I just came back from errands at the bank. Feeling the pain intimately, in all the dark corners of my mind, after staring at the unbelievably low fixed deposit rate for my next tranche of 30-day CD renewals: 3.35++% on the Euro, and 2.15++% on the USD, depending on deposit size. It is not often that so much is earning so little.
The bank (HSBC) is one of the largest in the world and the extra 0.5-0.75% from smaller banks is not worth the risk in the land where there is no deposit insurance.
I am standing firm on the % allocation to cash, after careful consideration, due deliberation and full reflection, refusing to be driven mindlessly into any other asset class, except continuing the slow accumulation of gold and gold shares, by and by.
With each tick of the Greenspan FED rate and tock of the synchronous global recession, the kaboom of the curtain-call gong nears.
We may deflate (assets) before we stagnate (economy) or inflate (energy, assets), or we may inflate, then stagnate and deflate. The sequencing does not matter. Sh*t will happen, fan will spin, chaos will reign, and cash will rule.
Chugs, Jay |
