Why Low Risk Does Not Equate To Risk Free!
Charles Schwab has informed its’ clients that “at least 80% of the fund’s net assets will be invested solely in U.S. government securities…”. Schwab automatically assumes that all clients affected by this change will accept: “if you are in agreement with this change in your cash feature, no response is required from you. They consider a non-response from its’ clients to be notice. “Those who disagree have the “option” of either sweeping their cash into the corporate bank exposing them to greater risk. They add “you also have the right to close your brokerage account(s) without penalty at any time.”
Who will be the most recent owners of the rest of the current and future new debt? The answer is: YOU. U.S. Mutual funds, U.S. pension funds and American investors. Why? Because our insolvent government needs Americans to finance it before the entire house of cards come crashing down! One’s ability to take your savings out of banks and store it in cash is coming to an end. U.S. Institutions are holding up to 99.5% of assets in cash, U.S. government securities, and repurchase agreements that are collateralized solely by the U.S. Government’s good faith.