Sentences with phrase «so financial repression»

So financial repression was a very difficult outcome to measure against the broad economic outcomes.

Not exact matches

This is why understanding financial repression is so important to understanding the way in which China will adjust.

China's huge portfolio of NPLs at the end of the 1990s (perhaps as much as 40 % of total loans) was resolved by a decade of severe financial repression, so that lending rates of around 7 % — in an economy in which GDP grew nominally by 18 - 20 % and the GDP deflator usually exceed 8 % — implied substantial debt forgiveness.

Companies go broke when they have no liquidity, so what financial repression has done is push liquidity into the system.

And so in terms of financial repression, perhaps the one key sector that we need to look at is student loan debt because so many millennials are carrying student loan debt, and you know a small student loan debt is like $ 25,000 - $ 30,000 if someone can escape with a bachelor's diploma and only have $ 30,000 in debt they're considered to have done quite well, but when you think about it that's a pretty large debt for somebody who doesn't even have a full - time job yet.

So again, this is as you and I talked from a financial repression perspective, this is a very empowering concept because it's putting control back in the hands of individuals and really away from governments and big companies because they're not needed as the middleman.

So when you go to financial repression rather than us pulling our money out of the system and hoarding it, they would force us to use an electronic currency which they can control.

Negative real interest rates on Treasuries 15 years out; that is financial repression, and that can't happen without the Treasury and Fed conspiring to do so.

So, at the margin, an investor would probably be wise to give equities a little more benefit of the doubt, and hence a little more weight in their portfolio than they would do, if the Fed weren't pursuing policies of financial repression.

However... demographic trends and financial repression (the need for governments to maintain a supply of coerced purchasers of their bonds) suggest that developed market equities won't be a great investment class for the next ten years or so.

If avoiding a painful recession requires zero or negative interest rates that juice up asset prices and force investors — through financial repression — to reach for yield and take more risk than they should, then — so the wisdom of today's central bankers» goes — so be it.