Fed, Banking Regulations, Capital Flow, Crisis. Part 1


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Evidence is growing that the governments have been manipulating gold markets, to drive the price of gold down. This is being done to maintain the artificial value of paper currencies. They have been dumping large amounts of gold derivatives, stocks and contracts, mostly not backed by hundred percent real gold. The result is that most of the Western governments are seriously out of gold reserves. This has reached the extent that Federal Reserve failed to return German gold, deposited at Federal Reserve, as safe deposit. Even more disturbing is the fact that most of the gold from western gold reserves is being transferred to countries like China and Russia which already have large cash reserves.


I always thought that governments are seriously disrupting the markets by their ridiculous interventions, laws and regulations. But, I have to admit that it was never realized by me, they have gone, so far out in their quest for power, control and money. Even more outrageous is the fact that all this is not even recent. As a matter of fact, this has been going on for decades. Still, as far as I know, it is equally hidden from the eyes of experts and general public.

 

What I found is, lots of evidence about governments manipulating the markets through their laws, regulations and policies, in a way which encourages reckless policies, fraud and questionable practices. This results into market failures and crises. Investors lose their trust in the markets, and capital and investments suddenly start flowing from capital markets to government backed bonds and securities, in search of a safe haven. This also allows big governments a reason to print large amounts of money, to “bailout the economy” out of crisis. They also use this opportunity to reward their friends and allies in big corporations and lobbies, through bailouts.

 

This also provides them excuses to legislate new laws in order to increase their control on markets that are supposed to be free of government intervention, in the name of prevention of such crisis in future, although the crisis was the production of their own intervention, encouragement and requirements. With the help of investments attracted into government bonds and securities, due to crisis, coupled with huge amounts of money printed for bailouts, governments can grow even bigger, and raise their control to a totally new and higher level. At first, this did sound incredible to me, as well.



But the evidence is so strong, deep and wide spread that it is very hard to overlook. As a matter of fact, it is a vicious and perpetual cycle. Big corporate and banking lobbies control elections and legislation. The politicians elected with the help of campaign money coming from lobbies make legislation which encourages and even forces reckless and dishonest practices. This, in turn causes bubbles and crises, public loses its trust in financial markets, capital starts flowing into government bonds and securities, government expands and grows in size and power, new legislation ‘to prevent crisis’. In turn the new legislation encourages another type of bubble, and same cycle starts, again.


Result is that after each cycle, governments are stronger, bigger and have more control over markets, and their bosses in big corporations and lobbies are thriving and accumulating even more wealth. Guess who pays the price? Of course, tax payers, in the form of huge bailouts. Who are the tax payers? Individual citizens and small businesses. No wonder middle class is disappearing, and mom and pop businesses are increasingly being swollen by big corporations. Wake up America. They are stealing our country from us, and this started just nine years after independence when Rothschild built First American Bank with the help of Alexander Hamilton who was a member of George Washington’s cabinet, and a Rothschild by marriage.



Even during and after the most recent crisis of 2007-2008, all the multi-trillion dollar bailouts and QEs are being done in the name of improving capital flow, recover the economy, and to create jobs. Over five years have passed. None of these is happening, yet. It is still extremely hard for individuals, families, entrepreneurs, start-ups and small businesses to find reasonable funding at acceptable cost, although interest rates are almost zero. So, where that zero interest money, being issued at the expense of tax payers, is going?
Just have a look at stock market and government subsidized businesses, mostly owned by large campaign financiers. Look at the balance sheets of big banks, big corporations and subsidized businesses like oil companies and electric cars like Tesla. They are all growing with leaps and bounds. Their stock prices are skyrocketing. Why? Because government subsidies guarantee investors big profits without being fully competitive. When Tesla sells a $90,000 car, to a rich Hollywood celebrity, it is subsidized by tax payers’ money.
What this poor tax payer is getting? Perhaps, lost jobs, underemployment, higher taxes and inflation, increased cost of living and lower standards of living. Is this the change and hope we were promised? Someone promised to change the way business is done in Washington. He did change it. But, not for good. It is not even changed for worse. It is changed for worst. Just imagine yourself owning a business which competes with Tesla, for example. How much would you like to see that your competitor is selling cars with tax payer subsidies, and its stocks are skyrocketing while you are struggling to survive? Instead of getting subsidy, you, your dealers and your customers pay heavy taxes on your cars.
Only ones benefiting from this change, so far, are big corporations and big banks. I mean, one big notion that was put forward to sell out post 2008 crisis policies was to end “too big to fail”. Is that happening? Not at all. All those banks and automobile companies are now “way too big to fail”. All the crooks who were responsible for crisis, got away with everything they did. None of them went to the jail. Instead of that they got big bonuses for winning multi-trillion dollar bailouts and QEs.

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