Douglas French of Casey Research on Financial Repression
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!"
"You have PhD 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 be extraordinarily shocked by something they never saw coming because it is something that is hard to explain and hard to understand".
28 Minute Video: Doug French on Financial Repression
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