Financial Repression

By: Gordon Long & Nick Barisheff | Fri, Oct 31, 2014
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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.

Nick Barisheff is the President and CEO of Bullion Management Group Inc.

33 Minutes

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

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.

Real Interest rates in G7 Countries

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.

Country Gold Holdings

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.

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

 


 

Gordon Long

Author: Gordon Long

Gordon T. Long
Publisher - LONGWave

Gordon T. Long

Gordon T. Long has been publically offering his financial and economic writing since 2010, following a career internationally in technology, senior management & investment finance. He brings a unique perspective to macroeconomic analysis because of his broad background, which is not typically found or available to the public.

Mr. Long was a senior group executive with IBM and Motorola for over 20 years. Earlier in his career he was involved in Sales, Marketing & Service of computing and network communications solutions across an extensive array of industries. He subsequently held senior positions, which included: VP & General Manager, Four Phase (Canada); Vice President Operations, Motorola (MISL - Canada); Vice President Engineering & Officer, Motorola (Codex - USA).

After a career with Fortune 500 corporations, he became a senior officer of Cambex, a highly successful high tech start-up and public company (Nasdaq: CBEX), where he spearheaded global expansion as Executive VP & General Manager.

In 1995, he founded the LCM Groupe in Paris, France to specialize in the rapidly emerging Internet Venture Capital and Private Equity industry. A focus in the technology research field of Chaos Theory and Mandelbrot Generators lead in the early 2000's to the development of advanced Technical Analysis and Market Analytics platforms. The LCM Groupe is a recognized source for the most advanced technical analysis techniques employed in market trading pattern recognition.

Mr. Long presently resides in Boston, Massachusetts, continuing the expansion of the LCM Groupe's International Private Equity opportunities in addition to their core financial market trading platforms expertise. GordonTLong.com is a wholly owned operating unit of the LCM Groupe.

Gordon T. Long is a graduate Engineer, University of Waterloo (Canada) in Thermodynamics-Fluid Mechanics (Aerodynamics). On graduation from an intensive 5 year specialized Co-operative Engineering program he pursued graduate business studies at the prestigious Ivy Business School, University of Western Ontario (Canada) on a Northern & Central Gas Corporation Scholarship. He was subsequently selected to attend advanced one year training with the IBM Corporation in New York prior to starting his career with IBM.

Gordon T Long is not a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. Of course, he recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and barring that, we encourage you confirm the facts on your own before making important investment commitments.

The information herein was obtained from sources which Mr. Long believes reliable, but he does not guarantee its accuracy. None of the information, advertisements, website links, or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. Please note that Mr. Long may already have invested or may from time to time invest in securities that are recommended or otherwise covered on this website. Mr. Long does not intend to disclose the extent of any current holdings or future transactions with respect to any particular security. You should consider this possibility before investing in any security based upon statements and information contained in any report, post, comment or recommendation you receive from him.

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Nick Barisheff

Author: Nick Barisheff

Nick Barisheff
Bullion Management Group Inc.

Nick Barisheff

Nick Barisheff is the founder, president and CEO of Bullion Management Group Inc., a company dedicated to providing investors with a secure, cost-effective, transparent way to purchase and hold physical bullion. BMG is an Associate Member of the London Bullion Market Association (LBMA).

Widely recognized as international bullion expert, Nick has written numerous articles on bullion and current market trends that have been published on various news and business websites. Nick has appeared on BNN, CBC, CNBC and Sun Media, and has been interviewed for countless articles by leading business publications across North America, Europe and Asia. His first book, $10,000 Gold: Why Gold's Inevitable Rise Is the Investor's Safe Haven, was published in the spring of 2013. Every investor who seeks the safety of sound money will benefit from Nick's insights into the portfolio-preserving power of gold. www.bmgbullion.com

The opinions, estimates and projections stated are those of the author as of the date hereof and are subject to change without notice. The author has made every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and contain information and opinions, which are accurate and complete. Neither Nick Barisheff, nor Bullion Management Group Inc. or any of its affiliates take responsibility for errors or omissions which may be contained therein. Neither the information nor any opinion expressed herein constitutes a solicitation for the sale or purchase of securities, and investors are encouraged to seek advice from a qualified investment advisor before making any investment decisions.

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