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More and more institutions are trying to make it harder for you to move
your money into cash.
Globally, over $5 trillion in debt currently have negative yields in nominal
terms, meaning the bond literally has a negative yield when it
trades. In the simplest of terms this means that investors are PAYING to own
these bonds.
Bonds are not unique in this regard. Switzerland, Denmark and other
countries are now charging deposits at their banks. In France and Italy, you
are not allowed to make cash transactions above €1,000. Spain, Uraguay,
This is also at work in the US. Louisiana has made it illegal to purchase
second hand goods using cash. This is just the beginning. The War on Cash
will be spreading in the coming weeks.
The reasoning is simple. Most large financial entities are insolvent. As a
result, if a significant amount of digital money is converted into actual
physical cash, the firm would very quickly implode.
This is true for banks around the world. European banks as a whole are
leveraged at 26 to 1. In simple terms, this means they have just €1 in
capital for every €26 in assets (bought via borrowed money).
The US financial system isn’t any better. Indeed, the vast majority of it
is in digital money. Actual currency is just a little over $1.36 trillion.
Bank accounts are $10 trillion. Stocks are $20 trillion and Bonds are $38
trillion.
And at the top of the heap are the derivatives markets, which are over
$220 TRILLION.
If you think the banks aren’t terrified of what this market could do to
them, consider that JP Morgan managed to get Congress to put the US taxpayer
on the hook for it derivatives trades. Mind you, this is the same
bank that is now refusing to let clients store cash in safe deposit boxes.
This is just the beginning. As anyone can tell you, it’s all but
impossible to move large amounts of money into cash in the US. Even the large
banks will routinely ask you for 24 hours notice if you need $10,000 or more
in cash. These are banks will TRLLLIONS of dollars worth of assets on their
books.
This is just the beginning.
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
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