Throughout history, governments have employed various tactics to pay down their debt by stealing from you and me.
It’s called financial repression.
And just like the name sounds, it’s a way to maintain their power, control our finances, and benefit at the expense of "we the people."
Some of the methods are direct, such as outlawing the ownership of gold, limiting how much currency can be converted into foreign currency, and capital controls.
Other methods are more indirect, like allowing inflation to rise, eroding the value of money, and manipulating interest rates.
A new way—and the worst form—of financial repression will be digital currency.
Today, we’re covering the history of financial repression in America and discussing the dangers of present-day financial repression as a means of total control.
If the government controls your money, they can control what you buy, what you eat, where you go, and what you say.
Financial Repression in American History
Financial repression isn’t a new concept.
It dates back to ancient times when rulers imposed heavy taxes on their subjects.
However, it wasn't until the 20th century that financial repression took on a new form—governments started manipulating interest rates, keeping them artificially low to encourage borrowing and discourage saving.
Here are some other examples of government financial repression in American history…
Regulation Q (1933-1986): Part of the Banking Act of 1933, Regulation Q set a cap on the interest rates that banks could offer on deposits. This was intended to reduce competition among banks for deposits and lower the overall cost of borrowing for banks.
Emergency Banking Act of 1933: This act gave the president power to regulate banking transactions, foreign exchange, and to reopen solvent banks in order to inflate the economy.
The Gold Reserve Act of 1934: This act required that all gold and gold certificates held by the Federal Reserve be surrendered and vested in the sole title of the United States Department of the Treasury. It also prohibited the Treasury and financial institutions from redeeming dollars for gold, establishing a more managed monetary system.
War Bonds During World War II: The United States government issued war bonds that were sold to the public to finance military operations during the war. The interest rates on these bonds were below the market rate, representing a form of financial repression.
United States Savings Bonds: Historically, these have often offered lower yields compared to other investments, effectively subsidizing government borrowing at the expense of savers.
Conservatorship of Fannie Mae and Freddie Mac (2008): During the financial crisis of 2008, these two government-sponsored enterprises were placed under conservatorship, allowing them to continue to function despite substantial financial distress.
Quantitative Easing (2008 Onwards): In response to the financial crisis, the Federal Reserve embarked on a series of quantitative easing (QE) programs, buying large amounts of government bonds and mortgage-backed securities. This helped to keep interest rates low, benefitting government borrowing, but repressing the returns available to savers and investors.
Financial Repression Today in America
One could argue that it’s getting easier for the government to make policies that enable it to take money and control from its citizens.
Consider America’s current inflation. CitiBank sent out this warning to their users:
Over the coming years, we expect various leading central banks globally to pursue a policy of "financial repression." This involves deliberately keeping interest rates artificially low for an extended period. As well as trying to encourage more economic growth, the aim is to generate more inflation. Specifically, financial repression seeks a rate of inflation that exceeds the level of interest rates. The impact of such policies erodes the value of cash and certain bonds. […] Artificially low interest rates make it easier for governments to pay interest on their debts. […] But there is another reason that central banks are likely to keep rates artificially low. While they do not readily admit to it, inflation rates that exceed interest rates erode the real value of their debts. So, not only do governments pay lower interest rates on their borrowings, but ultimately find debt repayment easier because inflation has eroded the value of those debts. In other words, financial repression is a forced transfer of wealth from bondholders and other savers to borrowers.
High inflation helps the government.
It hurts its citizens.
A 2024 Federal Reserve study found that “Some 65% of those polled in the Fed's annual survey of U.S. households said inflation hurt their financial well-being in 2023. And 19% said rising prices made their financial health ‘much worse.’”
Digital Currency Will Bring Total Control of Your Money
Let’s not forget about the impending Central Bank Digital Currencies (CBDCs), which will give governments even greater tracking and control over the flow of money and every financial transaction we make.
CBDCs are not some sci-fi dystopia. Several countries have already begun using this form of financial control.
And you can expect more to follow.
A CBDC is essentially a digital form of currency that centralizes our financial information in a digital database that’s controlled by the government.
It takes the control of money from banking institutions and puts it into the government’s own hands.
According to CATO:
The problem is that there is no limit to the level of control that the government could exert over people if money is purely electronic and provided directly by the government. A CBDC would give federal officials full control over the money going into–and coming out of–every person’s account.
This means the government can track your purchases, determine your savings amount, and potentially freeze your accounts.
Yes, they can. And, yes, they will.
Here’s a clear example: During the Freedom Convoy through Canada, authorities froze as many as 257 bank accounts of protestors to prevent them from making necessary purchases and to end the protest.
Horrifying.
How Financial Repression Hinders Your Freedom
Financial repression starts at a level most of us don’t pay attention to, but it eventually trickles down to our own bank accounts.
Consider these examples:
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Limited investment options. The government can tell you how you can—and cannot—invest your money. This means less financial freedom.
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Restricting the movement of money. The government can control where money is allowed to move, such as by prohibiting the movement of money across borders.
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Credit limitations. The government can limit who has access to credit, making it harder for people to borrow money as needed.
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Government power over financial institutions. If the government has more control over financial institutions, the government will be the priority—not the individual.
- Social instability. Economic instability will lead to social unrest. Any time people don’t have the money to meet their basic needs, major problems begin to happen.
CBDCs would turn America into a cashless society.
As Ron Paul said, “The cashless society is the IRS’s dream: total knowledge of, and control over, the finances of every single American.”
It’s hard to imagine living during the Great Depression and having to shop for food using ration stamps, but if the government continues to gain more financial control, it’s possible.
If they have total control of how banks operate, how people invest, and how people spend… it will be even easier to control what people eat.
It’s a terrifying prospect.
And from WEF statements and elites like Bill Gates telling us meat is bad and bugs are good, you better believe this is a reality we all may face.
And sooner rather than later.
How to Feed Yourself When You Can’t Access Your Money
With everything we already know about financial repression and the digital currency on the horizon, it’s critical to start preparing for a time when you won’t be able to go to the grocery store and buy whatever you want.
Here are some tips to get prepared before it’s too late…
- Stock Up – Stock up on essentials. Make sure you have emergency food on hand; enough to feed your entire family. Purchase a solar generator so you can continue to cook if utilities are turned off. Buy anything now that you don’t want the government to know about.
- Start Growing – Don’t wait until it’s too late to buy seeds and start growing. Make sure to invest in heirloom seeds so you can plant year after year.
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Get a Hobby Farm Going – Start raising chickens so you have access to poultry and much-needed protein, even when you can’t use your bank card.
- Stock Up on Best Barter Items – Should the government take control of bank accounts, bartering will be necessary. Take time to stock up on items that are good for bartering, such as coffee, alcohol, medicines, and tobacco. Better yet, create your own barter supply line.
- Invest in Precious Metals – Invest in gold and silver, which allows you to preserve wealth and can also be used as legal tender.
- Build Community – Get to know local farmers. If you’re growing your own veggies, see if you can swap with others.
- Stay in the Know – It’s imperative to stay aware of what is happening. Think before you spend.
Make wise financial choices, friends.
In liberty,
Grant Miller
Preparedness Advisor, My Patriot Supply
