Hi friends,

Welcome to your October 2019 newsletter.

At the time of writing, the Australian official cash rate set by the RBA sits at just 1%.

It was 1.50% in May, then reduced to 1.25% in June, and then further reduced to 1% July.

That doesn’t leave the RBA too much room to move... and if the current rate-cutting trend continues, we’ll hit 0% interest, some time in 2020.

What’s after that? Negative interest rates?

Sounds ludicrous, but don’t laugh too loudly.

Already many of the world’s central banks and largest economies are at 0% or even negative interest rates.

And yes, some banks are passing this onto their customers and charging them ‘rent’ to hold money in their bank (like Sweden).

What this means is... savers are getting smashed.

With so little interest earned, the arguments for holding cash in a bank are getting fewer and fewer.

That doesn’t mean you should go out and spend it or waste it, but you may wish to educate yourself on the best ways to preserve purchasing power over the centuries and the modern ways of increasing your returns.

The arguments for owning physical assets are getting stronger and stronger......

My Book of the Month below should give you an idea of how to preserve wealth in physical assets.

The arguments for owning income producing digital assets are also getting more obvious......

My Gift of the Month below should give you an idea about how to acquire digital assets to increase your returns.

Now, as many of you know I was recently in Russia. I was so impressed with the people and their very strong family values (like Olga in my photo’s below).

I’m also impressed that Russia is one of the world’s largest gold buyers and has been for many years.

Interestingly, the official cash rate in Russia is 7%, and physical cash is still king, used everywhere.

(Even when I used Yandex, the Russian competitor to Uber, I only paid in cash).

So, what does all this mean for property prices?

Well, in Australia, mortgage rates are now down in the 3% range, and in some cases even the 2%’s!!

The rate cuts, slightly relaxed lending criteria and reduced deposit requirements for first home buyers, has probably propped up the property market… for now.

And get this.

Whilst in Europe I decided to go to Helsinki and not Copenhagen, but wish I squeezed it in. Why? – Well in Denmark right now you can buy a house and finance it on negative interest...

The bank actually PAYS YOU TO BORROW the money to buy property. They pay you just 0.1% and they cheat a bit, so the fees probably equal that 0.1% – but you basically pay nothing just the principle repayments. No interest. Nada.

Can you see how crazy this is getting?

Now you are discovering why – in my January 2019 newsletter video earlier this year – I spoke of the importance of financial offence and defense... as well as having both digital and physical financial assets.

Never has that been more important than now.

To Your Success.