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.

Far away fields are always greener.

It is easy to look at someone else's life or another country and wish you were more like them.

Americans can be guilty of this. It could be Bernie Sanders wishing America was politically more like Sweden or other European socialist countries. It could be an American who finds out I'm Irish, been trying to move to America for over 17 years, and thinks, "Oh Jonathon, Ireland is a lovely free country - stay there. America has problems right now. You would not like it here."

Today, I want to take you on a journey and compare our nations' attitudes toward Coronavirus and the policies currently in place for "our protection."

I would also ask you to imagine you were in my shoes. Ask yourself which country you would want to live in.

Role of Government

Before discussing restrictions, it is critical to understand the very different governmental systems within our two countries. America is blessed to have a federalist system where states have considerable control over what happens in their states. DC, in theory, holds very little power.

Ireland is the exact opposite. We are a democracy with a big centralized government. The vast majority of power lies with our Taoiseach (Prime Minister) and his cabinet. Local states have no control, as our restrictions are countrywide.

America
  • America's restrictions vary from state to state. You will find the majority of businesses are open but operating with some restrictions.
  • Churches, malls, retail, gyms, cinemas are mostly all open.
  • Bars and restaurants are open but usually at a reduced capacity.
  • Schools have moved to online learning.
  • No travel limits.
  • Travel between states is allowed, but some states like Alaska require a negative Covid test.
  • Guests are allowed in homes, but some states have a limit (but not enforced).
  • Masks are either advised or mandatory in different states.
  • Social distancing is required.

When researching this article, the most prominent complaints were restrictions on visiting loved ones in hospitals and nursing homes. These restrictions have upset many people because you have a proud history of believing in individual freedoms. The government is not your parent and does not have a right to tell you how to live.

Now let me introduce you to Ireland.

Ireland

Ireland is currently on the highest level of lockdown possible and has been since Christmas Eve. We are officially on lockdown until March 5th, and our lockdown is getting more severe. Our government has already confirmed lockdown will be extended until After Easter.

Ireland has a stay-at-home order in place, and you are to work from home where possible.

  • "Essential" retail is open but with stupid rules. Some of our shops are half-open and half-closed. Imagine a Walmart that is allowed to sell food, but large parts of the clothing section are closed because they are not deemed essential.
  • Non-essential retail is now fully closed. At the start of lockdown, outlets were allowed to offer a click-and-collect service – but that has now been banned.
  • Gyms and cinemas are all closed. Ø Bars and restaurants are closed and unlikely to re-open until mid-summer.
  • Schools have moved to online learning.
  • No guests are allowed in homes or gardens.
  • Masks are mandatory and with fines.
  • Social distancing is required.
  • Churches are allowed to open for private prayer, but the mass is strictly online. This has caused a lot of distress for families. Ireland is a Catholic country. I know many older people who have not received communion since last March. My mother is a funeral director and has witnessed the pain caused to families, as only ten people are allowed to attend a funeral, regardless of the Church's size. Imagine a large family deciding what ten people can attend? How do you choose that? Sadly, the Irish Church is spineless and accepts every rule the government passes.
Additional Tyranny

Very few businesses are open right now, but that is not the end of the restrictions. There are limits on how far you can travel. I am currently off my work because of Coronavirus restrictions. There are two legal reasons I can leave my house: personal exercise/walk the dog and to purchase food/essential items from the store. These activities must be completed within three miles of my house.

My human right to privacy has also been crushed. If I decided to get in my car tomorrow and just drive, I would encounter several police checkpoints where I would have to disclose where I live, where I am going, and the purpose of my trip. If the trip is not essential, I will be told to return home and likely given a fine.

Tyranny North Korea Style!

Most countries have border controls, all with similar intent: control who enters the nation, set how long they can stay, and mandate what they can do.

The one exception to this rule is North Korea. Their intent is not to control who enters. Instead, they seek to ensure no one leaves and defects to the South.

As you can imagine, life in Ireland is not exactly pleasurable with the above restrictions. This is especially the case for people like me who suffer from severe depression and are desperate to escape.

If tomorrow I woke up and decided I want out (which I very much do) and found a country I could enter legally, I AM NOT ALLOWED TO LEAVE.

The Irish government has deemed all international travel is not essential and has placed police at all our ports and our airports. If I attempt to go to the airport, I would be greeted at a police checkpoint outside the airport, told my journey is not essential, and sent home with a fine. Currently, the fine is €500 ($600). New legislation is being discussed in parliament to increase the penalty to €2,000.

The police have new powers for people who get past the checkpoints and continue to travel overseas. When they return to Ireland, they can be sent to jail for a month. They will also have a criminal record – that record would likely disqualify the person traveling to countries like America and Australia.

Irish People

I could talk to you all day long about why America is unique and exceptional. There are so many different reasons. One of the reasons is your people, and I highlight Alexis de Tocqueville's sentiments, who said, "America is great because Americans are good." Americans have this rebellious streak in their soul, and it can be traced all the way back to the Pilgrims on the Mayflower. This great spirit is based on being an independent sovereign individual and wanting to live life to the fullest and not be stopped or controlled by ANY government.

Irish people are good and decent. However, they do not share the same characteristics. They believe and support government control because it is all they have ever known.

If you ask the average Irish person about the current government, he will likely tell you he dislikes one of the parties involved or an individual leader. Yet, ask that same person what he thinks about the restrictions, and he will defend them. I hear some say they believe the government has not done enough.

On the rare occasions that people break restrictions, the most significant backlash will likely come from the community, as they brand those people selfish and irresponsible.

Going Forward

The damage from Covid is going to be around forever. Our actions have caused damage to our mental health and the economy (with businesses closing and jobs lost). This will cause poverty. This is made worse by governments' reckless spending and borrowing of money we simply do not have.

However, I would argue we have a much bigger problem stemming from Covid: social acceptance of governmental control in a "crisis."

When a government is powerful enough to compel someone not to leave their house, define their job as non-essential, or tell someone they can't hug their grandparent, what exactly is off-limits? What control or power is a line government won't cross for the "common good"?

Most importantly, do you think governments worldwide will fix this issue and give back the powers they have taken? Or is it more likely we will just move onto a new crisis – maybe climate change or the Great Reset?

This is why the world needs America. We don't need the American military to intervene and save us.

We NEED America to rediscover why you are an exceptional nation. We NEED you to be the statue of liberty shining out the beacon of light, hope, and freedom for the world where your actions remind all of us what is possible when we unleash the energy and individual genius of mankind. If we work hard to reapply these principles, we can take another 5,000-year leap forward together.

Writers note: The policies listed here are based solely on Ireland. However, you see very similar restrictions in England and throughout Europe.

Jonathon Dunne is a keynote speaker, weekly podcast host on Blaze Media, and published author on major platforms such as The Blaze, Glenn Beck, Libertarian Republic, Western Journalism, and Constitution. Since 2012, he has reached millions with his message of American exceptionalism.

You can find him on social media – Facebook, Twitter, MeWe

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Crenshaw called the military's efforts to rid their ranks of extremism, "so obviously and clearly politically motivated," as the entire premise is based on reports that some active service members and veterans participated in the Jan. 6 storming of the U.S. Capitol.

"Mathematically, that's not a good indication of where active duty military stand or where veterans stand more broadly," Crenshaw said of the generalization that military personnel are extremists. "And I thought we were against that kind of profiling. Right? I thought that was against the liberal values that supposedly the Left stands for."

"But, Glenn, you know very well the Left is not liberal," he added. "The Left is very anti-liberal. And I think as conservatives, we have to say that more often. They have become genuinely authoritarian. Progressivism is not in sync with liberalism. All right? There's a big difference between an Alan Dershowitz liberal and a Democrat Party progressive. They're totally different."

Watch the video clip below to catch more of the conversation with Rep. Dan Crenshaw:

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Photo by Chip Somodevilla/Getty Images

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Given how focused Democrats are on rooting out vaguely defined "right-wing extremism," Garland's work in supervising the prosecution of the 1995 Oklahoma City bombing suspects gives us a hint, Glenn suggested on radio this week. He said he's "all for" stopping dangerous extremists, but couldn't help noticing how Garland isn't talking about any of the destruction that happened over the summer.

"I am all for justice. I am all for making sure we catch the bad guys, as long as the bad guys are not defined to be on only one side," Glenn said. "Merrick Garland said [Monday] that there was no comparison between what happened on January 6th and what happened over the summer. That is because the Washington elites see themselves as better than somebody who owns a taco stand. I don't. The Constitution doesn't. They are the same crime."

Watch the video clip below to hear more from Glenn:

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"All rich countries should move to 100% synthetic beef. You can get used to the taste difference," said holy anointed billionaire Bill Gates. Green activism has been around for decades. But what used to be wacky has now worked its way into the world's power structure. You must believe the science. You cannot question the science.

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Watch the full episode below:

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