Cash is becoming dangerous to own, with more and more governments floating the idea of cash controls or all-out cash bans.
As interest rates head below zero, savers will rightly be resistant to the idea of paying banks for keeping cash on deposit.  The obvious answer for any responsible, sensible saver is to remove his/her savings from the bank and hold physical cash.
Policymakers will try to prevent this from happening at all costs…

hyperinflationThe masses, it seems, have been waking up for a while. Not only have we had state sanctioned inflationism ever since the credit crunch, but the developed world’s central banks have done their best to destroy faith in money altogether. It turns out that hyperinflation itself wasn’t a necessary precondition for a crack-up boom – taking interest rates into negative territory was quite sufficient to trigger a rush into real assets.
Everybody loves the early stages of inflation…

For those that already have, Mark Carney is the gift that keeps on giving.  For the asset-rich, for the 1%, for property speculators, and for zombie companies and banks, Carney is your man.
For the asset poor, or for savers, or pensioners, or insurance companies, or pension funds, the Bank of England has morphed from being anti-inflationary fireman to monetary arsonist.
The economist Ludwig von Mises foresaw all this, nearly a century ago. He called it “the crisis of interventionism”…

Successful investing requires having an edge. If you do not know what your edge is, you don’t have one.
One doesn’t need to be a rocket scientist, or even a die-hard contrarian to have an edge.
But given the competition from vast numbers of rival investors, it pays to go down the road less travelled…

Faced with a terrible threat, we can do nothing, or we can do something.
In an environment of heightened financial repression and the growing likelihood of the imposition of negative nominal interest rates, we think those investment choices should include objectively creditworthy debt; high quality and unconstrained equities offering an explicit margin of safety; uncorrelated systematic trend-following funds, and hard assets, notably gold.
It used to be said, ‘Don’t fight the Fed’.   Now as investors, if we want to protect our capital, we are all obligated to fight the Fed, and its international cousins, with whatever we have.