In May 2011, I presented at the World Currency Watch Conference in La Jolla, CA. The theme of the conference was “how to deal with the demise of the U.S. dollar.” I had a different point of view back then. I felt the dollar would get stronger… an opinion that was in the minority. In fact, out of 500 attendees and roughly 20 presenters, I was the only one who had this view.
So why was I being so contrary?
I wasn’t banking on the U.S. becoming a shining light of fiscal conservation. I did not see the Currency-Manipulator-In-Chief Ben Bernanke suddenly ending his damaging ways.
What I saw on the horizon was a world filled with bad currency, where the U.S. was simply the mildest offender. When the other two large currencies available are the yen and the euro, the U.S. dollar looks pretty good by comparison.
Face it, in the world of currency, it’s a beauty contest, not a measure of value. And sometimes we don’t vote for the prettiest. We vote against the ugliest. That is where the U.S. dollar stands today. It’s a tattered wisp of what it used to be in terms of absolute value, but a real looker when compared to the other choices.
While the past year has affirmed my view of how the dollar will fare in world markets – it’s up about 6% – I did not address how investors should store the dollars I suggested they accumulate. We’ve also been telling Boom & Bust readers to develop streams of income wherever possible.
This has proved easier said than done, particularly for short term liquidity. With a one-year U.S. Treasury yielding just above zero, the ability to earn any yield on short-term funds, and still keep them relatively safe, has been near impossible.
Well, not anymore.
Recently, Erika Nolan, publisher of the Sovereign Society sent me a note about the offering she had wrung out of EverBank. Given the long relationship between the two organizations, and probably a little bit due to her persistence and enthusiasm for them to create such a product, EverBank is making available a Yield Pledge Money Market Account with a bonus rate of 1.35%, resulting in a 1.06% APY (average percentage yield) in the first year.
This is the highest I’ve seen, and is offered from a company with which we’ve had the pleasure of working in the past. And because of our own relationship with both EverBank and the Sovereign Society, we are able to make this product available to you as well.
You can open the Yield Pledge Money Market Account with as little as $1,500. Simply click here. However, note that this offer is available for a limited time only.
We currently live in a world where terms like financial repression and negative yield are the norm, and it appears things will get worse before they get better. It’s nice to know that you have an option for storing your hard earned dollars where they will provide some growth while Rome burns, Athens crumbles, and Tokyo tanks.
Ahead of the Curve with Adam O’Dell
The Least of Our Worries
Look at this chart of the U.S. Dollar futures over the last 10 years. You can see why Rodney stood alone in enemy territory last May.