Friday, November 11, 2016

Russell Napier: 
Financial Repression Will Intensify
"Government will bring measures to stop you and I gearing up, which is the elements of financial repression. They have to try and force you and I to buy government debt even though it is a virtually guaranteed loss-making proposition, and they have to bring in controls that would stop us behaving naturally as a response to negative real interest rates. Now, those historically have been some horrific things .. A lot of people think central bankers will keep going forever, but if we ever go to inflation, they clearly have to stop expanding their balance sheet, but somebody has to buy the government debt .. So let's say the fiscal policy comes. It succeeds. We get growth. We get inflation. Central bank balance sheets cannot expand in the growth and inflation. So who's going to buy the government debt? The answer is you are. Particularly if you work for a regulated financial institution. It's much better if you're an individual. But regulated financial institutions are the people who will be expected to do that, and that is financial repression.”
LINK HERE to the article

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