This page has been archived and commenting is disabled.
Fed Officials Call For NIRP… is a Physical Cash Ban Next After That?
More and more “experts” are calling for Negative Interest Rate Policy or NIRP.
The US Federal Reserve is obsessed with market reactions to its policies. Because of this, anytime the Fed plans to announce a major change in policy, it preps the markets via numerous leaks and hints… oftentimes for months in advance.
An excellent example of this concerns the Fed’s decision to taper QE back in 2013.
At that time, the Fed had been engaging in two open ended-QE programs… programs that had been running for over six months.
Rather than simply beginning to taper the programs, then-Fed Chairman Ben Bernanke, hinted that the Fed was contemplating a taper in June.
The markets reacted sharply with bond yields rising.
The Fed then spent six months allowing the market to get used to the idea of a taper, before the actual taper finally began in December 2013.
Put another way, the Fed gave the markets a full six months to adjust to a change in policy, before actually implementing said change. This only highlights just how focused the Fed is on market reactions to its policies.
In the simplest of terms: the Fed will NEVER surprise the market. This is particularly true now that the Fed is in the political cross hairs due to ample evidence showing its policies have increased wealth inequality.
If the Fed is planning on something new, particularly something that might have political repercussions, we’ll see numerous hints and suggestions well before the actual policy is unveiled.
With that in mind, we need to consider the number of Fed officials who have recently been hinting at Negative Interest Rate Policy or NIRP.
1. First we find that a Fed official hinted at NIRP during the Fed’s September 2015 meeting.
2. Then, on October 9th, Fed President Bill Dudley stating that negative rates were “an option” though not a “relevant conversation” right now.
3. This statement was followed up by Minneapolis Fed President Narayana Kocherlakota stating point blank that the Fed should “consider negative rates.”
The Fed has never once hinted at or discussed NIRP during its policy meetings. Then, in the span of three weeks, we’ve not only had an anonymous Fed official state that he or she believes NIRP is coming to the US, but two highly visible Presidents have called to NIRP consideration.
This is simply part of the Fed’s larger War on Cash.
For six years straight, the Fed has been trying to “trash” cash.
First it cut interest rates to zero… making it so that savings deposits produced almost nothing in the way of interest income. Consider that at current rates, a retiree with $1 million in savings earns a measly $2,500 per year in interest income.
The Fed’s hope was that by making it painful for savers to sit in cash, said savers would move into risk assets such as bonds and stocks. This has worked in that stocks are now in one of, if not THE biggest bubbles in history… while bonds are trading at yields never before seen outside of wartime.
However, the Fed overlooked two outlets for investors who didn’t want to be forced into risk. They are: Gold bullion and physical cash.
The Fed has been dealing with bullion via clear manipulation of prices for years (that’s an article for another time). And now it is moving to make physical cash obsolete.
This is just the beginning. Indeed… we've uncovered a secret document outlining how the US Federal Reserve plans to incinerate savings in the coming months through NIRP, and possibly even by outlawing physical cash.
We detail this paper and outline three investment strategies you can implement
right now to protect your capital from the Fed's sinister plan in our Special Report
Survive the Fed's War on Cash.
We are making 1,000 copies available for FREE the general public.
To pick up yours, swing by….
http://www.phoenixcapitalmarketing.com/cash.html
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research
Our FREE daily e-letter: http://gainspainscapital.com/
- advertisements -


Pfft...go ahead and ban cash. I live in Obamas America, so I don't have any.
sigh ... I think some poster on another thread vented a little frustration in re gun control, saying, yeah, we have our guns, we go hunting, and drink beer on the weekends, but (as the post ran along, paraphrasing here) as touching their use to repel the advance of tyranny, well, good luck with that. I understand how the poster feels. "mmm hmmmn ... i see ... so the banks, in their eternal quest to squeeze us all dry, and having run out of options concerning creating more debt to cover the cost of existing debt, are going to start mining back down into their ponzi pyramid and just take what is on deposit somewhere". In case you did not know, that is what NIRP means. The 'banks' will charge savers - let's say - .25% each month. So your $1,000 savings account at the start of the next period will have $997.50. But that's OK, all you have to do is work a little extra harder to make up that $2.50. And really, what's $2.50 between friends right?
I realize a handgun or a hunting rifle is no match for an F-16, so in modern terms, the level playing field that was supposed to have been enabled by the 2nd amendment as a last ditch effort to repel tyranny to keep the dying patient of a governmental system that attempted protections to guarantee the liberty of the little people just doesn't exist (ha! they complain about gun 'violence', wait until you try to get a used F-14, fully loaded, on craigslist and park that in your back yard), but this NIRP thing is getting a little personal :)
"But they can't do that!" Ahh, grasshopper, yes they can - at least they will argue all that amassed debt was created for your benefit, and you as a loyal citizen have been conscripted inasmuch as the debt is guaranteed by the sweat of your brow. Today, it is a few bucks. Tomorrow, it's whatever you got.
Although presently it is not in vogue to even hint at a more animated methodology of repelling this tyranny, as the govt and 'banks' travel more deeply into the lives and pockets of the 'citizens', it is very likely there is this invisible line that gets crossed. On that day, we might find ourselves witnessing a little more than weekend hunting and beer drinking going on.
Banks are already charging 13% 17% even 22% on credit cards while paying out less then 1% on saving accounts. I remember the good ole days when savings accounts were paying 5% and credit cards were charging 7% to 9%. Todays the banks can be considered no better then loan shark. It won't be long till savings accounts are a thing of the past. Why keep your money in one if their going to start charging you for the privilege of holding your cash. Why not just stash it in your own safe or under the mattress. At least it won't be losing its value as quickly as if in a saving account run by the criminal banksters.
"Why not just stash it in your own safe" Why not? Because what is represented as a tradeable currency note can be changed without notice. You could find yourself with all this 'cash' that is no longer in 'fashion'. "Oh, I'm sorry sir", the clerk at the store explains, "those $20 bills are no longer accepted". So you go to the 'bank' to get a refreshed '$20' and it might go something like this "I'm sorry sir, but fed banking code §666 states all bills held out of circulation are no longer redeemable" or you are able to 'refresh' the '$20' and they give you the equivalent of '$10' back resulting from processing fees, or some formula based on the age of the bill you gave them, to assess the 'fine' for trying to hold it out of circulation.
Then you can convert your cash today for gold and/or silver. While it is true the govt could still outlaw it, there will always be a black market. However, at the rate we are going, in 50 years the world will be in the death grip of a global government, and these sorts of currency black markets wont exist.
Think it can't happen? Think again. If you read the works of Publius, which is basically Hamilton, who I never liked, but he did make a few good points, what we see just in that work alone (not to mention the annals of history) is there are evil ppl in the world. The federalists crafted a system they thought was pretty clever, that had built in safeguards to keep evil usurpers out - you know, checks and balances, and all that s*.
Where are the checks today? Where are these balances? Gone. Why? Evil ppl are like these hackers who sit in front of their computers 24/7/365 looking for anyway they can to find a weakness in the system to exploit, and once found attack it relentlessly, typically injecting a virus they control to do whatever it is they want.
The hackers of the uSa is international jewry, the fake khazars, who use the talmud as a guidebook, but the reality is, it is all just a cynical cover for their naked ambition - and believe you me, they have plenty of goyim accomplices. The virus is the federal reserve system, then the 16th amendment, then the IRS.
Did we not read that despite the best intentions of the founders we would be called upon for "eternal vigilance"?
There are other viruses, but we cant even seem to do much about any of them, so might as well focus on the main problem - private money systems under the control of international jewry. Destroy them, and block international jewry from having any part in national money systems and we can sleep a little better at night. This is not an issue of 'fixing the economy' - it might be, but the short term will be a nightmare, for sure. The issue is not only long term national security, but long term global security. A little pain, or maybe a lot, up front to get rid of a long term threat is worth it.
But, its all talk - mine. Just another post somewhere. Kids born today, well, they are f*ed for sure. I wish there was something I could do, but there isn't.
"the Fed will NEVER surprise the market. This is particularly true now that the Fed is in the political cross hairs due to ample evidence showing its policies haveincreased wealth inequality."
I don't see how not surprising the market helps reduce being in the political cross hairs. By telegraphing their intentions and following those intentions with actions, they have given those with wealth a risk free way of increasing that wealth.
There is no market, the Fed will never surprise the banks.
But is perpetually surprise academic idiot economist who is naive to real mission of Global Central Bankster class.
Get ready for the Pirple Nirple.
Boris is have on back since Chernobyl.
So how exactly markets are supposed to go down with these actions of the Fed?
It seems so far the Fed is in full controll of stocks and bonds
Federal Reserve is not obsess with market reaction, but is obsess and obedient to interest of member of cabal. Market obsession and focus for inflation and job mandate is ruse and is distraction for mass consumption. Boris is only imagine evil laughter from inner sanctum of Federal Reserve as powerful offspring of lucifer is hold Amerkanski and global citizen in derision.