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The Financial Repression AuthorityTM

A Joint Initiative of Gordon T Long.com and CliffKule.com

Investments of any kind involve risk.  Please read our complete risk disclaimer and terms of use below by clicking HERE

     
 
   

DECLINING FINANCIAL WEALTH FOR MOST AMERICANS SINCE 2001

“The housing bubble basically hid a trend of declining financial wealth at the median that began in 2001” -- Fabian T. Pfeffer, the University of Michigan professor who is lead author of the Russell Sage Foundation study.

"For households at the median level of net worth, much of the damage has occurred since the start of the last recession in 2007. Until then, net worth had been rising for the typical household, although at a slower pace than for households in higher wealth brackets. But much of the gain for many typical households came from the rising value of their homes. Exclude that housing wealth and the picture is worse: Median net worth began to decline even earlier."

"

The Typical Household During Era of FINANCIAL REPRESSION Now Worth a Third Less

New money is being re-directed to pay increasing debt loads as corporate profits come primarily at the expense of reduced income growth while inflation crushes real disposable income.

 A study financed by the Russell Sage Foundation.

READ MORE

   

THE CURRENCY CARTEL

Controls +90% of the $5T in currencies traded daily.

 

FINANCIAL REPRESSION HAS BEEN AGGRESSIVELY PURSUED SINCE THE DOTCOM BUBBLE IMPLOSION

FIAT CURRENCIES ARE BEING DEVALUED IN A COORDINATED MANNER AS PART OF THIS MACROPRUDENTIAL POLICY

This is only evident by measuring a basket of Fiat Currencies in Hard Assets

   

HIDDEN TAX INCENTIVES

In conjunction with Wednesday's release, the U.S. Treasury department is expected to relax certain accounting burdens on the reporting of gains and losses "to ease the transition to a floating share price".

CREDIT RATINGS REMOVED

Separately, the SEC voted unanimously to re-propose a plan, originally floated in 2011, to purge references to credit-rating firms embedded in the SEC's money-fund rule. The change is a requirement of the 2010 Dodd-Frank financial law that requires federal agencies to scrub their rule books of references to credit ratings, forcing them to find new measures to help investors assess creditworthiness.

 

Fund managers now have the Legal Right to 'suspend redemptions' by the you on your Money Market Funds

SEC Approves Tighter Money Fund Rules - Plan Allows Money Funds to Temporarily Block Investors from Withdrawing Money in Times of Stress WSJ

SEC Votes Through Money Market Exit Gates Zero Hedge

READ MORE

   

 

 

 

 

 

 

 

 

Bank Of Japan Prepares To Buy Nikkei-400 ETF To Boost Stocks 07-09-14 Zero Hedge

   

 

 

 

 

 

THE JAPANESE PEOPLE HAVEN'T FULLY WOKEN UP TO THE FACT THEY HAVE BEEN 'CONNED'

 

 

Click To Enlarge

 

 

 

 

WHAT FINANCIAL REPRESSION

LOOKS LIKE IN JAPAN

GREAT FOR GOVERNMENT AS DEBT FINANCING GETS CHEAPER

A DISASTER FOR THE PEOPLE HAS REAL WAGES PLUMMET

 

   

Research paper on the relationship between European governments & European banks .. the pressure & influence between governments & banks are giving rise to financial repression & regulatory capture:

"Government agencies have been frequently described as being at the mercy of the financial sector, often allowing financial interests to hijack political, regulatory and supervisory processes in order to favoring their own private interests over the public good"

.. & the opposite:

"Governments, which have often been portrayed as subverting markets and abusing the financial system to their benefit, either in order to secure better financing conditions to overcome their own financial difficulties, or with the objective of directing credit to certain sectors of the economy, 'repressing' the free functioning of financial markets and potentially the private interests of some of its participants."

READ PAPER

 

   

The real danger comes if central banks try to use macropru as a semi-permanent way to keep interest rates lower than normal, as Mr Napier fears. In this case investors will face a double setback: they will not be treated as part of the “real economy” deserving of funds, while state-directed allocation of assets has a terrible history of supporting duds, hurting growth.

 

The Bank of England has been flashing an amber light for months about the complacency shown by low market volatility, but in house-price obsessed Britain, mortgage excess is the focus of its worry. Last month it became the first of the major central banks to set out to try to control credit using non-monetary tools: in the jargon, “macroprudential measures”. Ms Yellen has been highlighting macropru as the first line of defence against bubbles for a while.

The problem SEEMS simple central bankers. Central bankers want money to lubricate the real economy, not to flow into pointless leverage of existing assets. Higher rates could reduce the incentives to leverage, but at the cost of damage to the real economy. Their solution is to set up barriers inside the banks to direct the flow.

If central bankers ever get serious about using macropru to control bubbles, it will mean limits on more than just mortgages. The obvious place to start is with the froth in junk bonds and the leveraged loans used by private equity houses. It is interesting, therefore, that the Fed’s monetary policy report last week emphasised that the central bank is “working to enhance compliance” with leveraged loan underwriting and pricing standards. If it becomes harder for private equity groups to gear up, they can afford to pay less to buy companies, cutting back one source of demand for shares. READ MORE

   

 

 

COMING TO YOUR LOCAL BANK

 

 

BOE’s Carney Leads Push For Bail-Ins - China and Japan Against

   

 

The Fed, because of QE, is thinking about how to unleash another new experiment on the U.S. economy — altering the interest rate paid on $2.6 trillion of excess reserves.

Click To Enlarge

Fed Excess Reserve Payments Could Yield Banks More than Equity Yields!

 
   

FINANCIAL REPRESSION IS AGGRESSIVELY BEING IMPLEMENTED TO STOP FALLING REAL US GROWTH RATES

BEFORE DEBT IMPLODES FROM BEING

UNPAYABLE & INEXTINGUISHABLE

Click to Enlarge

 

 

 

   

FINANCIAL REPRESSION HELPS IBM HIDE THIS

 
     

LATEST MACRO ANALYTICS ON FINANCIAL REPRESSION

 

LATEST UnderTheLens UPDATE ANALYSIS ON FINANCIAL REPRESSION

 

POLICY CONTROLS (Monetary, Fiscal, Public & Tax Policy)

REGULATORY CONTROLS & ENFORCEMENT

PUBLIC & PRIVATE PRESSURES & PENALTIES

Placing the Government Det on the back off Savers & Pensioners

(ie the 75M Baby Boomers About to Retire)

REPORTING DISTORTIONS (Economic & Gov't Statistics)

CAPITAL & FOREIGN EXCHANGE CONTROLS

POLITICAL SUASION (Political Pressures & Quid Pro Quo)

EXPROPRIATION

 

OUR THESIS PAPER

ABSTRACT

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

Jim's recommended "Death of Money" portfolio is:
 
20% Gold
20% Land
10% Fine Art
20% Alternative Funds
30% Cash

 

 

 

 

 

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TERMS OF USE

Gordon T Long is not a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. Of course, he recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and barring that, we encourage you confirm the facts on your own before making important investment commitments.

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Please note that Mr. Long may already have invested or may from time to time invest in securities that are discussed or otherwise covered on this website. Mr. Long does not intend to disclose the extent of any current holdings or future transactions with respect to any particular security. You should consider this possibility before investing in any security based upon statements and information contained in any report, post, comment or recommendation you receive from him.

 

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COPYRIGHT  © Copyright 2010-2011 Gordon T Long. The information herein was obtained from sources which Mr. Long believes reliable, but he does not guarantee its accuracy. None of the information, advertisements, website links, or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. Please note that Mr. Long may already have invested or may from time to time invest in securities that are recommended or otherwise covered on this website. Mr. Long does not intend to disclose the extent of any current holdings or future transactions with respect to any particular security. You should consider this possibility before investing in any security based upon statements and information contained in any report, post, comment or recommendation you receive from him.

 

 

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.
ARCHIVES 

JULY - WEEK ENDING

S M T W T F S
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Complete Archives

HOW IT HAPPENS
1- Negative Real Rates
2- Disruption of Price Discovery
3- Mispricing of Risk
4- Sustained Financial Distortions
5- Restrictive Financial Choices
6-Confiscation of Wealth Through Inflation
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.
TOOLS USED
1- Monetary Policy
2- Distortions - Statistics, Reporting
3- Fiscal Policy - Budget Deficits
4- Moral Suasion - Political Pressures
5- Taxation - ROE, ROI
6-Regulators - Financial Requirements & Enforcement
7- Stealth Credit Spreads
8- Capital Account & Financial Excahnge Controls
PILLARS OF FINANCIAL REPRESSION
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.

13- Haircuts on deposits (e.g. Cyprus)

OUR COMMENTARY

THE BUYBACK TAX RUSE Its a Free Tax Ride for Corporations - 07 July 2021

Financial Repression Goes Global - 05 June 2021

INTERVIEWS

 

PRESENTATIONS

 

GRAPHICS

Click Graphics to Enlarge

VIDEO LIBRARY

 

 

 

PODCASTS
EDUCATIONAL AIDS

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

Monetary Policy Under Financial Repression: China's Long-Term Outlook Financial Sense 20 Dec 2021