The Coming Great Wealth Transfer (Spoiler Alert! It's Already Here)

Editor's Note: The following is a guest post by Chris Martenson with PeakProsperity.com.

In the past, I've warned about the coming Great Wealth Transfer. But now we need to talk about it in the present tense, because it’s here.

And it will only accelerate from here on out. The Rich will get richer at the expense of everybody else.

This isn't personal. It's simply a feature of what happens near the end of a debt-based monetary system run by corruptible humans.

Of course, those in charge don't think of themselves as corrupted or villainous. I'm sure that Federal Reserve Chairs Greenspan, Bernanke and Yellen all think of themselves as good and decent people doing "God's work". But the truth is they've irrevocably harmed millions -- if not billions -- of innocent people.

They and other central bankers have become the standard bearers of a system that can best be described as a reverse Robin Hood scheme, one that takes from the poor and gives to the rich. It’s just that in this tale, the ‘poor’ means everybody not in the top 1%.

So you need to understand this wealth transfer process -- how it works, who's perpetrating it, and what dangers to watch for. If not, you'll be a victim of it. And you'll probably live in confusion and shock by how hard just 'getting by' becomes going forward.

Realizing that you're being specifically targeted by a system determined to separate you from your wealth is the essential first step towards figuring out how to evade the predators and protect yourself.

The Great Wealth Transfer

It isn't just some academic concept. It's a playbook that's been used many times in the past by governments to forcibly extract wealth from the public and use it for the benefit of those in power.

The first part of this Wealth Transfer process is called Financial Repression. It's an extremely effective -- and nefarious -- financial engineering scheme, which we've discussed here at PeakProsperity.com many times over the years -- notably here, here, here and here.

Financial Repression is enacted when governments take on too much debt (which they often do!) and find themselves with few politically acceptable ways of escaping that situation. So, in ways both overt and covert, they conspire to use the public's savings to dig the government out of its debt hole.

The formula for Financial Repression works like this:

Step 1: A government (or an entire nation) gets into trouble by borrowing too much.

Step 2: Rather than pay this debt down honestly via cutting spending (unpopular) or by defaulting (even more unpopular), the government conspires with the central bank to slowly liquidate its stack of obligations by forcing negative real interest rates on everyone -- that's when you get paid less in interest than the current rate of inflation. So if you're getting 0% on your savings, but annual price inflation for the things you need to live is more like 5% (sound familiar?), you lose.

Step 3: But there’s a problem. Negative interest rates don’t work if people can dodge the Financial Repression by parking their money safely elsewhere. So a ring fence has to be built -- using capital controls and explicit interest rate caps on and across the whole spectrum of interest-bearing securities. Nobody can be allowed access to investments offering positive interest rates. And to prevent people from simply hiding their wealth under their mattresses, cash can be outlawed. (This is what the "war on cash" and the talk of moving to a "cashless society" is really about.)

Step 4: Sit back and watch with glee as everyone with savings silently and steadily has their purchasing power transferred to the debtors, be those public or private entities. You see, lower real interest rates not only reduce the government's costs of servicing its debts, but they erode the real value the debts themselves. The government is deliberately killing the value of the money we've worked hard to earn and save, for the sole purpose of avoiding the consequences of its reckless borrowing. They get a hall pass; we get screwed.

This is theft, plain and simple -- engineered theft of the highest order. It takes from the many, without their consent. It's not openly debated, put up to a vote, or even openly admitted to. It's deliberately done behind the public's back.

This is what Janet Yellen and her merry band of thieves at the FOMC are carefully administering. Seniors who can't afford to live on their savings? Young adults who can't afford to buy a home? The central bankers ignore them, as well as the social pain and economic misery their policies are inflicting on hundreds of millions of people.

But make no mistake, the loss of income that the Financial Repression inflicted by these sociopaths has harmed the elderly, pensioners, savers, and the young. Plus inflated the biggest asset bubble in history, which will make 2008 look like a picnic when it bursts. All to prolong the government's out-of-control spending addiction a little bit longer, and to put even dollars into the pockets of the banks and the wealthy Elite.

So Financial Repression is Act I of the Great Wealth Transfer. It’s happening now, and it will likely persist for a lot longer. Sadly, it will continue for as long as the banks, the Fed, and the politicians can get away with it -- until the economy collapses under all the debt and/or the impoverished public breaks out the torches and pitchforks.

The middle class will experience this as a steady erosion of their financially security. It’s a drip, drip, drip style of torture. Every year, your income and savings will buy less. The value of your money will be in terminal decline.

Those who don’t understand Financial Repression are probably still confused by Trump’s victory. But if you realize that the vast majority of the people of the United States (and Europe and Japan) have been tossed under an economic bus to help serve the narrow interests of a tiny financial elite, and are barely hanging on to a middle class lifestyle as a result, electing an anti-establishment firebrand candidate suddenly makes a lot more sense. It explains the similar rejection of incumbents we're now seeing across Europe.

Virtually everybody in the bottom 95% is being economically and financially sacrificed to bail out the prior bad decision of the central banks and their associated governments. And as that’s deeply unfair, it breeds resentment. Psychology tells us that resentment breeds contempt. And once there, relationship are doomed to fail. Our leaders have broken their covenant with the governed, and the governed are increasingly pissed. Expect that simmering anger to boil over at some point.

But, as mentioned, Financial Repression is just Act I. Act II is a lot more ugly.

Financial Repression is a way to delay the day of reckoning. That day will still arrive, and be all the more destructive for the pent-up forces that have built up during the delay.

At the heart of the matter here is that too many debts, too many claims, have been created. There's a finite amount of "real stuff" in the world (productive companies, farmland, mineral ores, timberland, buildings, railways, waterways, etc). But with each new issue of debt, the claims on that real stuff multiply.

So what's at risk here is an inflection point where the world realizes it's holding a lot of paper, but little of substance. At that moment, the value of nearly every financial asset -- stocks, bonds, mortgages, derivatives -- even and especially our own currency -- will be sharply, painfully reduced.

In Part 2: Winning The Great Wealth Transfer, we detail what that re-adjustment process will look like and where the carnage will be most extreme. More importantly, we explain that even though the paper losses will be staggering, the number of "real things" -- those factories, acres and commodities -- won't have changed at all. Merely their ownership will have changed. And that will make all the difference in determining winners and losers.

Democrat Mutiny? These prominent Progressives and Democratic leaders DEMAND that Biden withdraw

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Biden is still taking hard blows from both sides of the aisle after his abysmal performance in last month's presidential debate. As Glenn pointed out in his post-debate coverage, Biden came across as so incompetent that it has made many Americans scared that, should the country face a major threat, Biden would be unable to respond to it. This includes many Democrats, who are finally admitting that Biden isn't as fit as they have been claiming for the last four years.

Many names have already been suggested as potential replacements for the Democratic nominee, but many people, including some Democrats, don't believe Biden should even stay in office for the election. Here are some prominent progressives and Democratic lawmakers who have called for President Biden's resignation:

Rep. Lloyd Doggett (Texas)

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Rep. Raúl Grijalva (Arizona)

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Rep. Seth Moulton (Massachusetts)

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Rep. Mike Quigley (Illinois)

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Rep. Angie Craig (Minnesota)

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Rep. Adam Smith (Washington)

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Rep. Mikie Sherrill (New Jersey)

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Rep. Pat Ryan (New York)

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Rep. Hillary Scholten (Michigan)

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Senator Peter Welch (Vermont)

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Rep. Earl Blumenauer (Oregon)

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BONUS: Actor George Clooney

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These TOP 5 new technologies left Glenn SHOCKED

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Glenn has been covering some of the most groundbreaking, exciting, and often terrifying technological advances. Some new tech has the potential to make a positive impact. Some tech is just SUPER cool, like a flame-throwing robot dog. However, there is also a dark side to technology. Glenn exposes how some new technological developments, particularly in the realm of AI, pose serious ethical questions.

Here are the top five new technologies that Glenn covered that will make your jaw drop:

Anti-gravity device

This new technology developed by Dr. Charles Buhler and his team may change everything we know about transportation and travel. Described as "propellant-less propulsion" by Dr. Buhler, this technology appears to defy gravity and is potentially a way for people to travel into and through space without the need for rockets. It doesn't stop there either, this tech could be used to forever change the way we travel here on Earth.

Human embryo-powered supercomputer

To have massively powerful AI, something, which many people seem to have an invested interest in, you need a lot of electricity to power the computers that host the artificial intelligences. Naturally, this energy consumption upsets the environmentalists so in response a terrifying solution was developed. Bio Processors are essentially computer chips powered by human cells, specifically stem cells, which are predominantly harvested from embryos. These Bio Processors have a limited shelf life, meaning they need a steady supply of stem cells to keep the computers that use them operational. What could be more terrifying than an AI that eats human cells?

Voice-stealing AI

When ChatGPT came out in late 2022 its power and versatility took the world by storm. Suddenly, students had it write entire essays in mere seconds, and it was creating songs and poems with ease. The capabilities of the ChatGPT AI were as disturbing as they were impressive, but after a recent update, it took a hard turn towards disturbing. OpenAI, the company behind ChatGPT, decided to give the program a voice and tried to recruit famous actress Scarlett Johansson to lend her voice to the machine. After she declined the offer, OpenAI went ahead and released the update for ChatGPT featuring a voice that sounded eerily similar to Johansson's. While OpenAI claims it's a different, similar-sounding voice actress, the idea that a computer is going around with your stolen voice is terrifying.

Flamethrower robot dog

How could you possibly ever make something cooler than a flamethrower? Simple, strap it to the back of a robotic dog of course! Originally built to help fight forest fires (ironically enough) by creating backburns, Glenn pointed out that a pack of these bad boys patrolling your property would be the ultimate home defense. Nobody would come anywhere near your house if it was guarded by a few of these firey companions.

Wormhole-generating UFO's

It's been a decade since the tragic disappearance of Malaysia Airlines Flight 370. No trace of the aircraft or any of its passengers, except a few small pieces of debris, were ever found nor was an official cause of the disappearance ever given. There have been an infinite number of theories explaining what might have happened, but this one from investigative journalist Ashton Forbes might take the cake for the wildest. Forbes joined Glenn on his radio show and brought with him convincing video evidence that seemed to show the now-missing aircraft being circled by three mysterious orbs before suddenly disappearing in a flash of light. Does this video show the doomed aircraft being sucked into an artificial wormhole, or is it an amazing piece of hoaxwork?

THESE TOP 10 Founding Fathers' quotes help us remember America's original vision

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Independence Day is one of the few days when Americans come together to celebrate our country and the continued vision that our Founding Fathers crafted in 1776. But what is that vision? It seems with every passing July 4th, Americans lose even more of a sense of what the original intent of our nation was supposed to be. It's becoming increasingly important to read the Founding Fathers in their own words and to remember the vision that they cast for our nation. Here are our TOP 10 favorite Founding Fathers' quotes to help us remember their original views of government, freedom, and the American vision.

"The advancement and diffusion of knowledge is the only guardian of true liberty." —James Madison

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"Either write something worth reading or do something worth writing." —Benjamin Franklin

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"Truth will ultimately prevail where there is pains to bring it to light." —George Washington

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"The people are the only legitimate fountain of power." —James Madison

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"I agree with you that it is the duty of every good citizen to use all the opportunities, which occur to him, for preserving documents relating to the history of our country." —Thomas Jefferson

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“Human passions unbridled by morality and religion… would break the strongest cords of our Constitution as a whale goes through a net.” —John Adams

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"Those who stand for nothing will fall for everything." —Alexander Hamilton

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“The essence of Government is power; and power, lodged as it must be in human hands, will ever be liable to abuse.” —James Madison

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"I fear that in every elected office, members will obtain an influence by noise, not by sense. By meanness, not greatness. By ignorance, not learning. By contracted hearts, not large souls. There must be decency and respect." —John Adams

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“We must go home to be happy, and our home is not in this world. Here we have nothing to do but our duty.” —John Jay

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We live in a dark time, so it is more important now than ever to make sure you are anchored to the truth.

Glenn was recently on the “Chicks on the Right” podcast for a follow-up interview after Amy Jo Clark and Miriam Weaver joined Glenn on his podcast back in March. The three dove into a lively discussion that touched on several things happening in Glenn's personal life, and Glenn delved into the importance of truth in our increasingly Orwellian society.

Glenn told the “Chicks” about his upcoming first novel for young adults, Chasing Embers, which is set in a dystopian world where the wildest WEF fantasies have come true and history has been completely rewritten. Glenn revealed that he was inspired to write the book while reading Karl Marx. He reflected on how Karl Marx was, and still is in many cases, considered this articulate revolutionary, but when compared to the words of the Founding Fathers, his articulation and arguments pale in comparison. He wanted to explore the idea, "What if Jefferson was the revolutionary again, not Marx?" Chasing Embers asks how we preserve the philosophies of the founders and the values of the Constitution so that our children have a chance to discover it if the world turns completely upside down.

Glenn also discussed how important it is to learn history, to anchor yourself in truth, God, and the Constitution, and our responsibility to preserve them in the face of the dystopian movement that is increasingly encroaching on Western civilization. Glenn described the country as "suicidal" and posited whether we can rein in a nation that is hurdling itself towards the brink. He said we can do our part to help, but unless the country decides it wants to live, it will die. We have to be prepared to endure such a scenario with our morals intact and the necessary knowledge to rebuild on hand.

Towards the end of the conversation, Glenn revealed some of the lessons he's learned in his decades on radio. He said that you have to know yourself--both the good and bad--be ready to defend your beliefs, and admit when you are wrong.

This is a podcast you won't want to miss. Click here to listen to the FULL discussion.