Posted on 02/06/2015 12:39:33 PM PST by Kaslin
Got that... but distributions from both are tax-free.
... currently.
See Is It Time To Move Wealth Outside Of The Financial System?
The author takes a stab at calculating the nominal interest rate on physical cash and comes up with -0.22%:
Assuming an investor exhausts the $250,000 FDIC insurance deposit limit (or mistrusts the FDIC's ability to pay), one alternative worth considering is a safe deposit box. A box large enough to hold $1 million in $100 bills can be rented for about $200/yr. While banks themselves will not insure the contents of a safe deposit box, insurance on a box's contents can be purchased for up to $1 million in valuables. This $1 million in insurance can be purchased for as little as $2,000/yr. Hence, having a fully insured $1 million in a safety deposit box costs about $2,200, the equivalent of an interest rate of -0.22%.
Of course, his title is a trifle misleading. Converting $1m to physical cash does not move it "outside of the financial system". This is because it is paper wealth, the value of which the financial system determines. His real rate of return will be less than -0.22%, because the government can be relied upon to spawn inflation, stepping on those Franklins.
I had a great 401(k), but I took it with me on a fishing trip, and you’ll never guess what happened...
“dumbfounded at how this helps the government raise money.”
He doesn’t care if it raises a nickel. That’s not why he’s doing it.
“because the current economy would crash beyond repair.”
That’s already a done deal. Although credit is a fine medium of exchange, it’s not money because it’s not a store of value - as the upcoming catastrophe is about to demonstrate.
The banksters are buying ranches with airstrips in New Zealand. What does that tell you?
Bttt.
Yeah yeah. I worked in the financial system everyday. You think I don’t know about money?
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