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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Elroy Jetson who wrote (125846)12/9/2016 5:01:39 AM
From: Snowshoe  Read Replies (2) | Respond to of 217686
 
Not sure if TJ is using "suppression" interchangeably with "repression", or if he means something different. Here's a recent WSJ article on financial repression...

It’s Called Financial Repression, and Governments Around the World Are Doing It
Countries are adopting policies to encourage or require savings to be lent cheaply to the government


By James Mackintosh
Updated Aug. 1, 2016 5:08 p.m. ET

The money markets are screaming about a global shortage of dollars. Financial stress indicators are flashing yellow. The Bank of Japan on Friday took special measures to help its banks access greenbacks, and interbank borrowing rates for dollars are at the highest level since 2009.

In the 2008 and 2011-12 panics, the money markets acted as a warning of a credit crunch, as trust between lenders and borrowers broke down. This time, though, the signs of stress are a result of something else: The campaign by governments to direct financing to themselves, limiting access by the private sector.

In the U.S., there are legal changes under way in the money markets, which is prompting money to shift from “prime” funds, which buy short-term debt issued by companies, to instead buy short-term debt issued by the U.S. Treasury.

This is merely the latest example of what academics call financial repression, a broad category of government policies adopted to encourage or require savings to be lent cheaply to the government. Repressive policies were the norm in Western markets for decades following World War II. That was until the financial liberalization was begun by Margaret Thatcher in the U.K. and then-President Ronald Reagan in the U.S.

More: wsj.com