It is a sure sign of the systemic breakdown of the global capitalist system that the very measures put in place to try to prevent a crisis are creating the conditions for a financial meltdown beyond even the scale of 2008.
For almost five years the world’s major central banks have pumped an estimated $7 trillion into financial markets with the stated aim of trying to spark an economic recovery. Economic data from around the world indicate that it has been a manifest failure.
The statistics on price levels are among the most significant. These show that rather than prices increasing—a sign of recovery in so-called “normal” conditions—deflationary pressures are intensifying.
The downtrend has far-reaching implications. Confronted with falling prices for their products, major firms and corporations seek to make profits not by investing and expanding production, as they would seek to do if a recovery were underway, but by savage cost-cutting coupled with financial speculation. The consequent cuts in pay and jobs lead to a reduction in consumer demand, further fueling the deflationary trend.
Today the situation is potentially even more explosive than five years ago. This is because, unlike 2008, the central banks, having bought up trillions of dollars worth of government and other financial assets, are key market players themselves, and so will be directly impacted by a collapse of financial markets.
Increasingly, they are being caught in a trap of their own making. Withdrawal of the financial stimulus measures threatens to collapse the bubble. At the same time, the pumping out of still more money draws them deeper into the mire.
The deepening global crisis of capitalism has the most far-reaching political implications.
The past five years have seen the pumping of hundreds of billions of dollars into the coffers of the banks and speculators, and the financial elite that benefits from their activities, while the impoverishment of ever broader sections of the population has continued unabated.
These measures, far from producing an economic “recovery,” have prepared the way for even bigger disasters.
A few weeks ago Matt Taibbi said in a 14 page article in Rolling Stone said that the Conspiracy Theorists were right and that every market was rigged by the bankers. And that included interest rates. commodities, Credit Default Swaps and the gold and silver markets. This has been confirmed by the courts and the securities markets. BP and Shell are being investigated in Europe for rigging oil prices. If the CEO of a small company were arrested, the stock price would go down. But BP and Shell stock prices remain unchanged. JP Morgan, HSBC, Wells Fargo-Wachovia and Goldman Sachs have all had legal difficulties but walked away from the courts with no jail time and fines that were a miniscule fraction of the money involved.
This confirms that the courts, the regulatory system, the politicians and the media are fixed and it is not just the 2.2 trillion dollar petrochemical markets that are run by the banks. The oil company executives and the bankers know they are not going to jail.
The greatest position of power within the global capitalist system lies in the authority of money-creation: the central banking system. The central banking system, originating in 1694 in England, consists of an international network of central banks that are privately owned by wealthy shareholders and are granted governmental authority to print and issue a nation’s currency, and set interest rates, collecting revenue and making profit through the interest charged. Central banks give loans to both governments and industries, controlling both simultaneously. The ultimate centre of power in the central banking system is at the Bank for International Settlements (BIS), in Basle, Switzerland; which is the central bank to the world’s central banks, and is also a private bank owned by the world’s central banks.
At the top of the list of those who run the world, we have the major international banking houses, which control the global central banking system. From there, these dynastic banking families created an international network of think tanks, which socialised the ruling elites of each nation and the international community as a whole, into a cohesive transnational elite class. The foundations they established helped shape civil society both nationally and internationally, playing a major part in the funding – and thus coordinating and co-opting – of major social-political movements.
David Rockefeller, himself, wrote, “For more than a century ideological extremists at either end of the political spectrum have seized upon well-publicised incidents such as my encounter with Castro to attack the Rockefeller family for the inordinate influence they claim we wield over American political and economic institutions. Some even believe we are part of a secret cabal working against the best interests of the United States, characterising my family and me as ‘internationalists’ and of conspiring with others around the world to build a more integrated global political and economic structure – one world, if you will. If that’s the charge, I stand guilty, and I am proud of it.”