Phoenix Capital Research's blog

The Fed and other Central Banks not only don’t have a clue how to fix the problem, but that they actually have almost no incentive to do so. 

More and more analysts are beginning to take note of the “War on Cash.” However, they’re missing the fact that the actual template for what’s coming to the US first appeared in Europe back in 2012.

This has created a REAL problem for the Fed… and it’s going to result in a far more aggressive campaign to TRASH cash going forward.

This would suggest that the bull market in stocks is ending. It’s quite possible that a significant top, and possibly THE top is in for stocks.

This same process has likely begun for the markets again… but this time it will be global in nature as the bubble in question is not just in stocks but in bonds, commodities, real estate… indeed in the very Central Banks themselves.

In the last 24 months, Canada, Cyprus, New Zealand, the US, the UK, and now Germany have all implemented legislation that would allow them to first FREEZE and then SEIZE bank assets during the next crisis.

 Most large financial entities are insolvent. As a result, if a significant amount of digital money is converted into actual physical cash, the firm would very quickly implode.

Perhaps the most concerning is the fact that should a “systemically important” financial entity go bust, any deposits above $250,000 located therein could be converted to equity… at which point if the company’s shares, your wealth evaporates.

In simple terms, if the system is ever under duress again, money market funds can lock in capital (meaning you can’t get your money out) for up to 10 days. This is just the start of a much larger strategy by the Fed to declare War on Cash.

Central Banks are going to declare a war on cash.

Another round of the Crisis is coming and the Powers That Be know it. This is why they’re preparing by buying up Gold bullion.

Something BIG is afoot: we are seeing multi-decade breakouts in numerous currency pairs. 

Will Greece default or is this a bluff? The larger implication is that Greece may be the straw that breaks the proverbial camel’s back: a Greek default or breakup from the Euro would, trigger considerable US Dollar strength.

Put simply: the market is quickly running out of props. Eventually we’re going to get a correction. But with so little buying power in the markets that could correction would very easily become a Crash.

The global Central Banks, driven by their Keynesian lunacy, have induced the single largest misallocation of capital in history.