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Nearly all of us grew up thinking that we registered ourselves to prove that we were safe and responsible. We advertised our services as “registered” or “licensed,” and we never thought about it beyond that point. After all, that was the way things were done, and we knew that it would help our customers trust us.

There is, however, another side to registration, one that’s about to bite a lot of decent people… and hard.

What Is Registration, Really?

What did we do when we registered with a government agency? We gave them our name, address, birthdate, and so on. If we thought about it at all, we thought that they were acting as some kind of guarantor of our services. But what really happened was that we told them how to find us and hurt us.

Registration involves making ourselves easy to find by enforcers, and placing ourselves at their mercy. Yes, I know that we did it ignorantly (I know I certainly did) and out of necessity, but we did hand our best “how to find me” information to enforcement agencies.

Now, what I’ve described above involves commercial and professional registrations. Unfortunately, the same thing applies to bank accounts and retirement accounts. When you register those with a government, you are telling them where your money is and making it very easy for them to seize it.

Trillion Dollar Deficits

In recent years, the US government has been spending a trillion dollars per year more than it takes in. (And there are many additional factors at play.) The European situation is different, but not particularly better.

These situations can only last so long. At some point, the governments will need more money, especially as banks are ready to fail.

Governments will protect the big banks, at the expense of the citizens. You should take this seriously, and now.

Warning Shots

Just a week or two ago, the International Monetary Fund (IMF) published a horrifying paper, called The Fund’s Lending Framework and Sovereign Debt. That paper, in turn, was based on one from December 2013, calledFinancial and Sovereign Debt Crises: Some Lessons Learned and Those Forgotten.

Major media ignored all of this, of course.

The December 2013 document, right at the start, says that “financial repression” is necessary. Here’s what it says (underlining mine):

The claim is that advanced countries do not need to resort to the standard toolkit of emerging markets, including debt restructurings and conversions, higher inflation, capital controls and other forms of financial repression.

It continues:

As we document, this claim is at odds with the historical track record of most advanced economies, where debt restructuring or conversions, financial repression, and a tolerance for higher inflation, or a combination of these were an integral part of the resolution of significant past debt overhangs.

So, in order to fix debt overhangs – currently at horrifying levels – financial repression is not just an option, but required.

That’s not my interpretation; those are their words.

And, of course, they’ve already had a trial run, when they stole funds directly from individual bank accounts in Cyprus, just last year. Here’s how that went down:

Written by Paul Rosenberg
Read more at Casey Research

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