Almost all of the “wealth” in the financial system is digital in nature, with a paltry 1% or less of the “money” in the financial system comprised of cash in the form of paper bills and coins. Because of this, global centered banks fear that if a significant percentage of investors or depositors ever tried to convert their “wealth” into cash (particularly physical cash) the whole system would implode. Consequently, a critical element of U.S. Federal Reserve strategies is to manage this risk by forcing investors away from cash and into risk assets.
One of many such strategies involves cutting interest rate returns to amounts such as 0.25%, thereby rendering the return on cash to almost nothing. Investors then tend to seek higher returns in the form of non-cash alternatives such as stocks and bonds. The problem is that this approach has also not proven to become the intended catalyst towards another highly coveted goal: reviving the U.S economy. Rather, many reports state that the US economy has either flat-lined or deteriorated for several years now, despite Federal intervention via three rounds of Quantitative Easing and other aggressive measures. FULL REPORT