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Santelli Stunned As Janet Yellen Admits "Cash Is Not A Store Of Value"
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."
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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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Where the currency of her bank is concerned, The Federal Reserve, she may be proven correct as currency is not always money.
The u.s constitutional dollar is still a store of value if it was allowed to be issued. Of course it doesn't allow for the never ending inflation to pay for foreign wars and domestic tyranny so con-gress authorizing it's issue is not about to happen anytime soon.
It is a shame the People of this nation laugh at and disparage the only instrument in Washington that is half-way on their side. Isn't it amazing what their 'education' can accomplish. Oh well, the People have traded it for bread and circuses and will eventually get what they deserve as history has proven time and time again.
Of course, this time it's different.
kind of like when greenspan suggested that folks buy adj rate mortgages....
and he was VERY correct....
she's talking her 'book'....
Santelli stunned? holy shit this must be serious.
Best investment is profitable company under your control or... in yourself. If you have qualifications which are needed, you will always find a job with good salary. Preserving value with fiat currency is risky business nowadays, especially when this currency is issued by an indebted country with irresponsible/stupid government.
Agriculture offers some interesting business opportunities as growing population combined with climate change will push prices of food higher and higher. But pay attention if a company you want to invest, or land you want to buy, has access to water.
U.S. dollar is doomed in my opinion, as government is trying to cheat creditors pushing currency into high inflation. And sooner or later will succeed. But this process can take years, as world is very unstable now and this creates increasing demand for U.S. dollars.
http://www.thesimpledollar.com/why-you-shouldnt-buy-gold-as-a-hedge-agai...
I don't understand why anyone would be shocked??? The FED has been pleading and pushing people to use their dollars to buy stuff. The comment that the dollar is not a store of value is one more push to get people to buy something, anything and not keep dollars.
She's 100% correct
Owen can prove it
The Department of Justice and the Securities and Exchange Commission are investigating how the 28-year-old manager of Canarsie Capital lost nearly all of the $60 million hedge fund's capital in just three weeks of trading, according to a letter sent to the fund's investors.
"I am very sorry"
On January 20, Owen Li, the principal of New York-based Canarsie Capital, wrote an apology letter to investors stating that he "engaged in a series of aggressive transactions" during the first three weeks of 2015 that resulted in him losing all but $200,000 of the fund's capital
Read more: http://www.businessinsider.com/possible-investigation-into-canarsie-capital-2015-3#ixzz3VhH69d62I didn't hear her to say with Santelli is saying. She was saying that she was surprised more people weren't holding cash instead of keeping them in accounts where rates were negative. She's right, it is inconvenient to hold paper currency in your mattress. It can be stolen, lost in a fire, etc. it is stressful to hold your net worth it in pieces of paper only.
At some point, liquidity leaves the banking system. You can only rape people so much. She is surprised it hasn't happened yet.
Perhaps history will record this as 'The Cash Is Trash' speech. lol
In 1800 a good milk cow cost 2 oz of gold.
In 1900 a good milk cow cost 2 oz of gold
In 2015 a good milk cow costs about 2 oz of gold.
In high school, in 1964, I could purchase a gallon of gas for 20 cents, 2 silver dimes. Today, at a local gas station, I can still get a gallon of gas for 2 silver dimes. Now what did a few (very few here on ZH) of you say about gold and silver having no VALUE and being a couple of BARBAROUS metals? Just saying...........
yep
If gold isn't worth anything to TPTB, why is it the first thing they steal when they take control of a country like Iraq, Libya, Mali, Ukraine?
I am curious if anyone here has ever seen an actual "currency reset". I witnessed one on October, 21, 1968, while I was in-country Vietnam. I was stationed with the 565th Transportation Company north of Can Tho, in the Mekong Delta. Millitary Payment Certificates (MPC's) Series 641 was issued to us when we landed in-country, cashing in whatever US Dollars we had. The MPC replaced the Piaster/Dong in the local's trade with GIs. The Dong had gone though a tremendous bout of inflation/devaluation from the beginning of the war, until that date in 1968. Our motorpool (that was where I was living in a "hootch") was called out to formation early that morning. At which time, we were ordered to go get all our MPC and stand in line for the company paymaster to covert to the new Series 661. We were ordered, in no uncertain terms, that the old series would become worthless, and we could be court-martialed if we failed to turn in all of the Series 641.(holding US Dollars was also a court-martial offense) Later that day our motorpool compound had about 50 Vietnamese civilians tossing bundles on Series 641 over the barbedwire pleading/begging, in tears of agony, to exchange, the now worthless series, for the new series. We couldn't, so we tossed it back, only to have them toss it again. Shortly, the MPs came and chased them away. That was, to my knowledge, the best kept secret at our company level, of my entire time in-country. I could see that happening in a conversion of Federal Reserve notes to a new currency, like SDR's. It would happen over a long weekend, with a bank holiday thrown in as well. Many would face some serious questioning trying to turn larger amounts of "cash", say, in excess of $500. There would probably be police present to ask those questions. Just saying.....
yep. they can do whatever they want.