I know it sounds crazy, but negative interest rates are showing up everywhere. That means you pay the bank to hold your deposits.
That is why my previous 3 posts talk about how holding cash on your own is the best thing to do right now. More people are pulling their cash out of the banking system because they lose nothing by doing so. This actually contracts the money supply and crushes the velocity of money. This is why we are in a deflationary death spiral despite central banks printing money.
The central planners won't let this happen. So the plan is to eliminate CASH.
And if you are concerned about holding all that cash (theft, fire, etc.) consider putting some into bitcoin!
The velocity of money has been making new lows quarter after quarter since Q3 2010.
2 major reasons for this phenomena:
So keep your money where you can get it but thieves can't!
There are some bullet proof ways to hide things outside your home on your property so that your money is hidden safely from others. One method is called “cache tubes” (pronounced “cash-ay”). Using cache tubes involves getting some 6″ to 8″ PVC drain tubing several feet long, with two threaded end caps. Your stash can be placed in several plastic baggies, and then the end caps can be epoxied in place, or sealed with extreme pressure wheel bearing grease, both of which are also available at your local hardware store. Use a common pot hole digger to create a good hole to bury the tube. If you are burying money, make sure it is wrapped in layers of zip lock bags and throw in a silica pack from the inside of vitamin or supplement containers to avoid mildew or similar smells.
Another way might be to hide things in hollowed out legs of patio furniture, or metal garden furniture legs, or even the hollow legs of a child’s swingset, or fence post. Again, put your valuables in several layers of plastic baggies.
The kitchen has some of the most accessible, natural hiding spots. Take for instance a large flour bin; your goods could be hidden in baggies and buried deep within. Or take an old packaging from frozen food and place your goods in there, and then re-glue the box. Hide that deep in the bottom of your chest freezer.
If you have those sectional plastic shelves, you are in luck, as they have hollow parts as well which are perfect for hiding small items.
If you have some ducts, you could put things in them that are not sensitive to temperatures. Use a string tied to your valuables so that you can retrieve them.
Making a book safe is a another old trick. Simply take a big, hardbound book and glue the pages together. Then use a drill to create some starter holes and then use a coping saw to cut out a rectangular section where some important things could be hidden. Glue this rectangular section to the back cover of the book.
Another trick is to hide the goods in a dummy VHS tape and labeled “Aunt Jean’s Wedding” or something to that effect.
Lawmakers allowed bank consolidation and market power in violation of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. That act specified that no single bank may hold more than 10 percent of total retail deposits. Unfortunately, since 1994 two limitations of Riegle- Neal became clear, (1) the growth of big banks was not fueled by retail deposits but rather by various forms of “wholesale” financing, and (2) the cap was not enforced by lax regulators, so that Bank of America, JP Morgan Chase, and Wells Fargo all received waivers in recent years.
Then Congress had to repeal the Glass-Steagall Act of 1933, so that any financial institution can act as an investment bank, a commercial bank, and/or an insurance company. They hid this as the Financial Services Modernization Act of 1999.
To capitalize on insatiable greed, banks started marketing OTC derivatives (a.k.a. as swaps). For swaps, delivery places and dates, volume, technical specifications, and trading and credit procedures are subject to negotiation by the parties to the contracts. Swaps are traded on a bilateral basis not on a public exchange. The exposure is to default by the counterparty. Credit risk mitigation measures, such as regular mark-to-market and margining, are optional for swaps. Swaps have no regulatory oversight, they are simply goverened by the contractual relations between the parties.
Here is the takeaway: OTC derivatives grew to an estimated size of about $596 trillion before crashing in Sept. 2008. By contrast, the value of the world's financial assets—including all stock, bonds, and bank deposits—was pegged at $167 trillion in 2007.
We have had a decade of unprecedented innovations - from the Web 2.0, to genetic engineering, to hybrid vehicles, to life saving medical devices, yet the stock market has gone nowhere in the last decade.
If you go back to the Reagan era, 30 year bonds have risen nearly 300%! One would expect bond prices to tumble because of accumulated government deficits.
It's all about central banks controlling both interest rates and the money supply - not free markets. It's not about producing things. It's not about corporations providing jobs. It's all about bonds and debt.
Every day millions of people tune into CNBC and discuss stocks on Yahoo finance when it's all just idle chatter leading to bad investment decisions.
The easiest way is to simply ask the banksters for our $16 tillion back. But since the banksters rule the world, I guess we won't get that!
Means test benefits. If you made twice the median salary (approximately $33,000) in your last 5 years of employment, you get reduced benefits.
Eliminate the income limits. Why should you stop paying in just because you made more than $106,800? There are no income limits on medicare.
Legalize and tax marijuana. That may be $40 billion to $100 billion in new revenue!
Legalize and tax sports betting. Although only 35 states currently allow "gaming", that number is sure to grow. Adding $50 million to a state budget will help to eliminate the need for federal dollars.
A natural gas based economy. Get fleet vehicles and 18 wheelers running CNG. Get Detroit making those vehicles. And export LNG to other countries (USA natural gas is $2.76 but it can be liquified and sold much higher.
Make shuttered schools into shelters. They have showers, gyms, bathrooms, cafeterias, computers, and plenty of room for beds. Laid off teachers can re-train these folks in the Cheapo Groovo system, which has no layoffs or outsourcing.
I use a FREE Excel based mortgage spreadsheet to see how the life of my mortgage would change if I paid a little more each and every month to the principal. It amazed me! By paying just an extra fifty dollars a month, I was able to shorten the length of my loan by five years and ten months and save more than $18,000 in interest!