Forget Greece, U.S.is already like Cyprus.

Do We Want to Be like Cyprus ?  Too late we are closer than you think.
European Union parliment member said  today that confiscation of monies from private funds in banks is ok. All countries should do it. 



Cyprus, an island in the Mediterranean sea. off the coasts of Turkey and Greece. Is a small country with a population of about 1 million people at last count. A great place to have picnic. The island is about the size of Hawaii. Unlike Hawaii, it is split in two politically, culturally and religiously. It is the last place in Europe that is still divided as a national entity. The north is Muslim and Turkish and the south, Christian and Greek. 

The Greek part of Cyprus is a member of the European Union. Northern Turkish Cyprus is not. Because of it's location and banking laws. It became a financial hub,. Many of the depositors being Russian  and others. In order to avoid laws that affect their money in a detrimental way. The banks have experienced a recent melt down and have closed their doors for the time being due to a run on the banks.

The European Union has refused to provide a bailout to Cyprus unless they come up with part of the money needed. Why is Cyprus in this situation. You guessed it. Spending and entitlements. One example is the amount of days that are statutory holidays (vacation days) after 10 years service 35days, based on a 40 hr. work week. They rank number 3 world.

The government has gone into an austerity mode since the last leader, a communist was ousted.  The percentage of debt versus the GDP is greatly out of wack. Borrowing what turned out to be unsustainable amounts of money and causing debt levels to be un- managable. This is a lesson that Mr. Obama and the Democrats refuse to acknowledge.  As anyone in Cyprus and Greece and Italy can tell you. You cannot spend and borrow your way into prosperity.


So how will Cyprus get the money. One way that has been proposed is taxing bank accounts of large depositors. Or, accounts in excess of 100,000 euros. In essence taxing the money twice.  First when you earn it and then when you deposit it in a bank. Essentially taxing the more wealthy of the country.  Punishing them for their ability to earn and save money.  Sound familiar. If it doesn't then I refer you to recent tax laws recently passed under the Obama administration. When the death tax was raised.  Or when 600 billion in new taxes was authorized but almost no spending cuts were made. To be more accurate a ratio of 40 dollars in new taxes and $ 1.00 in the reduction of spending.

A similar situation is taking place in California. Where the tax deductions given to business to encourage new ideas and employment were suddenly rescinded. Even to the extent that monies or tax credits are to be charged back to those individuals or companies retroactively up to 5 years.. So that if they received an 8 percent tax credit. They now have been re-assessed to provide the full percentage. Some individuals and companies facing tax bills in the millions in the next few months. California reneging on their promise in order to pay for the outrages spending of the Government on entitlements. As well as union pensions and collective bargaining contracts with civil service employees. These overspending practices get the politicians of state government re-elected, but drive businesses and talent out of the state.  Sort of like cutting your own carotid artery.  The exodus from California of business has been going on for a long time. Reducing the amount of income the state has been able to collect. Yet the state legislature controlled almost entirely of democrats for many years just keeps on spending.  Why not ?  Al they have to do is raise taxes and extort businesses through unfair taxation. Killing the goose that lays the golden egg for the Golden State.




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