The decision of the Cyprus government to take money from people’s bank accounts has us wondering … “Can this happen here?” Their finance minister stated that depositors with over $129,000 could possibly see as much as 80 percent of their money seized. As more European countries fail and declare bankruptcy we wonder if the same scenario will apply to us if our government doesn’t get its finances in order.
Bankruptcy is already occurring in U.S. cities with Stockton being the latest to file. The “Golden State” has accumulated $164 billion dollars in obligated debt, in spite of the fact that California is the highest taxed state in the nation. Obviously higher taxes aren’t the solution to out-of-control spending.
The United States is nearly $17 trillion dollars in debt and every man, woman, and child in the US owes the government $55,000 for their share of that debt. With almost half of our households receiving some sort of government assistance we are on our way to insolvency if we don’t concentrate on job creation and a healthy productive private sector. Instead of ever-increasing taxation, the Obama administration needs to focus on spending, tax, and entitlement reforms. Without these reforms, we could become Cyprus.