{"id":436,"date":"2014-10-22T19:57:45","date_gmt":"2014-10-22T19:57:45","guid":{"rendered":"http:\/\/olduvai.ca\/?p=436"},"modified":"2014-10-22T19:57:45","modified_gmt":"2014-10-22T19:57:45","slug":"oftwominds-charles-hugh-smith-what-happens-when-cash-is-no-longer-trash","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=436","title":{"rendered":"oftwominds-Charles Hugh Smith: What Happens When Cash Is No Longer Trash?"},"content":{"rendered":"<p><a href=\"http:\/\/charleshughsmith.blogspot.ca\/2014\/10\/what-happens-when-cash-is-no-longer.html\">oftwominds-Charles Hugh Smith: What Happens When Cash Is No Longer Trash?<\/a>.<\/p>\n<p style=\"display: inline; height: 0px; overflow-x: visible; overflow-y: visible; padding: 1px 0px 1px 0px; margin: 0px;\"><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\"><i style=\"background-color: white; padding: 0px; margin: 0px;\">Those who actually create value as opposed to chasing yield with nearly-free money will actually have some traction once the swamp of excess liquidity drains.<\/i><\/span><\/p>\n<div style=\"background-color: white; padding: 0px; margin: 0px;\"><b style=\"padding: 0px; margin: 0px;\"><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\"><br style=\"padding: 0px; margin: 0px;\" \/><\/span><\/b><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\"><b style=\"padding: 0px; margin: 0px;\">When those closest to the money spigots of the Federal Reserve can borrow billions for next to nothing, cash&#8211;laboriously saved from years of paychecks&#8211;is reduced to trash.<\/b>\u00a0What chance does a saver have in a bidding war for a house or other asset against a financier who can borrow essentially unlimited cash?<\/span><br style=\"padding: 0px; margin: 0px;\" \/><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\"><br style=\"padding: 0px; margin: 0px;\" \/><\/span><\/div>\n<div style=\"background-color: white; padding: 0px; margin: 0px;\"><span style=\"font-family: Verdana, sans-serif; padding: 0px; margin: 0px;\"><b style=\"padding: 0px; margin: 0px;\">Answer: none.<\/b>\u00a0The saver can leverage his cash at best 4-to-1: a 20% down payment leverages a mortgage of 80% borrowed money. The financier can borrow as much he wants for next to nothing.<\/span><\/div>\n<div style=\"background-color: white; padding: 0px; margin: 0px;\">&#8230;click on the link above to red the rest of the article&#8230;<\/div>\n","protected":false},"excerpt":{"rendered":"<p>oftwominds-Charles Hugh Smith: What Happens When Cash Is No Longer Trash?. Those who actually create value as opposed to chasing yield with nearly-free money will actually have some traction once the swamp of excess liquidity drains. When those closest to the money spigots of the Federal Reserve can borrow billions for next to nothing, cash&#8211;laboriously [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[175,195,236,303,305,481],"class_list":["post-436","post","type-post","status-publish","format-standard","hentry","category-economics","tag-credit","tag-debt","tag-economic-collapse","tag-fed","tag-federal-reserve","tag-leverage"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/436","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=436"}],"version-history":[{"count":0,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/436\/revisions"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}