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16 June 2021 Swiss Re Meeting:

"Sounding the Alarm

on Financial Repression"

Swiss Re video highlights the recent meeting they held with experts voicing concerns about the ongoing use of unconventional policies .. financial repression is causing financial market distortions & poses a serious risk to financial stability .. These unconventional policies have pushed institutional investors into holding government debt. As a result they have less money available for productive investment, such as infrastructure projects .. "It means that there's a global search for yield. That possibly leads to a misallocation of resources," says Douglas Flint, Group Chairman of HSBC .. Jean-Claude Trichet, Chairman of the Group of Thirty affirms the risks.

LINK HERE to the Article & Video

   

 

 

 

 

 

How Financial Repression is

Making it Difficult to Retire

Charles Hugh Smith & Gordon T Long discuss the unsustainability of pension funds for U.S. public employees, the challenges of ordinary retirees to be able to retire given the financial repression on interest rates & low yields .. while everyone is beginning to agree that most people will not be able to retire, but must keep working, many do not realize that there are already "means-testing" in place for the U.S. social security benefits because if you & your spouse keep working & make at least $44,000 per year, your U.S. social security retirement benefits will be reduced by 85%! .. 26 minutes  

LINK HERE to the VIDEO

   

 

 

 

 

Financial Repression Obfuscation:

Measuring Inflation

Wall St For Main St interviews financial expert Ed Butowsky created the Chapwood Inflation Index to better accurately measure inflation in the U.S. compared to the Bureau of Labor Statistics' Consumer Price Index (CPI) .. discussion on the problems with the CPI and why it no longer measures inflation accurately .. an example of obfuscation - one of the pillars of financial repression  .. 29 minutes

LINK HERE to the VIDEO

   

FREE REALVISIONTV PROGRAM SHOW DISCUSSION BETWEEN RAOUL PAL AND GRANT WILLIAMS ON FINANCIAL REPRESSION - NOW AVAILABLE AT NO COST - SIMPLY CLICK THE PODCAST LINK BELOW.

CLICK HERE Subscribe to REAL VISION TV at the lowest possible price: Real Vision was launched to combat the dumbed-down approach to finance in traditional media. It is the world's first on-demand video channel for finance and our driving ambition is to deliver the highest quality economic, financial, and geopolitical content available. This obsession affords us access to the world's finest financial minds. Want to see it? See THE RESET by linking here.

If you want to subscribe - Apply Our Discount Code - we are partnered with Real Vision TV and we offer the maximum discount you can get anywhere .. Our Discount Code is as follows:  FRA-RV 

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Entire Discussion Now Available for FREE -

Real Vision TV - THE RESET

Watch Raoul Pal & Grant Williams

Talk Financial Repression

Global Macro Investor's Raoul Pal and Vulpes Investment Management's Grant Williams discuss essentially what we have classified as the 4 pillars of financial repression: repressed interest rates, forced inflation, obfuscation and ring-fencing regulations. The terms they use are a bit different, but the basic concepts are the same.

They discuss the systemic risks to the financial system including the loss of faith in money itself. They explain how massive money printing has distorted financial markets and prices worldwide, especially through the suppression of bond yields by central bank policies.

They also discuss their suggested solutions to investing in this environment - physical gold held outside of the financial system, cryptocurrencies, assets held outside of the concentration of risk in the financial system, investments in the monsoon regions of the world.

This is a fascinating must-watch discussion which will help you understand what is currently happening in the financial markets, the banking system, the investment world and the global economy.

LINK HERE to the Podcast

If you want to subscribe within the podcast - Apply Our Discount Code - we are partnered with Real Vision TV and we offer the maximum discount you can get anywhere .. Our Discount Code is as follows:   FRA-RV

   

 

 

 

 

Financial Repression:

The War on Cash will Accelerate

in the next 6 Months

Greg Hunter interviews Gordon T Long .. "We have run out of runway, but never underestimate the ingenuity of a trapped politician and central bankers to come out with new policies and new ways to extend this. We are going to see some pretty violent volatility and corrections. We are going to be in there guaranteeing collateral because our issue is . . . there is a shortage of collateral. The Fed sucked all of the bonds out of the market. There is a shortage of them. So, we have a major liquidity problem. That’s the runway we are running out of, and flows are starting to slow dramatically. Now, that says it’s getting unstable, but that doesn’t mean the world is coming to an end. It does mean we are going to do something else, and one of those things is negative nominal rates and cashless society. That’s the reason why we are going to have a cashless society. You are going to see this (cashless society idea) accelerate in the next six months." .. 30 minutes

LINK HERE to the VIDEO

   

 

 

Mark Thornton on

The True Meaning of Financial Repression

Financial Survival Network interviews Mises Institute's Mark Thornton .. Thornton writes: "With politicians and central bankers seemingly gone mad with their obsession for money printing and ultra low interest rates, it is nice to know that academic economists have a term (i.e., financial repression) for the policies that have created our current economic conditions." .. the term financial repression dates back to 1973 when 2 Stanford University economists - Edward Shaw & Ronald McKinnon .. identifies 2 major macroprudential policies of financial repression in use - ZIRP or zero interest rate policy of central banks to keep interest rates & lending rates at or near 0 - this makes the interest rate on government debt low .. & the second is QE or quantitative easing is the central bank policy of buying up government debt from banks - this increased demand increases the price of government bonds & reduces the interest rates on those bonds .. Take a look at the frescoes Mark refers to in his article and see if you recognize a parallel to modern America: The Allegory of Good and Bad Government .. 20 minutes

LINK HERE to the Podcast

   

 

Gordon T Long Discusses

The War on Cash

LINK HERE to enlarge the Above Diagram

 

 

 

Financial Repression:

The War on Cash

Wall Street for Main Street's Jason Burack & Gordon T Long discuss the escalating war on cash .. why it is happening, when cash could be abolished .. what the real drivers of this movement are .. discussion on financial repression developments.. about 1 hour

LINK HERE to the VIDEO

   

 

 

 

 

Financial Repression:

The War on Cash

Mises Institute's Dr. Joseph Salerno recently spoke .. Today cash is under attack like never before. Ultra low interest rates are the norm for commercial bank accounts. In Europe, as the ECB ventures into negative nominal interest rates, certain banks threaten to charge customers for depositing cash. Meanwhile, certain European bonds now pay negative yields, effectively turning them into insurance products rather than financial assets. And some economists now call for the outright abolition of cash, which shows just how far some will go in their crazed belief that economic prosperity can be commanded by forcing us to spend rather than save .. The War on Cash is real, it's about financial repression & it will intensify .. 28 minutes

LINK HERE to the VIDEO

   

 

 

Jim Rickards* on

War on Cash, Repressive Interest Rates,

Capital Controls, Potential Bailins

Latest Jim Rickards* interview with the Physical Gold Fund .. Rickards covers several aspects of financial repression happening - from the war on cash, to repressive interest rates by central banks, to capital controls & potential bail-ins, bank account freezes, how the zero interest rate policy (ZIRP) is taking money out of the pocket of savers & giving it to big banks .. very interesting: Rickards sees a time coming when the magnitude of the next financial crisis will be bigger than central banks can create liquidity for - he says in 1998, Wall Street bailed out a hedge fund, then in the financial crisis, central banks bailed out Wall Street, but in the next financial crisis, the IMF will be needed to bailout the central banks .. 1 hour

LINK HERE to the Podcast

   

 

LINK HERE to enlarge the Above Diagram

 

 

Sprott's Rick Rule Talks

Financial Repression, War on Cash, Gold

Webinar with Sprott's Rick Rule (the Special Guest), Conquer Change's Robert Ian, Financial Survival Network's Kerry Lutz, and Financial Repression Authority's Gordon T Long.

   

 

 

Sprott's John Embry Talks

Financial Repression, War on Cash, Gold

Webinar with Sprott's John Embry (the Special Guest), Conquer Change's Robert Ian, Financial Survival Network's Kerry Lutz, and Financial Repression Authority's Gordon T Long.

   

 

 

LINK HERE to the video

 

Obfuscation - One of the

4 Pillars of Financial Repression

Alasdair Macleod points out the obfuscation going on between government economic data & price distortions in the financial markets .. highlights the Chapwood Index as a true cost-of-living inflation measure in America - it reports on the actual cost & price fluctuation of the top 500 items on which Americans spend their money on .. as you can see in the above chart, it is much higher than the government reported numbers .. "Understated price inflation fundamentally distorts everything that is macroeconomic, from monetary policy to economic commentary. It misleads central bankers into thinking they are missing their inflation targets when they are in fact exceeding them by a dangerously wide margin. It misleads analysts into thinking we are on the brink of a deflationary slump with prices maybe about to collapse. And most worryingly of all, bond markets have become more mispriced than even hardened bears realise, something that's very likely to be corrected through a financial shock .. Just think of all those bonds that the banks have acquired as zero risk investments under Basel III rules .. If bond markets discounted, as the Chapwood Index suggests they should, a U.S. inflation rate consistently around 10%, the 10-year U.S. Treasury bond should yield at least that, possibly more. The price would halve to meet those redemption yields, and lesser credit-worthy bonds would fall even more, a development for which all financial markets are wholly unprepared, not to mention the knock-on effects on stocks, derivatives and of course, mortgage rates."

LINK HERE to the Article

   

 

 

 

 

 

One of the 4 Pillars of

Financial Repression:

Data Obfuscation

Dr Pippa Malmgren, a former U.S. Plunge Protection Team member, explains how governments fudge price inflation numbers .. It's one of the pillars of financial repression - obfuscation.

LINK HERE to the video

   

 

LINK HERE to enlarge the Above Diagram

 

Financial Repression Explained:

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

   

 

 

 

 

Bank Bailin for Austrian Bank

Heta Bank in Austria has perhaps reached the end of the road. The bank, which was bailed out by the Austrian Government a few years ago & is now in need of another bailout but none will be forthcoming .. Rather, bondholders & creditors will be paying for the bailout & this will have the effect of triggering the CDSs (Credit Default Swaps). Will this lead to a series of cascading collapses among banks across the world? That's the fear among many alternative economists across the globe, only time will tell .. 24 minutes

LINK HERE to the video

   

 

 

 

 

Financial Repression on

Interest Rates is Destroying

Business Models, Capitalism,

Pension/Insurance Funds

Janus Capital's Bill Gross* on the outlook for Federal Reserve policy, the U.S. economy & his objectives at Janus Capital .. "The interest rate can't be raised substantially even over the next two to three years .. Low interest rates keeps zombie corporations alive because they can borrow at 3 and 4%, as opposed to the 8 or 9%. It destroys business models. It's destroying the pension industry and in the insurance industry .. Ultimately, low interest rates destroy the capitalistic model at the margin. Instead of investing in the real economy, corporations can now simply borrow at close to 0% and buy their own stocks, which yield 2 or 3% on a dividend basis and provide a return of 6 or 7% on an earnings to price ratio basis." .. 12 minutes

LINK HERE to the video

   

 

 

 

 

Dr. Pippa Malmgren:

Governments are Imposing Prices

on the Market

Matterhorn GoldSwitzerland interviews former financial market adviser in the U.S. White House .. discussion on how there is no price discovery anymore by the market, & governments are imposing prices on the market .. also a discussion on the closer ties between Russia & China, Germany's gold reserves, the phenomenon of financial repression .. 38 minutes

LINK HERE to the video

   

 

 

 

 

Paul Brodsky on

Financial Repression

Boom Bu$t .. discussion with Paul Brodsky on how financial repression seems to be the order of the day on monetary policy, with negative interest rates rife throughout government bond markets in Europe - explains where financial repression is leading central banks & explains what kinds of strategies you can devise to get around it .. 1/2 hour total program

LINK HERE to the video

   

 

 

 

Insurance Companies Will Be

Raising Insurance Premiums

Because of Financial Repression

Dr. Marc Faber* says central bankers are professors who never worked a day in their lives & whose easy-money policies will ultimately be disastrous for markets .. That's why he says he thinks gold could be the "trade of the century" & why he recommends additional exposure to gold through junior miners. He explains his investing strategy today on Commodities .. says insurance companies will be raising insurance premiums to much higher levels due to the financial repression of very low interest rate & low yields .. thinks sovereign wealth funds will begin investing in gold .. 7 minutes

LINK HERE to the video

   

 

 

 

Financial Repression - Capital Controls

INET video interview with Boston University's Professor Kevin Gallagher on his new book .. discussion of international capital flows, how it is causing destabilizing effects in developing countries .. Gallagher points out that today a number of emerging economies, including Brazil, Taiwan, & South Korea, have been successfully experimenting with new capital account regulations (CARs) to manage volatile capital flows .. Gallagher develops a theory of countervailing monetary power that shows how emerging markets can & should counter domestic & international opposition to the regulation of cross-border flows, even as he acknowledges powerful attacks from a multiplicity of interests, seeking to undermine those very regulations .. 20 minutes

LINK HERE to the video

   

 

 

 

 

Sprott's Rick Rule on Financial Repression

Interview transcript with Rick Rule on the economy, global counterparty risks & the natural resource sector .. on the issue of capitulation in the finacial markets for natural resources: "We came close last October. There were some moments of absolute panic .. but we didn’t follow through with a capitulation… Capitulation usually follows a protracted period of diminished volume… I have never seen a bear market in the juniors end without one .. just because I haven’t seen it doesn’t mean it has to be that way." .. identifies financial repression: "The fiscal regime that has been in place since the financial crisis is one where the political class has decreased the interest rate artificially, allowing the very large money center banks to borrow at extraordinarily low costs both from their retail deposit banks but also from their central banks and lend the money back to sovereigns. In effect what happens is that the central governments loan the banks money at .75% or 1% and borrow the money back from the banks at 2.5% or 3%, giving them a 1% or 1.5% interest rate carry at very, very, very low risk. That’s the way the Japanese subsidized their banks and made their banks solvent again after their currency crises." .. 28 minutes accompanying video

LINK HERE to the article link & video

   

 

 

 

 

Axel Merk:

"We have Financial Repression Everywhere."

Is deflation or inflation on the financial horizon? .. here is what Axel Merk thinks: "For me, it’s a slam dunk. We are going to get inflation. There are negative real interest rates in the developed world as far as the eye can see. Just about every country has negative real interest rates, and we have financial repression everywhere. I think we cannot afford positive real interest rates over an extended period. Just think about the U.S. with the entitlement wave coming against us. We got strong incentives in place to have negative real rates when the government has too much debt and when consumers have too much debt. The reason why we have this battle with inflation and deflation is we are clearly facing a deflationary bust, and central banks are fighting against it. If we didn’t have central banks, I’d be fully onboard with deflation, but because we cannot have bankruptcies, we will inflate our way around it .. Ultimately, inflation is going to first come up in the U.S., and that inflation is going to be exported to other countries." .. 18 minutes

 

   

 

 

 

 

Financial Repression:

"Inflation is a Means

by Which a Country can Default

on Its Debt"

Former U.S. Presidential policy advisor Dr. Pippa Malmgren explains how the UK & the U.S. are using inflation to default on their debts & their principal creditors .. highlights how interest rates in the bond market are being repressed (financial repression) by central banks worldwide .. "the balance between the state and the market has heavily shifted to the state since the financial crisis" .. 10 minutes

   

 

 

 

 

European Bank Runs

Could Come To America

Interview with Boston University Economics Professor Laurence Kotlikoff .. Kotlikoff says Greece is in financial trouble & that could set off another global financial calamity: "So, you have the same problem. You have a country that is fiscally unsustainable, and they haven’t really been able to get out from under that situation .. It sets up a situation where you could have runs on other banks like in Italy, Spain, Portugal, and that could spread to other banks in other countries, including France and Germany. Remember, the big to do about the Cypriot banks that failed and said they weren’t going to pay off the depositors? That led to a major international panic. It was a small country with two relatively small banks." .. bank bailins & financial repression .. a daisy chain of defaults and bank runs could happen in Europe: "It could also come to the U.S. If everybody believes the banks are going to be solvent and they can get their money out, that’s fine. But if everybody starts to run on the banks, you want to run before they do because you want to get you money out before it’s all gone." .. sees the potential for U.S. hyperinflation if there is a loss of confidence in the FDIC deposit insurance system, as depositors take their money out & buy something real .. on the U.S. unfunded liabilities: "Social security is 33% under-financed, according to its own trustees report .. Our entire fiscal enterprise is about 58% under-financed .. the country is really broke." .. 33 minutes

   

 

 

 

The Confiscation of Bank Deposits

Ellen Brown* explains how the recent G20 meeting rubber stamped new regulations that will make Cyprus style bank bail-ins a worldwide reality .. 24 minutes

   

 

 

Financial Repression:

0% Rate Policy Causing Recession

CNBC's Rick Santelli & Charles Biderman discuss the global 0% rate policy, how it is causing global recession.

   

 

"

Financial Repression:

Banks Being Setup To Confiscate Bank Deposits

& Other Assets in the Next Banking Crisis

Interview with Attorney Ellen Brown .. explains recent developments in regulations & G20 initiatives on bank BailIns, a form of financial repression in which banks are being setup to confiscate bank deposits & other assets in the event of a banking crisis .. "The banks will say, well, we don’t have it. All the money goes into one big pool since Glass Steagall was repealed. They are allowed to gamble with that money and that’s what they do. I think maybe Bank of America is the most vulnerable because of Merrill Lynch. Everybody is concerned, and they do very risky deals and they are on the edge. I think they have over $50 trillion in derivatives and over $1 trillion in deposits. . . The Dodd-Frank Act says we, the people, are no longer going to be responsible for the big banks when they collapse. It is not clear the FDIC will even be able to borrow from the Treasury, but even if they could, who is going to pay that money back? Let’s say they borrowed $1 trillion. Who is going to pay that $1 trillion dollars back? It will bankrupt all the small banks that had to contribute to this premium. They will say we’re raising your premium to everything you got, basically. Little banks will go out of business, and who is going to survive--the big banks. . . . What we’re going to have left is five big banks, and everybody else is going to be bankrupt." .. The G-20 met recently in Australia to make new banking rules for the next financial calamity, Brown explains how these new rules will allow banks to take money from depositors & pensioners worldwide: "It became rules we agreed to actually implement. There was no treaty, and Congress didn’t agree to all this. They use words so that it’s not obvious to tell what they have done, but what they did was say, basically, that we, the governments, are no longer going to be responsible for bailing out the big banks. These are about 30 international banks. So, you are going to have to save yourselves, and the way you are going to have to do it is by bailing in the money of your creditors. The largest class of creditors of any bank is the depositors .. Theoretically, we are protected by deposit insurance up to $250,000 in the U.S. and 100,000 euros in Europe. The FDIC fund has $46 billion, the last time I looked, to cover $4.5 trillion worth of deposits. So, even though we are protected by the FDIC, the FDIC is not going to have the money. . . . This makes it legal for these big 30 banks to take our money when they become insolvent. They are too-big-to-fail. This was supposed to avoid too-big-to-fail, but what it does is institutionalizes too-big-to-fail. They are not going to go down. They are going to take our money instead." .. 22 minutes

   

 

"

David Stockman on how Negative Interest Rates

are taking away Wealth from Bank Depositors

TomWoodsTV interviews David Stockman .. Stockman says the Keynesians have had their day in Japan & worldwide .. rails against Harvard University's Ken Rogoff on the abolition of physical cash to facilitate the further expansion of monetary policy - governments trying to implement negative nominal real interest rates to take wealth away from bank depositors to help pay down government debt .. it's financial repression .. 30 minutes

   

 

 

 

"

 

Tim Price On Financial Repression

Article & interview on perspective by Tim Price on financial repression insight on UK Tip TV .. Rather than saving the global economy, very low interest rates are a ’coiled spring’ for trouble ahead .. very low interest rates are implementing financial repression, which involves deliberately holding down interest rates below inflation & keeping government borrowing costs low .. "People are piling into stocks because they’ve frankly got no other choice, but I think we’ve seen how this film ends." .. Price thinks that investing in Asia is the best bet to deal in this environment.


LINK HERE to the source article and video

   

 

 

 

"

 

Insight into Financial Repression

Brinker Capital Senior Investment Manager, Jeff Raupp, CFA, provides commentary on the issues surrounding the debt burdens of many developed governments today, how this era of financial repression may impact investors .. 5 minutes

 

   

 

 

"

Chris Martenson on Financial Repression

Podcast discussion on how the Federal Reserve is destroying consumer savings, how central banks will be to blame for the coming bond collapse, how trying to keep gold & silver prices 'corralled' is part of the official plan


LINK HERE to the podcast

   

 

 

 

 
"

What is Financial Repression?

Beware of Financial Repression

Peak Prosperity interview of Daniel Amerman on financial repression, based on his recent essay which we posted - see link below.

Great insightful article on financial repression by Daniel Amerman .. questions how the U.S. federal government can pay down its enormous debt .. sees 4 primary options that the government can take:

1) Decades of austerity with higher taxes and lower government spending.

2) Defaulting on government debts.

3) Inflating away the value of the debt through rapidly slashing the value of the currency.

4) Using "Financial Repression", a process that is complex enough that the average voter never understands how it works, thus allowing governments to use this potent but subtle method of taking vast sums of private wealth, year after year, decade after decade, with almost no political consequences.

The essay reminds readers the 4th option is the likely approach, points out the world took this approach in the 1940s through the 1970s to pay down government debt .. "Because of the sheer size of the problem – most of the population must be made to participate, year after year. Financial Repression therefore uses an assortment of carrots and sticks to ensure that investors have little choice but to participate – on a playing field that has been rigged against them as a matter of design – even if they are among the small minority who are aware of what is being done to them."The essay covers 4 areas of financial repression:

1) Inflation (Shearing #1)

2) Negative Real Interest Rates (Shearing #2)

3) Funding By Financial Institutions (Fence #1).

4) Capital Controls (Fence #2). 

 

 

 

   

 

 

"

Banking In The Age

Of Financial Repression

St. Gallen Symposium with UBS, HSBC, Credit Suisse, Zurich Insurance Group .. a year old but still relevant 

 

 

 

   

 

 

 
"

 

Gordon T Long: Financial Repression Killing Middle Class & Capitalism Itself

WallStrForMainStr Interviews Gordon T Long:

"We have over 250 interviews with top guests in discussion. The Gordon T Long discussion is over an hour long and one of the best ones we've done all year."

 

 

   

 

 

 

 

John Rubino on Financial Repression:

 

   

 

 

 

 

Gordon T Long on Financial Repression:

 

   

 

 

"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

 
"

What is Financial Repression?

What does financial repression mean? .. short video explainer by Project M.

 

 

   


 

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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 2010-2015 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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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.
"When things get bad enough, governments will do anything." – Jim Rickards
 
 

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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.

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The next bailout will be the U.S. government. They will seize all pension funds and 401Ks to absorb the debt. They are realizing that as the war cycle turns up, less and less foreigners will buy U.S. debt ... The solution – forced loans." - Martin Armstrong

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

"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

1- Strict investment regulations (Solvency II, Basel III)
2- Negative real interest rates
3- Interest rate ceilings
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)

"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

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

Financial Repression Goes Global - 05 June 2021

 

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

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“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.”

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