Take a moment and think about what cash is.
The term cash is used in many ways. Generally the financial system refers to cash as not only the money in your pocket (or stuffed under your mattress), but rather the money you can request on demand without penalty.
Cash is a “liquid asset”. You don’t need to sell anything, you just use it. Cash is supposed to be “risk free”. However in reality, cash is a guaranteed risk, long term any cash you have will lose value (as long as we continue to have a fiat money system and inflation).
The tricky part is how the banking system works. Banks take your money and lend it out, at any moment every bank in the USA has only enough immediate assets to cover basically 10% of deposits! You deposit money into a savings account or checking account with the expectation that you can immediately withdraw that money whenever you want. It seems that more and more, we are encountering limitations on withdrawing our money.
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Personally I do business with many financial institutions (don’t put your eggs all in one basket!). I’ve been running into more and more limitations on how much of my money I can withdraw / transfer. When you are younger (or don’t move around as large of sums) you might not even be aware that such limitations exist (they sure don’t advertise them).
My guess is that our financial system is on the verge of some extremely significant changes, which for the most part won’t be desirable for many of us (more tyranny is coming). Whenever an empire wanes, the financial ripples can be severe. As I’ve mentioned before, the USA empire is on the decline and so far, in all of history, no empire has ever lasted forever.
Dutch (Netherlands) – essentially 1,600 to 1,800
UK (England) – essentially 1,600 to 1,950
USA – essentially 1,800 to today (seriously in debt, the dollar is rapidly losing it’s standing at the “world’s reserve currency”)
There are many other examples, the Chinese empires have risen and fallen over and over again more or less with this same 200 year cycle.
Which means that if we wish to enjoy the best future for ourselves personally, we need to pay some attention to the financial tidal waves that may hit us. This is one reason I’ve been so outspoken in favor of Glint. It’s my opinion that we need to get off fiat money and back to a gold backed currently (which is exactly what Glint allows you to do while maintaining the convenience of modern electronic transactions).
It’s crucial to realize that cash is not a way to preserve wealth, nor is it an investment. What you keep in cash (US Dollars) should be only “working capital”. In other words just what you need to pay bills and handle emergencies.
Give your finances some thought. Look ahead beyond tomorrow or just a few years ahead. What financial landscape will you be facing ten or twenty years from now?