Perhaps the time has come to say loudly what has been taboo
till now. It is that the central bankers of the major powers regularly conspire
to favor some people over others, and they manipulate the financial systems in
such a way as to make these people rich. The bankers do that for the good
reason that without such “remedies” the economies tend to stagnate with the
nefarious consequences that everyone dreads.
The bankers do not make a distinction between people because
of their race, color of skin, religion or what have you. No. The people that
the bankers favor are those driven by the entrepreneurial spirit, no matter
what they look like. Of course, there is the true entrepreneurial spirit, and
there is the fake one … and so, a number of fakes manage to benefit from the
bankers' largess when they shouldn't. But this is a price that the bankers are
willing to pay to help the economies of the world move forward, grow and renew
themselves.
To understand why this is the case, and what the bankers do
to make things work, we need to get a sense as to how economies grew before the
invention of fiat money. Well, this may come as a shock to some people, but
progress was never achieved on this planet without a dose of injustice. The
reality is that things do stagnate when everything is placid. They start moving
– up or down, in a good direction or a bad one – when someone stirs the pot and
causes ripples to form. And this is something that is usually done at someone
else's expense.
In the distant past, powerful men or groups of them pushed
societies out of their lethargy by exploiting the people they looted or
enslaved. Later, they offered the people they drafted into their cause a level
of personal security, and a way – however modest it may have been – to feed
their families. They asked in return for the loyalty and hard work of their
“subjects.” Then came the idea of employing people for wages, a development
that gave birth to the principle of an exchange between the labor of the
workers and the compensation of the employers … with the possibility of
negotiation between the two.
With the rise of the unions and the labor laws to protect
the workers from exploitation, the employers who are true entrepreneurs, found
themselves at such a disadvantage, they lost the appetite to make moves such as
the one undertaken by Henry Ford when he decided, on his own, to pay his worker
enough so that they may buy what they produce. Worse, many entrepreneurs saw no
point in expanding their businesses beyond the ability to make a decent living
… and be happy with that. The trouble is that when a culture reaches this
point, and sees the attitude spread massively throughout society, it is ready
to descend into the kind of stagnation that has kept many ancient cultures in a
permanent state of placidity.
But how do individuals who may be endowed with the true
entrepreneurial spirit know it is worth taking a risk, and forge ahead with new
ideas? They do it by comparing their current state with the promise of what
they might become if they took the risk. If what they have now assures them a
steady existence and no risk of falling back, most will prefer it to the
promise of a higher level of existence but with the risk of losing everything
and getting back to square one. Well, the central bankers found a way to make
these people take the risk, and not worry about getting back to square one.
This is what the bankers did. They, in effect, told the
entrepreneurs: If you are already rich and have properties, go ahead and bundle
those properties into commercial papers. We, the central banks, will buy these
papers and give you the cash you can invest in high growth areas of the world,
or deposit with us for a modest return. And while this is going on, the money
supply will increase with none of it going to the rest of society. The move
will automatically make you wealthier than before without you having to take
any unnecessary risk. So now, you should be able to develop the appetite for
taking a limited amount of calculated risk.