The imminent collapse of a broken financial system, by Ibrahim T. Tumsah
In a system where money is created out of thin air to back the latest financial scheme even if its utility is questionable, the invisible hand of the free market economy is now made flesh in steering desired economic outcomes in far away lands through illegal financial warfare schemes from policy makers and financial guru’s drenched in the stench of mischief sitting in Washington and Wall Street.
The financial system as it is with the United States petrodollar as its reserve currency serves a select few ‘in the know” about how it works. sometimes these same people within those circles forget or don’t even know how it works as long as it produces a convenient payoff. Wall Street conjures up new ‘financial instruments’ using alchemy. Derivatives, debt, crypto currencies and the countless asset bubbles keep the Ponzi scheme going. It is a case of gamblers in a casino refusing to leave the table with their winnings because their greed knows no bounds.
Numbers can be altered and configured on a screen to maintain this illusion.Consider company financial statements and the stock market. A tech company’s stock price can and will continue to go up so long as said company can provide proof it is making profits for its investors.
However, if you look closely it is just another example of corporate greed and how this financial system incentivizes this base human behaviour. I’ll explain- A decade ago you could buy a car or an iPhone at its full price and it came with all its features included as advertised.
Now, to show that this aforementioned company is making more profits on its statement than the previous year, will make their customer purchase the same car or iPhone with its included features broken down as a subscription model or separate parts. A phone that came in a box with a charger and headphones are now three separate products. That is not innovation, it is squeezing the customer for more profits. This new game for corporate is made possible without regulation and oversight. It can be seen in every country that participates in stock exchanges.
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In the cement industry in Nigeria, companies collude to jack up prices or lower them even when the cost of producing cement has not changed to curtail new market entrants and boost profits. Power companies impose prohibitive prices broken down in ‘Bands’ without an increase in the hours of power supply.
Since the turn of the century, the US dollar has been a financial weapon and a massive liability for a majority of other countries outside the United States that trade and do business within its framework. Should any sovereign country decide to pursue its own foreign policy interests that happen to clash or fall outside the established US/Western rules based world order, it can be sanctioned into oblivion i.e Cuba, Iran, Haiti, Iraq. Its economy decimated, its national currency made worthless from machinations miles away. The IMF and World Bank are institutions set up specifically for this purpose. Central Banks around the world have to adhere to the policy scripts designed for them by these organisations or else their loan applications are denied and foreign investors will look elsewhere for more compliant stooges willing to sabotage their own country’s interests.
A reserve currency status is a duty entrusted on the holder— of integrity, accountability and wardship of the global financial trade system by all other nations that participate and engage in international business and diplomatic relations. Once that trust is broken and used as an axe against others that do not want to participate in the imperial machine’s zeitgeist or policy diktats, it becomes exploitation.
A world where the weak are seen as mere tools for domain expansions as ‘spheres of influence’ and foreign policy playthings that can be used and discarded at anytime for amusement and enrichment to feed the global machine, is not a system that will last.
If the rules only apply to the disenfranchised many, but not the few western elites, then that system is worthless.
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Financial alchemy has its limits before everyone catches on. The financial system is prone to manipulation by ruling global elites. More zeros on a bank account balance without strong fundamentals or actual intrinsic value into the economy is only an illusion that might fool some of the people some of the time, but not all of the people all of the time.
The United States has used its reserve currency status to hoodwink its users for far too long. Its reliance on debt which is in the trillions of dollars was once laid bare in the 2008 financial crisis and is rearing its head again. This time, when the collapse happens it will not go unpunished. The unlimited money printing coupled with an unproductive economy is already indicative of a scenario in a casino where the players are trying to cash in their chips all at once.
The United States economy is in the red while the prices of gold, silver and other precious metals of real value are skyrocketing to unprecedented levels. This is a subtle sign of a market that has lost confidence in the stewardship of the US dollar as a reserve currency, which means people are looking for real value elsewhere and hedging against the fiat paper currency losing its value.
As Hemingway once said; “the end came gradually and then suddenly.” I am not a fortune teller nor can I predict the future, but if history is anything to go by, the US dollar as a reserve currency is reaching past its due date. Whichever nation, state or basket of currencies that wish to inherit the mantle of reserve currency status, must guard against greed and financial manipulation by virtue of their responsibility to be entrusted such a difficult task with unremitting integrity.
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