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Smart Strategies For Building & Managing Your Cash Savings

Options for protecting purchasing power
Friday, September 15, 2017, 8:47 PM

Executive Summary

  • Is it better to hold cash in savings/checking accounts, or securities accounts?
  • Where will the dollar likely from here?
  • What will likely happen with retirement accounts?
  • Ways to diversify your cash risk

If you have not yet read Part 1: The Cardinal Sin Of Investing: Permanent Impairment Of Capital available free to all readers, please click here to read it first.

The Role Of Cash In The Informal Economy

In stagnating formal economies burdened by over-regulation, high taxes and financialization, one of the few bright spots for employment and entrepreneurism is the informal or cash economy.  The more stultified and elite-dominated the economy, the larger and more vibrant the informal economy.  In some highly regulated, high-tax European nations, up to 30% of the economic activity is underground/cash.

The elimination of central bank currency will not eliminate the informal economy. Rather, the participants in this sector will adopt non-central bank issued forms of cash—precious metals, coins, other nations’ paper money, perhaps even digital currencies such as bitcoin or its gold-linked cousins (Bitgold, etc.)

Those with little income often do not have bank accounts, as the fees are costly. Eliminating cash will hit the poor who earn money in the informal economy especially hard. Though the poor are essentially powerless in our influence-is-auctioned-to-the-highest-bidder system, this could change once the working poor who benefit from the cash economy are pushed even deeper into poverty by the banning of cash.

That might spark... » Read more



Reality-Optional Economics

Cockamamie Stories Infecting the Body Politic
Wednesday, July 9, 2014, 1:10 PM

The total tonnage of economic malarkey being shoveled over the American public these days would make the late Dr. Joseph Goebbels (Nazi Minister of “Public Enlightenment and Propaganda”) turn green in his grave with envy. It’s a staggering phenomenon because little about it is conspiratorial; rather, it’s the consensual expression of a public that wants desperately to believe things that are untrue, and an economic leadership equally credulous, unmanned, and avid to furnish the necessary narratives that might preserve their jobs and perqs. » Read more

Daily Digest

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Daily Digest 6/7 - Bank Card Thefts Soaring, The Terrible Future Of The Syrian War

Friday, June 7, 2013, 10:53 AM
  • The Terrible Future Of The Syrian War
  • Are Central Banks Losing Control Over Interest Rates?
  • The Slow and Painful Death of Freedom in Canada
  • How to put cybersecurity defences to the test
  • Why I Left the Conservatives to Stand Alone
  • Bank card thefts 'soaring at ATMs'
  • Is a Freefall in Oil Prices Really Underway?
  • ‘They’ve bought everyone’s silence’: Drillers paying out fracking settlements to land owners on one condition — keeping quiet
  • Bees do it, so why can’t bee keepers and colleagues?
  • Meet 'Schmeat': Lab-grown meat hits the grill this month
  • Falling Fruit: Mapping The Urban Harvest
Daily Digest

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Daily Digest 5/4 - NYC Adds Flood Evacuation Zones, Canada Wrestles With Bee-Killing Pesticides

Saturday, May 4, 2013, 11:24 AM
  • Housewives' gold rush keeps price from falling
  • China arrests after rat, mink and fox sold as mutton
  • Video game league apologizes for Bitcoin scandal
  • Business Investment Rebounds Even as Recovery Drags
  • Adding Evacuation Zones in Response to Hurricane
  • Early Wildfire Drives Thousands From Homes in Southern California
  • Canada wrestles with bee-killing crop pesticides
Daily Digest

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Daily Digest 4/14 - Don't Depend On Bank Deposit Insurance, The Strange Beauty Of Salt Mines

Sunday, April 14, 2013, 11:01 AM
  • Obama’s Budget Revives Benefits as Divisive Issue
  • Don’t Depend on Bank Deposit Insurance: Mike Shedlock
  • Faltering Courts, Mired in Delays
  • The Scary Risks of Safety Bubble Up
  • The Strange Beauty Of Salt Mines
  • Bingham Landslide
  • Millions face starvation as world warms, say scientists
Daily Digest

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Daily Digest 4/11 - Robot Truck Platoons Move Forward, Good Banker vs. Bad Banker

Thursday, April 11, 2013, 10:31 AM
  • “Giant Bet” Could Trigger “the Mother of All Debt Crises” in Japan: Neil Irwin
  • KPMG resigns as Herbalife auditor after insider trading
  • Good Banker, Bad Banker
  • Portuguese finding pain hard to endure as prime minister says more austerity is around corner
  • Bailed-Out Banks Used Billions Meant For Small Business Aid To Repay TARP Funds: Watchdog
  • Rise In Foreign Temp Workers Questioned By Labour Groups
  • Cyprus And Gold – Noise vs. Facts
  • Pharmaceutical sales reps regularly misinform doctors about drug side effects: study
  • Robot truck platoons roll forward
  • Slow to arrive, but will Australian high speed rail be worth the wait?
  • Study: The coal industry is in far more trouble than anyone realizes
  • ‘Irreparable’ safety issues: All US nuclear reactors should be replaced, ‘Band-Aids’ won’t help
  • NOAA: Area of land larger than Manhattan disappearing of Louisiana coast each year
Daily Digest

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Daily Digest 3/27 - Cyprus Banks Stay Shut Until Thursday, Spain Bank Offers Grim Forecast

Wednesday, March 27, 2013, 10:55 AM
  • Cyprus bail-out: savers will be raided to save euro in future crises, says eurozone chief
  • Spain's central bank offers grim economic forecast
  • Mr Yen cautions on Japan's 'unsafe' debt trajectory
  • House To Propose College Tuition Increase
  • California State Treasurer emphasizes shrinking retirement savings
  • Portugal to contract 2.3% in 2013: central bank
  • Bernanke rejects competitive devaluation worries
  • Cyprus bailout: Banks to stay shut until Thursday
  • Recession keeps Italy's banks at risk: IMF

The Price of Everything and the Value of Nothing

Why your bread is going to cost more
Friday, January 4, 2013, 10:17 PM

The title of this piece is The Price of Everything and the Value of Nothing.  The subtitle is Why Your Bread Is Going to Cost More.  I connect these two in reflecting on my recent podcast with David Collum, in which he stated that our money has no value and that this fact is distorting everything.

What he meant was, if you take your money to the bank to deposit it, the bank offers no interest on that money, implying that money has no value to them.  If they valued it or had a legitimate use for it, they would offer you something for its use.  Obviously, money doesn't have zero value to the banks; they can place it on deposit with the Fed for 0.25% yearly interest.  But by any historical measure, money has no value right now.

That's just what happens when any commodity – which money happens to be – becomes too abundant.  It drops in price.  What 0% rates on money tell us is that there's just an enormous amount of it sloshing around – and that, my dear friends, distorts everything else.

As I have said many times, when you misprice money itself, everything else becomes mispriced, too.  » Read more