Gyroscopic Investing

Gumby wrote: Since short term interest rates are so low, and I don't care enough to make a few pennies in interest, over the past few months I've kept a chunk of cash savings in TreasuryDirect's Zero-Percent C of I. They aren't T-Bills and they aren't even intended as a savings vehicle — they are intended to be used to fund security purchases. There is no maturity, they don't earn any interest, but the Treasury keeps that money as just numbers in accounts for TreasuryDirect holders. If I ever need the money, I can transfer them to any bank account of mine in one business day. It's sort of like a zero-interest government bank account. Not that much different from a bank savings account.

dragoncar wrote:

Gumby wrote: Since short term interest rates are so low, and I don't care enough to make a few pennies in interest, over the past few months I've kept a chunk of cash savings in TreasuryDirect's Zero-Percent C of I. They aren't T-Bills and they aren't even intended as a savings vehicle — they are intended to be used to fund security purchases. There is no maturity, they don't earn any interest, but the Treasury keeps that money as just numbers in accounts for TreasuryDirect holders. If I ever need the money, I can transfer them to any bank account of mine in one business day. It's sort of like a zero-interest government bank account. Not that much different from a bank savings account.

What if the treasury can't pay to keep the servers running?

Gumby wrote:

dragoncar wrote:

Gumby wrote: Since short term interest rates are so low, and I don't care enough to make a few pennies in interest, over the past few months I've kept a chunk of cash savings in TreasuryDirect's Zero-Percent C of I. They aren't T-Bills and they aren't even intended as a savings vehicle — they are intended to be used to fund security purchases. There is no maturity, they don't earn any interest, but the Treasury keeps that money as just numbers in accounts for TreasuryDirect holders. If I ever need the money, I can transfer them to any bank account of mine in one business day. It's sort of like a zero-interest government bank account. Not that much different from a bank savings account.

What if the treasury can't pay to keep the servers running?

Then there are bigger problems than my C of I since those same servers are necessary to publish/archive Treasury auction results, and allow Federal Agencies to manage their Treasury holdings:

https://www.treasurydirect.gov/FD/FedInvestGateway.htm


I think it's safe to say that TreasuryDirect.gov is a high priority for the government to maintain the operation of its own currency and keep critical Federal agencies running.

Also, if the government breaches the debt ceiling, I would think that many standard bank accounts could be restricted or inaccessible as well due to problems with Treasuries with maturities.

But, it's not all of my savings, so I'm not too concerned if I can't get to it for awhile.

dragoncar wrote: It's an extra layer of risk, though, because if you want cash FIRST you'll have to transfer it to a bank, then withdraw.

Gumby wrote:

dragoncar wrote: It's an extra layer of risk, though, because if you want cash FIRST you'll have to transfer it to a bank, then withdraw.

Meh. I still have money in the bank for regular spending and emergencies. This is cash I don't really need anytime soon. This is no different from holding actual Treasuries that are about to mature in one business day. The only difference is that these faux Treasuries don't earn any interest.

To me it feels a little bit more real than my FDIC deposits — which are nothing more than a line item in a bank spreadsheet.

dragoncar wrote:

Gumby wrote:

dragoncar wrote: It's an extra layer of risk, though, because if you want cash FIRST you'll have to transfer it to a bank, then withdraw.

Meh. I still have money in the bank for regular spending and emergencies. This is cash I don't really need anytime soon. This is no different from holding actual Treasuries that are about to mature in one business day. The only difference is that these faux Treasuries don't earn any interest.

To me it feels a little bit more real than my FDIC deposits — which are nothing more than a line item in a bank spreadsheet.

Ok I guess I missed the reason behind using the c of is.  I thought it was in response to the OP article about limiting withdrawals, in which case the c of I won't be any more accessible.  The c and is are also a line item in a spreadsheet, of course, it's just maintained by the government instead of a bank.  Treasury direct has always scared me in their lack of statements or other proof of ownership.

It is clear that these regulations are being enacted for three different but equally plausible reasons, all of which contribute to the ultimate goal of sacrificing the global economy on the altar of derivative monster zombie banks.

1) Capital controls to prevent money leaving the country as the US dollar continues to devalue. Note that Chase will allow international wire transfers coming in, but not going out of the accounts. Note that they are only concerned about “risks”? when the money is being moved out of the account.

2) Forcing businesses to abandon cash and switching everything over to digital currency that can be more easily tracked, traced and controlled.

3) Part of the preparatory phase for Cyprus-style bail-ins where the government announces a new “tax”? to gouge out a percentage of people’s savings.

Customers need to rally and speak out against this and immediately move their money to smaller and local banks that will promise to give them good service and not rake them over the coals. We need diversity and competition within the banking system, not giant zombie banks endangering the world economy with derivatives and cheating their customers.

smurff wrote: I got one of those letters for my business account earlier this week.  It's another way to get more fee revenue from anywhere.  They can't gouge consumers so easily anymore, thanks to the Consumer Financial Protection Bureau.  There is no equivalent protection bureau for small businesses, so they're going after those with the least clout.

smurff wrote: Libertarian666, they're trying to make all of us "upgrade" to accounts where they can get more fees.  The business account I have has no minimum balance or monthly fee, as long as I do at least 8 debit card transactions per billing cycle.  And since I have it as part of a premier package that includes a free personal checking account, I can do free wire transfers, free use of non-Chase ATMs, free paper checks,  free safe deposit box, free financial advice, free this, free that. 

Now that they have to pay out more than $1 billion in various fines for their crimes, they have to make it up somehow.  They figure if you have $50K in revenue running through your account every month ($600K annually) you can afford to upgrade.

smurff wrote:
Now that they have to pay out more than $1 billion in various fines for their crimes, they have to make it up somehow.  They figure if you have $50K in revenue running through your account every month ($600K annually) you can afford to upgrade.