Meet the New Boss, Same as the Old Boss IV
"At times like the present, when the evils of unsound finance threaten us, the speculator may anticipate a harvest gathered from the misfortune of others, the capitalist may protect himself by hoarding or may even find profit in the fluctuation of values; but the wage earner--the first to be injured by a depreciated currency and the last to receive the benefit of its correction--is practically defenseless." - Grover Cleveland 22nd & 24th President of The United States 1885 – 1889 & 1893 – 1897.
A Conflict of Interest
As demonstrated by GM and Ford, international manufacturers require monetary stability to produce, distribute and sell tangible products. GM and Ford have attempted to branch out into the financial sector. So far, the results would indicate that this is not their core competence.
The money shufflers have the advantage, as there is no tangible end product from their endeavor. Labor at the margin is not their concern. Their product is debits, credits and data transfer. The path is the one of least resistance, that being of higher yield.
In the days of yore, investment in economically self-sustaining activities was the key to financial stability; and soundly based financial decisions were the backbone for balanced, sustainable economic growth.
Today, lending is no longer sound, and gravitates towards the maximization of profit and aversion of long term risk. The financial sector has a predilection towards asset based lending, securities speculation and transaction based charges from securities trading.
Mal-investing, over investing, speculation, asset bubbles, short term thinking and unsound risk taking; resulting in boom and bust are all endemic of an uncontrolled financial sector run amok.
To be clear, economic and price stability are not in their vernacular. The environment that favors the financial sector is wrought with inflation and volatility to further their profiteering.
In short, the financial sector has an inherent conflict of interest with self-sustaining economic activity and economic stability. And yet, these are the supposed mandates of the Federal Reserve. How is this conflict of interest resolved?
It is painfully obvious even to the most dim-witted of individuals, that actions speak louder than words. Deficits, debauchery, excess money creation and talk of helicopter money are the results of their actions.
Prima facie evidence that The Fed and the banks have proven empirically, that the conflict of interest truly exists; and is perpetrated and reinforced through their very actions. There are words that describe this kind of behaviour, deceitful and treasonous.
Modern Day Contrarian Robin Hood
In the last two series of blogs, we have touched upon how financial institutions, central banks and large multi national corporations benefit from Forex Arbitrage (currency and bond); the manipulation of interest rates, and sleight of hand econometric measurements such as the CPI.
Regardless of the system effected or methodology employed, the altering and adulterating of weights and measures is an unfair and dishonest practice. This is exactly what we have today, a dishonest accounting of currencies, which results in a distortion in prices of goods and the valuation of assets on a global basis.
Fractional reserve banking and government run central banks constitute the banking system. This is an exclusive domain where the “members” create, control, manipulate and profiteer from fiat currency or “legal tender”. In other words, the financial sector has a global monopoly.
The financial impacts on society are a loss of savings and pensions through inflation, loss of jobs through outsourcing, and a concentration of wealth in fewer hands, resulting in a consolidation of power, as a privileged few stealthily steal from everybody.
Literally, a license to steal from the poor and give to the rich. There are other names for these practices such as fraud and grand larceny.
"My agency, in promoting the passage of the National Bank Act, was the greatest mistake in my life. It has built up a monopoly which affects every interest in the country. It should be repealed, but before that can be accomplished, the people should be arrayed on one side, and the banks on the other, in a contest such as we have never seen before in this country." - SALMON P. CHASE (Lincoln's Secretary of the Treasury and the engineer of the 1863 Banking Act)
More to come in Part V
A Conflict of Interest
As demonstrated by GM and Ford, international manufacturers require monetary stability to produce, distribute and sell tangible products. GM and Ford have attempted to branch out into the financial sector. So far, the results would indicate that this is not their core competence.
The money shufflers have the advantage, as there is no tangible end product from their endeavor. Labor at the margin is not their concern. Their product is debits, credits and data transfer. The path is the one of least resistance, that being of higher yield.
In the days of yore, investment in economically self-sustaining activities was the key to financial stability; and soundly based financial decisions were the backbone for balanced, sustainable economic growth.
Today, lending is no longer sound, and gravitates towards the maximization of profit and aversion of long term risk. The financial sector has a predilection towards asset based lending, securities speculation and transaction based charges from securities trading.
Mal-investing, over investing, speculation, asset bubbles, short term thinking and unsound risk taking; resulting in boom and bust are all endemic of an uncontrolled financial sector run amok.
To be clear, economic and price stability are not in their vernacular. The environment that favors the financial sector is wrought with inflation and volatility to further their profiteering.
In short, the financial sector has an inherent conflict of interest with self-sustaining economic activity and economic stability. And yet, these are the supposed mandates of the Federal Reserve. How is this conflict of interest resolved?
It is painfully obvious even to the most dim-witted of individuals, that actions speak louder than words. Deficits, debauchery, excess money creation and talk of helicopter money are the results of their actions.
Prima facie evidence that The Fed and the banks have proven empirically, that the conflict of interest truly exists; and is perpetrated and reinforced through their very actions. There are words that describe this kind of behaviour, deceitful and treasonous.
Modern Day Contrarian Robin Hood
In the last two series of blogs, we have touched upon how financial institutions, central banks and large multi national corporations benefit from Forex Arbitrage (currency and bond); the manipulation of interest rates, and sleight of hand econometric measurements such as the CPI.
Regardless of the system effected or methodology employed, the altering and adulterating of weights and measures is an unfair and dishonest practice. This is exactly what we have today, a dishonest accounting of currencies, which results in a distortion in prices of goods and the valuation of assets on a global basis.
Fractional reserve banking and government run central banks constitute the banking system. This is an exclusive domain where the “members” create, control, manipulate and profiteer from fiat currency or “legal tender”. In other words, the financial sector has a global monopoly.
The financial impacts on society are a loss of savings and pensions through inflation, loss of jobs through outsourcing, and a concentration of wealth in fewer hands, resulting in a consolidation of power, as a privileged few stealthily steal from everybody.
Literally, a license to steal from the poor and give to the rich. There are other names for these practices such as fraud and grand larceny.
"My agency, in promoting the passage of the National Bank Act, was the greatest mistake in my life. It has built up a monopoly which affects every interest in the country. It should be repealed, but before that can be accomplished, the people should be arrayed on one side, and the banks on the other, in a contest such as we have never seen before in this country." - SALMON P. CHASE (Lincoln's Secretary of the Treasury and the engineer of the 1863 Banking Act)
More to come in Part V
Comments