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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.