CASH HOLDINGS OF APPLE AND OTHER TECH STOCKS “A MASSIVE RISK IN THIS DEBT JUBILEE ERA”…”When the hour comes, the entire economic fabric of Western civilization is going to be ripped asunder…”
SilverDoctors.com
June 1, 2016
Gold and silver are now the assets of choice for those who are awake to what is happening as we move further into Jubilee Year 2016.
When the hour comes, the entire economic fabric of Western civilization is going to be ripped asunder…
Submitted by Jeff Berwick:
Throw every “norm” out the window. This Keynesian, central banking world has everything so distorted that nothing makes sense anymore.
There are currently more than $7 trillion in bonds, worldwide, offering a negative interest rate. Wrap your head around that! People are actually paying trillions of dollars to give their money to mostly bankrupt governments with the promise they will receive less at a later date.
Treasury Bonds used to be described as having a “risk-free return.” Now they are “return-free risk”.
This system is so backwards, inside-out, manipulated and bankrupt that what once used to be seen as “prudent and sound” is very obviously risky.
For example, Moody’s reported last Friday that Apple, Microsoft, Alphabet (Google), Cisco Systems and Oracle are sitting on $504 billion in cash and “cash equivalents.”
Moody’s Investor “Services” (and we put “Services” in the proverbial air quotes, because these are the same people who called bundles of mortgages loaned to dead and jobless people Triple-A) made this statement in their Friday report: “Corporate America’s rising pile of cash is becoming increasingly important to investors as profit growth and the stock market stalls.”
They are right that profit-growth is slowing. The economy is stalling as we rest on the precipice of complete collapse.
In more normal times it would be prudent for companies to hold a large amount of cash to get through an economic downturn. Not now!
Holding large amounts of cash – or even worse, cash “equivalents” (basically bankrupt government bonds paying a negative interest rate) is now increasingly unwise.
Consider currency risk. A company like Apple, with subsidiaries worldwide, likely holds numerous currencies including euros and Japanese yen.
The Eurozone, as admitted by almost everyone, is on the verge of collapse. And Japan too.
The Rest…HERE
