Who’s really in charge?

Over the Christmas period I’ve been re-reading some of my Investment and Trading books and have come across quite a few additional quotes that I thought I’d post here on the blog.

Here’s a couple – food for thought!:

“I care not what puppet is placed upon the throne of England to rule the empire on which the sun never sets.  The man that controls Britain’s money supply controls the British Empire, and I control the British money supply.” – Baron Nathan Rothschild

“I am a most unhappy man.  I have unwittingly ruined my country.  A great industrial nation is controlled by its system of credit.  Our system of credit is concentrated.  The growth of the nation, therefore , and all our activities are in the hands of a few men.  We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world.  No longer a government of Free opinion, no longer a conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.” – President Woodrow Wilson (USA)

It is quite easy to see that:

  1. Governments don’t control the country and never have in recent history
  2. If the money supply i.e. Credit is stifled then panics and crashes can quite easily occur

In todays day and age it is slightly more complicated and the credit systems in place are more vast and complex, however, once you breakdown through the layers and notice that if the people who provide the credit simply pulled its availability and walked away how much of a mess the world would be in! Let’s take a VERY quick look at one aspect of this.

The Federal Reserve System or virtually ANY Central Bank in the World

The Fed was created in 1913 to PREVENT stock market panics and crashes – obviously it’s not been able to do that.  More importantly did you know that the Fed is not owned by the government?  It’s a private company (although fairly secretive) owned by a few key financial institutions!  Also did you know that the USA government does not own all the gold that it holds on reserve?  Who doe’s? the Fed!!!!!

There’s a pattern emerging here!

OK, so the Fed owns a lot of the gold out there, they set the USA Interest rate and they have the power to create credit – in 2012 the fed came to the market and stated that they would inject (create) $Billions per month by way of QE – so really what’s going on is these private owners of the Fed have told the USA government what’s going to happen, when they stop QE and start cashing in the Treasury Bonds that they INSIST on for security that’s going to create the next economic problem for the USA and possibly the world.

Ever wonder why financial regulation is lax in the run up to financial bubbles?  Maybe one reason is the big boys providing the credit for the bubbles have a quiet word in the governments and regulators ears telling them to back off.

Markets are imperfect and due to the complexity and mass numbers of participants involved we are unlikely to ever know the real true with any exact clarity.  What I do know is that we have key quotes from many key, influencers in world economic history that supports the facts and deception.  The people supplying the credit also have the ability to remove it from the system!  This can cause panics, market crashes and the like too.

Hope it’s been of some help to you in understanding matters of a financial nature, if this is an area you are interested in then I have on this site videos on Money matters and the 10 Free to Choose videos by Milton Friedman which help to explain matters in more detail and clarity – or you could just YouTube them

The Hovis Trader

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