“There is no real economic growth and the actual real inflation rate is likely 4x the rate officially reported by the government. If economic growth will not pay down the debt and avoid default, then how is the government doing it? The answer is the financial repression of investors and savers. Financial repression is the back door method of paying down government debt by surreptitiously taxing private savings … the financial repression tax is a mechanism to transfer wealth from savers and investors to government on an extraordinary scale but without ever saying they are doing it. To make sure it works, government uses a series of interlocking law and regulations which traps savers and investors making them effectively, ‘penned in sheep to be shorn’ .. What is the United States government doing to impose the financial repression tax? The Federal Reserve and Treasury have imposed explicit or indirect caps on interest at zero or near zero rates. Even if you accepted the government’s numbers, the official interest rate is lower than the official inflation rate. This alone proves that capital is being mispriced and misallocated .. Inflation is required because the government intends to pay off its debt obligations by reducing the value of U.S. dollars .. Financial institutions—banks, credit unions, insurance companies– are being incentivized by government to buy a lot of government debt and penalized when they don’t. The regulators require higher capital reserves which can only be met by having certain approved assets. Government debt is issued at capped rates. Officially this is being done to maintain the integrity and safety of the financial industry and its shareholders .. To make sure nobody escapes, the U.S. government has imposed a world-wide curb on U.S. investors and savers who want to escape this system. Financial repression works best when everybody is held captive and financially controlled .. Maintaining a regime of financial repression enables the redistribution of enormous amounts of wealth from investors and savers to the government. The public may not know exactly what is going on since financial repression operates in the background. But they know that something is taking a heavy toll on their portfolios and savings.