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.

'The Handmaid's Tale' got it right, just with the wrong religion

Alberto E. Rodriguez/Getty Images

Just in case The Handmaid's Tale's heavy-handed message wasn't already heavy-handed enough, a recent episode made it clear there's always room for further hysteria. Particularly, in relation to depictions of a “patriarchal society" run by Christian doctrine and determined by men — oh those dastardly men.

RELATED: Christian privilege is the new white privilege

The show appropriates Margaret Atwood of the same name, depicting a totalitarian society led by Christian doctrine in which women's bodies are controlled, and they have no rights. The story sounds familiar, but not in the same way Atwood and the show's creators have so smugly assumed.

Just as tone-deaf as 4th wave feminism itself, and tone-deaf in all the exact same places. Most notably, the show's heavy-handed indignation toward Christianity. Toward the patriarchy. Toward conservatives and traditional values. And just like 4th wave feminism, the show completely overlooks the irony at play. Because there is a part of the world where women and children are being raped and mutilated. In fact, in this very real place, the women or girls are often imprisoned, even executed, for being raped, and they are mutilated in unspeakable ways.

Theirs is a cruel, bloody, colorless life.

There is a place, a very real place, where women are forced to cover their entire bodies with giant tarp-like blankets, which is all the more brutal given the endless heat of this place. There is a place where women literally have one-third of the rights of men, a place where women are legally, socially and culturally worth less than men.

They cannot drive cars. They cannot be outside alone. They cannot divorce, they cannot even choose who they marry and often, they are forcibly married at a young age.

They are raped. A lot. Theirs is a cruel, bloody, colorless life. This is the life of tens, perhaps hundreds of millions of women. And, I'll tell you, their religion isn't Christianity.

Science did it again. It only took 270 million years, but this week, scientists finally solved the mystery that has kept the world up at night. We finally know where octopuses come from: outer space. That explains why they look like the aliens in just about every alien movie ever made.

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It turns out octopuses were aliens that evolved on another planet. Scientists haven't determined which one yet, but they've definitely narrowed it down to one of the planets in one of the galaxies. Hundreds of millions of years ago (give or take a hundred), these evolved octopus aliens arrived on Earth in the form of cryopreserved eggs. Now, this part is just speculation, but it's possible their alien planet was on the verge of destruction, so Mom and Dad Octopus self-sacrificially placed Junior in one of these cryopreserved eggs and blasted him off the planet to save their kind.

This alien-octopus research, co-authored by a group of 33 scientists, was published in the Progress in Biophysics and Molecular Biology journal. I'm sure you keep that on your nightstand like I do.

Anyway, these scientists say octopuses evolved very rapidly over 270 million years. Which sounds slow, but in evolutionary terms, 270 million years is like light speed. And the only explanation for their breakneck evolution is that they're aliens. The report says, “The genome of the Octopus shows a staggering level of complexity with 33,000 protein-coding genes — more than is present in Homo sapiens."

Lucky for us, they landed in the water. Otherwise, we might be octopus pets.

They mention that the octopus' large brain, sophisticated nervous system, camera-like eyes, flexible bodies and ability to change color and shape all point to its alien nature. Octopuses developed those capabilities rather suddenly in evolution, whereas we're still trying to figure out the TV remote.

These biological enhancements are so far ahead of regular evolution that the octopuses must have either time-traveled from the future, or “more realistically" according to scientists, crash-landed on earth in those cryopreserved egg thingies. The report says the eggs arrived here in “icy bolides." I had to look up what a “bolide" is, and turns out it's a fancy word for a meteor.

So, to recap: a long time ago, in a galaxy far, far away, an alien race of octopuses packed their sperm-bank samples in some meteors and shot them toward Earth. Lucky for us, they landed in the water. Otherwise, we might be octopus pets.

President Trump's approval rating is rising, and Democrats — hilariously — can't seem to figure out what's going on. A few months ago Democrats enjoyed a sixteen point lead over Republicans, but now — according to CNN's recent national survey — that lead is down to just THREE points. National data from Reuters shows it as being even worse.

The Democratic advantage moving towards the halfway mark into 2018 shows that Republicans are only ONE point behind. The president's public approval rating is rising, and Democrats are nervously looking at each other like… “umm guys, what are we doing wrong here?"

I'm going to give Chuck Schumer and Nancy Pelosi a little hint. We know that the Left has enjoyed a “special relationship" with the media, but they might want to have a sit down with their propaganda machine. The mainstream media is completely out of control, and Americans are sick of it. We're DONE with the media.

RELATED: The mainstream media wants you to believe Trump is waging war on immigrants — here's the truth

Look what has been going on just this week. The president called MS-13 gang members animals, but that's not the story the media jumped on. They thought it was more clickable to say that Trump was calling all immigrants animals instead. In the Middle East, the media rushed to vilify Israel instead of Hamas. They chose to defend a terror organization rather than one of our oldest allies.

Think about that. The media is so anti-Trump that they've chosen a violent street gang AND A GLOBAL TERROR ORGANIZATION as their torch-bearing heroes. Come on, Democrats. Are you seriously baffled why the American people are turning their backs on you?

Still not enough evidence? Here's the New York Times just yesterday. Charles Blow wrote a piece called "A Blue Wave of Moral Restoration" where he tried to make the case that the president and Republicans were the enemy, but — fear not — Democrat morality was here to save the day.

Here are some of these cases Blow tries to make for why Trump is unfit to be President:

No person who treats women the way Trump does and brags on tape about sexually assaulting them should be president.

Ok, fine. You can make that argument if you want to, but why weren't you making this same argument for Bill Clinton? Never mind, I actually know the reason. Because you were too busy trying to bury the Juanita Broaddrick story.

Let's move on:

No person who has demonstrated himself to be a pathological liar should be president.

Do the words, “You can keep your doctor" mean anything to the New York Times or Charles Blow? I might have saved the best for last:

No person enveloped by a cloud of corruption should be president.

I can only think of three words for a response to this: Hillary Frigging Clinton.

Try displaying a little consistency.

If the media really wants Donald Trump gone and the Democrats to take over, they might want to try displaying a little consistency. But hey, maybe that's just too much to ask.

How about starting with not glorifying terrorist organizations and murderous street gangs. Could we at least begin there?

If not… good luck in the midterms.

In the weeks following President Trump's decision to recognize Jerusalem as Israel's capital, the mainstream media was quick to criticize the president's pro-Israel stance and make dire predictions of violent backlash in the Middle East. Fast forward to this week's opening of the US Embassy in Jerusalem and the simultaneous Palestinian “protests" in Gaza.

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Predictably, the mainstream media chastised Israel for what they called “state-sanctioned terrorism" when the IDF stepped in to protect their country from so-called peaceful Palestinian protesters. Hamas leaders later admitted that at least 50 of the 62 Palestinians killed in the clashes were Hamas terrorists.

“In our post-modern media age, there is no truth and nobody even seems to be looking for it …. This is shamefully clear in the media especially this week with their coverage of the conflict between the border of Israel and the Gaza strip," said Glenn on today's show. He added, “The main media narrative this week is about how the IDF is just killing innocent protesters, while Hamas officials have confirmed on TV that 50 of the 62 people killed were working for Hamas."

The mainstream media views the Palestinians as the oppressed people who just want to share the land and peacefully coexist with the people of Israel. “They can't seem to comprehend that in the Israeli-Palestinian conflict, only one side is actively trying to destroy the other," surmised Glenn.

Watch the video above to hear Glenn debunk the “peaceful Palestinian protest" fallacy.