The mainstream media (MSM) only wants you to hear about the bad economic times. But things are happening right in front of everyone that tell us that the economy will almost certainly turn around and probably much sooner than most of the media wants you to believe. There is a great deal of unused discretionary and other forms of liquid and transferable global wealth that has built up as stagnant cash money reserves. This vast amount of liquid cash money wealth is earning nothing and most often loosing value by being stagnant. Eventually, the owners of this cash wealth will have to transfer this remarkable volume of wealth into some form of income or growth potential investments. Otherwise, they will continue to see their cash wealth diminish is value.

Where is this wealth?

The wealth is being stashed in US Treasury Bills (T-Bills). As recently as December 10, 2008 the US government auctioned off $32 Billion in T-Bills at a ZERO (0%) interest rate. The bidding volume seeking this $32 billion exceeded $125 Billion dollars. In comparison the Treasury sold $23 Billion in one-month T-Bills a year ago at an interest rate of 2.95%, and received $57.5 billion in offers. This December 10, sale of T-Bills was just one of many such auctions that have been happening over that past 4 to 6 months. To put these remarkable events in perspective, the owners of $125.5 $billion dollars in cash money tried to Loan to the US government $32 Billion dollars to receive an interest rate of ZERO (0%). Recent past such auctions at relatively similar volumes were showing interest rates of 0.005%. In was also reported that some owners of this cash have been buying T-Bills in the secondary market and were PAYING an interest rate to own the T-Bills. Thus today, there are a minimum of many HUNDREDS of Billions of Dollars, if not over a TRILLION dollars in cash being parked in T-Bills at virtually no income value, and even negative income value. Yet, the availability of cash a year ago was less than half that amount. And the economic times were considered much better then.

Now lets look at what this means to the owners of this vast amount of liquid cash being parked in T-Bills, where the cash earns NO income. Inflation, even with the drop in oil, other commodities, real estate, and such recently will undoubtedly be calculated to be over 1 to 2%. That means that the owners of this money are LOOSING from 1 to 2% by just parking their money in T-Bills at ZERO or even less interest bearing rates.

The two reasons T-Bills at 0% interest rates are in such demand?

1. There is a vast amount of available cash today. The reason so much money is now available is because these are the cash proceeds of the many investors who sold their stocks and commodities to get out of these markets. They caused the markets to decline by their mass sales, but they now are awash with the cash resulting for their stock and commodity sales. So there still is considerable worldwide wealth, it is just not in stocks, real estate, or commodities, and such. But the media only reports about the negatives of the stock markets and such, and they appear to purposefully over look the accumulation of such vast amounts of cash.

2. T-Bills are considered the safe haven. The demise of the stock markets, real estate markets, commodity markets, the investment banks, and the traditional banks has scared the owners and manager of this money, to cause them to place the cash in the most secure places they can find. Loaning money to the US Treasury, even at a 0% interest rate is considered a very safe and secure place to park their money.

This vast volume of cash will eventually be transferred out of T-Bills.

The owners and managers of this vast amount of cash will certainly want and even need to find viable places to invest their cash to receive positive returns on their money, rather than continue watching it receive negative returns on investment in T-Bills. When they decide to transfer their cash from T-Bills into other higher yielding investments, they will create another wealth transfer to other areas of the economy. They will undoubtedly select other sectors of the global economy that they consider to offer a higher return on their investments with a degree of security and confidence they can live with. The sectors they invest in will then experience a boost in growth and prosperity. The two questions are when will they transfer this vast amount of unused and declining wealth, and where will they transfer it too? Big hint to you cash holders. Small businesses are showing how strong and profitable they and can be with the right investments. Small businesses are not flashy or even popular, but they have teeth and real profits, low loss rates with tremendous upside potentials.

The media (MSM) promotes economic depression in the face of vast wealth

This is the same heavily controlled corporate media (MSM) that pushed its own agenda on the American public to promote and campaign for the election of their chosen congressional and presidential candidates. After their victory, many insiders within the MSM revealed how heavily biased their publications became for their chosen candidates. Now this same MSM is promoting the demise of the economy, and ignoring this very positive sector of the economy that will certainly become the sources of growth and prosperity at some time, and possibly soon.

Why the media (MSM) promotes economic gloom.

Why does the MSM preach economic gloom and ignore the obvious sign of real global cash wealth? Bailouts! The same politicians that this very biased corporate controlled media promoted into office are now talking about sponsoring vast government bailouts, primarily to the same corporations that are crying wolf, many of which have ties and connections with the MSM. Remember, these same corporations have been controlled and operated by a cadre of extremely over self paid, even obscenely paid executives who also spread their corporate dollars to the candidates who would give them and their corporations the best political deals. The corporate lobbyist’s are working overtime to cash in on their political credits from the candidates they bought into office. They are getting in line to tap into the over $1 TRILLION dollars of announced bailouts coming out of the new Washington. They are claiming their corporations Deserve and Need the bailout money because the corporations are going bankrupt, they must be saved for national security, they must be saved to prevent the economic depression being promoted by their corporate media friends, and to overcome the terrible decisions and management blunders by the same obscenely compensated executives.

Now you know where your tax dollars will go in 2009

The many people who file and pay income taxes to the IRS in 2009 will now know where their hard earned tax dollars will go. Your tax dollars will go to the corporations and obscenely paid executives who made the decisions over the years that put their corporations at risk.

Possible good investment opportunities for 2009.

I still believe the most profitable and most secure investment opportunities will be with small businesses. However, the same people who are parking their cash at negative income by following the herd of others will most likely avoid small businesses because of the lack of glamour, lack of flash, and the extra work it takes to invest in the new and unique small businesses. They will want to follow the herd as before. Hint to the herd. There will soon appear some other investment possibilities for the owners and managers of the huge volume of cash parked in T-Bills that you can claim to be good investment opportunities. Look for the corporations with the greatest political clout in Washington who will receive the bailout funds. Their stock values will certainly shoot up by receiving the bailout money they wrangle from Washington. I believe the general stock market has reached it’s bottom, as shown by the history of bouncing up and down, and trending up, from the lows experienced months ago. You would not know this if you believe all of the doom and gloom promoted by the media. So I predict that there will be some good stock buys for those corporations who receive Washington bailout money.

Investments in bailed out corporations will not remain good.

The bailout money promises to be massive. The economic viability, the honesty, the upside potential, the security, and the sound management of the corporations will not be factors in choosing these corporations. Instead, it appears that the politicians will give the money to the corporations with the best political clouts and the deepest collection of IOU’s to the politicians they bought into office. They will not undergo the due diligence scrutiny that normal investors would demand. So many of these bailouts will most likely not result in good investments, because they were not sound and most often the over paid executives who got their corporations in trouble will still be there to be sure they continue overpaying themselves. Consequently, the bailouts will most likely create short bursts of prosperity, and stock price increases, but they will not last.

Investments in small businesses continue to look good

Yet, investors in small businesses would require and get diligent scrutiny that most small business owners would welcome, which would produce much higher returns.

Provided as an educational service by Bill Dueease of The Coach Connection, where “connecting great people with great coaches” is our goal. You may reach Bill by contacting The Coach Connection at 800-887-7214 or 239-415-1777 or bill@findyourcoach.com