Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
schiffgold.com / BY ADDISON QUALE / JANUARY 15, 2016
This article was submitted by Addison Quale, SchiffGold Precious Metals Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.
Check out this article on an absolutely mind-boggling phenomenon taking place in Switzerland. Apparently Local Cantons (what states are apparently called over there) are actually telling taxpayers not to send the money they owe in to the government – at least not right away. They’re saying just hold on to the cash until the deadline.
What could possibly be a good reason for Leviathan to not want its food/funding ASAP? Well, when you live in a land of negative interest rates, things get a bit tipsy turvy. I guess it’s a bit like bizarro-world from that episode of Seinfeld – where up is down and bad is good.
As the article states:
The longer it has cash on its books, the more likely it will incur costs as a result of negative interest rates charged by Swiss banks. The canton calculates that the move will save SFr2.5m ($2.5m) a year.”
You see, instead of cash in the bank being an asset, suddenly it becomes a liability. Instead of it earning interest and giving you a solid payout, negative interest causes you to actually lose money as it sits in the bank. Hence the Swiss government saying – you guys hold on to those funds (and pay the negative interest instead of us) a bit longer. It’s like a crude game of financial hot potato. Whoever gets stuck with the cash in the bank loses.
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Thanks to BrotherJohnF