T Bills Once “Risk Free Return” Now “Return Free Risk” Jeff Berwick
Alexandra Bruce
My friend, Jeff Berwick has written one of his best screeds that I’ve read in some time. It appears, indeed that we are dancing on the lip of a volcano.
As Jeff says so well in his May 26, 2016 post to his Dollar Vigilante blog:
“In more normal times it would be prudent for companies to hold a large amount of cash to get through an economic downturn. Not now!
“Holding large amounts of cash – or even worse, cash ‘equivalents’ (basically bankrupt government bonds paying a negative interest rate) is now increasingly unwise.
“Consider currency risk. A company like Apple, with subsidiaries worldwide, likely holds numerous currencies including euros and Japanese yen.
“The Eurozone, as admitted by almost everyone, is on the verge of collapse. And Japan too.
“Both the euro and the yen may not even exist a few years from now. And, even if they do, they’ll likely be so hyperinflated as to be on their way to becoming worthless.
“The US dollar is in no better shape. Countries around the world are moving away from using the dollar and the petrodollar system itself is failing. The dollar could be quickly headed towards the dustbin of history.”
These words but scratch the surface of Jeff’s most recent video, released a few weeks ago but which I missed, because my head was so far up my hind-end, correcting 1,100 pages of broken code on my website – so I’m bringing it to you now!
