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.

On the radio program Thursday, Glenn Beck sat down with chief researcher Jason Buttrill to go over two bombshell developments that have recently come to light regarding former Vice President Joe Biden's role in the 2016 dismissal of Ukrainian Prosecutor General Viktor Shokin.

"Wow! Two huge stories dropped within about 24 hours of each other," Jason began. He went on to explain that a court ruling in Ukraine has just prompted an "actual criminal investigation against Joe Biden in Ukraine."

This stunning development coincided with the release of leaked phone conversations, which took place in late 2015 and early 2016, allegedly among then-Vice President Biden, Secretary of State John Kerry, and Ukraine's former President Petro Poroshenko.

One of the audiotapes seems to confirm allegations of a quid pro quo between Biden and Poroshenko, with the later admitting that he asked Shokin to resign despite having no evidence of him "doing anything wrong" in exchange for a $1 billion loan guarantee.

"Poroshenko said, 'despite the fact that we didn't have any corruption charges on [Shokin], and we don't have any information about him doing something wrong, I asked him to resign,'" Jason explained. "But none of the Western media is pointing this out."

Watch the video below for more details:


Listen to the released audiotapes in full here.

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A recently declassified email, written by former National Security Adviser Susan Rice and sent herself on the day of President Donald Trump's inauguration, reveals the players involved in the origins of the Trump-Russia probe and "unmasking" of then-incoming National Security Adviser, Gen. Michael Flynn.

Rice's email details a meeting in the Oval Office on Jan 5, 2017, which included herself, former FBI Director James Comey, former Deputy Attorney General Sally Yates, former Vice President Joe Biden, and former President Barack Obama. Acting Director of National Intelligence, Richard Grenell, fully declassified the email recently amid President Trump's repeated references to "Obamagate" and claims that Obama "used his last weeks in office to target incoming officials and sabotage the new administration."

On Glenn Beck's Wednesday night special, Glenn broke down the details of Rice's email and discussed what they reveal about the Obama administration officials involved in the Russia investigation's origins.

Watch the video clip below:

Fellow BlazeTV host, Mark Levin, joined Glenn Beck on his exclusive Friday episode of "GlennTV" to discuss why the declassified list of Obama administration officials who were aware of the details of Gen. Michael Flynn's wiretapped phone calls are so significant.

Glenn argued that Obama built a covert bureaucracy to "transform America" for a long time to come, and Gen. Flynn was targeted because he happened to know "where the bodies were buried", making him a threat to Obama's "secret legacy."

Levin agreed, noting the "shocking extent of the police state tactics" by the Obama administration. He recalled several scandalous happenings during Obama's "scandal free presidency," which nobody seems to remember.

Watch the video below for more:


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Want more from Glenn Beck?

To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.

Colleges and universities should be home to a lively and open debate about questions both current and timeless, independent from a political bias or rules that stifle speech. Unfortunately for students, speaking out about personal beliefs or challenging political dogma can be a dangerous undertaking. I experienced this firsthand as an undergraduate, and I'm fighting that trend now as an adjunct professor.

In 2013, Glenn Beck was one of the most listened to radio personalities in the world. For a college senior with hopes of working on policy and media, a job working for Glenn was a ticket to big things. I needed a foot in the door and hoped to tap into the alumni network at the small liberal arts school where I was an undergrad. When I met with a career services specialist in early March 2013 about possible alumni connections to Glenn Beck, she disdainfully told me: "Why would you want to work for someone like him?" That was the beginning and end of our conversation.

I was floored by her response, and sent an email to the school complaining that her behavior was inappropriate. Her personal opinions, political or otherwise, I argued, shouldn't play a role in the decision to help students.

That isn't the kind of response a student should hear when seeking guidance and help in kick starting their career. Regardless of the position, a career specialist or professors' opinion or belief shouldn't be a factor in whether the student deserves access to the alumni network and schools' resources.

Now, seven years later, I work full time for a law firm and part time as an adjunct teaching business to undergraduate students. The culture at colleges and universities seems to have gotten even worse, unfortunately, since I was an undergrad.

College is a time to explore, dream big and challenge assumptions.

I never want to see a student told they shouldn't pursue their goals, regardless of their personal or political beliefs. College is a time to explore, dream big and challenge assumptions. I never got access to the alumni network or schools' resources from the career services office.

Lucky for students in 2020, there are several legal organizations that help students protect their rights when an issue goes beyond what can be handled by an undergraduate facing tremendous pressure from a powerful academic institution. Organizations like Speech First and the Foundation for Individual Rights in Education (FIRE), for instance, are resources I wish I knew about at the time.

When I experienced mistreatment from my college, I spoke up and challenged the behavior by emailing the administration and explaining what happened. I received a letter from the career services specialist apologizing for the "unprofessional comment."

What she described in that apology as a "momentary lapse of good judgement" was anything but momentary. It was indicative of the larger battle for ideas that has been happening on college campuses across the country. In the past seven years, the pressure, mistreatment and oppression of free expression have only increased. Even right now, some are raising concerns that campus administrations are using the COVID-19 pandemic to limit free speech even further. Social distancing guidelines and crowd size may both be used to limit or refuse controversial speakers.

Students often feel pressure to conform to a college or university's wishes. If they don't, they could be expelled, fail a class or experience other retribution. The college holds all the cards. On most campuses, the burden of proof for guilt in student conduct hearings is "more likely than not," making it very difficult for students to stand up for their rights without legal help.

As an adjunct professor, every student who comes to me for help in finding purpose gets my full support and my active help — even if the students' goals run counter to mine. But I have learned something crucial in my time in this role: It's not the job of an educator to dictate a student's purpose in life. I'm meant to help them achieve their dreams, no matter what.

Conner Drigotas is the Director of Communications and Development at a national law firm and is a Young Voices contributor.