by Simon Black
Last year, amid all the madness in financial markets, financial historian and strategist Russell Napier joked about creating a “European high-yield capital guarantee fund.”
His “high-yield” fund was nothing more than a secure room filled with physical cash, and a guy standing outside with a gun to guard it.
As jokes tend to be, this was a sad reflection on reality.
Though physical cash bears no interest, it is considered “high yield” compared to bank balances and government bonds that carry negative rates.
Napier’s joke is now coming true.