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the global oligarchy

The Global Oligarchy and the Flow of Money

For stock traders, it is helpful to understand the global oligarchy and how money flows through the global financial system.

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According to company 10K filings to the SEC, the Four Horsemen of Banking are among the top ten stock holders of virtually every Fortune 500 corporation.Source:

The last global financial crisis briefly revealed the structure of the oligarchy. Remember how the oligarchy was able to shut down Congress at the drop of a hat and pull everyone out of meetings and other sessions into an emergency congressional meeting? Remember how they completely changed the rules of stock trading by preventing short selling of financial stocks when the stock market started to crash? What power. No other group on the planet, not even the President of the United States, has the power to instantly halt Congress and pull all congressmen into an emergency meeting. That was the global oligarchy telling Congress that the financial house of cards was crashing down and how much money they needed to prevent a collapse of the entire global financial system.

If everything was not concentrated into a ruling oligarchy at the top, like a pyramid, the entire global financial system would not have been in danger of collapsing. Everyone would be doing their own thing and so the risk of collapse would have been contained to a sector or two. The very fact that the entire global financial system was on the verge of collapse proves that a small group of people and corporations control everything.

the global oligarchy

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That means the real power to control the world lies with four companies: McGraw-Hill, which owns Standard & Poor’s, Northwestern Mutual, which owns Russell Investments, the index arm of which runs the benchmark Russell 1,000 and Russell 3,000, CME Group which owns 90% of Dow Jones Indexes, and Barclay’s, which took over Lehman Brothers and its Lehman Aggregate Bond Index, the dominant world bond fund index. Together, these four firms dominate the world of indexing. And in turn, that means they hold real sway over the world’s money.Source: www.forbes.comopens in a new window

The four big banks (Bank of America, JP Morgan Chase, Citigroup, and Wells Fargo), own the four big oil corporations (Exxon Mobil, Royal Dutch/Shell, BP Amoco, and Chevron Texaco), which own the four big investment firms (McGraw-Hill, Northwestern Mutual, CME Group, and Barclay’s), which are the top ten stock holders of most Fortune 500 corporations, and these Fortune 500 corporations have ownership in most everything else.

The existence of a global oligarchy explains why the Federal Reserve is making plans to raise rates by the end of 2015, even in the face of a rapidly slowing U.S. economy. Clearly, the global central banks are working together and its the ECB’s turn to devalue their currency and inject stimulus and QE programs into their economies.

Currencies are measured in relative value to each other. If the U.S., Europe, Japan, and China, all devalued their currencies by 10%, it would have virtually no impact on the economy. Each country would be devaluing their currencies in lockstep so that no one would benefit from a lower currency in terms of export prices. This fact alone proves that some type of global financial coordination has to take place between central banks around the world. This explains why the ECB has patiently waited for the Federal Reserve to end QE before starting its own QE.

Follow the QE

The reason the U.S. dollar is strong is not so much what the Americans are doing but rather what the Europeans are doing with quantitative easing,” adds Mauro Guillén, Wharton management professor and director of The Lauder Institute.Source: www.knowledge.wharton.upenn.eduopens in a new window

Understanding the global oligarchy will help you profit from one of the best plays on Wall Street right now: European ETFs and funds. European stocks have been on fire after Draghi announced the first ECB QE program ever. Immediately following that news, hundreds of billions of dollars flowed out of U.S. stocks and into European stocks. That was the “smart money” following QE around the planet.

We have all heard the old cliche “Don’t fight the Fed”. I have coined a more accurate and beneficial saying for stock traders, “Don’t fight the global financial oligarchy else you’ll end up like Russia, pissed off and broke.”

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