Chris Martenson
As one of the early econobloggers who forecasted the housing market
collapse and stock market correction years in advance, Chris rose to
prominence with the launch of his seminal video seminar: The Crash Course
which has also been published in book form (Wiley, March 2011). It's a
popular and extremely well-regarded distillation of the interconnected forces
in the Economy, Energy and the Environment (the "Three Es" as Chris
calls them) that are shaping the future, one that will be defined by increasing
challenges to growth as we have known it. In addition to the analysis and
commentary he writes for his site PeakProsperity.com, Chris' insights are in
high demand by the media as well as academic, civic and private organizations
around the world, including institutions such as the UN, the UK House of
Commons and US State Legislatures.
Published 11-08-14
31 Minutes
Dr. Chris Martenson Talks FINANCIAL REPRESSION in clear and simple
language that we can all follow. A professional educator, he makes the complex
easy to grasp. Elements of Financial Repression require this skill to make
clear the stealth game governments are taking against its citizens in the
name of preserving the financial stability of the state.
Financial Repression
"When governments get into too much debt there are only so many ways
to get themselves out from under the debt." There is:
- Austerity,
- Default on the Debt or
- 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:
- Negative Real Interest Rates,
- Ring Fencing via Regulatory Controls,
- Elimination of warning signals such as gold
appreciation.
Japan as an Example
Let's consider Japan as an example. The Yen is down 33% over the last year
as a stated policy direction of the government's Financial Repression
implementation. As a direct consequence, imports are higher therefore making
consumption items like energy more expensive for the average person in Japan.
Real wages and savings for the middle class in Japan are falling. However,
if you are a corporation like Toyota it is better for business. Chris argues
that Financial Repression is nothing more than a transfer from the people to
companies such as Toyota . The government effectively believes it knows
better through central control and planning where the public's money will be
most effectively utilized.
Central planning never worked in Russia and after more than 20 years the
proof can once again be confirmed in Japan. This is the stealth game being
played against the public, not only in Japan but by countries practicing
policies of Financial Repression around the world.
The Coming Crisis
True wealth NEVER gets destroyed, 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 completely obliterated just like the the
Zimbabwe dollar." His strong recommendations are:
- Understand the problem,
- To importantly, take action,
- Be in Productive Assets,
- 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.
Price and Value are separating and people forget that price is what you
pay, but value is what you get. We soon will see an event where it will be
perceived that great wealth is again destroyed. However, what investors MUST
fully comprehend is that wealth is not destroyed but rather only transferred.
True wealth is the land, the property, plant & equipment, productive
enterprises, raw resources and the people who fashion it all. That is the
real wealth. Everything else is nothing more than paper claims on the true
wealth. These claims can be made worthless overnight but wealth never is.
