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Central Banks Are Preparing for More Aggressive Measures in the 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.
Bullion and Cash represent two of the best means of “getting your money” out of the system. They are a way of saying “no” to Central Banking madness (at least unless hyperinflation sets in).
How is this?
Warren Buffett once noted, Gold doesn’t do anything “but look at you.” It doesn’t pay a dividend or produce cash flow. However, the fact of the matter is that Gold has dramatically outperformed the stock market for the better part of 40 years.
I say 40 years because there is no point comparing Gold to stocks during periods in which Gold was pegged to world currencies. Most of the analysis I see comparing the benefits of owning Gold to stocks goes back to the early 20th century.
However Gold was pegged to global currencies up until 1967. Stocks weren’t. Comparing the two during this time period is just bad analysis. And once the Gold peg officially ended with France dropping it in 1967, the precious metal has outperformed both the Dow and the S&P 500 by a massive margin.
See for yourself… the below chart is in normalized terms courtesy of Bill King’s The King Report.
According to King, Gold has risen 37.43 fold since 1967. That is more than twice the performance of the Dow over the same time period (18.45 fold). So much for the claim that stocks are a better investment than Gold long-term.
Indeed, once Gold was no longer pegged to world currencies there was only a single period in which stocks outperformed the precious metal. That period was from 1997-2000 during the height of the Tech Bubble (the single biggest stock market bubble in over 100 years).
In simple terms, as a long-term investment, Gold has been better than stocks.
As for physical Cash…
The US Dollar actually returned the same amount as stocks in 2014. Those investors who simply put their money in cash saw their wealth increase the same amount on a relative basis as those who stomached the stock market roller coaster.
This is not changing. In fact, those sitting in cash have made even MORE money this year than those who own stocks. Even with the correction in the US Dollar, it’s massively outperforming the stock market.
This has infuriated the Fed and is forcing it to take more and more aggressive measures to trash cash.
Indeed, we've uncovered a secret document outlining how the Feds plan to take hold of savings during the next round of the crisis to stop individuals from getting their money out.
We detail this paper and outline three investment strategies you can implement right now to protect your capital from this 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/
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Just for laughs and to be off-topic...you have to read this and laugh if not so sad because many actually believe this.
"Five Democratic presidential candidates will meet Tuesday night....Absent from the stage, however, will be two men who are literally the most qualified Democrats on the planet for the job of President of the United State....We’re speaking, of course, about former President Bill Clinton and incumbent President Barack Obama..."
http://thinkprogress.org/justice/2015/10/13/3711770/the-first-democratic-debate-is-tonight-too-bad-the-2-most-qualified-candidates-are-banned/
Thumbs way down.
QUOTE: "Indeed, we've uncovered a secret document..."
Phoenix Capital sure uncovers a lot of useless secret documents (at least weekly), but if it is found, then it is no longer secret is it? Phoenix Capital must be a very good sponsor for ZH; why else have these shills on?
Ooooh, you uncovered a "SECRET" document outlining the feds plan... Well, fucking out with this "sinister plan" already! More likely you all are full of shit.
Spoiler alert: The plan is print, print, print, implode the dollar, activate the IMF SDR and reset.
You forgot something; the USD is THE major currency in that basket. Try again.
We are making 1,000 copies available for FREE the general public.
If you pay me I will take one
"This has infuriated the Fed" ...
& what the Fed has done infuriates me / it works both ways.
I remain mildly amused.
It is written...Inshallah Allah.
Why does ZH keep allowing Phoenix Capital to post this damned click-bait? If PC has something to say, either SAY IT or stay the hell off of ZH!!!
Darn it...I was the 1001 person to try to get the free report so I missed out!
"Indeed, we've uncovered a secret document outlining how the Feds plan to take hold of savings during the next round of the crisis to stop individuals from getting their money out."
I don't know if Phoenix Capital has uncovered a "secret" document or not, but I know this. My employer (a big institution whose banker happens to be JPM) is offering a 2x match coming this January on our 403B plans and EVERYONE is being encouraged to take this "never to be seen again offer."
I'm not gonna' do it. If it looks like a trap, smells like a trap and sounds like a trap.....guess what? It's probably a TRAP!
If it isn't a TRAP, then it is a TARP
The money mafia hates anything they can't control and manipulate.......
Gold may sit there and look at you - but it is forever faithful and unchanging. It will still be there after 40 years (unless you are figuratively beaten and raped by a central banker through the .gov). There is no credit risk. There is thousand of years of precedent for it being a medium of exchange. It looks good holding that door open against the wind. It also looks good on most naked bodies.
It looks best on the darkies and latinos.
It clashes with honky hide.
I like stainless watches and stuff. Working class zero, that's me.
we're a vanishing race, but youre right, about the only color we can wear correctly is any shade of pastel, gold just gets lost on our cursed alabaster skin. they are about to announce the Nobel in Lit and WMs need not apply. they are looking for a woman, ethnic and other than American. Americans are too into their own culture. sigh
What culture; the culture of gross immorality? The Playboy magazine was the main story on the news as though it had a positive influence on the nation.
Too bad they blew the cover off the White guy writing under a Chinese name.
Imagine the cleanup job from all the exploding heads when a White guy got up to the stage.