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The Financial Repression Authority

MACROPRUDENTIAL POLICY ADVISORS

"Financial repression is not a conspiracy theory, it is rather a collective set of macroprudential policies focused on controlling and reducing excessive government debt through 4 pillars - negative interest rates, inflation, ring-fencing regulations and obfuscation - to effectively transfer purchasing power from private savings." - The Financial Repression Authority

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Dear Reader, 
Please find below our posts from this week. We hope you find them insightful and informative. Check out our many interviews with key industry analysts, economists and fund managers - click on LINK to our Interviews.

 

LINK HERE to our Interviews

How can I Protect from Financial Repression?

 

Last Update:  Monday 5/18/15 2:15 PM

   

 

 

 

 

REGISTER NOW for our Free Webinar

with RICK RULE and JOHN EMBRY

on The War on Cash, Financial Repression,

Solutions to these Risks

MAY 20, 2021 at 9PM U.S. Eastern Time

FinancialSurvivalNetwork.com and FinancialRepressionAuthority.com present: LIBERTY MASTERMIND LIVE WEBINAR. Join Kerry Lutz, Gordon Long and Robert Ian (ConquerChange.com) as they interview renowned financial and precious metals experts JOHN EMBRY and RICK RULE. Mr. Embry is Chief Portfolio Strategist at Sprott Asset Management and Mr. Rule is Chairman of Sprott U.S. Holdings. This LIVE event will feature up-to-the-minute analysis of the markets with a discussion of current events/trends including the War on Cash, Financial Repression, Gold and Silver, and YOUR QUESTIONS.

This Webinar is presented by the Liberty Mastermind Symposium and is sponsored by:

FinancialRepressionAuthority.com - Macroprudential Policy Advisors - educating investors globally in understanding the challenges of investment and protection in the unfolding Era of Financial Repression.

FinancialSurvivalNetwork.com - Helping you survive and thrive in the new economy.

LINK HERE TO REGISTER NOW

   

 

 

ALLIANZ PRESENTATION SLIDES:

Redefining Risk in the

Next Phase of

Financial Repression

Allianz website to help navigate the risks in the unfolding era of financial repression ..  how to find new opportunities & combat new risks in a rising-rate, slow-growth environment.

LINK HERE to the Article

   

GOVERNMENT NOW "MANAGES THE ECONOMY"

Richard Duncan's basic premise is that the government has been managing the economy since at least WWII and to make money investors must anticipate what the government is going to do next. As such he uses a framework to monitor liquidity and credit growth to see how they will impact the economy and force the government into what must be done to continue to manage the growth of the economy.

The broad ranging discussion includes:

    • Developed Economies Stealth Strategy of Government "Debt Cancellation"
    • The Potential of a Recession in 2015 /2016,
    • Expectations of a QE4
    • Reasons for $5T of Global Bonds trading at Negative Nominal Rates,
    • Global Deflation as a result of Globalization and the resulting Global Over-Production,
    • .... and more
 

 

RICHARD DUNCAN talks

FINANCIAL REPRESSION

FINANCIAL REPRESSION

"The Polices that come under the heading of Financial Repression I look at s policies that were necessary once the global bubble began to implode in 2008. The policies the Government, the Fed, the US Treasury, and Central Banks around the world have been putting in place are emergency measures just to try and prevent the next Great Depression from occurring. When you add all these measures together it has become to be known as what is called Financial Repression. I don't think the policy makers consider don't review it as repressing anything. They view it as measures that are absolutely crucial to keep the global economy from absolutely imploding. While there are some unpleasant side effects, (like savers not earnings enough money to retire), they view the alternatives as complete economic breakdown which would be far, far worse!"

"Policy makers consider these policies as the bare minimum to prevent the global crisis from becoming the Great Depression - Part II!"

A GLOBAL BUBBLE

"We have a global bubble which started to pop in 2008, but the policy response of trillions of dollars of budget deficit, financed with trillions of dollars of new fiat money creation has succeeded in keeping the global bubble inflated. We still have a massive bubble who's natural tendency is to deflate. In order to keep it from deflating into the Great Depression policy makers have continued to inject more credit! This is what Quantitative Easing is all about."

 

LINK HERE to VIDEO

 

   

 

WHY GOLD AS INSURANCE?

"Throughout history gold is the only money that has actually survived. No other form of currency has survived.

VOLTAIRE: "Paper money eventually returns to it's intrinsic value of zero!"

MARK TWAIN: "Investors should worry about the return of their investment and not on the return on their investment!"

"I am not a gold bug. It is just that we decided in 2002 the world was in a mess and it was going to be in a bigger mess. Therefore people needed to invest directly in gold outside the banking system and preferably outside their own country of residence."

THIS COMPREHENSIVE 35 MINUTE VIDEO COVERS MANY ASPECTS OF PRECIOUS METALS INVESTING

.... WHICH ONLY ONE OF THE WORLD'S LEADING EXPERTS CAN OFFER

  • Paper markets are manipulated,
  • Central Banks do not have the gold they say they have because of leasing contracts,
  • Produced and refiners are at maximum production based on demand,
  • Meanwhile, Gold is trading at or near its cash cost,
  • The more government mis-manage the economy, the more important gold becomes,
  • ... and much more
 

RISK & WEALTH PRESERVATION

UNDERSTANDING RISK & WEALTH PRESERVATION

"Wealth Preservation is absolutely critical for the coming years, or even decades and was we set up a special division within Matterhorn Asset Management called GoldSwitzerland to assist investors. We store primarily Gold and Silver outside the banking system in ultra secure vaults in Zurich and the Swiss Alps (which is both the largest and most secure gold vault in the world) along with Singapore and Hong Kong with clients in over 40 countries which includes individuals, family offices as well as institutional clients."

"We intentionally remove ourselves from counter-party risk. We facilitate the investment in precious metals for investors but the metals are held in the name of the investors and therefore they can go to any of the vaults directly (even without our assistance). GoldSwitzerland is the only company in the world that offers this facility where clients have numbered bars in their own name where they can go directly to the vault to inspect them or withdraw them directly."

UNPRECEDENTED GLOBAL RISK

"I believe the world is in a bigger mess than I have seen going back in history! The risks are absolutely unprecedented with virtually every major economy now bankrupt. Japan in my view will not survive as an economy and will 'sink down into the Pacific Ocean'. They are living on borrowed time and sadly at some point in time the Japanese economy will implode. Additionally we have massive problems in China where borrowing has been increased by $20T in the last few years. Europe has no solution to Greece and the Euro is the biggest problem to the world. You add to these Economic risks those of Geo-Political risk and risk is immense!"

"The Black Swans are everywhere and at some point one of them will land somewhere."

LINK HERE to VIDEO

   

 

 

Russell Napier:

The War on Cash

will cause gold to be

used as money again

The war on cash is an unintended consequence of the financial repression macroprudential policy of the zero or negative interest rates .. if your bank is charging you interest on your bank deposit, why not just get your money & leave it under your mattress at 0% (higher) yields? - so governments & central banks are likely to attempt to abolish cash to eliminate this action .. what will be the effect on gold? - Russell Napier: "In such a world, zero-yielding gold would be a high-yielding instrument. If the authorities ever sought to restrict access to banknotes, then gold would suddenly find itself enfranchised as money for the first time in many decades. So, given the scale of these competing forces, it is just too early to say what might happen to the gold price, but the allure of gold will grow the more it becomes clear that central bank fiat has failed and the age of government fiat is dawning .. The time is ever nearer when the price of gold will rise in an era of deflation. In due course, though no time soon, the full force of government fiat will engineer a reflation, albeit one replete with the misallocations of savings and capital so beloved by the bureaucrat. Then the PhD standard, in which the value of money is linked only to the words of the over-educated, will have ended. The gold price will rise even further, ‘And the words that are used for to get the ship confused will not be understood as they’re spoken, for the chains of the sea will have busted in the night’. And that’s ‘The hour when the ship comes in.’"

LINK HERE to the Article

   

 

 

The War on Cash -

What You Can Do Now

Mark Nestmann essay focuses on the war on cash, offers helpful suggestions to investors & savers .. Here is Nestmann's advice:
1. draw down bank reserves & accumulate cash - document the withdrawals to prove the legal origin of the cash in the future
2. make sure you get newly issued bills because more than 95% of circulating bills are tainted with drug residues which under U.S. law allows the cash to be confiscated
3. convert a portion of assets in banks or in cash to gold - store it outside of the banking system
4. keep the assets you maintain in banks which are strong to avoid the coming bail-ins
5. consider putting some assets into electronic-based currencies [like Bitcoin, BitGold etc.]

LINK HERE to the Article

   

 

 

Financial Repression:

The War on Cash

International Man's Nick Giambruno & Mises' Joe Salerno .. the financial repression of ring-fencing regulations is intensifying in the war on physical cash .. the goal to eliminate the use of hand-to-hand currency, so that governments can document & control every transaction .. one way this war is being fought is by making it illegal to pay in cash above a certain threshold:

* Italy made cash transactions over €1,000 illegal;
* Switzerland has proposed banning cash payments in excess of 100,000 francs;
* Russia banned cash transactions over $10,000;
* Spain banned cash transactions over €2,500;
* Mexico made cash payments of more than 200,000 pesos illegal;
* Uruguay banned cash transactions over $5,000; and
* France made cash transactions over €1,000 illegal, down from the previous limit of €3,000.

Joe Salerno: The War on Cash is the attempt by governments to phase cash out of their economies. Governments hate cash because they hate the financial privacy cash makes possible. And they prefer that you keep your money in a bank to help prop up an unsound fractional reserve banking system .. The War on Cash reflects the desperation of governments .. it really says that they are bankrupt, both literally, in the sense that they can’t pay what they’ve promised, and intellectually.

LINK HERE to the Article

   

 

Its Happening Everywhere there are Financial Problems - Nowhere Else?

The central banks are ... planning drastic restrictions on cash itself. They see moving to electronic money will:

  1. Eliminate the underground economy,
  2. Prevent a banking crisis.

FRANCE

France passed another Draconian new law that from the police parissummer of 2015 it will now impose cash requirements dramatically trying to eliminate cash by force.

French citizens and tourists will then only be allowed a limited amount of physical money. They have financial police searching people on trains just passing through France to see if they are transporting cash, which they will now seize.

Meanwhile, the new French Elite are moving in this very same direction. Piketty wants to just take everyone’s money who has more than he does. Nobody stands on the side of freedom or on restraining the corruption within government. The problem always turns against the people for we are the cause of the fiscal mismanagement of government that never has enough for themselves.

GREECE

In Greece a drastic reduction in cash is also being discussed in light of the economic crisis. Now any bill over €70 should be payable only by check or credit card – it will be illegal to pay in cash. The German Baader Bank founded in Munich expects formally to abolish the cash to enforce negative interest rates on accounts that is really taxation on whatever money you still have left after taxes.

EUROPE

There is a growing assumption that the negative interest rate world (tax on cash) is likely to increase dramatically in Europe in particular since it is socialism that is collapsing. Government in Brussels is unlikely to yield power and their line of thinking cannot lead to any solution. The negative interest rate concept is making its way into the United States at J.P. Morgan where they will charge a fee on excess cash on deposit starting May 1st, 2015. Asset holdings of cash with a tax or a fee in the amount of the negative interest rate seems to be underway even in Switzerland.

People can’t pull cash out of their bank accounts – for political reasons, because they’ve lost confidence in the bank, or because “bail-ins” are enacted – if cash is banned.

The Financial Times argued last year that central banks would be the real winners from a cashless society:

Central bankers, after all, have had an explicit interest in introducing e-money from the moment the global financial crisis began…

The introduction of a cashless society empowers central banks greatly. A cashless society, after all, not only makes things like negative interest rates possible, it transfers absolute control of the money supply to the central bank, mostly by turning it into a universal banker that competes directly with private banks for public deposits. All digital deposits become base money.

 

"WAR ON CASH"

is a Strategic Requirement to

IMPLEMENTING SUSTAINED NEGATIVE INTEREST RATES

We Can’t Rein In the Banks If We Can’t Pull Our Money Out of Them

1- Physical paper money provides the check against negative interest rates, for if they become too great, people will simply withdraw their funds and hoard cash.

2- Furthermore, paper currency allows for bank runs. Eliminate paper currency and what you end up with is the elimination of the ability to demand to withdraw funds from a bank.

Complete abolition of cash threatens our very freedom and rights of citizens in so many areas.

THE BARRIER TO SUSTAINED NEGATIVE INTEREST RATES

Paper currency is indeed the check against negative interest rates. We need only look to Switzerland to prove that theory. Any attempt to impose say a 5% negative interest rates (tax) would lead to an unimaginably massive flight into cash. This was already demonstrated recently by the example of Swiss pension funds, which withdrew their money from the bank in a big way and now store it in vaults in cash in order to escape the financial repression. People will act in their own self-interest and negative interest rates are likely to reduce the sales of government bonds and set off a bank run as long as paper money exists.

For depositors, this means they really need to grasp what is going on here for unless they are vigilant, there is a serious risk of losing everything. We must understand that these measures will be implemented overnight in the middle of a banking crisis after 2015.75. The balloons have taken off and the discussions are underway. The trend in taxation and reduction of cash seems to be unstoppable. Government is not prepared to reform for that would require a new way of thinking and a loss of power. That is not a consideration. They only see one direction and that is to take us into the new promised-land of economic totalitarianism.

The movement toward electronic money is moving at high speed and this says a lot about the state of the financial system. The track record of the major financial institutions is nearly perfect – they are always caught on the wrong side when a crisis breaks, which requires their bailouts. The fact that we have already seen test runs with theory-balloons flying, the major financial institutions are in no shape to withstand another economic decline.

The Government Can Manipulate Digital Accounts More Easily than Cash

An official White House panel on spying has implied that the government is manipulating the amount in people’s financial accounts.

If all money becomes digital, it would be much easier for the government to manipulate our accounts.

Indeed, numerous high-level NSA whistleblowers say that NSA spying is about crushing dissent and blackmailing opponents … not stopping terrorism.

This may sound over-the-top … but remember, the government sometimes labels its critics as “terrorists“.  If the government claims the power to indefinitely detain – or even assassinate – American citizens at the whim of the executive, don’t you think that government people would be willing to shut down, or withdraw a stiff “penalty” from a dissenter’s bank account?

If society becomes cashless, dissenters can’t hide cash.  All of their financial holdings would be vulnerable to an attack by the government.

This would be the ultimate form of control. Because – without access to money – people couldn’t resist, couldn’t hide and couldn’t escape.

LINK HERE to Source Article

   

 

 

The Era of Financial Repression:

Norway's Sovereign Wealth Fund says

Monetary Policy is a Risk to Watch

“Monetary policy does affect pricing in today’s market to such an extent that monetary policy itself has been a risk you have to watch .. Investors are focused more on monetary policy changes than has been generally the case, than at any time, as far as I can remember .. As anything that moves prices is a risk that has to be monitored, here the effects of monetary policy affect prices dramatically .. It’s of course always been the case with long rates, and now more significantly with the currency. That’s just a fact of the current market."

- Yngve Slyngstad, chief executive officer of Norway’s $890 billion sovereign-wealth fund

LINK HERE to the Article

"Financial repression is not a conspiracy theory, it is rather a collective set of macroprudential policies focused on controlling and reducing excessive government debt through 4 pillars - negative interest rates, inflation, ring-fencing regulations and obfuscation - to effectively transfer purchasing power from private savings." - The Financial Repression Authority

   

 

LINK HERE to enlarge the Above Diagram

"Financial repression is not a conspiracy theory, it is rather a collective set of macroprudential policies focused on controlling and reducing excessive government debt through 4 pillars - negative interest rates, inflation, ring-fencing regulations and obfuscation - to effectively transfer purchasing power from private savings." - The Financial Repression Authority

 

Financial Repression Tutorial:

It's about Macro Prudential Policies to

Control and Reduce Government Debt

Financial Sense's Cris Sheridan interviews Gordon T Long* on financial repression .. Gord explains how financial repression is not about conspiracy theories, nor is there some official government policy for financial repression .. it's happening from macro prudential government policies focused on reducing & controlling government debt .. click on the above chart to enlarge - in the middle you will see the 4 pillars of financial repression - negative interest rates, inflation, ring-fencing regulations & obfuscation .. "Financial repression uses a combination of inflation and government control of interest rates in an environment of capital controls to confiscate the purchasing power of much of the nation's private savings." .. discussion on how to protect your investments in such an environment .. 43 minutes podcast .. courtesy thanks to Financial Sense for making this available

LINK HERE to the Podcast

   

The Big Macro Picture of Financial Repression:

"Financial repression is not a conspiracy theory, it is rather a collective set of macroprudential policies focused on controlling and reducing excessive government debt through 4 pillars - negative interest rates, inflation, ring-fencing regulations and obfuscation - to effectively transfer purchasing power from private savings." - The Financial Repression Authority

The chart below shows the linkages and relationships between the good intentions by governments, central banks and regulators translating into the 4 pillars of financial repression - ultimately presenting risks to the investors - savers, retirees, pension funds, endowments and sovereign wealth funds. Link to our ISSUES and SOLUTIONS pages to find out how to address these challenges and protect in this environment.

 

TUTORIAL WITH GORDON T LONG and DOLLARCOLLAPSE'S JOHN RUBINO:

 

 

TUTORIAL WITH FINANCIAL CONSULTANT DAN AMERMAN:

 

TUTORIAL WITH ALLIANZ U.S. CHIEF STRATEGIST KRISTINA HOOPER:

 

TERMS OF USE

Neither Gordon T Long nor the FInancial Repression Authority (nor any of its operating entities) is 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.

THE CONTENT OF ALL MATERIALS:  SLIDE PRESENTATION AND THEIR ACCOMPANYING RECORDED AUDIO DISCUSSIONS, VIDEO PRESENTATIONS, NARRATED SLIDE PRESENTATIONS AND WEBZINES (hereinafter "The Media") ARE INTENDED FOR EDUCATIONAL PURPOSES ONLY.

The Media is not a solicitation to trade or invest, and any analysis is the opinion of the author and is not to be used or relied upon as investment advice. Trading and investing  can involve substantial risk of loss. Past performance is no guarantee of future returns/results. Commentary is only the opinions of the authors and should not to be used for investment decisions. You must carefully examine the risks associated with investing of any sort and whether investment programs are suitable for you. You should never invest or consider investments without a complete set of disclosure documents, and should consider the risks prior to investing. The Media is not in any way a substitution for disclosure. Suitability of investing decisions rests solely with the investor. Your acknowledgement of this Disclosure and Terms of Use Statement is a condition of access to it.  Furthermore, any investments you may make are your sole responsibility. 

THERE IS RISK OF LOSS IN TRADING AND INVESTING OF ANY KIND. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.

Gordon emperically 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, he  encourages you confirm the facts on your own before making important investment commitments.
  

DISCLOSURE STATEMENT

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 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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If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.   

COPYRIGHT  © Copyright 2010-2015 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.

 

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"People ask if we'll have a 'bail-in' in the United States .. Given ATM limits, foreign wire limits and Federal Reserve exit fees on bond funds, I'd say it's already here." - Jim Rickards

The 4 Pillars of Financial Repression:

1- Inflation
2- Negative Interest Rates
3- Ring Fencing
4- Obfuscation and Mis-information
 

Posts are A JOINT INITIATIVE OF

GordonTLong.com and CliffKule.com

 
 
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.

"We’re going to take your pension plan and give you government bonds so that you have a guaranteed return .. That’s how they’ll rationalize taking our money. They know where all the pension plans are because we have to report it, so they’re easily accessible by governments. They know where they are, what they are, and they’ll be able to snatch them away. Who knows what they’ll do, but they’ll certainly find some way to take our money when things get worse, they always have." – Jim Rogers

"This manipulation of the yield on government debt is the answer for the government, and socially, it is so much more acceptable than the alternatives. Whatever you think of the history of hyperinflation, austerity, default and deflation, they are socially incredibly disruptive, incredibly socially dangerous, and many of those market-driven events have led to warfare or massive domestic social unrest. I think in the grand scheme of things when the government sits down and decides which avenue to pursue, this avenue of repression .. will always be more socially acceptable than the market-driven events of austerity, hyperinflation, deflation, devaluation." - Russell Napier, CLSA

From the U.S. standpoint, it’s now a case of 'inflate or die,' and much of the world knows this. Thus if the U.S. decides not to default on its massive debts, it will have to resort to hyperinflation. If this happens, the U.S. will single-handedly tear the world monetary system apart. What worries me is that governments will do whatever they have to in order to remain in power. This can result in confiscation of the assets of U.S. citizens .. America's massive debts will ultimately upset the world’s monetary system." - Richard Russell

"There will be future bail-ins [loss of deposits] and other types of confiscation of wealth in the eurozone, without a doubt .. There's no other realistic way forward if politicians continue to fail to deal with the basic indebtedness problem across Europe." - Lars Christensen, the Head of Saxo Bank

“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth.. “..There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”-John Maynard Keynes

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.”