02/20/2015 - Financial Repression Investing: Got Gold?

Axel Merk emphasizes the advantages of investing in gold to address the investment challenges in the era of financial repression .. points out how the days of low or 0% interest rates is moving into negative interst rates in several countries – this is a form of financial repression where savers earn less than the inflation rate to discourage saving & the purchasing power of your assets loses value over time .. on gold, highlights how the purchasing power of gold has not changed all that much & therefore it presents itself as an investment asset for financial repression .. Merk explains how the interests of government on their massivie debt are driving policies to mechanisms of financial repression to “debase the value of debt” – negative interest rates, inflation loss of purchasing power, & currency debasement .. “Differently said: interests of the government and savers are not aligned. More broadly speaking, investors – be that in the U.S., Japan, Europe, can’t rely on their government to preserve the purchasing power of their savings.”

LINK HERE to the article

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