The Library of Mistakes Ep 3: Adapting to the New Economic World Order (Hidden Forces v Russell Napier)
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Apr 25, 2022 
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Emergencies Justify Directed Credit
- Governments will use banks to direct credit toward politically prioritized 'emergencies'.
- That creates sustained inflation because state‑driven credit expands money for chosen sectors.
Credit Rationing Will Reshape Winners And Losers
- Future repression will ration credit to productive and geopolitically vital actors.
- Rent‑seeking industries like private equity and leveraged buybacks face restricted credit access.
Capital Controls Are Likely Tools
- Capital controls accompany effective financial repression because states must corral savings.
- Napier expects Europe to adopt controls earlier than the US, which may lag until crisis hits.