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 Williams 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 creates the most insidious type of wealth transfer that most people just don’t understand.
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