Grant Williams and Gordon T Long discuss Financial Repression
This is a 38 minute video discussion between Grant Williams and Gordon T Long on Financial Repression.
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.
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
- Be Engaged,
- Understand What is Happening,
- Question What You Are Being Told,
- Be Cautious,
- Avoid Potentially Large Draw-downs
38 Minute Video: Grant Williams and Gordon T Long discuss Financial Repression