11/07/2014 - Chris Martenson Talks Financial Repression

Special Guest: Chris Martenson PhD – PeakProsperity

 

FINANCIAL REPRESSION

“When governments get into too much debt there are only so many ways to get themelves out from under the debt.” There is:

  1. Austerity,
  2. Default on the Debt or
  3. Financial Repression

In reality, the third is the only politically viable solution. Financial Repression ” the cornerstone involves taking a little from everybody and giving it to a couple of favored parties”. To do this involves three basic elements:

  1. Negative Real Interest Rates,
  2. Ring Fencing via Regulatory Controls,
  3. Elimination of warning signals such as gold appreciation.

 

THE COMING CRISIS

True wealth NEVER gets destoyed, it only gets transferred!”

Chris points out that wealth is never destroyed. but rather it is the claims on wealth which are destroyed during a crisis. “A profound currency accident is coming” according to Chris where he “would not be surprised to see the Yen be completel obliterated just like the the Zimbabwe dollar.” His strong recommendations are:

  1. Understand the problem,
  2. To importantly, take action,
  3. Be in Productive Assets,
  4. Make sure your money is managed by those who understand the new reality and today’s true risks

Wealth can no longer be stored in paper currency or “paper” claims in a Fiat Currency System.

Disclaimer: The views or opinions expressed in this blog post may or may not be representative of the views or opinions of the Financial Repression Authority.