Baron Jacob Rothschild – concerned banker or Bond villain? (Picture Source: http://www.myfirstclasslife.com )
In the RIT Capital Partners 2014 annual report, the head of Rothschild family banking empire warned that “the geopolitical situation is most dangerous since WWII.” A year later, Baron Jacob Rothschild repeated his warning about the outcome of “what is surely the greatest experiment in monetary policy in the history of the world”. In August 2017 with markets still behaving irrationally he cautioned that “share prices have in many cases risen to unprecedented levels at a time when economic growth is by no means assured.”
Little did he know at the time that, driven by High Frequency Trading, computer algorithms and a quasi religious blind faith in technology they would keep rising, but related to that, he also made another warning which the market has so far ignored:
The period of monetary accommodation may well be coming to an end. Geopolitical problems remain widespread and are proving increasingly difficult to resolve.
In the latest half-year commentary from RIT Capital Partners published yesterday, Lord Rothschild made his sternest warning to date, this time focusing on the global economic system that was established after WWII to create a new world order, and which he believes is now in jeopardy.
The billionaire banker pointed to the US-China trade war, which is really a US versus Russia, China and Iran currency war, and the Eurozone crisis, with the resurgence of nationalism threatening the European Unity project after the UK’s Brexit vote, as the key problems putting economic order at risk, and the lack of a “common approach” – a reference to the gradual unwind of global thinking in the wake of President Trump – that has made “co-operation today much more difficult”:
“In 9/11 and in the 2008 financial crisis, the powers of the world worked together with a common approach. Co-operation today is proving much more difficult. This puts at risk the post-war economic and security order.”
It wasn’t clear if he was referring to the post-war fiat money standard that emerged once FDR devalued the dollar relative to gold, and then fixed a price for the yellow metal, a tenuous link that was subsequently destroyed by Nixon who finally took the US off the gold standard, or the primacy of the dollar which emerged as the world’s reserve currency after the end of WWII, paving the way for the US to bid for global hegemony, but whenever one of the people who profited handsomely from the “post war world order” warns it may be on its last legs, it may be time to worry.
Either way it is hard to believe that Rothschild is a stupid man, although living in an elitist bubble he may be detached from reality, but his comments suggest that he is unaware the great mass of people have woken up to the fact that globalisation can only benefit the elite in the west, while diminishing the educated populations of developed nations in favour of buying the loyalty of uneducated third world multitudes with handouts and cheap gadgets.
With global risks growing after politicians and the banking cartel have kicked the can down the road for several years by printing money, how is Rothschild positioned? He writes that “in the circumstances our policy is to maintain our limited exposure to quoted equities and to enter into new commitments with great caution” and indeed, in the first half, RIT had a net quoted equity exposure of only 47%, historically low. The reason: the iconic banking family is concerned that the 10-year bullish cycle and market rally could finally be ending.
While Rothschild noted that “many of the world’s economies have enjoyed a broad-based acceleration not seen since the aftermath of the financial crisis of 2008, with as many as 120 countries seeing stronger growth last year” he also cautioned that “we continue to believe that this is not an appropriate time to add to risk. Current stock market valuations remain high by historical standards, inflated by years of low interest rates and the policy of quantitative easing which is now coming to an end.”
One potential risk is Europe, where debt levels have reached “potentially destructive levels”.
Quite so, but the growth we have seen since the 2008 crash has not been organic growth but has occurred mainly because interest rates at which governments lend to banks (by selling bonds to fund their deficits,) have been artificially maintained at suicidally low levels. This has enabled banks to borrow at a quarter or a half per cent, and use their borrowings to buy bonds with a fixed rate of three or three and a half per cent (or higher for nations with weaker economies.) These bonds often give a higher yield as it is possible to buy them at a discount.
Globalisation And The Destruction Of Civilisation
Despite repeated assertions that this blog does not align itself with either of those anachronistic labels, left and right, our oppositions to globalisation (an attack on benefits the early trade union movement fought for,) and our support for controlled borders and strict vetting of immigrants we are often accused by those who like to label themselves ‘left’ (because it sounds cuddlier) …
Can Americans Overthrow The Evil That Rules Them?
The anti – establishment, anti – globalisation mood that manifested itself in the Brexit vote is sweeping across Europe, the cosy government – corporate cartel is desperately trying to control the narrative, but against the combined strength of millions of new media commentators all challenging the official; narrative, the dark forces of globalism are on the back foot.
Is Bilderberg A Sinister Group That Runs The World Or Just A Tea Party For Rich And Powerful People
Are the Bilderberg Group meeting, this weekend in Dresden, Germany, really The Shadow Government (the New World Order, The Illuminati,) that rules the world?
The Oligarchy Is Tottering – Trump Tramples The Neocons’ “False Song Of Globalism”
Donald Trump scares the global establishment as do the anti Federalisation parties in the EU. We take a long and detailed look at why, and exactly what the globalist agenda would have meant for freedom and democracy had people not wonken up and opposed it in vast numbers. Kudos to the Islamic Jihad too, medievalist religious nuts they may be, but they resisted American attempt to impose western consumer culture on them.
If You Look At How Fast Global Trade Is Unravelling, You’ll Get Dizzy
Governments constantly make positive noises about the health of their economies although most people who are in work have felt no improvement on the position they were in after the crash of 2008. Wages are stagnant, employment has reduced somewhat (see below) and while the banks are printing money and the super rich are widening the gap between themselves and ordinary people faster than ever, the real situation is frightening.
The New World order Pope Wants You To Pray For One World Religion
The Marxist, globalist, Soros apparatchik currently posing as head of the Catholic faith wants to scrap the Catholic Church. He didn’t say that in so many words but he has called on Catholics to pray for the creation of a world religion (because love and peace) which would embrace
Democracy Murdered In France
I’m hearing very disturbing news from the French regional elections, predicting that the Front National, comfortable winners in last week’s first round of regional elections, hasve been routed in all regions. For that to happen, and to happen through a massive increase in turnout, suggests electoral fraud on a hughe scale. Or has France joined Britain in adopting the Islamic version of democracy, which is one man one vote, one Imam one thousand votes.
Who Runs America, The White House Or The Shadow Government?
Reports of President Barack Obama’s meeting with Russian leader Vladimir Putin at the G20 summit over the weekend do not look right in the context of yet another blitz of provocative rhetoric from The Pentagon and the Department of Defence towards Moscow. In view of the USA’s constant push towards all out war with Russia, one has to ask who is in control: Obama or the generals?
EU “Sounds Alarm” Over New US Sanctions On Russia; Germany Threatens Retaliation
Late on Friday (21/07/17), Congressional negotiators agreed to advance a cross – party bill that would punish Russia for its (alleged) interference in the 2016 election according to the Wall Street Journal. And while it seems improbable that President Trump would sign the bill if it reaches his desk, the loudest complaint about the bill to date has emerged not from the Oval Office, but from US allies in NATO and the European Union …
Trump catches attention of CFR, Bilderberg, Trilateral
Donald Trump is portrayed as a clown by mainstream media and his combover is the silliest I have ever seen. Still, he’s a billionaie so I don’t suppose he gives a flying fuck what The Daily Stirrer thinks of him. Not that we think he is all bad, anyone who attacks Obama’s global naziism trade deals, TTIP and TPP mush have some good points.
Prepare For The Worst Case Scenario
An article on the cashless society our political and corporate overlords are pushing for proposes that as far as privacy and individual liberty are concerned, what is being planned right now in the political capitals and financial centres of the world is the worst case scenarion. An all digital financial system would mean the end of privacy, nothing you bought or traded would be your own business any more …
How Mainstream Media And The Major Political Parties Are Making Sure Voters Do not Hear The Voices Of Politics’ Most Powerful Critics
As the General Election campaign starts to heat up, we try to shift focus away from the squabbling between Conservative and Labour about who can make the most promises they have no intention of keeping and to the real issues concerning jobs, social breakdown , mass immigration, and loss of national sovereignty.
US Presidents Of The Past warned Against Secret, Shadow Government.
By now it should be obvious that peacemake, joybringer and putative aquatic pedestrian Barack Hussein Obama was never really in charge of the US Government. Whatever Obama said would happen, all the American government’s policies ensured the opposit would happen. The embedded article thows some light on how the US government really works
The American Political System Is “Not A Democracy Or Constitutional Republic” – Thiel
The state of democracy in the USA has become a hot topic of conversation in American business circles in recent years. While President Barack Hussein Obama, not so much a man as an ego on long skinny legs, has increasingly been inclined to rule by executive order in the manner of a despot or tyrant, even Obama’s fiercest critics have to admit the American electoral system seems increasingly capable of delivering only political paralysis …
U.S. versus Russia War: Top Russian Politics Scolar Stephen Cohen Tells The Truth
We have been blogging for four years about the US drive for war, provocation of Russia in Syria, Iraq, Ukraine and elsewhere made it obvious. But I’m just a news junkie with a strong sense of curiosity and have wondered why the US seems set on this course. Good to see experts like Stephen Cohen, a prominent expert on, Russia are coming onside.
Another Reason To Get Out Of EU. UKIP MEP Hits Out At Fishing Policy That Penalises British Fishing Crews
As the General Election campaign starts to heat up, we try to shift focus away from the squabbling between Conservative and Labour about who can make the most promises they have no intention of keeping and to the real issues concerning jobs, social breakdown , mass immigration, and an often overlooked area in which our EU membership has perhaps done more damage than any other, the fishing industry.
Multi-Cultural England: Are You Feeling The Progressive Diversity.
As racial and sectarian tension increase on the streets of britain while politicians gear up for the election campaign, we take a look at the state of Britain today, Imigrant child abuse gangs, Clerics of alien faiths dictating moral strictures, and everywhere we look, foreigners being given provieged status. Is it any wonder the voters are angry?
Another Conspiracy Theory Becomes Fact: Oil Collapse Is All About Obama’s Proxy War With Russia.
While we are distracted with sex scandals at home and terrorists rampaging through the middle east and Africa, the US / EU / NATO confrontation with Russia / China / Iran is geting into a very dangerous state. While the Chinese led move to dump the US dollar as global reserve currency is causing economic chaos, the USA attempts to provoke armed conflict with Russia are getting more reckless and desperate.
Seventy Years Down The Line And We Have Come Back To Appeasement As A Means To Peace.
As a spate of increasingly bloody and violent attacks on civilized values and the democratif freedoms of the western nations (free speech for example) continues to cause revulsion among the general population, our spineless leader are calling on us to be tolerant. The cowardly hypocrites who lead us may be ready to surrender, but anger is mounting in the cities and towns.
Another Blow To The US Dollar Reserve Currency Status As Russia Sings Up Turkey, India
The move led by Russian and China to dump the US dollar as global reserve currency continues to gain momentum. Most recent nations to sign bilateral agreements to settle cross border transactions in the currency of the vendor are India and Turkey.
Even The BIS Is Shocked At How Broken Markets Have Become.
If the Bank of International Settlements (BIS) the bank where banks and governments do business is worried about the state of the markets, we are in bigger trouble than anyone is letting on.
Based on info at ZH (reveal)