"Mountains of Money" - Big players add liquidity and risks to global market
This artificially created money is propelling inflation in property, stocks and goods, making life hell for poor and middle classes around the world.
It is also the reason why, despite heavy losses at many of the big banks, the stock markets are not crashing.
As long as the Chinese and the oil producing countries keep feeding the American government by loaning it money through treasury bonds, America will not end its wars against the third world countries.
awakenedgoyim
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NEW YORK (Reuters) - The four largest players in global financial markets have grown at a breakneck pace in the last six years, and the assets they manage are expected to double to $20.7 trillion by 2012, according to a report released on Thursday.
Petrodollar investors, Asian central banks, hedge funds and private equity firms -- collectively called "the new power brokers" -- have had the positive effect of adding liquidity to global capital markets, the McKinsey Global Institute said in the report.
But the controllers of such massive amounts of money also pose significant risks to the global financial system, it said.
"One of the most noteworthy things about these new power brokers is that, particularly with the petrodollars and Asian central banks, there has been a big rise in global liquidity," said Diana Farrell, director of the Institute.
"We've seen this tremendous rise in liquidity without an increase in volatility," she said.
In the last few months, keeping financial markets liquid and stable has been a prime objective of central banks around the world as investors grapple with a credit market meltdown.
The report suggests that the four biggest providers of liquidity to the global financial system are expected to grow steadily over the next five years.
Collectively, assets managed by the power brokers have grown from about $3.2 trillion in 2000 to an estimated $8.4 trillion to $8.7 trillion at the end of last year -- 5 percent of total global financial assets, the report said.
Included in these figures is the Chinese central bank's enormous coffer of foreign exchange reserves, valued at more than $1 trillion, as well as the investment derived from recycled oil sales proceeds by oil exporters.
MOUNTAINS OF MONEY
If oil prices pull back from current record highs and hedge fund and private equity returns moderate, McKinsey forecasts those assets could grow to $15.9 trillion by 2012, a slower pace of expansion than that seen in the prior six years.
However, if the rate of growth is sustained over the next five years, assets held by the power brokers could grow to as much as $20.7 trillion.
With such large amounts of money sloshing around, it is no wonder that the power brokers have had a sharp impact on capital markets by diversifying the kinds of investors and spurring financial innovation, the report said.
Yet, the new players have brought risks with them as well.
For example, some economists fear that state-controlled investment funds financed with oil export earnings or central bank reserves may be inclined to make investment decisions driven by non-economic motives.
"The fear is that rather than investing solely for commercial pursuit of returns, their state connections may introduce an element of political or mercantilist considerations in their investments," the report said.
McKinsey Global Institute recommended increasing transparency in all four of the power brokers in part through increased bank oversight and an improvement in governance structures.
this article is important in that it highlights the obscene amounts of cash that just a handful of institutions around the globe wield.
But, it falls shamelessly short when it comes to highlighting the real risks to the financial system and how it will impact REAL people.
Indeed, it grossly misleads readers directing them instead as to how it may adversely affect BANKERS. E.g.,
Of course, this is an incredibly disingenuous statement since those who "invest solely for the commercial pursuit of returns" are not only systematically destroying world economies with their greedy avarice, they are doing it in ways that are glaringly politically motivated.
This is just a sneaky way of imposing "regulations" that would make it easier for one set of greedy capitalists to know ahead of time what the other set are up to.
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"Money" has no value - people do.
"For example, some economists fear that state-controlled investment funds financed with oil export earnings or central bank reserves may be inclined to make investment decisions driven by non-economic motives.
"The fear is that rather than investing solely for commercial pursuit of returns, their state connections may introduce an element of political or mercantilist considerations in their investments," the report said.
I think what the above statements refer to is the fear by Western countries that the Asians and Arabs will use these huge amounts of money to undermine Western military and financial hegemony.
But they dont have to worry about that as actually the war is about the rich against the poor.
All the capitalists follow one God, and seek it's protection, i.e. America's Military power. The puppet capitalists and governments of Asia, Africa and Latin America are all united with the Zionist moneymen in robbing the masses of the world.
The American government is in the protection racket like the mafia.
American military, and private mercenary companies such as Blackwater are being used by all the super rich, Jewish and non-Jewish alike to protect themselves from the wrath of the masses.
"But they dont have to worry about that as actually the war is about the rich against the poor."
Of course, the "rich" have common interests (I don't like the term "rich" because it measures them by their own filthy standards) and they include extorting money from the rest of us.
But, it would be a mistake to discount the fact that they are at constant war with EACHOTHER, each trying to achieve domination over at least their own territories.
Zionists, of course, are particularly virulent because they're not satisfied with their own territory - they want to rule the world.
In any event, they use ordinary people as cannon fodder for their wars against eachother.
Plus, the wars that they launch have the added benefit of destroying all the prosperity that was produced over generations - giving them the opportunity to enrich themselves yet again in "rebuilding" what they themselves have destroyed.
Not to mention, the benefit of culling off large portions of their populations who are poor and would otherwise be an unecessary drain on their bottomline.
It's appalling - indeed the work of the devil.
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"Money" has no value - people do.