13 Our financial system depends on the rule of law. The deterioration of the rule of law is a political problem. Ultimately there is no way to protect assets against people who steal and kill with impunity. the availability of large denomination bills are making it more cumbersome to build and maintain large physical cash holdings. Core Position This is cash you hold as working capital for future payments and transactions as well as a rainy day reserve. This core position may build up from income or investment income and can be transferred or reserved for the future payment of overhead and expenses. A rainy day reserve would be additional amounts held for emergencies. For most people the majority of their core position is held in one or more accounts at a bank credit union or brokerage firm. It is cumbersome to hold this position in physical cash if it is sizeable or if it must be transferred nation- ally or globally. Some Cash is Held as an Investment Position Most investors prefer to maintain some cash balances in anticipation of invest- ment opportunities. Cash may be a desirable position when markets are in a bear trend and an inves- tor wishes to go to the sidelines to avoid market or interest rate risk. Cash may be a desirable position when markets are uncertain and an investor wishes to avoid credit risk or liquidity risk or simply prefers to keep assets out of the financial system Cash may be a desirable position when a currency is increasing in value or there is a deterioration in the value of commod- ities and hard assets usually as part of a general deflation The amounts that you put into these pots may be impacted by your preferences relat- ed to return of principal versus the return on principal and what risks you are willing to take to achieve those returns. Obviously there is a relationship between your cash management and your investment management. These issues bleed into one another. So while we are focused on cash management in this report be aware that your cash management and investment management also need to be integrated. Remember many of the problems raised in a discussion regarding cash management underscore that our problems are political distrust of the government and the reg- ulatory system is growing. Our financial system depends on the rule of law. The deterioration of the rule of law is a political problem. Ultimately there is no way to protect assets against people who break the law with impunity. The only way to deal with this problem is to organize in order to make it much more difficult or even impossible for people to steal and kill with impunity. If we continue to donate to to vote for and to bank with the people who break the law we will continue to experience a deterioration in our cash management options and in all other areas of our lives and finances If you are supporting such people or insti- tutions please stop You are putting your cash at risk by doing so.