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Saturday
November 22nd
2014

FINANCIAL REPRESSION for DUMMIES

 

Gordon T Long

 

SPECIAL GUEST: Financial Survival Network Radio

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FINANCIAL REPRESSION FOR DUMMIES

with Kerry Lutz & Gordon T Long

AUDO ONLY: 24 Minutes

From the Financial Survival Network:

Gordon T. Long has been sounding the alarm on Financial Repression for quite some time. Unfortunately most people have been unaware that their wealth is being stripped away before their very eyes. But Gordon and his associates have devised a number of strategies that can be exercised to avoid this fate. Before you can solve a problem, you’ve got to admit that it exits.

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Wednesday
November 19th
2014

AUDIO PODCAST

DOUG CASEY on FINANCIAL REPRESSION

Doug Casey

 

SPECIAL GUEST: Doug Casey is the founder and chairman of Casey Research. He has been a featured guest on hundreds of radio and TV shows, including David Letterman, Merv Griffin, Charlie Rose, Phil Donahue, Regis Philbin, Maury Povich, NBC News, and CNN; has been the topic of numerous features in periodicals such as Time, Forbes, People, and the Washington Post; and is a regular keynote speaker at FreedomFest, the world's largest gathering of free minds.

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A WORLD TOUR OF FINANCIAL REPRESSION

with

 

Best-selling author, world-renowned speculator, and libertarian philosopher. Doug is widely respected as one of the preeminent authorities on “rational speculation,” especially in the high-potential natural resource sector. Doug literally wrote the book on profiting from periods of economic turmoil: his book Crisis Investing spent multiple weeks as #1 on the New York Times bestseller list and became the best-selling financial book of 1980 with 438,640 copies sold; surpassing big-caliber names, like Free to Choose by Milton Friedman, The Real War by Richard Nixon, and Cosmos by Carl Sagan. Then Doug broke the record with his next book, Strategic Investing, by receiving the largest advance ever paid for a financial book at the time. Interestingly enough, Doug’s book The International Man was the most sold book in the history of Rhodesia. and his most recent releases Totally Incorrect (2012) and Right on the Money (2013) continue the tradition of challenging statism and advocating liberty and free markets.

Published 11-19-14

PODCAST - AUDIO ONLY - 31 Minutes

Doug Casey has garnered a well-earned reputation for his erudite (and often controversial) insights into politics, economics, and investment markets. He doesn't hold back as he speaks from his ranch in the back provinces of Argentina.

Doug sees the world in the "eye of a gigantic financial hurricane". It entered the hurricane in 2007-2008 and will likely see the next stage in 2015. Here are just some of Doug's views and statements from this fascinating and exclusive interview with Gordon T Long.

REALISTICALLY SEES WAR AHEAD

"The US is being provocative with its military bases in 125 countries around the world and is provoking the Russians in the Ukraine." The US is now a country in a continuous state of war. "The US military is out of control."

"AMERICA DOESN'T EXIST ANYMORE!"

"America has turned into a police state". It is the most dangerous entity in the world today and has become hated globally because of its militarism.

"THE REAL RISK TO INVESTORS IS 'POLITICAL'"

US Investors must urgently diversify their assets abroad while it is still possible. More restrictive regulatory policies lie ahead.

US STANDARD OF LIVING & RESPECT IN THE WORLD HAS FALLEN

Today the US is more taxed and regulated than ever before, which limits its abilities to solve its problems.

"MODERN CURRENCIES ARE FLOATING ABSTRACTIONS"

Developed economies' currencies "are turning into toilet paper".

"JAPAN IS A GIANT ACCIDENT WAITING TO HAPPEN!"

"If you are looking for a one way street, perhaps the best speculation in the world today would to be short Japanese government bonds denominated in Yen". The demographics in Japan are the worst in the world.

"THE EU WILL CEASE TO EXIST"

Its really a horrible conglomeration of countries which should be simply a free trade area with the government in Brussels making it impossible. It is totally dysfunctional and will breakup.

RECOMMENDATIONS

  • "Hold onto your hat" - Things are going to get real interesting starting in 2015,
  • Doug sees turmoil coming which we haven't seen since the start of the Industrial Revolution or the French Revolution,
  • Hold gold and silver. Some should be in coins in your possession.

 

 

 

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Monday
November 10th
2014

AUDIO PODCAST

MICHAEL PENTO on FINANCIAL REPRESSION

Michael Pento

 

SPECIAL GUEST: Mr. Michael Pento is the President of Pento Portfolio Strategies and serves as Senior Market Analyst for Baltimore-based research firm Agora Financial. Pento Portfolio Strategies provides strategic advice and research for institutional clients. Agora Financial publishes award-winning newsletters, critically acclaimed feature documentaries and international best-selling books.

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Mr. Pento is a well-established specialist in the Austrian School of economics and a regular guest on CNBC, Bloomberg, FOX Business News and other national media outlets. His market analysis can also be read in most major financial publications, including the Wall Street Journal. He also acts as a Financial Columnist for Forbes, Contributor to thestreet.com and is a blogger at the Huffington Post. Prior to starting Pento Portfolio Strategies and joining Agora Financial, Mr. Pento served as a senior economist and vice president of the managed products division of another financial firm. There, he also led an external sales division that marketed their managed products to outside broker-dealers and registered investment advisors. Additionally, Mr. Pento has worked for an investment advisory firm where he helped create ETFs and UITs that were sold throughout Wall Street. Earlier in his career Mr. Pento spent two years on the floor of the New York Stock Exchange. He has carried series 7, 63, 65, 55 and Life and Health Insurance Licenses. Mr. Pento graduated from Rowan University in 1991.

Published 11-17-14

PODCAST - 19 Minutes

Michael Pento speaks out strongly by saying: "We cannot allow the whims of a small group of unelected people to depreciate the value of currencies without any accountability whatsoever. Who gave Mr Bernanke and Ms Yellen the authority to do all these QEs? Who voted them into power? Why do we believe deflation is a bane on the American populous? Why do we want real incomes to fall and prices to go up? We cannot allow these people to to destroy the American middle class and American consumer!"

FINANCIAL REPRESSION

"Any attempt by government to make sure debt service payments remain serviceable."

That is the key. "Whether it is to force people into the bond market, whether it is to keep interest rates artificially low - whatever they need to do to make sure they don't have to use the tax base to pay their debt and deficits. They utilize artificial methods to make sure they can make debt service payments."

JAPAN IS MICHAEL PENTO'S FAVORITE EXAMPLE

"In Japan they have been able to take the entire JGB market and monopolize the whole entire thing! There is nothing that occurs there unless the government is a buyer. There are days on end where there is no trading because their 10 year note is .005%."

"Japan is an insolvent nation that has taken its interest rates down to levels where there is no private market for their debt - it is a ticking time bomb ..... The danger here is the Yen can unravel here and become intractable."

"If interest rates go up just 1% the nation is completely insolvent. The Yen could unravel very quickly and cause the economy of Japan to collapse, which would be massively disruptive to all economies and markets across the globe."

FREE MARKET SYSTEM HAS BEEN COMPLETELY VANQUISHED

"No one knows what the prices are of anything any longer! Capitalism has been annulled, cancelled and abrogated by government and central banks (which are one and same thing)".

WHERE WE ARE HEADED

  1. A complete breakdown in central bank credibility lies ahead,
  2. A complete collapse of the financial system will occur when interest raters normalize. The Fed won't initiate this normalization but rather the free market will,
  3. A resulting global economic collapse will wipe out tax bases and therefore debts and deficits will skyrocket
  4. Because of this threat, more QE, more financial repression and further market intrusions lie ahead.
 

 

 

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Friday
November 14th
2014

AUDIO PODCAST

TIM PRICE on FINANCIAL REPRESSION

Tim Price

 

SPECIAL GUEST: Tim Price is Director of Investment at PFP Wealth Management in the UK, an independent asset management and financial planning practice. He was formerly Chief Investment Officer – Global Strategies at Union Bancaire Privée in London, and previously Chief Investment Officer at private bank Ansbacher & Co.

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Tim has 18 years’ experience of both institutional and private client wealth management. A graduate of Oxford University, his focus is absolute return investing using multiple asset classes, including so-called alternative investments. Working with his prior employers he has been shortlisted for five successive years in the Private Asset Managers Awards program and is a previous winner in the category of Defensive Investment Performance. He was also shortlisted in the inaugural Spear’s Wealth Management Awards 2007 in the category of Asset Manager of the Year. An outspoken and sometimes irreverent commentator on financial markets and the asset management industry, Tim is also a regular columnist for Money Week magazine and maintains a weblog, The Price of Everything (http://thepriceofeverything.typepad.com/) and edits Price Value International.

Published 11-14-14

PODCAST - 26 Minutes

FINANCIAL REPRESSION

"Financial Repression is government stealing from savers and the future!"

"The single biggest problem of our times economically, is that for the last 40 years there has been an unsustainable buildup of credit expansion throughout the developed world ... and we have reached the end of the road new. Every policy by governments and their agents (the central banks) is too a) Kick the Can Down the Road and B) to steal from savers to keep this bandwagon rolling!"

THREE ALTERNATIVE APPROACHES TO ATTEMPT A RESOLUTION:

  1. Generate Sufficient Economic Growth to Keep Servicing the Debt,
  2. Repudiation or Debt Default,
  3. An Explicit Policy of State Sanctioned Inflationism.

Approach #1 and #2 or no longer realistically viable, leaving governments with only option #3. The last options has historically always been the option governments of fiat based systems have resorted to throughout the ages because of a lack of "political will and discipline".

Tim believes Japan is presently the 'dress rehearsal' and the rest of the world will be the main event.

A "FOUR LEGGED" INVESTMENT APPROACH

The pragmatic response - Ignore indices and concentrate on value.

“Investors do not make mistakes, or bad mistakes, in buying good stocks at fair prices. They make their serious mistakes by buying poor stocks, particularly the ones that are pushed for various reasons. And sometimes – in fact very frequently – they make mistakes by buying good stocks in the upper reaches of bull markets.”

  -Benjamin Graham

  1. High Quality Debt,
  2. Deep Value Listed Equity,
  3. Uncorrelated Assets and Systematic Trend Following (CTA),
  4. Diversified Real Assets

Tim recalls the words we last heard in the dark days of 2008:

"When you’re a distressed seller of an illiquid asset in a market panic, it’s not even like being in a crowded theater that’s on fire. It’s like being in a crowded theater that’s on fire and the only way you can get out is by persuading somebody outside to swap places with you .”

This is precisely what occurs when the regulatory pressures and un-natural forces of FINANCIAL REPRESSION finally ends

 

 

 

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Monday
November 10th
2014

Dr. THORSTEN POLLEIT on FINANCIAL REPRESSION

Dr Thorsten Polleit

 

SPECIAL GUEST: Thorsten Polleit, PhD is chief economist of the precious-metals firm Degussa and co-founder of the investment boutique Polleit & Riechert Investment Management LLP. He is honorary professor at the Frankfurt School of Finance & Management and associated scholar of the Mises Institute.

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Thorsten Polleit, 47, is Chief Economist of Degussa Goldhandel GmbH (www.degussa-goldhandel.de). From 1998 to 2012, he worked as an economist for ANB AMRO and Barclays Capital in Amsterdam, London and Frankfurt. Thorsten holds a diploma in economics and was awarded a doctorate in economics from the University of Münster in 1996. In September 2014 he was appointed Honorary Professor for economics at the University of Bayreuth (uni-bayreuth.de). Thorsten Polleit is an Adjunct Scholar of the Ludwig von Mises Institute, Auburn, US Alabama (www.mises.org), President of the Ludwig von Mises Institut Deutschland (www.misesde.org) and a founding member of the research network on The Role of Money in the Economy (ROME). Together with Matthias Riechert he founded the investment firm Polleit & Riechert Investment Management LLP (www.polleit-riechert.com). Thorsten Polleit writes frequently for various newspapers magazines and journals. His publication list can be found here.

Published 11-10-14

21 Minutes

When you are as well grounded in the Austrian School of Economics as Prof Dr. Thorsten Polleit, then understanding inflation is only a matter of understanding the countries changing "money stock" and the "quantity of money". As Ludwig von Mises taught - inflation always comes to an end! At some point you cannot inflate any further.

"We live in a world where the quantity of money can be increased at any point in time, in any amount politically desired. It is only a matter of political willingness to increase the stock of money ... the real risk in an unbacked money system is therefore inflation"

Prof Polleit believes there is a "lot of trickery"still to be done to avoid the ultimate catastrophe which he sees coming because of the lack of politically will to address the present economic problems and the government's fear of deflation. As a result, "it can be anticipated that future government policies will take away a large amount of private wealth".

"COLLECTIVE CORRUPTION"

"Presently there is great support to keep alive a failing unbacked "paper money" system ... Many people have become dependent on the unbacked "paper money" system, for example people holding bonds. They have a great interest that the whole monetary architecture does not collapse. So, if the choice is to bring to a halt the printing press and accept the consequences; or to be in favor of the policies to create new money, the majority of the people would opt for the former. This is why you can (and will) impose all these drastic Financial Repression measures."

FINANCIAL REPRESSION

"Financial Repression are policies that try to erode outstanding wealth. For instance governments have bonds outstanding. Through Financial Repression they try to reduce the amount of real debt of these instruments. ... They do this by controlling the interest rate and ramping up inflation so the real return on investor assets declines and inflation 'eats away' investor wealth"

NEGATIVE REAL RATES

"Negative Real Interest Rates is an instrument of the government for eroding real wealth of savers to the benefit of the government and other highly indebted interest rate groups - like the banking industry because their outstanding liabilities are getting reduced in real terms. This is the redistribution of income and wealth on the grandest scale imaginable!"

"The losers are the innocent savers with expectations of inflation being lower than it actually is or will become."

"It must be understood that wealth is being transferred!".

 

 

 

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Monday
Nov 10th,
2014

FOLLOWING JAPAN'S FAILED ECONOMIC MODEL

 

Charles Hugh Smith

 

 

Regular Co-Host: CHARLES HUGH SMITH , Author & Publisher of OfTwoMinds.com

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with Charles Hugh Smith & Gordon T Long

25 Minutes

Charles Hugh Smith and Gordon T Long discuss the failed Japanese Economic Model and what it means for those nations following the Japanese path of QE and then QQE.

It’s not just about Japan as a nation failing— but that it’s critically important to understand that the model Japan followed in the postwar era is failing.  

Japan reached preeminence via an Asian-specific form of Capitalism with these four characteristics:

FOUR FAILED PILLARS – Lessons Learned

1.    Integration of government ministries and private-sector cartels,

2.    Heavy reliance on export sectors for growth and profits,

3.    Domestic savers provide the capital for export expansion,

4.    Defaults and write-offs of bad debt cause loss of face and are thus hidden from public view

 Charles Hugh Smith spells out why all four have failed.

This model will fail in every nation that relies on it.

Japan’s response to the failure of its growth model is not a solution but an additional problem:

-- Expanding fiscal deficits to enable more government spending,

-- Monetizing government debt (Bank of Japan creates money and uses it to buy government bonds)

Is Japan’s economy unique in the world? Yes and No.

YES: It is an island state with a homogeneous populace that is culturally attuned to producing high quality goods, saving money and sacrificing individual interests in favor of the greater good.  That is unique.

NO: But the mercantilism, state-capitalist, debt-dependent model is not unique—it has been copied by other developing nations as the gold standard for rapid development.”

Japan marched down the road that all the other developed economies are presently marching down.

 

 

 

 

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Saturday
November 8th
2014

Dr. CHRIS MARTENSON on FINANCIAL REPRESSION

 

Dr Chris Martenson

 

SPECIAL GUEST: Chris Martenson, PhD (Duke), MBA (Cornell) is an economic researcher and futurist specializing in energy and resource depletion, and co-founder of PeakProsperity.com

OPEN ACCESS

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:

  1. Austerity,
  2. Default on the Debt or
  3. 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:

  1. Negative Real Interest Rates,
  2. Ring Fencing via Regulatory Controls,
  3. Elimination of warning signals such as gold appreciation.

JAPAN AS 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:

  1. Understand the problem,
  2. To importantly, take action,
  3. Be in Productive Assets,
  4. 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.

 

 

 

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Friday
November 7th
2014

JOHN BUTLER on FINANCIAL REPRESSION

 

John Butler

 

SPECIAL GUEST: JOHN BUTLER , John Butler is the publisher of the "Amphora Report", Author of "The Golden Revolution" and is Chief Investment Officer at Amphora; Atom Capital

OPEN ACCESS

John Butler has 18 years experience in the global financial industry, having worked for European and US investment banks in London, New York and Germany. Prior to launching the Amphora Commodities Alpha Fund he was Managing Director and Head of the Index Strategies Group at Deutsche Bank in London, where he was responsible for the development and marketing of proprietary, systematic quantitative strategies for global interest rate markets. Prior to joining DB in 2007, John was Managing Director and Head of European Interest Rate Strategy at Lehman Brothers in London, where he and his team were voted #1 in the Institutional Investor research survey. In addition to other research, he publishes the Amphora Report newsletter which appears on several major financial websites. A cum laude graduate of Occidental College in California, John holds a Masters Degree in International Finance and Economics from the Fletcher School of Law and Diplomacy, associated with Harvard and Tufts Universities.

Published 11-07-14

25 Minutes

John Butler saw first hand during his years with Deutsche Bank and Lehman Bros (prior to its collapse), mounting evidence of Wall Street's "natural self discipline and internal self regulation of risk taking activity being pushed aside and a huge industry bias towards excessive leverage and risk taking control". He knew it could not end well which led him to become independent of this growing institutional mindset and to search for alternative approaches.

"... valuations versus real assets is the key element of the end game"

He recognized that FINANCIAL REPRESSION was fundamentally about limiting investor choice and to further this institutional direction of increasing risk taking to finance government debt. He has therefore came to define Financial Repression from the standpoint of both a narrow and broad definition:

FINANCIAL REPRESSION

BROAD DEFINITION: "Any Policy that constrains the ability of the financial markets and investor particpants in these markets to take rational actions to invest, diversify and manage the risk of their investment as they would personally prefer to do."

NARROW DEFINITION: "A specific tool kit of policies implemented by government which indirectly confiscate the wealth of the private sector and move it to a combination of the public sector and/or "too large to fail" institutions."

FINANCIAL REPRESSION IS ABOUT LIMITING INVESTMENT CHOICE

"The whole point of financial repression is to make it difficult or impossible for an investor to protect themselves"

John feels Financial Repression "is now extremely broad based (globally) and in fact you have to look very closely to find countries not actively pursuing some mix of Financial Repression policies."

A NEGATIVE SUM GAME

Butler has argued in his Amphora Report that competitive currency debasement is "is not a zero sum game but rather a negative sum game because policy makers don't realize that by trying to devalue against each other, unseen they are undermining the very credibility of unbacked fiat currencies generally."

Increasing the BRICS are "becoming increasingly wary of where all this is going and as a consequence are diversifying not only their fiat currency reserves but are diversifying into gold, oil fields and real assets generally."

HOW INVESTORS PROTECT THEMSELVES

"The only free lunch in economics is DIVERSIFICATION. The problem is that in a world of Financial Repression, the way you diversify yourself is very different than a world where financial represion is not an issue."

"There is no way out but Currency Debasement"

John outlines in this video specifically what the "new diversification" must consist of.

He believes the Fed "will blink" as the US dollar continues to rise as a consequence "of the deflationary pressures which are spreading across the world." He sees evidence of a major trend reversal coming in 2015 and possibly before the end of 2014.

 

 

 

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Friday
October 31st
2014

NICK BARISHEFF on FINANCIAL REPRESSION

 

Nick Barisheff

 

SPECIAL GUEST: NICK BARISHEFF , Nick Barisheff is the president and CEO of Bullion Management Group Inc., a bullion investment company which provides investors with a cost-effective, convenient way to purchase and store physical bullion. Widely recognized as a North American bullion expert, Barisheff has written and been quoted in numerous articles on bullion and current market trends.

OPEN ACCESS

Published 10-31-14

33 Minutes

Nick Barisheff Talks FINANCIAL REPRESSION and the Real Chinese Gold Inventories.

FINANCIAL REPRESSION

Financial Repression is a massive wealth transfer from the savers to the borrowers, where the borrowers are primarily the government and Wall Street.  It is done so subtly that the vast majority of people are unaware of their loss of purchasing power over the years of true financial repression.

It is simply about real negative interest rates which are worse than most realize if you use John Williams' ShadowStats inflation rate of close to 10% in the US. Presently negative real interest rates are witnessed worldwide in all the heavily indebted developed economies.


These Governments haven’t been able to get out from under too much debt by either: 1- Austerity measures, 2- Taxation policies, 3- Inflation or 4- Economic Growth. The only politically expedient solution left is Financial Repression. The middle class feel this in two ways: 1- Lost interest income and 2- Earned income through wages not keeping up with inflation.

As a gold expert, Nick Barisheff believes gold should be included in investor’s portfolio as insurance. Gold should normally be 10% of assets but presently should be considered strategic and the allocation should be closer to 20%. He cites why but startling lays out the degree to which China is presently acquiring Gold.

THE REAL CHINESE GOLD INVENTORIES?

Nick believes China is closer to 5000 tons of gold than the 1000-1700 currently reported by official sources. He believes China is acquiring physical Gold in its Sovereign Wealth Fund which doesn’t have to report it to anyone. The last time they did the Chinese Central Bank Gold Reserves went from 800 to 1600 tonnes.  They haven’t reported in five years.


During this 5 years Nick argues the gold is coming from Leased Gold. There has been approximately 1500 tonnes per year in net leasing over the last 10 years.

Nick believes when this all becomes properly understood it will send shock waves through the system

GOLD EXPROPRIATION

There is no answer to how governments might react to markets suddenly pushing Gold prices up dramatically. Nick is skeptical of countries expropriating gold from its citizens like the US did in the 30’s but investors need to be prepared for surprise reactions. His view is the best answer is Diversification within the 6 Investment Asset Classes and within the Precious Metals class to be diversified between gold, silver and platinum. There have never been government attacks on Silver and Platinum.

  • Investors should be Diversified
  • Investors must Educate themselves
  • Investors Under Current Conditions should Strategically hold 20% of their

This is a most watch video for anyone interested in Gold Investing.

 

 

 

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Saturday
October 25th
2014

GRANT WILLIAMS on FINANCIAL REPRESSION

 

Grant Williams

 

SPECIAL GUEST: GRANT WILLIAMS , Grant Williams is Portfolio and Strategy Advisor for Vulpes Investment Management in Singapore−a hedge fund running $200 million of largely partners' capital across multiple strategies. Grant has 26 years of experience in finance on the Asian, Australian, European and US markets and has held senior positions at several international investment houses. Grant also writes the popular investment blog 'Things That Make You Go Hmmm...'

OPEN ACCESS

 

Published 10-25-14

38 Minutes

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.

This is a 38 minute video discussion between Grant Williams and Gordon T Long on Financial Repression.

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 Drawdowns

 

 

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Saturday
October 18th
2014

PHASE SHIFT?

 

John Rubino

 

SPECIAL GUEST HOST: JOHN RUBINO, Author & Publisher of DollarCollapse.com

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PHASE SHIFT?

Does the Current Market Volatility Signal A Trend Change in Sentiment?

Published 10-18-14

31 Minutes, 49 Slides

Gordon T Long poses three questions for debate with John Rubino regarding the current Geo-Political Event Risks and Macro Economics developments:

  1. Are the risks in fact bigger and more serious problems than we were seeing while the market was going up?
  2. Could it actually be a matter that investors are reacting differently because underlying mood / sentiment has changed for some reason?
  3. Are we unknowingly now over focusing on the Geo-Political Event Risks and Macro Economics developments as a result of the market going down (maybe for other reasons like reduced liquidity flows that no one is presently talking about - yet)?

John steps the discussion through risks such as: 1-the Islamic State, 2- Ebola, 3- The Strong $$$, 4- Japan & Europe, 5- Junk Bonds and 6- The"October" problem to illustrate that though the problems are more serious the real shift is in perceptions. He suggests that a phase shift occurs when "new headlines suddenly begin to seem both oppressive and really, really numerous, the public starts to feel that maybe we’re not okay after all!“

John suggests that the public is justified in being both confused and nervous because of the degree of market manipulation going on which has distorted price discovery, the pricing of risk and has allowed malinvestment to be hidden by continued roll-overs of every increasing levels of debt. He feels it will end, but it is impossible to know when - just that it will.

Gordon points out that the Federal Reserve still has more ammunition ready to go. He illustrates this with the recent derivatives contract signed between the Fed and the US option exchanges and well as the $300B Reverse Repo account "locked and loaded" in anticipation of any market correction that might ignite a potential cascading collateral collapse. This has the potential to change sentiment from fear to greed once the much needed bond rotation is complete.

Additionally, Gordon feels that though the central bankers are no doubt nervous they have not reached the dangerous point where they panic and pull out all the stops to protect the implosion of an over indebted and financially repressed system.

With the aid of 49 slides, this 31 minute video covers a lot of ground in an easy to follow dialogue.

 

 

 

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Saturday
Oct 4th,
2014

AMERICA'S TERMINAL POLITICAL DYSFUNCTION

 

Charles Hugh Smith

 

 

Regular Co-Host: CHARLES HUGH SMITH , Author & Publisher of OfTwoMinds.com

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with Charles Hugh Smith & Gordon T Long

25 Minutes

Charles Hugh Smith and Gordon T Long continue their discussion on Crony Capitalism in America.

HOW CRONY CAPITALISM WORKS

 -- Private interests influence government spending and regulations with lobbying and campaign contributions: Governance by the highest bidder.

-- The more successful the cronyism, the more money the corporations have to spend on lobbying, which serves to further protect their profits and share of government spending. This feedback loop rewards crony capitalism and limits classical capitalism’s key features: transparent markets and competition.

– An economy dominated by crony capitalism stagnates as competition is suppressed and government enriches those who are “more equal than others” (to borrow a phrase from Orwell)

SPECIAL INTEREST VETO POWER

-- One key dynamic in America’s political dysfunction is the veto power extended to special interests: any reform that costs them profits and/or impacts their share of Federal funds is vetoed.

-- Reform that doesn’t carry political/financial pain is not real reform

-- When every politically potent entrenched interest can veto unfavorable legislation and regulation, real reform is impossible 

ABSENCE OF REAL REFORM

 -- Without real reform, the system stagnates and manageable problems become crises.

-- Since entrenched interests refuse to accept any pain, problems fester for years beneath the half-measures and toothless “reforms” passed for public-relations purposes.

-- The problems (unfunded liabilities, explosive financial risks buried in the shadow banking system, etc.) then blossom into full-blown crises that cannot be resolved.

-- Crisis management leads to politically expedient Band-Aids that mitigate the symptoms without addressing, much less solving, the underlying political/financial diseases.

THE CRONY TRIBUTE SYSTEM

Gordon argues that Crony Capitalism today closely resembles the Roman "Tribute" System also adopted by the Mafia.Crimes being created today are met with fines. Guilty parties do not go to jail but rather the corporation pays a fine. Billion dollar crimes are assessed Million dollar fines. A percentage that closely mirrors a Tribute System. The government makes money through enforcement but not prevention. Corporations make fortunes with confidence that the government will settle for a piece of the fleecing of the people - and the game continues.

Gordon believe,s as the recent tapes released by Carmen Segarra indicate, the US regulatory system has effectively put the "Fox in charge of the Hen House"

 

 

 

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Tuesday
October 1st
2014

DOUGLAS FRENCH on FINANCIAL REPRESSION

 

Douglas French

 

SPECIAL GUEST: DOUGLAS E. FRENCH , Author, Past President of the Ludwig von Mises Institute and Casey Research Contributor

OPEN ACCESS

Douglas French of Casey Research

on FINANCIAL REPRESSION

 

Published 09-30-14

28 Minutes

He received his master's degree in economics from the University of Nevada, Las Vegas, under Murray Rothbard with Professor Hans-Hermann Hoppe serving on his thesis committee. He is the former president of the Mises Institute. He is the author of Early Speculative Bubbles & Increases in the Money Supply and Walk Away: The Rise and Fall of the Home-Ownership Myth. Douglas E. French teaches at Troy University and writes for Casey Research.

This is a 28 minute video discussion between Douglas E French and Gordon T Long on Financial Repression.

Douglas French was a banker for 20 years in Las Vegas during its heady days and has many stories including witnessing sale people selling derivative products. "There is nothing like being on the ground. It is very easy to speculate and second guess people about bubbles (how could you do that!) when you are sitting in the Ivory Tower, but it is a lot different when you are on the ground seeing the bubble from inside out".

"The biggest bubble we have is US Treasuries. The believe you can't get hurt is a quality you always see in a bubble. The idea that lending an entity, that is $17T and going to $18T and beyond in debt, and will never be able to pay that back and the idea that you will get 2.5% for 10 years and it is 'return free risk' is certainly bubble territory!"

FINANCIAL REPRESSION

“You have PhD’s at the Fed trying to create economic growth with inflation and low rates. The repression is that people like you and I won’t ever be able to retire because we won't be able to get any return on our money so we can prop up the government and keep it in business."

This is the overall Macro Strategy of the government but central planning has never worked! ..... They are essentially trying to print their way out of a jam! ....... Because of Financial Repression almost ¾ Trillion dollars has gone to the government that should be in private hands!!!"

FRENCH WARNS INVESTORS

  • People should be worried about their pensions,
  • People should be worried about the Fed's Repo market and primary dealer delivery failures. This will likely be the cause of the next crash. Money Managers are playing musical chairs every quarter to keep this game going.
  • People should be concerned about liquidity seizures which need to be closely monitored as money managers currently scramble for collateral.
  • "Collateral through Rehypothecation has been pledged and pledged, over and over again.... the average person is going to extraordinarily shocked by something they never saw coming because it is something that is hard to explain and hard to understand".

 

 

 

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