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What To Do With Your Cash Savings

Options for reducing your risk
Friday, June 12, 2015, 12:06 PM

Executive Summary

  • Which power groups will determine how the war on cash is waged?
  • Is it better to hold cash in savings/checking accounts, or securities accounts?
  • What will likely happen with retirement accounts?
  • Ways to diversify your cash risk

If you have not yet read Part 1: The War on Cash: Officially Sanctioned Theft available free to all readers, please click here to read it first.

In Part 1, we reviewed the basic elements of the war on cash, and how it benefits banks and governments but not households that don’t already own productive assets.

In Part 2, we’ll review the downside of imposing capital controls and eliminating physical cash, and discuss strategies to protect our financial assets from bail-ins and negative interest rates/fees on cash.

What Will The Wealthy And Politically Powerful Tolerate?

One of the key dynamics in this discussion is: what will the wealthy and powerful tolerate? Any policy that inhibits or harms the wealthy and politically powerful is a non-starter, and so if we align our strategies accordingly, we are less likely to suffer any negative consequences.

The wealthy and politically powerful have little need for physical cash (President John F. Kennedy famously carried no cash), so eliminating cash will probably not generate any resistance in the financial elite.

But other forms of capital control, such as requiring retirement accounts to hold Treasury bonds and limiting transfers to other nations’ banks might... » Read more

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Off The Cuff: A Time Of Tears

Why the next downturn will be more painful than 2008
Thursday, June 11, 2015, 1:42 PM

In this week's Off the Cuff podcast, Chris and Mish discuss:

  • Rumor-driven Markets
    • Head-fakes and sentiment matter most today
  • Sovereign Debt Weakens
    • A recent example of how sentiment can shift quickly
  • Pundit Predictions
    • The take from Jim Rogers & Steen Jacobsen
  • A Time of Tears
    • A big crash is coming, but those that caused it won't bear the brunt of the cost

Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today. » Read more

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G7 Nations Agree To Phase Out Fossil Fuels

Is this news for real?
Tuesday, June 9, 2015, 11:20 AM

Yesterday saw a promising headline: at a recent G7 gathering, the leaders apparently agreed to the impossible: cutting carbon emissions by 40%-70% by 2050.  The only real way to do this, obviously, is to cut the use of fossil fuels. And that’s what they apparently agreed to do. » Read more

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The Central Banks Are Losing Control Of The System

Evidence is multiplying
Friday, June 5, 2015, 11:46 AM

Executive Summary

  • What the NACM Index and the Atlanta GDPNow are telling us about the odds of returning to recession
  • Bond market volatility is picking up
  • Are central banks are losing their control?
  • Why monitoring credit markets will be our best indicator of the next downturn

If you have not yet read Part 1: As Goes The Credit Market, So Goes The World available free to all readers, please click here to read it first.

That indicator is the current level of the National Association of Credit Managers Index.  Although not wildly well known, the National Association of Credit Managers Index is an indicator deserving of attention and monitoring immediately ahead.

As per the National Association of Credit Management (NACM), the Credit Managers Index is a monthly survey of responses from US credit and collections professionals rating factors such as sales, credit availability, new credit applications, accounts placed on collection, etc.  The NACM tells us that numeric response levels above 50 represent an economy in expansionary mode, which means readings below 50 connote economic contraction.  For now, the index rests in territory connoting economic expansion, but the index is also sitting quite near a 6 year low.  We’ve been here before in the current cycle as the economy has moved in fits and starts in terms of the character of growth:

In a prior discussion, I mentioned the slowing in the US economy in the first quarter of 2015.  I highlighted the Atlanta Fed GDPNow model that turned out to be very correct in its assessment of Q1 US GDP.  While the Atlanta Fed was predicting a 0.1% Q1 GDP growth rate number, the Blue Chip Economists were expecting 1.4% growth.  When the 0.2% number was reported, it turns out the Atlanta Fed GDPNow model was virtually right on the mark.  As of now, the Atlanta Fed GDPNow model is predicting a... » Read more

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Off the Cuff: Eventually Fundamentals Win Out

Despite the system doing everything it can to prevent it
Thursday, June 4, 2015, 6:08 PM

In this week's Off the Cuff podcast, Chris and John Rubino discuss:

  • Senseless Markets
    • Today, they only serve as a "liquidity gage"
  • Negative Data Everywhere
    • Economic growth is moribund despite the historic stimulus
  • Setting The Market Free
    • 100% in our best interest, but will be fought the entire way
  • Eventually Fundamentals Will Win Out
    • You can bend the laws of nature for a time, but you can't break free of them

Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.  » Read more

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Sounding The Alarm On The Country's Vulnerability To An EMP

Establishment insiders are worried we're too vulnerable
Monday, June 1, 2015, 11:29 PM

In the past here at Peak Prosperity, we’ve written extensively on the threat posed by a sustained loss of electrical grid power. More specifically, we've warned that the most damaging threat to our grid would come from either a manmade or natural electromagnetic pulse (EMP).

Recently, we've been contacted by a well-connected group of powerful people who have formed a commission to study the matter, and have recently made a public and urgent appeal in an open letter to President Obama to take this threat seriously. » Read more

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Life Beyond The Tipping Point

How to avoid the coming painful rendezvous with reality
Friday, May 29, 2015, 10:08 AM

Executive Summary

  • There is not nearly enough net energy to meet our growth expectations in our lifetime
  • We are past the "tipping point". A hard rendezvous with limits to growth will arrive in the next 2 decades
  • What you can do to avoid that pain that the majority undoutedly will face
  • Prepare for the current "mother of all bubbles" to burst soon

If you have not yet read, In Denial: We Pursue Endless Growth At Our Peril available free to all readers, please click here to read it first.

Energy Denial

It is said that you cannot explain water to a fish and I have nearly as difficult time trying to explain energy to people today. We are surrounded by it so completely it is difficult to properly appreciate.

But it is in every particle of food you eat, every piece of furniture in your house, every item you wear, and every trip you take -- are all 100% dependent on energy that came from somewhere and subsidizes every single item and action.

Fossil fuels are the vast majority of all the energy we use and, it cannot be repeated enough, they visibly and invisibly subsidize the so-called renewables, too. By that I mean solar and wind power cannot be generated until and unless the components are first manufactured and installed. And those activities are nearly 100% driven by fossil fuels today.

To grasp this more fully, watch this time-lapse video of a wind tower being installed and, while marveling at the ingenuity and speed of the team involved, think about where all of the components came from:


How were the cranes, bulldozers and trucks built? What fuels do they run on? How did all those workers get there? Who grew their food and how did they come to eat it? How are the roads they drove on built and maintained? How is concrete made and how did it all get to the job site? What do the factories and foundries run on that built the windmill? How far did each windmill component have to travel before arriving at the site?

The answer to all of those questions is... » Read more

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Off the Cuff: The Cost of Comfort

Is perhaps too high a price to pay
Thursday, May 28, 2015, 9:04 PM

In this week's Off the Cuff podcast, Chris and Charles Hugh Smith discuss:

  • The Cost Of Comfort
    • We are ruining ourselves in the name of convenience
  • Prospering By Borrowing
    • Nearly all of our industries are unsustainable
  • Our 'Monocrop' Economy
    • It's single-track focus ignores the complexity of reality
  • Creating A New, Better Narrative
    • Join Chris, Becca & Charles Eisenstein
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It’s Time to Stop Treating Our Soil Like Dirt

We're destroying an invaluable resource
Tuesday, May 26, 2015, 11:34 AM

In the recent podcast with Paul and Elizabeth Kaiser, the owners of Singing Frogs farm, they told a tale of success that begins and in many ways ends with their soil.

It's a model we need to pay close attention, to as I think it’s safe to say that the vast majority of farming across the world right now is based on the practice of plowing up fields and is therefore based on the practice of slowly but surely ruining the very bottom of the food pyramid. » Read more

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Suicide By Pesticide

What the honey bee die-off means for humanity
Friday, May 22, 2015, 11:18 AM

As you are aware, honey bees have been suffering from something called colony collapse disorder. In practice what this means is that the bees simply vanish from their hives leaving behind their most precious worldly possessions, honey and larvae.

Killing off organisms in an ecosystem using indiscriminate biocides is quite literally a slow form of suicide for us humans. As within, so without.  You cannot poison and kill of the world around you without poisoning and killing yourself.

Simply put: We are killing ourselves. And the data is literally horrifying. » Read more