Posted on 02/11/2016 1:04:34 PM PST by SkyPilot
The global Central Banks have declared War on Cash.
Historically, one of the safest things to do when the markets begin to collapse is to move a significant portion of your holdings to cash. As the old adage says, during times of deflation, "cash is king."
The notion here is that cash is a safe haven. And while earning 1-2% in interest doesn't do much in terms of growing your wealth, it sure beats losing 20%+ by holding on to stocks or bonds during their respective bear markets
However, in today's world of fiat-based Central Planning, cash represents a REAL problem for the Central Banks.
The reason for this concerns the actual structure of the financial system. As I've outlined previously, that structure is as follows:
1) The total currency (actual cash in the form of bills and coins) in the US financial system is a little over $1.36 trillion.
2) When you include digital money sitting in short-term accounts and long-term accounts then you're talking about roughly $10 trillion in "money" in the financial system.
3) In contrast, the money in the US stock market (equity shares in publicly traded companies) is over $20 trillion in size.
4) The US bond market (money that has been lent to corporations, municipal Governments, State Governments, and the Federal Government) is almost twice this at $38 trillion.
5) Total Credit Market Instruments (mortgages, collateralized debt obligations, junk bonds, commercial paper and other digitally-based "money" that is based on debt) is even larger $58.7 trillion.
6) Unregulated over the counter derivatives traded between the big banks and corporations is north of $220 trillion.
When looking over these data points, the first thing that jumps out at the viewer is that the vast bulk of "money" in the system is in the form of...
(Excerpt) Read more at zerohedge.com ...
Invest in precious metals, starting with lead, steel, and copper.
Good for you, congrats! We paid off our mortgage long ago. Didn't see the sense of paying several times what the house is worth, in interest, so we paid extra on the principal to pay down the loan early. I've had arguments with some people that get equity cash out of their homes, ending up with high interest loans that are crazy. Told them they're crazy, but they argue that the bank gave them thousands more than they asked for. I said of course, to sink you into debt! Interest you don't have to repay, is money kept in your pocket. Unfortunately, they don't teach common sense like this in public school.
Back in the early '70s I knew a guy who ran a gas station during the Depression. He broke out a coffee can of old coins that dated back to the 1870s. He said that people used them to pay for their gas.
2016 is really going to be a scorcher IMHO.
Keep looking up!
Yes, this is going to be a traumatic year and yes, keep looking up.
I’ve been thinking about this cashless society but how could that ever happen with the illegal drug trade?..how will the drug kingpins stay in business if every single transaction is by credit card or debit?...
They couldn't. Every deal would be traceable. That would defeat the entire black market.
they’ll even know if you buy a bag of potato chips...or MEAT...all the bad stuff you know..
I just watched this video recently (and scared me to pieces) of the ObamaCare RFID tag to be put in your RIGHT HAND OR FOREHEAD (if you don't have a hand) It is only 14 minutes or but extremely entertaining and it gives a "what if you refuse" plan that I intended to take up when that day comes.
They are NOT putting anything in my hand. I won't even chip my pets.
Perry Stone mark of the beast666
https://www.youtube.com/watch?v=7E6gCZUMBM8
PS yeah it is a preacher
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.