Tuesday, August 2, 2011

Financial Repression

The latest buzz phrase to describe stealing is 'financial repression'.

As stated before in this blog, there are a few ways of defaulting on debt that don't require an announcement of outright default. The above term describes one such method. It refers to a managed debasement of the currency to enable debt to be revalued downwards. It also requires that interest rates be manipulated downwards at the same time.

Financial Repression also requires another insidious little detail. The perpetrators hope that most of the people it affects will not cotton on to what is happening. If they do, then it won't work.

You may think this is a little conspiratorial. But it plainly isn't. The Federal Reserve is comfortable with inflation as it is and is keeping interest rates low on short term and long term US Government Treasurys. They have this policy, it is real and it is stated publicly.

They even go so far as to change the way they report inflation. Constantly changing it in order to mask it's increasing size. The New Zealand Reserve Bank are also enjoying high inflation and low interest rates. It makes their job of managing the risk associated with our high debt manageable.

With interest rates being kept artificially low through direct market intervention and inflation high, the value of your savings and investments becomes less over time. What you worked hard for last year will not buy the same amount of goods and services this year.

When people realise that their wealth is being eroded, they take measures to protect that wealth. This is not good for the system as a whole. Just imagine if even 30% of the middle-class caught wind of this and started to put at least 10% of their savings and retirement investments into gold and silver. The powers that be would be loathe to let it happen. The game would be up. The system would crash as there wouldn't be enough of your money in the bank for them to erode and steal.

The movement against this financial reperession is growing as more people become aware of what is occuring. This repressive scenario is emerging as the method of choice to rid ourselves of debt that cannot be repaid with future earnings.

What are you going to do?

Gold in New Zealand dollars: $1847.13 per oz
Previous all time high: $1955.10 per oz

Silver in New Zealand dollars: $44.80 per oz
Previous all time high: $59.19
per oz

The Anglo-Far East Company
The Original Private Bullion Custodian
Your reference: an-001

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