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QE and ZIRP Failed... Will a Cash Ban Succeed?

Phoenix Capital Research's picture




 

The War on Cash is now accelerating.

 

As the financial system lurches towards collapse, the elites and those who derive power from sitting at the top of the food chain are growing increasingly desperate to maintain the status quo.

 

When 2008 hit, the Fed cut rates to zero and began implementing QE. It has now maintained ZIRP for six years (the single longest period in history) and has grown its balance sheet by over $3.5 trillion (larger than most countries).

 

ZIRP has made no sense whatsoever since 2011. You cannot continue to babble about a “recovery” when ZIRP is in place. No legitimate “recovery” in economic history required ZIRP four years into a new business cycle.

 

Moreover, QE was known to be a Wall Street bailout and an economic dud as early as 2010. The man who ran QE 1 admitted the former in an op-ed piece. And anyone who’s examined Japan’s multi-decade, multi-Trillions of Yen QE failures knows the latter.

 

Despite this, the Fed ran QE ran through 2014 printing another $2 trillion in the process. That is correct, the Fed had rates at zero and was printing over $85 billion per month SIX years into a “recovery.”

 

With the US now back in recession and another financial crisis at our doorstep, the calls are going up for even more dramatic measures.

 

Multiple Fed Presidents have called for NEGATIVE interest rate policy (NIRP) in the US. Obviously these “date driven” individuals haven’t bothered to examine the fact that in Europe, NIRP didn’t accomplish ANYTHING as far as inflation targets were concerned.

 

The ECB implemented NIRP in June 2014. Europe’s inflation rate actually COLLAPSED in the six months following it, resulting in the ECB announcing QE. THAT policy (the first in Europe’s history) generated five months’ worth of uptick in inflation before rolling over again.

 

 

Somehow the Fed missed this when it began calling for NIRP in the US. Even more amazingly, no one has bothered to ask the Fed why six years into this “recovery” the Fed is even discussing NIRP. ZIRP was a disaster. Why would NIRP fix anything?

 

NIRP will not be the last straw either. If the markets begin the truly collapse, the Fed will likely announce another, even larger QE program. That is precisely what Japan did in April 2013 despite the clear evidence that its previous EIGHT QE programs had failed to accomplish anything of note.

 

But even NIRP and QE will likely not be the Fed’s worst atrocity against capital formation. Before it’s all said and done, the Fed will likely push to either implement a carry tax on physical cash OR ban physical cash entirely.

 

Indeed, we've uncovered a secret document outlining how the Fed plans to incinerate savings to force investors away from cash and into riskier assets.

 

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

Phoenix Capital Research

 

 

 

 

 

 

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Tue, 11/17/2015 - 03:33 | 6803433 Conax
Conax's picture

There's a large group of Americans that up til now have no real animosity for the central banking system, they hardly know it exists.  Try to 'ban cash' and the blinders will be ripped off, the harsh light of reality shined upon these slippery Shylocks.

Instead of a small faction of angry hard money guys they will find themselves up against everybody in the place.  Not where I'd want to be if I were them.

They'll be better off sticking with bailouts and embezzlement and be happy with what they've got.

Tue, 11/17/2015 - 02:22 | 6803353 Calling Elvis
Calling Elvis's picture

I watch for Phoenix Capital articles - if they are advertising it's being wasted on me as I live paycheck to paycheck - but I appreciate their straight forward talk - it makes good sense to me.

Mon, 11/16/2015 - 20:27 | 6802312 medium giraffe
medium giraffe's picture

Don't worry about the Fed. When the dust settles, there wont be a Fed. Or a Phoenix Capital, so don't worry about that either.

Sweet dreams, sleep tight.

Mon, 11/16/2015 - 20:00 | 6802221 El Hosel
El Hosel's picture

Ban cash, I dare you.

Mon, 11/16/2015 - 15:38 | 6801014 lasvegaspersona
lasvegaspersona's picture

They will do what they are going to do...no reason or consideration of effect will deter them. The outcome wil be the same, loss of the currency, but there is no way to 'fix' things so they must be allowed to collapse. That way no one gets blamed for killing the monetary system. Same reason you can't check into a hospital for euthanasia...no one want the blame.

The dollar will be dead either way.

Mon, 11/16/2015 - 15:00 | 6800827 Dental Floss Tycoon
Dental Floss Tycoon's picture

Yet another native ad by Phoenix Capital.

Mon, 11/16/2015 - 16:00 | 6801114 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

They always seem to be behind teh curve. They have been giving away 1000 free reports for years now, either no one cares, or they are lying. 

Do NOT follow this link or you will be banned from the site!