Who Controls the Financial System and Why
The dynamics of the financial system are a complex web of interdependencies and control mechanisms that shape global economies. As individuals, we often feel a sense of powerlessness when it comes to directly managing such vast and intricate networks. This article delves into the idea of control in the financial system, exploring who really holds the reins and why.
Perennial Nature of Money
The concept of money is, in many ways, a perpetual loop that transcends individual lifespans. As it stands, the money one possesses now belonged to someone else in the past and is destined to belong to someone else in the future. This perpetual nature suggests that money is not inherently controlled by any single entity but rather exerts influence over us. The saying 'money dictates us' highlights the idea that economic stability and growth are not necessarily within the control of individual entities but are driven by financial systems and the confidence of people.
Who Truly Controls the Financial System?
The global financial system is not controlled by any specific country or institution on a global scale. However, a more nuanced view suggests a broader base of control: it is, in fact, the people. The confidence of ordinary citizens is the bedrock upon which the financial system stands. When trust erodes, financial institutions and institutions can face crises. Banks may suffer runs, and central bankers may lose their authority. This reality underscores the idea that while there are no clear-cut controllers, the collective belief and faith of the populace play a pivotal role.
Central Authorities and Producers of Financial Policies
In the United States, for instance, several key entities influence the financial landscape. The Federal Reserve plays a crucial role in setting monetary policy, chiefly through the manipulation of interest rates and the money supply, to maintain economic stability. The federal budget is controlled by Congress and the president, highlighting the political aspects of financial decision-making. Ultimately, global financial stability depends on the confidence of the people and the actions of these central authorities.
Global Corporate Control and Exploitation
The true lever of control lies in the hands of Western business elites, who act as the puppet masters for local business elites in non-Western nations. Non-Western business elites provide cheap labor to Western multinational corporations, manufacturing goods through local plants and industries. This relationship is often exploitative, with local capitalist elites retaining only a minuscule portion of the profits, while large shares are sent back to their Western masters. These local elites also benefit from dual or multiple citizenships in Western countries, raising their children in prestigious Western institutions, while their local populations suffer in poverty.
The profit structure of multinational corporations is detrimental to local economies, fostering a cycle of dependency and underdevelopment. Not only do global elite capitalists profit from consumerism in the First World but also from their holdings in the Third World. The concept of nation-states and sovereignty is, in practice, more theoretical than real. It is the billionaire elites who manipulate and control the global economy behind the scenes, seeking to dismantle traditional power structures through policies like open borders and globalist ideologies.
Conclusion
The control of the financial system is a multifaceted issue rooted in both broad and narrow mechanisms of influence. While no single entity can be identified as the sole controller, the confidence of the people and the actions of central authorities play crucial roles. Furthermore, the exploitation and control of global resources by a minority of elites underscore the need for systemic change. Understanding these dynamics is essential for navigating and potentially reforming our financial system.