Allianz’s CIO Andreas Utermann says: Expect to Suffer a Generation of Financial Repression

Andreas Utermann, Allianz’s Global CIO was commended recently by Tom Keene on Bloomberg’s Surveillance for  willing to even mention Financial Repression on a public broadcast, a subject it appears that is frowned upon in polite, well connected Wall Street circles.

What comes out in this short video interview by Bloomberg is that Allianz’s CIO expects Financial Repression to be around for the next generation. It simply isn’t about a few more years but rather about the next generation learning to live with it.

“It isn’t a question of years but about generations!”

He firmly believes it has become quite evident that the current policy targets aimed at increasing inflation to 2% are not working. Policy makers just don’t know how to solve the problem. However, this will not stop the Macroprudential policies of Financial Repression.

Maybe most significant in the Bloomberg interview is that Utermann is willing to state publicly that he believes the Federal Reserve is intentionally behind the curve. The Fed want’s rates to rise behind increasing rates of inflation.

The Federal Reserve is intentionally behind the curve. 

Because of Financial Repression the Fed want’s rates to rise behind increasing rates of inflation. 

Listen to how Allianz believes you solve today’s yield problem …

Utermann: Suffering a Generation of Financial Repression

Andreas Utermann, global chief investment officer at Allianz Global Investors, discusses the factors holding back global central banks from normalizing interest rates, differing economic philosophies in the Eurozone, and dealing with chronic financial repression. He speaks on “Bloomberg Surveillance.”

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Gordon T Long

Meet the Host of our Program Show Gordon T Long, co-founder of the Financial Repression Authority. Gordon T. Long has been publically offering his financial and economic writing since 2010, following a career internationally in technology, senior management & investment finance. He brings a unique perspective to macroeconomic analysis because of his broad background, which is not typically found or available to the public. Mr. Long was a senior group executive with IBM and Motorola for over 20 years. In 1995, he founded the LCM Groupe in Paris, France to specialize in the rapidly emerging Internet Venture Capital and Private Equity industry. Gordon T. Long is a graduate Engineer, University of Waterloo (Canada) with graduate business studies at the prestigious Ivy Business School, University of Western Ontario (Canada) on a Northern & Central Gas Corporation Scholarship.