Money Matters
Forbes claims the “richest” person in the world is in Mexico. Their list of “billionaires” is based upon individual (financial) “net worth” (measured in Federal Reserve Note Dollars) – rather than any of the many other factors that constitute and contribute to being “rich” and/or “wealthy”. Also not mentioned were resources, assets, and activities which are controlled or influenced (even if not “owned”) by families, groups, rather than by individuals. The Rothschild Family alone is said to control trillions – and yet none of them appear on Forbes list.
Americans account for only 40% of the world’s current billionaires. There are probably more new “billionaires” in China than in the U.S. This is significant – and reflects Asia’s increasing financial power. The “transfer of wealth” in the next few years will likely create trillionaires – and paupers. There is also very likely to be a reorganization of banking (and governance!) on a global scale. Americans may feel they are losing many rights and privileges (previously taken for granted).
Bank mergers, failures, and takeovers are increasingly common. So are changes in terms, conditions, laws, and practices influencing what financial institutions, investors, and even everyday “consumers” and can and cannot do with (their) money.
Starting April 1st, CitiBank may require a week’s advanced notice prior to allowing depositors to withdraw funds from their (checking) accounts – at least in Texas. In a fractional reserve system, banks do NOT have enough funds to pay even 10% of the people who might ask for their own money. Even the Federal Reserve may actually start borrowing money (back) from other banks (that it probably originally supplied money to in the first place). The ironic thing about bank loans is that the lender is usually not at risk of losing anything since what is loaned is simply an accounting entry rather than a transfer of anything tangible (that they don’t even have) – so that even if there is a default on the principal “owed”, the lender usually ends up with more in interest received than actually ever existed as, let alone was removed from, their “reserve”.
It is unclear if other banks will impose similar restrictions on customers as a precaution against a “bank run”, but BIG changes in banking are expected. The largest bank in the world (accountable to NO government) is the Bank for International Settlement (BIS). Recent changes in their (leadership) organization suggest that there will also be (major) changes in how other financial institutions (and even governments) do business.
Read the statements and notices you will undoubtedly be receiving soon carefully. And if you want to have access to cash/currency, you might want to (discretely) withdraw some while you still can. It’s not like you’re gonna lose much in interest! Credit, debit, electronic bill pay, and other trackable (and blockable) transactions are likely to be promoted as convenient, safe, and desirable – the same way that cars are being sold that can be tracked and remotely controlled by people other than the driver. Implantation of RFID (Radio Frequency Identification) microchips (that someone else could turn off or either accidentally or purposely alter the info or amount available) may not be far-fetched or far behind.
There is more to life than money – and most “rich”/”wealthy” people convert most of their cash into assets rather than (just) accumulate more (paper or digits). If YOU desire to someday be listed as a millionaire, billionaire, or trillionaire, NOW would be a good time to stop passively listening to and obeying whatever car (GPS) navigational systems, cell phones, and other electronic devices tell you – and make a point to start thinking for yourself.
© 2010, Oren Pardes. All rights reserved.
Tags: banks. money, billionaires, CitiBank, rich
