October Treasury auction – 3-month bills ring out at 0% interest

October 5, 2015:  After trillions of dollars of liquidity benefits for major Wall Street banks and insurers, courtesy of the Fed (and by extension, U.S. citizens), the Treasury pushed out $21 billion in 3-month bills in their Oct 5, 2015 auction.

Is this a sign of economic health?

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Financial Times:

However, that is not the first time. Since 2008, the US government has held 46 Treasury-bill auctions where yields have been zero.

The next step after zero is negative… and it’s becoming a real possibility. Welcome to the European model of starving savers to death!

The implications for investors are monumental.

Ask yourself, what would you do with your money if your bank started to charge you to deposit it there? Would you pay hundreds, perhaps thousands of dollars a year just to keep your money in a bank?

Option #1: Hold your nose and pay the fees.
Option #2: Move those dollars into the stock market; perhaps into dividend-paying stocks.
Option #3: Buy real estate; perhaps income-generating real estate.
Option #4: Invest in collectibles, like art or classic cars.
Option #5: Stuff your money under a mattress.

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America needs a restart.  One that reinvigorates financial health at the family level, and all across main street America.

The elimination of vast swaths of consumer and corporate debt is critical for any move toward rate normalization.

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                   The Leviticus 25 Plan 2017 (1236)

 

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