Media

06/14/2015 - 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

 

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.


05/17/2015 - 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.

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.


05/01/2015 - 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 theChapwood 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

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.


04/18/2015 - Financial Repression Explained: It’s about Macro Prudential Policies to Control and Reduce Government Debt

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WSJ article highlights how as interest rate benchmarks go negative, banks may be paying borrowers .. “Negative interest rates in Europe have created a previously inconceivable problem for some banks: They may soon have to pay interest to customers who borrow from them .. The novel problem is just one of many challenges caused by negative interest rates. All over Europe, banks are being forced to rebuild computer programs, update legal documents and redo spreadsheets to account for negative rates . Banks, hoping to avoid the expense of having to pay their borrowers, are turning to central banks for guidance. But what they are hearing is less than comforting.” .. it’s financial repression.

LINK HERE to the Article

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.


03/04/2015 - 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

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.


03/02/2015 - 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

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.


02/23/2015 - 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

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.


02/19/2015 - 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

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.


02/18/2015 - 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

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.


02/14/2015 - Financial Repression – Capital Controls

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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

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.


02/12/2015 - Sprott’s Rick Rule on Financial Repression

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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

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.


02/08/2015 - 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

 

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.


02/04/2015 - 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

 

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.


01/11/2015 - 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

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.


01/03/2015 - 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

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.


12/23/2014 - Financial Repression: 0% Rate Policy Causing Recession

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

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.


12/10/2014 - David Stockman on how Negative Interest Rates are taking away Wealth from Bank Depositors

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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

LINK HERE TO THE ARTICLE

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.


12/09/2014 - 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

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.


11/28/2014 - 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

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.


11/23/2014 - 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

 

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.