February 7, 2013
Monopoly Banking
The Federal Reserve has run out of ammunition. For all the money that the Fed has thrown into our financial system, the economy actually shrunk in the fourth quarter of 2012. Unemployment is also ticking up again.
Contrary to popular belief, the Fed does not have absolute control over interest rates. It often acts in hindsight, adjusting its internal rates to market forces, and such has been the case during the long term bear market in interest rates. What the Fed does do, however, is dislocate free markets in order to provide private money-making opportunities to its members.
This is seen in recent years by the blow-up of the sub-prime mortgage industry and the multitrillion dollar bailout of large financial institutions. If the Fed had been absent during this period, these things never would have happened.
The Fed’s actual agenda has been to protect its primary constituents – the large U.S. and global banks. It’s feigned attention to the American economy, workers and citizens is a phony as a three-dollar bill. The largest U.S. banks, all of which hold shares in the Fed include,
- JP Morgan Chase
- Bank of America
- Citigroup
- Wells Fargo
- Goldman Sachs
- Morgan Stanley
How do you suppose they got to be the largest banks in the country? By free-market competition? Hardly.
John D. Rockefeller, the early patriarch of the Rockefeller fortune and founder of Standard Oil, was an unabashed monopolist who famously stated, “Competition is a sin.”
The Rockefeller family has controlled the Chase-related line of banking since the 1920′s. When Chase Bank merged with Equitable Trust (John D. Rockefeller, Jr. was the largest shareholder) in 1930, it became the largest bank in the world. It is STILL the largest bank in the U.S. and the ninth largest in the world!
The essence of monopoly capitalism is to always game the system in their favor while discriminating against competitors. These banks, and especially JPMorganChase have turned government manipulation into an art form. Communist/Marxist Lenin was the first person to define “state monopoly capitalism” as the successor to simple monopoly capitalism. According to Marxist theory, state monopoly capitalism is the final historical stage of capitalism.
Perhaps this is why the global banks and corporations are pushing so hard for a new economic model that they themselves call a “green economy.” Under the cover of green lies Technocracy, which I have written about for several years now.
Interest Rates Headed Up
The long-term bull market in 30 year Treasuries is over. As bond prices have recently moved lower, we can also say that the bear market in interest rates is over as well – it’s the flip side of the same coin.
The July 2012 low of 2.44 percent should stand as the bottom of this entire trend, with rates soon moving above 4 percent. Over the next five years, rates should move back up into the 6 – 8 percent range.
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