Tag Archives: Federal Reserve

Dawn J. Bennett Writes Article Highlighting the War on Cash

Dawn J. Bennett, CEO of and Founder of Bennett Financial Services and host of Financial Myth Busting, recently wrote an article titled, “Yellen’s ‘Solid Ground’ and the War on Cash”. In her article, Bennett explains that while Janet Yellen of the Federal Reserve says our economy is on “solid ground”, that couldn’t be further from the truth. According to Bennett:

  • S. factory orders have been on the decline on a year-over-year basis for 16 consecutive months, which hasn’t occurred in 60 years without a recession.
  • First quarter corporate earnings are projected to be down 8.5% over first quarter 2015, the fourth quarter in a row of year-over-year declines.
  • S&P earnings are down 18.5% from their 2014 high.
  • Corporate debt defaults have risen to the highest level since 2009.
  • S. oil rig count is at a 41-year low.
  • Job cut announcements from U.S. firms were up 32% for the first quarter 2016 over first quarter 2015.
  • Consumers have accumulated more new credit card debit during the fourth quarter 2015 than during the entire years of 2009, 2010, and 2011.
  • America has $19 trillion in federal debt, which has increased $100 million each hour since President Obama’s inauguration.

“It is in this environment that we find ourselves, additionally, in the midst of an all-out war on cash,” says Bennett. “Interest rates are negative in Japan and several European countries, and we seem to be trending toward that possibility in the United States. Central banks keep printing more and more money, but that money isn’t tied to any real value. The assumption is that these negative rates will force banks to lend their reserves, and that lending will boost aggregate demand and help struggling economies, but it just isn’t happening. No one’s buying into it. Meddling with interest rates creates an increasing disconnect between supply and demand over time, and the wider that disconnect gets, the more risk there is when things eventually and inevitably realign to reality.”

Bennett notes that governments and financial institutions are continuing to discourage cash. Governments worldwide are putting restrictions on the use of cash, Bennett says, which is supposedly to make life harder for criminals and terrorists. She continued, “Central banks set inflation targets, and inflation is another way that our savings is taken from us. As Alan Greenspan said in 1966, ‘In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.'”

To learn more about Dawn J. Bennett’s views on the war on cash, read the full article here.

Why Financial Experts Hunger for Answers

All eyes are on the Federal Reserve this August as we await Chairwoman Janet Yellen’s announcement regarding potential adjustments to national fiscal policy and—experts hope—a long-awaited increase in interest rates. However, some financial experts, like long-time money manager and radio host Dawn J Bennett, believe that whatever Yellen announces this month, the odds aren’t likely to be in the nation’s favor. As Bennett states, a growing number of economic indicators point to the reality that the Fed has lost a handle on the economy as a result of its focus on exclusively finding solutions for the present, rather than the future.

Is Government Overreaching?

Regardless of whether the Federal Reserve increases interest rates and delivers the recommendation that the country has anxiously awaited, the larger problem at hand is the presence of the government’s ever-extending, unwarranted hand into economic outcomes. As Bennett points out, the economic upheaval and excruciatingly slow recovery from 2008’s recession was the product of a “wait-and-see” economic experiment by the Feds, not a method grounded in sound fundamentals.

Forgetting about Long-Term Gains

The performances of central banks around the world point to the consequences of this type of approach to economics; many are currently experiencing some of their worst numbers in over 2 years. While central banks are suffering the stock market is still holding up, but Bennett argues that this, too, is a deceptive cover for the manipulation that’s really at play. In fact, there’s a significant lack of real “volume” behind the stock market; the internal financial health of companies does not match up with the external sky-high values that irresponsible policies have propped up.

In fact, FactSet predicts that year-over-year declines in earnings per share will continue for the majority of companies on the market into the 3rd and 4th quarters. Yet, central banks and other large companies continue to make choices that improve conditions in the short term while ignoring opportunities for growth in the long term.

A Realistic Perspective

What can and should be done to prevent an impending market slump (an inevitable consequence of a market not backed by real volume)? According to Bennett, the government and central banks should first come clean and offer an honest, transparent forecast of the economy. There’s no denying that the odds aren’t in our favor. What’s done is done, but moving forward, we can improve our situation by holding a strong cash position, investing more heavily in gold, and hedging with short-term bonds.

We can only hope that (as unlikely as it may be) Ms. Yellen’s announcement will address these points.

Bennett Group Financial Services LLC, based in Washington, D.C., is a comprehensive financial services firm committed to providing opportunities to clients’ as they seek long-term financial success. Its customized programs are designed with the potential to help grow, lower overall risk and conserve client assets by delivering a high level of personalized service and skill.

For more information, call 866-286-2268 or visit http://www.bennettgroupfinancial.com

Securities offered through Western International Securities Inc. (WIS), member FINRA/SIPC. BGFS and WIS are separate and unaffiliated entities.

About Dawn Bennett

Dawn Bennett is CEO and Founder of Bennett Group Financial Services. She hosts a national radio program called Financial Myth Busting http://www.financialmythbusting.com

She discusses educational topics and events in the financial news, along with her thoughts on the economy, financial markets, investments, and more with her live guests, who have included rock legend Ted Nugent, as well as Steve Forbes and Grover Norquist. Listeners can call 855-884-DAWN a as well as take podcasts on the road and forums for interaction.

She can be reached on Twitter @DawnBennettFMB or on Facebook Financial Myth Busting with Dawn Bennett ordbennett@bennettgroupfinancial.com