Contrary to popular belief, bond yields may actually fall based on "Flows Analysis" if TAPER is maintained.
The Goal of FINANCIAL REPRESSION is to lower yields to finance government debt short term and reduce long term burden through inflation.
It appears as though things are working as planned!
Welcome to a Centrally Controlled Economy for the benefit of the State and not savers & pensioners.
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Federal Reserve Vice Chair Stanley Fischer's Speech On Macroprudential Policy
Sector-specific regulatory and supervisory policies in the financial sector were used extensively and systematically in the United States in the period following World War II until the 1990s and are now being used in other advanced and developing countries . Frequently, these policies were aimed at encouraging or discouraging activity in particular sectors, for example agriculture, exports, manufacturing, or housing; sometimes broad, non-interest-rate measures were used to try to deal with inflation or asset-price increases, for instance, the use of credit controls."
It's All About Financial Repression & Central Planning Of The Economy
Federal Reserve Vice Chairman Stanley Fischer delivered a speech last week on financial sector reform .. emphasizes the use of "macroprudential supervision" of specific sectors of the economy to try to deal with inflation, asset bubbles or employment .
"There are two uses of the term 'macroprudential supervision.'
The first relates to the supervision of the financial system as a whole, with an emphasis on interactions among financial markets and institutions.
The second relates to the use of regulatory or other non-interest-rate tools of policy to deal with problems arising from the behavior of asset prices. For instance, when central bank governors are asked how they propose to deal with the problem of rising housing prices at a time when the central bank for macroeconomic reasons does not want to raise the interest rate, they generally reply that if the need arises, they will use macroprudential policies for that purpose. By that they mean policies that will reduce the supply of credit to the housing sector without changing the central bank interest rate.
FINANCIAL REPRESSION- Causing Inequality through Increasing Property Taxation
The Coming US "Tax Overhaul" Has a Different Goal In Mind than the Public Thinks!
INCREASED LOCAL PROPERTY TAXATION IS COMING AS FINANCIAL REPRESSION TRANSFERS DEBT TO RESIDENTIAL OWNERS
Municipal spending is rising alongside Inequality
Because most cities don’t have the power to tax income, they usually use property and sales taxes, which tend to hit all residents or fall more heavily on those who are middle class or lower income. As in Scandinavia, people are paying for their own increased services.
The increase in income inequality experienced by the typical city is associated with an $88 increase in expenditures per resident on top of the $900 per resident on local services spent by the typical city each year. The additional $88 of funds are allocated across the board to cover police services, fire protection, road maintenance, education, and more.
A Core Tenet is the De-Incentive & Discouragement of SAVINGS
We had CAPITALISM:
SAVINGS was reinvested as CAPITAL INVESTMENT
We now have CREDITISM:
CREDIT is created and spent on CONSUMPTION
According to Mises, the problem is not low consumption but low savings
FINANCIAL REPRESSION - Modern Financial Repression Grounded on a "State Controlled Fiat Currency System"
Circulation credit means that banks lend money, and thereby expand money supply, without backing them by real savings (or reduction of consumption). This circulation credit is creation of money “ex nihilo”. Booms as well as busts are damaging because they slow down long-term investments with the consequence that resources in fluctuating economies are lacking.
According to Mises, the problem is not low consumption but low saving.
FINANCIAL REPRESSION REGULATIONS WILL PREVENT YOU FROM EXITING YOUR MONEY MARKETS (CASH) AT TIME OF TURMOIL
SEC Vote Could Come as Early as This Month
Money funds are cash-like instruments used by millions of individuals, businesses and municipalities to safely park cash.
The plan would allow money funds to temporarily block investors from withdrawing their money in times of stress, or require a fee to redeem shares.
Other regulators, including members of the Financial Stability Oversight Council, have said such redemption restrictions could spur, rather than curb, investor stampedes.
Yellen called for what she termed:
“A more robust macroprudential approach.”
In fact she used that word macroprudential no fewer than 29 times. For those not fluent in Fedspeak, what she meant is that we can deal with financial instability through increased regulation procedures
The 2014 Michel Camdessus Central Banking Lecture International Monetary Fund Washington, D.C.
July 2nd, 2014
In closing, the policy approach to promoting financial stability has changed dramatically in the wake of the global financial crisis. We have made considerable progress in implementing a macroprudential approach in the United States, and these changes have also had a significant effect on our monetary policy discussions. An important contributor to the progress made in the United States has been the lessons we learned from the experience gained by central banks and regulatory authorities all around the world. The IMF plays an important role in this evolving process as a forum for representatives from the world’s economies and as an institution charged with promoting financial and economic stability globally. I expect to both contribute to and learn from ongoing discussions on these issues.
*YELLEN: `WE HAVE MUCH TO LEARN' IN MACROPRUDENTIAL OVERSIGHT
*YELLEN: MACROPRUDENTIAL RULES SHOULD BE MAIN STABILITY DEFENSE
*YELLEN: STABILITY BEST PROMOTED BY MACROPRUDENTIAL OVERSIGHT
I have gone on record that the most dangerous organization is the now French led IMF with Christine Lagarde at the helm, which has presented a concept report that debt cuts for over-indebted states are uncompromising and are to be performed more effectively in the future by defaulting on retirement accounts held in life insurance, mutual funds and other types of pension schemes, or arbitrarily extending debt perpetually so you cannot redeem. Yes you read correctly, The new IMF paper is described in great detail exactly how to now allow the private sector, which has invested in government bonds, to be expropriated to pay for the national debts of the socialist governments.
I have been warning that there is an idea that has been running around behind the curtain that the national debt of the USA could be settled by usurping all pension funds in the country. Here is a remarkable blueprint that throws all previous considerations concerning the purchase of government bonds over the cliff. The IMF working paper from December 2013 states boldly:
"A sharp deterioration of the public finances in many countries has revived interest in a "capital levy" - a one-off tax on private wealth - as an exceptional measure to restore debt sustainability"
The Fed has resorted to repetitive bouts of cheap money for extended periods. This monetary ease has found its way into inflated asset values that in turn provided collateral for debt-driven consumption. These binges drove the economy until the inevitable asset bubble collapses caused a contraction in consumption and launched another cycle. At no time were savers rewarded for prudence."
Jim Rickards Financial Repression On Retirees & Savers
Excerpt from Jim Rickards' submitted testimony as a witness in the Senate Banking Committee’s Subcommittee LINK HERE to download the testimony
"The principal victims of the Fed’s policies are those at or near retirement who face a Hobson’s Choice of gambling in the stock market or getting nothing at all. A summary of these deleterious effects on retirement income security, explained in more detail below, includes the following:
1. Increasing income inequality. Zero rate policy represents a wealth transfer from prudent retirees and savers to banks and leveraged investors. It penalizes everyday Americans and rewards bankers, hedge funds and high-net worth investors.
2. Lost purchasing power. Zero rate policy deprives retirees and those nearing retirement of income and depletes their net worth through inflation. This lost purchasing power exceeds $400 billion per year and cumulatively exceeds $1 trillion since 2007.
3. Sending the wrong signal. Zero rate policy is designed to inject inflation into the U.S. economy. However, it signals the opposite – Fed fear of deflation. Americans understand this signal and hoard savings even at painfully low rates.
4. A hidden tax. The Fed’s zero rate policy is designed to keep nominal interest rates below inflation, a condition called “negative real rates”. This is intended to cause lending and spending as the real cost of borrowing is negative. For savers the opposite is true. When real returns are negative the value of savings erodes – a non-legislated tax on savers.
5. Creating new bubbles. The Fed’s policy says to savers, in effect, “if you want a positive return invest in stocks.” This gun to the head of savers ignores the relative riskiness of stocks versus bank accounts. Stocks are volatile, subject to crashes, and not right for many retirees. To the extent many are forced to invest in stocks, a new stock bubble is being created which will eventually burst leaving many retirees not just short on income but possibly destitute.
6. Eroding trust and credibility. Economics has been infused in recent decades with the findings of behavioralists and social scientists. While this social science research is valid, the uses to which it is put are often manipulative and intended to affect behavior in ways deemed suitable by Fed policy makers. This approach ignores feedback loops. As retirees realize the extent of market manipulation by the Fed they lose trust in government more generally.
LATEST MACRO ANALYTICS ON FINANCIAL REPRESSION
LATEST UnderTheLens UPDATE ANALYSIS ON FINANCIAL REPRESSION
POLICY CONTROLS (Monetary, Fiscal, Public & Tax Policy)
Fischer worries about macroprudential policy- 07-10-14 FT Mr Fischer’s most interesting remarks relate to his experience with macroprudential policy in Israel. Israel’s bank supervisor used a range of tools to restrict mortgage lending and try to avert a housing bubble. Mr Fischer draws three lessons:
Through the Process of Abstraction the 2012 Thesis outlines how the Global Macro is presently on a well defined path towards a global Fiat Currency Failure and the emergence of a New World Order.
2012 will be highlighted by social unrest during a period of heightened conflict and tension. As economic growth declines and chronic unemployment becomes even more broad based on the world stage, Macro Prudential Policies of Financial Repression will accelerate.
Increasing centralized planning and control by sovereign government will further push advanced societies towards collectism and statism.
ABSTRACTION
TABLE OF CONTENT- (To Assist in your Sectional Download Choices Below the Table)
LATEST LONG Wave TECHNICAL ANALYSIS ON FINANCIAL REPRESSION
Coming in July
STRATEGIC MACRO INVESTMENT INSIGHTS
The Indirect Exchange - The Expert in the Indirect Exchange is Ty Andros, Tedbits
Financial Repression describes an economic policy in which capital controls and regulations are implemented by governments and central banks, the aim of which is to reduce public debt burdens through the distortion of financial market pricing.
Financial Repression always means a combination of measures that lead to a notable narrowing of the investment universe for investors. Money is thus channeled into specific directions to create a ‘home bias.
1- Strict investment regulations (Solvency II, Basel III)
2- Negative real interest rates g
3- Interest rate ceilings s
4- Open credit dirigisme
5- Nationalizations
6-Regulation of cross-border capital movementst
7- Prohibition of unwanted trading practices such as naked short selling
8- Compulsory loans
9- Prohibition of certain investment assets (e.g. gold)
10- Special taxes (e.g. securities taxes, financial transaction taxes, wealth taxes, higher value added tax on silver, import duties on gold etc.)
11- Direct interventions, such as government intervention in pension funds (Portugal, Ireland, France, Hungary) and subsequent redeployment of investments in favor of government bonds.
12-Growing discrepancy between financing costs of private sector participants versus governments.
The term ‘Financial Repression’ was first employed by McKinnon and Shaw in 1973 and has been rediscovered in the course of the current crisis by Reinhart and Sbrancia in their paper “The Liquidation of Government Debt.”
Federal Reserve Must Print Money To Keep Interest Rates Low - Cliff Küle 05 June 2021
Financial Repression To Accelerate With Increased Desperation- KWN 24 March 2021
Through the Process of Abstraction the 2012 Thesis outlines how the Global Macro is presently on a well defined path towards a global Fiat Currency Failure and the emergence of a New World Order. 
