Holding T-bills now pays 30x more than your bank savings account

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Six months ago, I alerted readers to the very attractive benefits that the TreasuryDirect program offers to investors who are defensively sitting on cash right now.

Since then, those benefits have continued to improve. Substantially.

Back in November, by holding extremely conservative short-term (i.e., 6-months or less) Treasury bills, TreasuryDirect participants were receiving over 16x more in interest payments vs keeping their cash in a standard bank savings account.

Today, they're now receiving over 30 times more. Without having to worry about the risk of a bank "bail-in" or failure.

So if you're holding cash right now and NOT participating in the TreasuryDirect program, do yourself a favor and read on. If you're going to pass on this opportunity, at least make it an 'eyes-wide-open' decision.

Holding Cash (In Treasurys) Now Beats The Market

There are many prudent reasons to hold cash in today's dangerously overvalued financial markets, as we've frequently touted here at PeakProsperity.com.

Well, there's now one more good reason to add to the list: holding cash in short-term Treasurys is now meeting/beating the dividend returns offered by the stock market:

"Cash Is King" Again - 3-Month Bills Yield More Than Stocks (Zero Hedge)
'Reaching for yield' just got a lot easier...
For the first time since February 2008, three-month Treasury bills now have a yield advantage over the S&P 500 dividend yield (and dramatically lower risk).
Investors can earn a guaranteed 1.90% by holding the 3-month bills or a risky 1.89% holding the S&P 500...

The longest period of financial repression in history is coming to an end...

And it would appear TINA is dead as there is now an alternative.

And when you look at the total return (dividends + appreciation) of the market since the start of 2018, stocks have returned only marginally better than 3-month Treasurys. Plus, those scant few extra S&P points have come with a LOT more risk.

Why take it under such dangerously overvalued conditions?

If You Can't Beat 'Em, Join 'Em

In my June report Less Than Zero: How The Fed Killed Saving, I explained how the Federal Reserve's policy of holding interest rates at record lows has decimated savers. Those who simply want to park money somewhere "safe" can't do so without losing money in real terms.

To drive this point home: back in November, the average interest rate being offered in a US bank savings account was an insutling 0.06%. Six months later, nothing has changed:

(Source

That's virtually the same as getting paid 0%. But it's actually worse than that, because once you take inflation into account, the real return on your savings is markedly negative.

And to really get your blood boiling, note that the Federal Reserve has rasied the federal funds rate it pays banks from 1.16% in November to 1.69% in April. Banks are now making nearly 50% more money on the excess reserves they park at the Fed -- but are they passing any of that free profit along to their depositors? No....

This is why knowing about the TreasuryDirect program is so important. It's a way for individual investors savvy enough to understand the game being played to bend some of its rules to their favor and limit the damage they suffer.

Below is an updated version (using today's rates) of my recap of TreasuryDirect, which enables you to get over 30x more interest on your cash savings than your bank will pay you, with lower risk.

TreasuryDirect

For those not already familiar with it, TreasuryDirect is a service offered by the United States Department of the Treasury that allows individual investors to purchase Treasury securities such as T-Bills, notes and bonds directly from the U.S. government.

You purchase these Treasury securities by linking a TreasuryDirect account to your personal bank account. Once linked, you use your cash savings to purchase T-bills, etc from the US Treasury. When the Treasury securities you've purchased mature or are sold, the proceeds are deposited back into your bank account.

So why buy Treasuries rather than keep your cash savings in a bank? Two main reasons:

  • Much higher return: T-Bills are currently offering an annualized return rate between 1.66-2.04%. Notes and bonds, depending on their duration, are currently offering between 2.6% - 3.1%
  • Extremely low risk: Your bank can change the interest rate on your savings account at any time -- with Treasury bills, your rate of return is locked in at purchase. Funds in a bank are subject to risks such as a bank bail-in or the insolvency of the FDIC depositor protection program -- while at TreasuryDirect, your funds are being held with the US Treasury, the institution with the lowest default risk in the country for reasons I'll explain more in a moment.

Let's look at a quick example. If you parked $100,000 in the average bank savings account for a full year, you would earn $60 in interest. Let's compare this to the current lowest-yielding TreasuryDirect option: continuously rolling that same $100,000 into 4-week T-Bills for a year:

  1. Day 1: Funds are transferred from your bank account to TreasuryDirect to purchase $100,000 face value of 4-week T-Bills at auction yielding 1.68%
  2. Day 28: the T-Bills mature and the Treasury holds the full $100,000 proceeds in your TreasuryDirect account. Since you've set up the auto-reinvestment option, TreasuryDirect then purchases another $100,000 face value of 4-week T-Bills at the next auction.
  3. Days 29-364: the process repeats every 4 weeks
  4. Day 365: assuming the average yield for T-Bills remained at 1.68%, you will have received $1,680 in interest in total throughout the year from the US Treasury.

$1,680 vs $60. That's a 27x difference in return.

And the comparison only improves if you decide to purchase longer duration (13-week or 26-week) bills instead of the 4-week ones:

Repeating the above example for a year using 13-week bills would yield $1,925. Using 26-week bills would yield $2,085. A lot better (34x better!) than $60.

Opportunity Cost & Default Risk

So what are the downsides to using TreasuryDirect? There aren't many.

The biggest one is opportunity cost. While your money is being held in a T-Bill, it's tied up at the US Treasury. If you suddenly need access to those funds, you have to wait until the bill matures.

But T-Bill durations are short. 4 weeks is not a lot of time to have to wait. (If you think the probability is high you may to need to pull money out of savings sooner than that, you shouldn't be considering the TreasuryDirect program.)

Other than that, TreasuryDirect offers an appealing reduction in risk.

If your bank suddenly closes due to a failure, any funds invested in TreasuryDirect are not in your bank account, so are not subject to being confiscated in a bail-in.

Instead, your money is held as a T-Bill, note or bond, which is essentially an obligation of the US Treasury to pay you in full for the face amount. The US Treasury is the single last entity in the country (and quite possibly, the world) that will ever default on its obligations. Why? Because Treasurys are the mechanism by which money is created in the US. Chapter 8 from The Crash Course explains:

As a result, to preserve its ability to print the money it needs to function, the US government will bring its full force and backing to bear in order to ensure confidence in the market for Treasurys.

Meaning: the US government won't squelch on paying you back the money you lent it. If required, it will just print the money it needs to repay you.

So, How To Get Started?

Usage of TreasuryDirect is quite low among investors today. Many are unaware of the program. Others simply haven't tried it out.

And let's be real: it's crazy that we live in a world where a 1.68-2.09% return now qualifies as an exceptionally high yield on savings. A lot of folks just can't get motivated to take action by rates that low. But that doesn't mean that they shouldn't -- money left on the table is money forfeited.

So, if you're interested in learning more about the TreasuryDirect program, start by visiting their website. Like everything operated by the government, it's pretty 'no frills'; but their FAQ page addresses investors' most common questions.

Before you decide whether or not to fund an account there, be sure to discuss the decision with your professional financial advisor to make sure it fits well with your personal financial situation and goals. (If you're having difficulty finding a good one, consider scheduling a free discussion with PeakProsperity.com's endorsed financial advisor -- who has considerable experience managing TreasuryDirect purchases for many of its clients).

In Part 2: A Primer On How To Use TreasuryDirect, we lay out the step-by-step process for opening, funding and transacting within a TreasuryDirect account. We've created it to be a helpful resource for those self-directed individuals potentially interested in increasing their return on their cash savings in this manner.

Yes, we savers are getting completely abused by our government's policies. So there's some poetic justice in using the government's own financing instruments to slightly lessen the sting of the whip.

Click here to read Part 2 of this report (free executive summary, enrollment required for full access)

NOTE: PeakProsperity.com does not have any business relationship with the TreasuryDirect program. Nor is anything in the article above to be taken as an offer of personal financial advice. As mentioned, discuss any decision to participate in TreasuryDirect with your professional financial advisor before taking action.

Soros is trying to elect MORE TEXAS RINOs. Here's how YOU can stop him.

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Texas is under threat of a George Soros-backed takeover.

Soros-funded RINO judges have been elected in some of the highest courts in Texas. These judges implemented restrictions that have blocked nearly a thousand cases of voter fraud from being investigated or prosecuted from across the state. These new restrictions are similar to ones in place in states like George, Arizona, and Wisconsin, leaving Texas more susceptible to election corruption than ever. If Texas falls to corruption, America will lose its largest bastion of conservative electoral power in the nation. Without Texas, Republicans WILL NOT be able to win national elections and liberal corruption will go unchecked across the country.

Fortunately, there is a way to stop this: YOU.

If you live in Texas you have a chance to stand up against corruption and to fight back! Starting Tuesday, February 20th, early voting for the primaries begins, where three of these judges are up for election. Go out and vote. If the right people are voted in, there's a good chance the restrictions will be lifted and election fraud can once again be prosecuted.

But remember, you can't just go in and vote for anyone who has an "R" next to their name. Sorors knows that a registered Democrat would never stand a chance in Texas, so his lackeys register as Republicans and ride the little "R" right into office. So who do you vote for?

Fortunately, Glenn had Texas Attorney General Ken Paxton on his show today and Ken gave us his list of judges that he vouches for. His list is as follows:

  • Gina Parker
  • Lee Finley
  • David Schenck
The Primary Election runs from February 20th to March 5th. This is your chance to get out there and make a difference. It might be the most important election you ever participate in. If you need to know where your nearest polling location is, or any other information regarding the election, you can go to votetexas.gov to find out more.
It's time to stand up.

Hypocrisy EXPOSED: The 'Amazon Files' and what WE are doing about it

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Who is really banning books?

For years now, Conservatives have been taking flak from the left for supposed "book bans." The left likes to compare these "bans" to Nazi book burnings, accusing the right of sweeping authoritarian decrees designed to suppress information. In reality, this is a movement largely motivated by parents, who want to remove inappropriate books from children's libraries.

But if you want to discuss authoritarian book bans, look no further than the White House. As Glenn recently covered, the Biden administration has been pressuring the world's largest bookseller, Amazon, into suppressing books they disagree with.

On February 5th, 2024, Ohio Representative Jim Jordan released a slew of subpoenaed documents that exposed pressure placed on Amazon by the Biden Administration. The documents, which Jordan dubbed "The Amazon Files" after Elon Musk's "The Twitter Files," revealed an email conversation between Andrew Slavitt, a former White House senior adviser, and Amazon employees. In these emails, Slavitt complained that the top search results for books on "vaccines" were "concerning" and then requested that Amazon intervene. Amazon initially refused, not out of some altruistic concern for the free exchange of information. They thought any action taken would be "too visible" and would further exasperate the “Harry/Sally narrative,” referring to the outrage that followed Amazon's removal of Ryan T. Anderson’s book When Harry Became Sally.

Despite this initial refusal, Amazon agreed to meet with the White House a few days later. The number one item on their agenda was removing books from the website. An Amazon employee even admitted that the reason they even took this meeting was due to the pressure being placed on them by the Biden Administration.

What was the result of this meeting? Amazon caved. They began to implement ways of limiting the outreach of books that challenged the mainstream vaccine narrative and other books the White House might not like.

The White House was caught red-handed pressuring the world's largest bookseller to restrict the sale of books they consider in opposition to their narrative, and they have the gall to accuse conservatives of information suppression. This is just ONE of many actions committed by the Biden Administration that are more characteristic of a dictator than a president.

What can you do about it? Fortunately, you are not dependent on Amazon and its corrupted algorithm to help you find books. Every week right here on GlennBeck.com, we highlight books that Glenn is reading or talking about in our "Glenn's Bookshelf" series. Here you can find a wide selection of books free from Amazon's filters. Be sure to sign up for Glenn's newsletter to find out about new additions to "Glenn's Bookshelf" every week.

10 times Biden has acted like a DICTATOR

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The left-wing media's most recent tirade is accusing Trump of being a dictator. But, as Glenn said, "Everything they're accusing us of, they're doing."

Since day one, the Biden administration has overstepped the bounds placed on the executive branch set by the Constitution. In Glenn's most recent TV Special, he examined ten times Biden acted like a dictator, NOT a president. Here are 10 of Biden's Dictator Moves, and click HERE to get ALL of the research that went into this week's Glenn TV special:

5 ways to protect your First Amendment rights. Number 4 will surprise you.

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Every day it seems Glenn covers another story revealing how people across the world at all levels of power DESPISE the fact that YOU have rights, and they are actively trying to curtail them. Recently, there has been a string of attacks against the rights outlined in the First Amendment: the freedom of religion, the freedom of speech, the freedom of press, the freedom of assembly, and the freedom to petition.

As a refresher, the First Amendment reads as follows:

"Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances."

This is powerful stuff, there is a good reason the Founding Fathers made it the FIRST Amendment. It's also the reason why power-hungry elites are attacking it. These attacks are designed to control the way you think, speak, and believe, vote, what you read, and who holds your representatives responsible. The First Amendment is our strongest weapon against tyrants, and they know it.

So what can you do about it? Hope that some wig in Washinton will eventually do something? We know how well that works. The best thing to do is to stay active, engage in the issues you care about, and exercise your rights.

So where to start? Here are a few things YOU can do to protect your First Amendment rights:

Religion

The best way to flex your Freedom of Religion is to—you guessed it—practice your faith. Become an active member in your place of worship, go to scripture studies, invite your friends to that late afternoon event, and walk the life. This can impact the way you spend money as well. Shop the businesses and brands that share your values, and don't shop at the ones that scorn them. Keeping the community alive and healthy is the best way to ensure that generations to come will be able to experience the freedom you enjoy.

Speech

Much like religion, the best way to protect your freedom of speech is... to speak. Engage your friends and family in polite, civil conversation. Stand up for what you believe in, and make your case to your peers. Just remember to keep it friendly. No one ever won an argument by shouting down their opponent. The civil exchange of ideas is the cornerstone of our republic, and a dialogue where the participants are well-informed, considerate, compassionate, and open-minded can have permanent impacts on all involved.

Press

Freedom of the Press seems a little tricky at first. Unless you work for the media, what are you supposed to do? Quit your job and go work for the local newspaper? The good news is that exercising this right is not nearly that difficult. In fact, you are currently doing it. The best thing you can do is to read from outlets that produce informative content. Want to know what Glenn consumes to stay informed every day? Sign up for Glenn's Morning Brief newsletter to get all the stories Glenn gets sent to his desk every day sent straight to your inbox.

Assembly

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Freedom of assembly is one of the more impactful yet underutilized freedoms in the First Amendment. Peaceably assembling and protesting with like-minded individuals can hugely influence politicians and policies while simultaneously creating community and fellowship between attendees. It's understandable why more people don't turn out. We're all busy people with busy schedules, and flying out to D.C. for the weekend seems like a daunting task to many. Thankfully, you don't have to go out all the way to D.C. to make a difference. Gather some like-minded people in your town and bring awareness to issues that impact your community. Big change starts locally, and exercising your freedom to assemble can be the catalyst to lasting impact.

Petition

If you've been a long-time listener of Glenn, then you will have heard a few of his calls to action where he asks his audience to contact their representatives about a particular piece of policy. There is a good reason Glenn keeps on doing those: they work. Whether it's your local mayor or your senator, a call and an email go a long way. If you really want to make a change, convince your friends and family to reach out as well.