Tag Archives: finance

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.

The Buzz about Bitcoin

Have you been bitten by the Bitcoin bug? This virtual currency/monetary network, founded in 2009, has grown to be an increasingly popular global option for money management. Yet, while Bitcoin has blossomed, most still have little idea what Bitcoin is, and how it works.

That’s why financial expert Dawn J Bennett recently sat down with New York Times business reporter Nathaniel Popper to discuss Bitcoin on her radio show, “Financial Myth Busting with Dawn Bennett.”

According to Popper, Bitcoin seems to be gaining recognition among the U.S. government and major financial institutions like Goldman Sachs and Visa. This is largely due to the fact that millions around the world now participate in the Bitcoin network, as well as the new (concerning) ways that Bitcoin is being used. Founder of the contraband trading website Silk Road, Ross Ulbricht, was just sentenced to life in prison; his site raked in millions per month using the Bitcoin currency, which was not subject to taxes. While Ulbricht’s site was a “black market” use of Bitcoin, it has increased awareness about the power of this virtual entity.

For many, managing money through Bitcoin offers key advantages. Individual account owners are solely responsible for their money, not banks or other financial institutions. This naturally affords a heightened level of autonomy and flexibility for users, as there’s no longer a middle man. However, as Popper points out, this increased level of responsibility doesn’t always work out in a user’s favor; for example, should a user lose their Bitcoin account password, there’s no way to retrieve it, and money is lost.

Those considering moving money to Bitcoin should also keep in mind that the network is still young and vulnerable to volatility. Because Bitcoin is priced in other currencies (it is not backed by precious metals or a government) there can be a great deal of inconsistency when purchasing commodities that are sold to Bitcoin—another hindrance to its ability to emerge as a competitive currency. Popper actually finds that most recently, Bitcoin has evolved from a virtual “currency” to a network akin to PayPal. Individuals use the network to make quick and easy transactions that are immediately converted to another currency.

While Bitcoin may have its weaknesses, there is something to be said for the way in which it has allowed individuals without access to bank accounts the freedom to participate in money management. These individuals will continue to increase the value and power of the Bitcoin network, regardless of whether or not Bitcoin ever becomes a currency that could compete with the dollar.

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