Bruce Banner Posted August 19, 2016 Share Posted August 19, 2016 It will be time to get rid of cash when the government and central banksters are desperately trying to convince you to hold it. Yes, and at the moment they're falling over themselves to get me to get rid of it. Every non fixed rate account I have has had rate drops in the last week or so, one from 1.3% to 0.25%, I'll be moving from that one when it takes effect next month. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted August 19, 2016 Share Posted August 19, 2016 Is NS&I like a normal bank, where you have to be careful not to aggregate 75K pounds across their various products? No, unlimited government "guarantee". Quote Link to comment Share on other sites More sharing options...
janch Posted August 19, 2016 Share Posted August 19, 2016 Cash is an ok position to be in right now. If you're smart you can spread it around and lose very little in real terms. However, at the same time you would be foolish to take a long-term position in cash. Just about all the governments in the Western World are trying to push higher inflation, sooner or later they will get it, and when they do, I think they will struggle to get the inflation genie back into the bottle once it's released. I have no idea when this day will come, but I do think it will come upon us sooner than people think. I feel gold already has a lot of risk priced into it. However there are other commodities that are totally bombed out that are worth looking at. Personally, I have my eye on a few stocks that are trading as if they have no future (oil, paper, nat gas, coal, industrial metal). When inflation does start to inch up, I will start buying. But if/when inflation start rising there will be little choice but to raise interest rates and then savers with cash will be rewarded. Quote Link to comment Share on other sites More sharing options...
janch Posted August 19, 2016 Share Posted August 19, 2016 I adopted this strategy ten years ago. Still waiting for it to pay off... +1 Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted August 19, 2016 Share Posted August 19, 2016 Is NS&I like a normal bank, where you have to be careful not to aggregate 75K pounds across their various products? This is what they say: "However much you invest, your money is safe with us. We’re backed by HM Treasury so all your savings are 100% secure. Always." http://www.nsandi.com/our-products Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted August 19, 2016 Share Posted August 19, 2016 This is what they say: "However much you invest, your money is safe with us. We’re backed by HM Treasury so all your savings are 100% secure. Always." http://www.nsandi.com/our-products Although, in reality, they'd probably need to print to cover it (the same way they'll probably cover the FSCS protection) but my guess is that we will get our cash back at face value. Quote Link to comment Share on other sites More sharing options...
justthisbloke Posted August 19, 2016 Share Posted August 19, 2016 This is what they say: "However much you invest, your money is safe with us. We’re backed by HM Treasury so all your savings are 100% secure. Always." http://www.nsandi.com/our-products After all, they can just print some more. Of course, it may not be worth quite same as what you originally handed over. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted August 19, 2016 Share Posted August 19, 2016 After all, they can just print some more. Of course, it may not be worth quite same as what you originally handed over. Well of course and I'm sure we all know that but it's outside what was being asked. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted August 19, 2016 Share Posted August 19, 2016 Has anyone else noticed that May is on a marching holiday in Switzerland whilst Hammond and Carney are doing the deed. Quote Link to comment Share on other sites More sharing options...
knock out johnny Posted August 19, 2016 Share Posted August 19, 2016 My advice is to position into cash, if your fear a bank meltdown or currency revaluation move it into gold, it is all the same. In my eyes the result of what will happen could not be clearer, a lot of money is going to be lost by a lot of people, mark my words. The cash will then pick up a house very cheaply in my opinion..... Hmmmm..... subtle gold ramp post new member's first ever post Hmmm... my spidey senses are a-tingling Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted August 19, 2016 Share Posted August 19, 2016 That one washed over me, I'm blind to gold ramping. Quote Link to comment Share on other sites More sharing options...
knock out johnny Posted August 19, 2016 Share Posted August 19, 2016 That one washed over me, I'm blind to gold ramping. To be fair, he could be right or maybe we should go long on wheelbarrows But FIRST EVER POST? come on! Quote Link to comment Share on other sites More sharing options...
Captain Tightwad Posted August 19, 2016 Share Posted August 19, 2016 But if/when inflation start rising there will be little choice but to raise interest rates and then savers with cash will be rewarded. No, see, our wise and perspicacious lords on the MPC will "look through it". Again. I can't see anything much changing for the better with Carney at the helm, and I'm getting an uncomfortable sense that May is too scared of spooking the City to boot him out as she did Osbourne. Quote Link to comment Share on other sites More sharing options...
wherebee Posted August 19, 2016 Share Posted August 19, 2016 I'm about to take the plunge to move out of cash. Moving 70% of my liquidity into a 'hard' land asset in a western jurisdiction. Because my biggest fear is devaluation of the currency (via inflation and/or currency wars) or government seizure of cash/funds in accounts (bail ins, or lock down of withdrawals, or capital controls). I HATE the fact that I am forced to do this, but I just do not trust governments. i might well lose on the land value, but it is more remote in my view than seizure of loose cash in standard accounts. I HATE I have to become a speculator because of the mismanagement of these freaks. funnily enough, my great grandfather lost the family fortune in a bank collapse in the 1920's. My grandmother went from being a child of an upper middle class family to being taken in by a childless butcher and his wife after my great grandfather committed suicide and his wife was sent to a sanitarium. Perhaps my fears are driven by this family history of how ruinous previous financial collapses have been. Quote Link to comment Share on other sites More sharing options...
doomed Posted August 19, 2016 Share Posted August 19, 2016 They will turn cash to toilet paper. There is literally no other end game that seems plausible now, they are too far down the money printing path. Quote Link to comment Share on other sites More sharing options...
Dorkins Posted August 20, 2016 Share Posted August 20, 2016 funnily enough, my great grandfather lost the family fortune in a bank collapse in the 1920's. My grandmother went from being a child of an upper middle class family to being taken in by a childless butcher and his wife after my great grandfather committed suicide and his wife was sent to a sanitarium. Perhaps my fears are driven by this family history of how ruinous previous financial collapses have been. Was your great grandfather an ordinary bank depositor or invested in something more exotic? Quote Link to comment Share on other sites More sharing options...
redgenieuk Posted August 21, 2016 Share Posted August 21, 2016 They will turn cash to toilet paper. There is literally no other end game that seems plausible now, they are too far down the money printing path. 100%. Anything but cash. Quote Link to comment Share on other sites More sharing options...
shindigger Posted August 21, 2016 Share Posted August 21, 2016 100%. Anything but cash. Run silent. Lurk deep. Quote Link to comment Share on other sites More sharing options...
Maynardgravy Posted August 21, 2016 Share Posted August 21, 2016 So the advice on this thread is hold lots of cash/hold very little cash. Shroedinger's thread. Quote Link to comment Share on other sites More sharing options...
geezer466 Posted August 21, 2016 Share Posted August 21, 2016 So the advice on this thread is hold lots of cash/hold very little cash. Shroedinger's thread. Pretty much..... I have a feeling that if inflation was allowed to return to 1970's levels there would be MP's and BOE governors swinging from lampposts... Yes they can try and inflate away the debt but it will be the end of the economy as we currently know it. Quote Link to comment Share on other sites More sharing options...
Will! Posted August 21, 2016 Share Posted August 21, 2016 Because my biggest fear is devaluation of the currency (via inflation and/or currency wars) or government seizure of cash/funds in accounts (bail ins, or lock down of withdrawals, or capital controls). I HATE the fact that I am forced to do this, but I just do not trust governments. i might well lose on the land value, but it is more remote in my view than seizure of loose cash in standard accounts. I HATE I have to become a speculator because of the mismanagement of these freaks. I have a similar mindset. From an early age I learnt that regular saving was the way to go and prudence was its own reward. However it looks to me that the most politically expedient course of action for our government is to continue to protect the many who are feckless from the consequences of their actions at the expense of the few who are prudent. Currency debasement through QE hasn't caused any political upset for governments of either hue and so seems set to continue. Bail ins, lock downs or capital controls might cause too much public upset - think of the queues outside Northern Rock - but barring some external shock I expect currency debasement to continue. Unfortunately my ARM shares are about to be bought out and so I'm due to take receipt of cash representing about 40% of my net worth. Gold looks to me to have much of the currency debasement priced in and I can't find enough companies I'd like to invest in. Right now I'm thinking about silver, NS&I and even buying a small property but these are not great options. Quote Link to comment Share on other sites More sharing options...
HovelinHove Posted August 21, 2016 Share Posted August 21, 2016 So here's a question about the post a while back that stated the cash will just dissapear when the markets crash. That is incorrect, as the cash went to the person selling the stocks/houses etc but where has it gone? If all this QE is being shovelled into property and stocks, then the proceeds must end up somewhere else. Any ideas? Quote Link to comment Share on other sites More sharing options...
Fully Detached Posted August 21, 2016 Share Posted August 21, 2016 (edited) So here's a question about the post a while back that stated the cash will just dissapear when the markets crash. That is incorrect, as the cash went to the person selling the stocks/houses etc but where has it gone? If all this QE is being shovelled into property and stocks, then the proceeds must end up somewhere else. Any ideas? On the property side I'd guess most of it has been recycled into further debt by people trading up and using the equity to finance an even bigger mortgage (or more mortgages in the case of BTL), which is why I think the QE will only evaporate if the banks write off the bad debts resulting from a crash. Edit - reading that back to myself, it actually supports the op's post a little, because that equity that they used as a deposit on a bigger mortgage will be wiped out first. Edited August 21, 2016 by Fully Detached Quote Link to comment Share on other sites More sharing options...
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