A Black Hole In Economics: Money Creation And Its Consequences, Session Eight: How To Defeat Financial Repression
Financial repression is altering the investment environment, requiring an approach to saving and investing that is different from what has worked over the last 20 years
We’ve come a long way in the last eight weeks. We’ve seen how money creation, which occurs only in commercial banks, can be used to promote economic progress. We have also seen how money creation is increasingly influenced by government actors like the central banks, regulators, lawmakers, and heads of state. We found that when money creation is directed or influenced by governments, they can run up unpayable debts, which cause great stress in government budgets and damage economies.
Last session, we made the case that in responding to these high debts, governments will, or in some cases already have, commence a program of financial repression to pay down some of this debt. The key features of any such program are moderate to high inflation and repressed interest rates for an extended period, perhaps a decade or more.
Today, I would like to talk about what to do about it. While I don’t make detailed investment recommendations, fear not! I've compiled a list of talented investment advisors who can guide you on your quest. These are the same experts I trust to help manage my small family office in Jackson Hole, Wyoming. They are all listed in the attached PDF file.
I receive no compensation from any of these experts. As far as I know, they have no idea I am recommending their services.
As usual, you can enjoy the video at a replay speed 1.25x. Please forward this to anyone you think might benefit.
🫶 ❤️ this Stack - or risk financial repression!
Thanks for reading and listening.
HardmoneyJim
January 27, 2024
A agree, there is a way all of us can do a better job of protecting ourselves from an insane monetary policy that we can't quickly bring to and end. I'm hoping you do more than just a discussion of money in your book, delving into the philosophy that undermines human affluence.
Briefly, as I age I think ever more about Ayn Rand's words, paraphrased, 'fix the fundament error and the rest will self-correct.' And I then think of just how much human energy is expended, largely in a place-holding activity, in an attempt to slow the irrational course. Both the energy and the financial fields abound with constructive dialogue yet the insanity overrules every intelligent discussion.
When a simple, 'end market manipulating,' would solve the problem, everyone argues for 'raising the intellectual caliber of the manipulators.' Titanic deckchairs come to mind.
Collectivism and altruism, the rejection of reason in an argument and fundamentally, that reality is mailable, destructive thinking that virtually continues unchecked.
Some years ago, I wrote an essay about where social problems stem from and that Objectivism was the solution. Your money course makes me think I might revise it with a better opening. Cheers.