Central banks around the world journey to “nothing”!
The central banks have set their course to “nothing” (i.e. the 0% interest rate target). The success of capitalism hinged on the symbiotic relationship between interest rates and taxes. Interest produced wealth for the private central banks and access to money provided borrowers the opportunity to succeed and pay taxes. For the longest time the value of money was protected by a hard asset, namely gold. Not long ago, gold was removed as a security blanket for reserve currencies. It was no coincidence that with the final demise of the gold standard, mutual funds began their great metamorphosis.
In 1971, William Fouse and John McQuown of Wells Fargo Bank established the first index fund, a concept that John Bogle would use as a foundation on which to build The Vanguard Group, a mutual fund powerhouse renowned for low-cost index funds. The 1970s also saw the rise of the no-load fund. This new way of doing business had an enormous impact on the way mutual funds were sold and would make a major contribution to the industry's success.
It was this investment tool that launched the death of capitalism. It also initiated the financial and economic control of our political, monetary and interest rate systems. Fascism.
I would venture to guess that 95% of the investing public is financially illiterate. Most investors, pre the year 2000, sought GIC’s, bonds and stock purchases as their primary investment strategy. Market deregulation changed all that as well.
So why is 0% relevant? It is relevant because we have had unprecedented taxation and no capital appreciation via the traditional investment strategies (bonds, GIC’s, saving accounts, RRSP’s etc.). Investors have been cunningly driven into the capital markets where there is no financial security. In that place, the wolves run rabid. They too “are not” subjected to the same law as you and I, as they have bought our politicians, or own them outright.
Why is 0% fraud? When banks borrow money for nothing there is no requiremnt to have a bank. There only purpose is investor entrapment. Examples are as follows:
1. Low interest mortgages for homes are really life-long debt repayments. Servitude! Along with real estate appreciation, we have had our disposable income confiscated to the point where most home-owners can only afford the monthly mortgage payment. This fell apart when the “housing bubble” in the USA, Great Britain, Spain and many other countries impacted the global financial markets.
2. Loans on depreciating assets such as cars are targeted with unreasonably higher interest rates.
3. Commercial property financing is next to impossible to obtain and carry large interest rate surcharges.
4. Operating loans on inventories are non-existant, unless you approach second and third-tier lenders - they charge usury rates. The retail and manufacturing sectors were and have been gravely impacted by this policy.
5. Consumerism has created “fashion and technological demands”. Take out the credit card and pay twenty to thirty times more than the central bank interest rate.
The fraud has worked because banks have destroyed an investor's ability to achieve “capital preservation”. With interest rates so low, and disposable income deteriorating rapidly, individuals are continually facing a diminishing net worth.
The nails in the coffin are “bank fees”. Fees are the substitute for interest. Banks no longer risk the money they borrow from the central banks. They are more eagre to gamble it away without recourse, and use the depositor as a security blanket. Fees have made it possible for banks to generate revenue, and for reserve banks to hold interest rates extremely low (i.e. nothing). If fees were abolished, interest rates would have to increase, and capital preservation would once more be invoked.
Through taxation we continue to grow our army of public servants. We pay for this growing army with the scurrilous second level of taxation - property taxes. This army is founded on nepotism and feeds the masonic corruption in government and banking. By increasing the cost of carrying capital and real estate, banks (i.e. with their influence over the political system) provided corporations an incentive to invest in the emerging markets (ex. Asia and Africa). Businesses and banks who took our money abroad obtained larger returns with fewer costs; and in almost all cases there was less oversight and lower foreign taxation.
Zero percent is nothing and nothing means you will have nothing very soon. All banking systems should be nationalized. We must return to a gold standard. Bank fees, derivatives, credit default swaps, currency manipulation etc. should be abolished.
Finally, get rid of the queen and expose freemasonry for what it is – a crime.
Low interest rates also provide sovereign nations the ability to manage their "increasing" and "irrevisible" debt load. This is entrapment on the larger scale.