Repression, financial and silent expropriation

In a narrower sense, this refers to coercive measures by which states keep their financing costs low without having to resort to spending cuts and thus violate Constitutional Article One. The measures – usually implemented by the domestic central bank – are thus aimed at giving the state access to fresh capital on terms that would not be achievable on the free market. In the course of this, interest rates are pushed down, and the resulting very low deposit rates are eaten up by inflation. This then leads to negative real interest rates. As a result, savers, old-age pensioners and investors suffer losses in purchasing power and capital. These losses by the owners of the bonds ultimately reduce the national debt. – In other words, this is a clandestine influence on nominal interest rates, which is not subject to any democratic decision-making process, with the purpose of redistributing savings to debtors and thus, above all, to indebted states. – In a broader sense, also measures such as – requiring banks to buy and hold a certain amount of government bonds in their portfolios (requiring domestic banks to buy and hold government debt instruments via regulations), as was done in Italy for a long time, – interfering with the free movement of capital (government restrictions on the transfer of money abroad through the imposition of capital controls) or even – the takeover of control of institutions by the state (government ownership or control of domestic banks and financial institutions with simultaneous placing of barriers before other institutions seeking to enter the market). – See presumption, central banking, carry traders, expropriation, cold, financial investment, leadership, verbal, Italian method, negative interest rate, low interest rate policy, zero interest rate, quantitative easing, debt drug, redistribution, central bank-induced, debt stimulus, path inflation, interest rate allocation function, interest rate cut policy.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/