3 EM 1 – 10/05/2022

The US is supposed to be a superpower. Why is the US government and society in such a shambles when it comes to our economic stability.

Why has the U.S. dollar devalued by 95 percent since the Federal Reserve was created? This has been caused by inflation. Perpetuating inflation is something that the Federal Reserve is very good at and something that has serious consequences for everybody in the future.

This weekend the International Monetary Fund made a deal with the Government of Cyprus to Bailout the Island so they can avoid a painful default and financial collapse and would take them out of the Euro. The problem is that the proposal imposes a tax on the citizens of Cyprus bank deposits. If you have less than $100,000 euros you will be taxed 6.7% and if you have above that amount you will be taxed 9.9%.

This article continues to follow the downward spiral of the bad decision of the Cypriot government to confiscate private property from its citizens in the form of a levy on savings. This move to bolster a bailout deal is already causing fluctuations in the Forex markets.

Unless you have had your head in the clouds for the last few years, you would have read on many occasions about the problems facing the Euro. The headline case has been the bailout of Greece, but other countries like Spain, Italy, Ireland and Portugal are in real turmoil still.