On paper, central banks are responsible for two things. They decide about the supply of currency and set interest rates. If the economy is healthy the velocity of money circulation grows higher creating inflation. Raising interest rates help to cool off the overheating economy. On the other hand, if the economy is heading for a recession central banks lower interest rates to make available to society credit cheaper and stimulate spending. This helps the economy get up from its knees. This is the theory.
The key role of four companies from the title of this article (Facebook, Apple, Netflix, Google) starts to resemble situation from the end of the '60s and beginning of the ‘70s. This is when American market was stormed by fashionable firms like Nifty Fifty. Investors were convinced about the limitless potential of several companies and it led to very painful crashes. How will the history end this time?
Until 29th October 113 companies of S&P 500 have already published their financial reports for the last quarter. A big number of them – 76% - presented better than expected performance. “Exceeded expectations” sounds very positive and is already a buzzword in the world of investment but we should take a look at it in the context of American reality.
Nazism would not have played a significant role in the XXth century without the bankers from New York and London. Financial elites executed the plan perfectly by taking over financial sector in Germany and consequentially political control over Central Europe.
Gigantic funds from both military and financial sectors. Unanimous cooperation of the mainstream media. Polls signalling only one possible result of this election. All of the above did not help Hillary Clinton to win. The new President of the United States is Donald Trump.
Only in few days, Americans will choose their new president. In my opinion, this election is one of the most important events in decades. Since Kennedy, you can see that the choice of candidates represented only the interests of the establishment. This time it may be different due to Trump’s promises to limit the dominance of the wealthiest 0.01% part of society. I do not believe he is the ‘saviour’ of the middle-class as he pretends to be. It is rather strategic of him to use growing discontent in the ever divided society. The drastic difference between 90% of American workers and top bracket is the main reason for dissatisfaction.
Romania removed over hundred taxes and charges
Only two weeks and both houses of Romanian Parliament agreed on a regulation to remove 102 taxpayer burdens (charges and taxes). Changes were accepted by leaders of all parties in the Parliament. Scrapped taxes were only waste of both time and money for our citizens - Liviu Dragnea, head of PSD party commented. With the intention to put more money in the pockets of the middle-class Romanian government started a fight with bureaucracy.
During the last 40 years, central banks have gained power they previously could only fantasize about. They were given full control over the currency supply and interest rates. These are the tools to plan booms and depressions. Thanks to such a great authority banks could create economic bubbles and their inevitable bursts. The result is one of the biggest capital migration in history from the middle class to 1% advantaged with access to particular data in advance.
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