|
A carry tax… or tax on physical currency… is coming.
The Fed and other Central Banks literally took the nuclear option in
dealing with the 2008 bust. Collectively, they’ve printed over $11 trillion
and have cut interest rates to zero for nearly six years.
All of these efforts were focused on driving in trashing cash and forcing
investors/ depositors into risk assets.
But these policies have failed to generate growth.
Rather than admit they are completely wrong, Central Banks are reverting
to more and more extreme measures to destroy cash and force investors to move
into risk against their will.
Things went into hyperdrive last June when the ECB cut interest rates to
negative, thereby CHARGING depositors to keep their money in cash.
Since that time, Denmark, Switzerland and other nations have followed
suit.
The banks are following in their footsteps. Julius Baer, JP Morgan, and
other firms have begun to charge large account holders for parking in cash.
JP Morgan openly stated it wanted to LOSE $100 billion in deposits.
This is just the beginning. More and more we’re seeing hints that Central
banks are planning on charging individuals who sit on cash… or possibly even
banning physical cash entirely.
Now comes the interesting part. There are signs of an innovation war
over negative interest rates. There’s a surge of creativity
around ways to drive interest rates deeper into negative territory, possibly
by abolishing cash or making it depreciable…
As long as paper money is available as an alternative for customers
who want to withdraw their deposits, there’s a limit to how low central banks
can push rates.
http://www.bloomberg.com/news/articles/2015-0...crisis-for-cash
The old adage says “you can lead a horse to water, but you cannot make him
drink.” The Fed and other Central Bankers lead the horse to the water. The
horse wouldn’t drink. So now they’re talking about holding the
horse’s head underwater until he does.
Again… a carry tax is coming. The Fed and other Central Banks are going to
do everything they can to incinerate cash going forward. In Europe over 40%
of sovereign bonds are NEGATIVE in nominal terms (meaning investors are
paying to own these bonds).
This is just the beginning.
It sounds like absolute insanity, but we can assure you that Central Banks
take these sorts of proposals very seriously. QE sounded
completely insane back in 1999 and we’ve already
seen three rounds of it amounting to over $3 trillion.
No one would have believed the Fed could get away with printing $3
trillion for QE in 1999, but it has happened already. And given that it has
failed to boost consumer spending/ economic growth, we wouldn’t at all
surprised to see the Fed float one of the other ideas in the coming months.
Indeed, we've uncovered a secret document outlining how the Fed plans to
incinerate savings.
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
|
