This shocking article on financial repression may be of interest to those who have or aspire to have some wealth. As governments try to get out of debt, all sorts of dirty tricks are used. Claims by eg Krugman that the US has been in this level of indebtedness before (eg after WWII) take on a new meaning in the light of this information. tl;dr - governments will steal the money back through inflation and other means.stopsareforwimps wrote:Until a few moments ago I had a long position in the Euro, as a partial hedge against short positions on various Euro country stocks.
THE LIQUIDATION OF GOVERNMENT DEBT
Carmen M. Reinhart
M. Belen Sbrancia
Historically, periods of high indebtedness have been associated with a rising incidence of default or restructuring of public and private debts. A subtle type of debt restructuring takes the form of â€œfinancial repression.â€