the American Economy is growing, there isn’t growth. The Government is borrowing money and spending it. There is an economic retraction going on and not growth.

The Government says that inflation is around 1% a year, but serious economic studies shows that the inflation is higher than 5% a year and it’s trending to get even higher.

While the World is focusing in a small island, a greater economic calamity is happening in America, and the media wouldn’t bother to tell anybody about it.