Tuesday, March 19, 2013

America's Economy, Can One Still Bank On It?

    I am originally from West Virginia, and yes, there certain locations there where the natural beauty one can definitely find there is so breath taking it is almost Heaven. Many folks, who live in the region of the Appalachian Mountains, are some what leery of outsiders, even to this day.There are still places you could go in West Virginia,where strangers are not welcome and if you  found yourself, on some one's property uninvited, and you weren't with some one well known in the given area, there's a real good chance you could be greeted at the door by someone with a shot gun and trust me they would know how to use it and they would not need any instructions from Vice President Joe Biden,  nor his permission before  they would use it either.A lot of folks,  who live in  the mountains of West Virginia, don't put a great deal of trust in banks, these folks, are often the ones who stuff their money in their mattress  and that is because, many of the older folk who lived through the Great Depression,  of the thirties remember what it was like to see people panic trying to get there money out of a bank before it went out of business such economic hysteria, is called a run on the bank.
    President Roosevelt, finally had to declare a bank holiday and all remaining banks closed for a time until the financial markets were stable enough for banks to reopen. By the time the banks reopened however many people had lost all of there money because far too many banks had failed at the same time, Therefore, President Roosevelt,  established the Federal Deposit Insurance Corporation. in 1933  or the FDIC for short.. The purpose of the FDIC,  is to insure the money people have deposited in in a given bank including certificates of deposit and checking and savings accounts  and as a result, Americans, at least so far,  don't have to worry about a sudden financial panic that would trigger a run on the nations banks at lest that's how it's supposed to work anyway.
    Cyprus,is a little country, east of Greece and south of Turkey.Cyprus, now finds it's self in a bit of a financial pickle and it seems that the European Union and Russia, have the people of Cyprus over a bit of a financial barrel, Cyprus, is not sure it wants a bail out from the European Union, which is convenient because the European union, is not sure it wants to provide a bail out for Cyprus. Russia, has out a great deal of money in Cyprus banks, and they have offered to bail Cyprus,  out but it will cost them their country's rights to their natural gas reserves. Unlike the US, Cyprus, has no FDIC and they can't print their own money so they find them selves SOL that's stuck out of luck! The government in Cyprus,  now finds it's self forced to raid the savings accounts of the citizens of Cyprus. Depending on, how much one has in the bank the government in Cyprus, may take anywhere from six to ten percent of a citizens money based on a predetermined scale of wealth established by the government in Cyprus
    I don't know if anything economically speaking going on in Cyprus,  could ever happen here. America, does have the FDIC and the Ability to print money but I've got a king size mattress just in case.Call me crazy, but being from West Virginia, I can assure you that if the government thinks it will ever indiscriminately raid any one's bank account in West Virginia well let's just say the government,  will rediscover why Americans have the right to bear arms and I just bet a lot of folks all across this nation would react the same way. As always, my friends, these thoughts remain, just some words, to think on.

1 comment:

  1. This comment has been removed by a blog administrator.

    ReplyDelete