Santelli Stunned As Janet Yellen Admits "Cash Is Not A Store Of Value"

Tyler Durden's picture

Intended warning or unintended slip? After Alan Greenspan's confessional admission that

"Gold is a currency. It is still, by all evidence, a premier currency. No fiat currency, including the dollar, can match it,"

we found it remarkable that during the Q&A after her speech today that Janet Yellen, when asked about negative rates, admitted that

"cash in not a very convenient store of value,"

seemingly hinting at Bernanke's helicopter and that there will be no deflation in The US ever...  

Rick Santelli then sums it all up perfectly...  

"deflation is clearly the boogeyman... and the only thing that will save the middle class."

*  *  *

Yellen: "cash is not a convenient store of value"

* * *

So if cash is not a very convenient store of value... what is? Biotechs? As Rick Santelli explains... this is the scariest thing she has ever said...

Santelli: "deflation is the boogeyman... and the only thing that can save the middle class is lower prices"

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I am more equal than others's picture



You've been warned

lordylord's picture

Did Yellen have to tell anyone this?  Anyone who buys anything knows that the $50 is the new $20 and that's just the last 10 years.

Anyone who keeps large amounts of cash sitting around is a fool.  Savings (in dollars) aren't your savings anymore.  It's the government's to slowly take.

Squid-puppets a-go-go's picture

when TPTB talk about a cashless society, maybe they mean that everyone owns stocks, gets paid wages in stocks, and uses stawx to buy groceries

nope-1004's picture

I heard it dfferent.  What I think she was trying to say was that traditionally cash isn't a good store of value when rates are higher, as they have always been.  Inflation erodes the value of cash holdings because cash in the mattress doesn't earn a return if not loaned out.  But with Europe going to negative interest rates, the logical thing to do would be for people to hoard cash, because deflation equates to purchasing power going up.  Instead of earning a rate for parking cash in the bank (positive interest rates), people are being charged a larger fee to keep cash in the bank (negative interest rates).  And she said she's surprised more people aren't hoarding cash.

Which means she's surprised how economically dumb people are about the price of money and possibly considering doing the same in the US.

Did I hear it wrong?

JohnG's picture

Same thing I heard.  Surprised at the lack of demand for cash when NIRP imposed.

Kaiser Sousa's picture

you guys r talking about hoarding worthless debt based currency...

doesnt mattter if its in the bank or under the mattress...

receiving negative real rate of return on it or being counterfeited to ZERO...


doesnt matter what the fuck she meant....

just sayin.

JohnG's picture

As long as the liquor store trades it for booze it's worht that.

Bilderberg Member's picture

Gold should be up $200/ounce on that sentence alone.

Keyser's picture

Other news today, in a recent poll, Taylor Swift was voted a more influential world leader than Barack Obama... The people don't care, they really don't give a rat's pattootie... Future society is doomed, but they will have BRAWNDO!!!

LianaKaulitz's picture
LianaKaulitz (not verified) Keyser Mar 27, 2015 7:58 PM

boo hoo. gold gold gold. fiat this fiat that.

7.62x54r's picture

Have you been living in a cave for the past 50 years?

Minimum wage in 1963 was five silver quarters. About 17 dollars in today's value. And those 5 quarters would buy you goods that would cost $17 dollars today. It was actually possible for a soda-jerk to raise a family back then, if he scrimped and saved.

One hour of minimum wage today will get you goods worth $0.27 in 1963.

GetZeeGold's picture





So I took my calculator out about 15 years ago trying to figure out what an ounce of gold was worth.


I pressed the enter key and went......damn that can't be right.


Yes.....I went and bought some gold.

Took Red Pill's picture

I think Yellen is telling us we should be taking our money out of the bank and stash the cash!

GetZeeGold's picture




I would convert it before you stash it.

krispkritter's picture

No idea where this came from but:

Only after the last can has been kicked,

Only after the last fiat has crumbled,

Only after the last banker has been hanged,

Only then will you find that money cannot be eaten...

Only then will you find Jon Corzine in a hot tub with a Swedish supermodel...

sschu's picture

Add up the total taxes paid in 1963 by that minimum wage worker and today.  Disposable income is far less now.



Sales Tax

Gas Tax

Other business taxes passed on

Yours is an excellent point.


tarsubil's picture

Why would you make a youtube video? The fact that you lump bitcoin and gold together shows that you have a lot to learn there little buddy. Tell Congress to take the power back from the banks? Are you serious? Why don't you just go outside and have fun on a swing or something while the adults talk about adult stuff. Holy moly.

cynicalskeptic's picture

Idiocracy was a documentary that grossly underestimated how long the decline would take.


Karlus's picture

BRAWNDO, its got what plants crave. Electrolytes!

Thirst Mutilator's picture

It's the Thirst Mutilator... Oh Wait!

ersatz007's picture

Brought to you by Carl's Jr. I get paid for saying that.

Proofreder's picture

How much?


in so many ways

pgroup's picture

She couldn't be a worse president, she's decent looking, and she's got a lot of class.

Swift 2016.

GetZeeGold's picture





The one thing about living in Santa Carla I never could stomach...was all the damn rituals.

Bahrainiac's picture

That's just because Taylor Swift has a solid foreign and domestic policy agenda.

Griffin's picture

I think that Taylor Swift would be a excellent choice for president, very much unlike Clinton, Bush or that Canadian who the republicans are joking around with.

The problem is that even if you guys were lucky enough to get someone who is smart, talented, well spoken, and very beautiful,  Then she would be the person in charge of a rotten system controlling a nation that is already sipping on Brawndo.

Maybe we need to change the system so it will look attractive to people who are interested in being involved in politics for the right reasons.









thecrud's picture
thecrud (not verified) Keyser Mar 29, 2015 1:40 PM

10 20 years of 90 percent unemployment is what it will take to pull out of that nose dive.

Kaiser Sousa's picture

yeah as long as a dollar doesnt buy u and ounce of Silver or Gold its worth that....

keep your fucking booze...

OpTwoMistic's picture

1970 a fifth of Jim Beam was 5.00 at the NCO store. Now I pay 35.00.

thecrud's picture
thecrud (not verified) OpTwoMistic Mar 29, 2015 1:54 PM

A carton of smokes at the PX for me was 2.05.

silver_stacker's picture


I agree with you Kaiser...keep on stackin...

crazytechnician's picture

BS. Paper is made from wood. Wood contains calories. Ink contains calories. Why do you think the folks from the Weimar were burning this paper ? Obviously it had some value. They could wipe their ass with it and then burn it to keep a little bit warm. Anybody who thinks paper currency is worthless is a joker.

palmereldritch's picture

Not to worry.

Janet exclusively uses a FEMA Express card.

Don't leave FOMC without it!

Wait What's picture

personally, Wait What prefers bottle caps. they are in short supply, he hears.

"so many bottle caps, mr. scrooge, you're the richest duck in tralala"

crazytechnician's picture

Surely the preferred method would be to burn it after wiping ? Why clog your bog ?

Squid-puppets a-go-go's picture

indeed. people shouldnt discount that even toilet paper has a utility ;)

7.62x54r's picture

The central bank in Zimbabwe threw in the towel when they realized they needed to sell blank currency paper back to the company in Germany they bought it from, in order to meet employee wages.

Actually putting a one and a bunch of zeros on it seriously lowered the paper's value.

crazytechnician's picture

That is incorrect. The more ink that is on the paper the higher it's calorific energy content. That would mean the paper burns either at a higher temperature or it will burn for longer , thus releasing more heat energy. This is known as basic physics buddy.

7.62x54r's picture

You are assuming they use soy based ink, I think.

I suspect that, near the end, they were running newsprint through an ink-jet.

Proofreder's picture

Paper Currency IS

worth  less

than almost anything else.  Is this clear enough for you ?

Worth Less - got it?

dojufitz's picture

If it was worthless (as you say) it would be rejected at the local Supermarket......

It isn't so you are wrong and all the hard metal men as well....

(btw I have Gold and Silver)

I just can't take the dumbness of ZH comments about 'The ONLY MONEY IS GOLD AND SILVER!"

Fiat is a fixed price by the Govt...ala Bretton Woods agreement......


When the Govt 'rigs' or 'fixes' doesn't last.....neither does Gold & Silver if fixed.....

Learn history and you won't sound so dumb.



Squid-puppets a-go-go's picture

true nuff, gold & silver arent the only money. but they have a combination of properties that makes them - in greenspans words = the premier currency

dojufitz's picture

If it was worthless (as you say) it would be rejected at the local Supermarket......

It isn't so you are wrong and all the hard metal men as well....

(btw I have Gold and Silver)

I just can't take the dumbness of ZH comments about 'The ONLY MONEY IS GOLD AND SILVER!"

Fiat is a fixed price by the Govt...ala Bretton Woods agreement......


When the Govt 'rigs' or 'fixes' doesn't last.....neither does Gold & Silver if fixed.....

Learn history and you won't sound so dumb.



Trogdor's picture

I think it's a good idea to have a stash of cash for when the system pukes (and there will still be sheep who will only take cash - even if it's toilet paper at that point) - but hoarding it isn't a good idea....

weburke's picture

I am a recent fan of cash. and diamonds. with a disruption, how do I make my investments into cash?