This is a 38 minute video discussion between Grant Williams and Gordon T Long
on Financial Repression.
Grant has 26 years of trading experience in Asian equity markets, beginning
his career with Robert Fleming in 1986 trading Japanese equities and derivatives
in both London and Tokyo. Subsequently he has run Asian equity, convertible
bond and ADR/GDR trading desks in New York, Hong Kong, and Singapore as well
as spending several years trading Australian equities in Sydney. During that
time, he spent 6 years with UBS and a further 9 years with Credit Suisse. Most
recently he was Head of Asian Equity Trading for Jefferies in Singapore.
Financial Repression
Grant suggests that the dictionary defines repression as essentially about
trying to repress true feelings. Financial Repression is the government's attempt
to steer behavior away from true investments and into those that assist the
government to pay down its debts.
"The result is essentially outright theft by borrowers from savers. The
pool of savings on earth is the last really untapped pool of capital that
government has to go after".
According to Grant the explosion in credit through removal from the Gold Standard,
financial engineering and keeping interest rates low has left a differential
between Credit Growth and GDP that has forced governments with no choice but
to adopt Financial Repression policies. By debasing their currency and through
inflation government create the most insidious type of wealth transfer that
most people just don't understand.
Grant believes we are in a trap with no way out.
He makes his point crystal clear by pointing out how truly devastating Financial
Repression has been to savers in real terms:
Williams Advises Investors
- Be Flexible
- Consider Cash (Short Term) on a Risk / Reward Basis
- Consider Gold as an Insurance Policy
Message
- Be Engaged,
- Understand What is Happening,
- Question What You Are Being Told,
- Be Cautious,
- Avoid Potentially Large Draw-downs
38 Minute Video: Grant Williams and Gordon T Long discuss Financial Repression
