Cash is King? Since when? (The Motley Fool)

Headlines can be sometimes so dramatic. "Silver King is dead," announced an article written by James Maltin portfolio managers. He emphasized that, then that many used to think of cash a refuge, extremely low interest rates have broken this illusion.

But then, when cash was never a refuge?

As noted the Maltin, a pile of cash lose more of its value during the night, as a stock investment. But those greenbacks grow exactly for you, either. Pernicious and persistent inflation will be eat away at their value, as it is for any investment. Remember, often cited quotes, long-term annual return of approximately 10% factor of 3% per year as inflation usually eats.

A lack of interest
While you can grow progressively a heavy nest egg at 7% per year, a single savings account do provide you financial security. Even if you can find an account that will pay you 1% in today's difficult economic environment, a 3% inflation rate means that your purchasing power will still decrease 2% compared to the year.

Economy and interest rates of the cycle by ups and downs over the years. There are times when cash pay more, and interest rates are high. In 1981, you could buy a CD for six months with an interest rate annual topping 15%! But by most economic environments, inflation will keep corrosion your statements. This is why you must certainly more risky investments that offer biggest potential gains. If successful, carefully selected investment stocks can help your money well exceed inflation.

Role of Cash
We are not saying you must abandon greenbacks entirely. You always have a certain amount of money aside or readily available for emergencies and day-to-day expenses. And if you do not have enough cash, you may have to sell your investment long term for it. If these investments be slip at the moment wherever you sell, you could suffer significant losses - all lack of sufficient cash side.

Cash is not King now, but then again, it should never. It is simply a necessary tool in a larger financial arsenal.

Longtime contributor Selena Maranjian Fool does not own the shares of all companies mentioned in this article. Try our services free for 30 days newsletter investors. We Fools can not all hold the same views, but we believe all that taking into account a wide range of ideas we done better investor. The Motley Fool is Fools expressing some crazy.

Kosovo take to the polls in the general election since independence, 1 country could divide (Star Tribune)

PRISTINA, Kosovo - Kosovo vote in the first general elections since independence in 2008 Serbia country Declaration a critical election already overshadowed by ethnic tensions that many people fear will split the most recent country.

The Serbia requested that the minority in Kosovo Serbs to boycott the vote to protest against his declaration of sovereignty, a vow of independence that it refused to recognize. Which has deepened the fears of the partition of the country in the North, a Serb and a ethnic Albanian South and a reverse decades of efforts by the West for ethnic tensions in the region.

Some 1.6 million voters are eligible to vote for 29, coalitions and initiatives of citizens enter 120 places the Kosovo Parliament political parties. Ten of these seats are reserved for Serb minorities, some of which are running in the survey. Polls open at 0600 GMT (1 p.m. EST) and nearly 1800 GMT (1 pm EST).

A worrying sign, Besim Hoti said assailants in northern Kosovo police spokesman fired from one day to the next day in a house used by NATO peacekeepers. Nobody was injured. Said Hoti letter threat to attack those who may take part in the survey Kosovo is also found on the site.

The incident comes just a few days after attackers have been ambushed and executed Bosnian leader loyal towards ethnic institutions dominated the Albanians in Kosovo. He participated in the organisation of the election weekend in Mitrovica, a city divided between Albanians and Serbs since the end of the war in 1999.

Prime Minister Hashim Thaci Kosovo said he hoped the vote would be not disturbed and urged everyone to participate.

"I hope that everything goes," Thaci said Associated Press, minutes before casting his ballot in capital Pristina. "We were free and democratic elections with the participation of all communities and build a Government as soon as possible," Thaci said, flanked by his wife and son aged 11.

The new Government of Kosovo will have to work to improve the living conditions of 2 million Kosovo inhabitats and engage in the EU talks with the Serbia broker.

Call the Serbia undermines the boycott further local government and their international supervisors tries to bring Kosovo North under the control of Pristina. The northern region lawless has long eluded international as the authority of Kosovo. Serb minorities there are supported by Belgrade in contempt.

The area is patrolled by NATO and the EU police peacekeepers, but is managed as a fief by the local Serb leaders from Belgrade.

Confidential cables published by WikiLeaks Web site this week, Ambassador of the United States in Kosovo, Christopher Dell smart partition would be "reopen the Pandora's box of ethnic conflicts which defined the 1990s."

The decision of the Democratic Party of Kosovo of former rebel leader turned politician Thaci is to get the point to look for partners in the coalition. The winner of the election wins the right to form a Government in accordance with the law in Kosovo.

Thaci was in charge of a Government coalition declared independent Kosovo Serbia in 2008. Since then, Kosovo has fought to establish itself as an independent country.

Up to 70 countries, including the United States and most EU countries have recognized Kosovo as a State.

Despite a high court decision earlier this year the secession of Kosovo, which does not violate international law - NU a planned move bring greater recognition - diplomatic offensive Serbia supporting the secession of Kosovo could inspire similar separatist worldwide discouraged countries recognize the Russia and China.