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From Teeka Tiwari, editor, The Palm Beach Letter: It’s a puzzle I’ve been trying to unravel since entering Wall Street in 1989…
Each year, thousands of investors would rather lose money than embrace an inconvenient truth.
Over the years, I’ve heard it all. In the late ’80s, investors would tell me,“I really should sell my junk bonds, but I’ll get to it later.” By 1990, the junk-bond market had crashed.
In 2006—when I was warning about a housing bubble—clients and friends would tell me, “You’re probably right, but I’ll wait just one more year before selling my properties.”
We all know how that ended up. By 2007, the buyers had disappeared.
On and on, investors will ignore the blatant reality in front of them just because it’s inconvenient.
Today, I’m seeing the same type of denial take place around the so-called War on Cash. All over the world, governments are gradually making it more difficult to transact in cash… but the majority of American investors couldn’t care less.
If you are guilty of not paying attention to the War on Cash, then maybe you haven’t heard… but over the last year, we’ve seen the following:
- The European Union (EU) has stopped printing the 500-euro note
- Citibank in Australia no longer accepts cash
- JPMorgan limits cash withdrawals to $1,000
- JPMorgan bans customers from holding cash in their safety deposit boxes
- India has banned its two largest cash notes (comprising 86% of the country’s entire currency supply)
- Venezuela has banned its largest note
- Sweden announced it would convert to 100% digital money within two years
- Spain banned all cash transactions above $1,080
- Influential American economist Ken Rogoff (and former Treasury Secretary Larry Summers) called for the elimination of the $100 bill. (Rogoff even wants to end the $50 and $20 bills.)
Some of you might be thinking, “I don’t use cash, Teeka. Why should I care about cash going digital?”
This is about preserving your ownership rights over your cash. It’s about preserving your financial freedom and privacy…
Do you want any government agency or private party to be able to peek in on every single purchase you’ll ever make?
Do you care about stopping a bank or government from imposing a direct tax on your liquid cash?
That’s what is at stake here.
The Cash-Ban Noose is Tightening
In April, I wrote a report warning about the impending War on Cash. As I wrote then, the “public will start to feel the tug of the rope that has been quietly tightened around their necks.”
The “noose” is cash controls quietly being slipped around the world’s jugulars.
Very few mainstream journalists are covering the covert government policy of cash bans. But friends, you must wake up and take action…
The War on Cash is real. At some point, you’ll wake up and the world as you know it will no longer exist. The local store clerk will look at you funny if you try to use a $20 bill. They’ll tell you, “Sorry, nothing bigger than a $5, please.”
Don’t be shocked when the Federal Reserve tells the U.S. Treasury to stop printing $100 bills… then $20s… then $10s.
Our turn is coming.
If I have learned anything this year, it’s that governments don’t view money as a private asset. Don’t believe me? Ask the people of India… who got stuck holding large amounts of cash.
The Indian government is taxing its citizens 50% on their cash holdings. And for those who don’t declare where their cash came from… the government is imposing a 90% tax.
Still think your cash is yours? Try to get on a plane with $100,000 in cash. Customs agents will confiscate it from you if you don’t declare it.
My call is that traditional paper money will be gone within a few years. All money will be in digital form. The question you need to ask yourself is this:
Are you ready?
When cash disappears, there will be no more checks against the unlimited control and manipulation governments and banks have over your liquid wealth. They will be able to tax you at will. Financial privacy will cease to exist.
Now Is the Time to Act
Don’t fall into denial. The time to take action is now.
What you want to do is accumulate a few chaos hedges. Yes, you want to own some gold. When India introduced its cash ban, local gold prices doubled.
Another hedge you want to own is the “cryptocurrency” bitcoin.
I recommended bitcoin in April at $450 per coin. Since the beginning of the year, bitcoin has risen 80%. It’s by far the best-performing financial asset for 2016… one they won’t talk about on CNBC (yet).
I’m seeing more and more money managers embrace bitcoin as a legitimate financial asset. Remember, there are only 15 million bitcoins in existence. It doesn’t take much buying to move the price up.
As the asset gains greater legitimacy, you’ll see more and more money managers begin to allocate capital to bitcoin. That’s why I think bitcoin will easily hit $1,200 next year.
But that’s a small move compared to what will happen when the War on Cash finally washes up on our shores. When the Federal Reserve stops printing the $100 bill, bitcoin prices will soar. They will go far higher than anyone can imagine.
Do not ignore this asset.
It’s the only form of digital cash that’s 100% free of any government manipulation or control. And it’s not correlated to any other asset. That means bitcoin isn’t affect by interest rates, the U.S. dollar, or U.S. GDP… None of that stuff impacts bitcoin’s value.
If you have even a suspicion that I am right about the War on Cash, then you must own at least a small amount of bitcoin.
Current Palm Beach Letter subscribers already have access to my detailed cryptocurrency buying guides.
But if you want complete access to my “micro-cap” cryptocurrency recommendations—similar to buying into bitcoin when it was $4 instead of $750>.
One of these little-known cryptocurrencies rocketed 88% in the first 10 days after I recommended it to Palm Beach Confidential subscribers… and there’s far more upside ahead in cryptos as the War on Cash marches over the Earth.
Ask Mark: What’s the best way to buy real estate?
Today, we continue our special holiday feature, “Ask Mark.” In these videos, PBRG founder Mark Ford answers questions sent in by our subscribers. It’s unvarnished and straight from the source.
In this short video, Mark shares his rule of thumb for investing in income-producing real estate… and not falling for the “greater sucker theory” when buying properties…
In case you missed it…
Have you seen this outrageous video? Our friends over at Agora Financial are showing random strangers how to make $137 in cash in under three minutes… and they’re sharing their secret in this live demonstration.
