Central banks control the monetary system of the world and determine when business cycles are going to change simply by increasing or decreasing the money supply in the banking system. This small group of powerful insiders know when to sell high and buy low because they determine when the market cycle is going to change. What has just happened with oil and gold prices is an example of the power brokers who rule the world.

When Cecil john Rhodes died, he left a series of wills in which he wanted to set up a secret “society of the just”, based on the Jesuit Society, to carry out his vision of a world united under British rule. Interestingly enough, he worked very closely with the British and French Rothschild families to finance the merger and consolidation of all the various South African diamond and gold concessions. One of his directives was to educate well selected men (and recently, women) from key colleges and universities from around the world, in the philosophy of bringing the world under British rule. These people are known as “Rhodes Scholars” and include former President Clinton and many others in government.
Regarding the power of central banks, if you will take a piece of paper money out of your wallet — any denomination — you will see these words, “Federal Reserve Note — This note is legal tender for all debts, public and private.” You might ask yourself why the paper money does not state that it is a note from the Treasury of the United States? If the Federal Reserve is not the Treasury, what is it? The Federal Reserve is a “central bank.” To put it in every day terms, it is a private corporation which claims to provide a service to the people of the United States by providing the money used in our banking system.

When Congress refused to renew the Bank’s charter in 1811, the War of 1812 ensued, and in 1816 Congress re-chartered the bank with a capital stock of $35M. “From 1816 to 1828, it was the sole arbiter of the financial affairs of the nation, both public and private. Its power in politics was immense and it swayed elections as well” (Walbert, 11).
Whoever controls the volume of money in our country is absolute master of all industry and commerce….and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.

Needless to say, the move to re-establish control over the economy of the United States did not abate. Between 1840 and 1913, there was much done to try and re-establish a private corporation to control our monetary system.
Three years later in 1913, the central bankers took action. This time the people involved in this effort included some of the wealthiest people in America: Senator Nelson Aldrich (grandfather of David Rockefeller); Jacob Schiff and Paul Warburg of Kuhn, Loeb and Company, an international banking house; Piatt Andrew, Assistant Secretary of the Treasury; Henry P. Davidson, Senior Partner of J.P. Morgan & Company; Charles D. Norton, and Frank Vanderlip, President of National City Bank which today is CitiGroup. The passage of the Federal Reserve Act of 1913 was done through chicanery. Those in the Senate who favored the Act did not go home while those that were against it went home for Christmas. In a special session convened with quorum, the Act passed at 11:45 p.m. on December 24, 1913 — an evil act of bondage for the American people.

Today, only five countries in the world are without a central bank: Iran, North Korea, Sudan, Cuba and Libya. All of these just happen to be on former US Presidents George Bush’s “Evil of Axis” list.

So the question begs. What was the real reason for the recent Global Financial Meltdown. Look closer at the companies involved and the history, and the picture will become clearer.

Regards

Wilbert Chaniwa
Founder
Nexus Business Network

On Thursday the Reserve Bank Governor Tito Mboweni announced a 50 basis point cut in the repo rate. The repo rate is the rate the South Africa reserve Bank lends money to banks which is now 11,5%.The banks lend to the general public at the prime rate which is 15% plus or minus depending on your relationship with the bank. Both the prime lending rate and the repo rate were reduced 50 basis points, this is a fancy way of saying the rates were reduced by half a percent.

The Reserve Bank Governor further commented that ,”South Africa was not in recession and was unlikely to slide into one”. I believe that it was the consumers who went into a recession. This meaning the South African consumers struggled to balance their finances. We are grateful and welcome the rate cut as consumers just before Christmas. The good news kept coming economist expect consecutive rate cuts next year. The Reserve Bank Governor Tito Mboweni also said that inflation will fall into their target (between 3% and 6%). This is good and means they don’t have to keep raising rates and all our repayments will start going down. Hopefully we the public were not all blacklisted yet and can get credit enough to buy Christmas presence and share in the spirit of Christmas.

Today there are many people interested in the interest rate decision of the Monetary Policy Committee (MPC). An important question is “who makes this decision (about interest rates) and what are their interest”. Many South Africans have higher repayments on loans that are choking their personal cash-flows. Some people may be hoping for a Christmas present, but is Tito Mboweni father Christmas? Many of the fundamental functions of the economy are linked to the interest rate and it is in government’s best interest to control this function of the countries economy. Government does this by providing a mandate for the reserve bank.

The South African reserve bank (Governor Tito Mboweni) has a mandate to keep inflation lower (between 3 and 6 percent). An average man would think that the mandate should be changed to “lower interest rates” or think that the reserve bank is against them. Certainly the bank looks out for the interest of the economy. They do this by a number of functions which can be found on their website. These include determining the interest repurchase rate. This is a tool that controls consumer spending, because the lower the interest rates the more consumers borrow and spend. This spending is money coming into companies and impacting the economy. As inflation has risen the MPC has raised rates since April 2005. WE EAGERLY AWAIT TODAYS VERDICT.

The head of Transnet, Maria Ramos is going to leave Transnet at the end of February next year and take over as the head of Absa, replacing Steve Booysen as chief executive. There is no doubting Ramos’ credentials. There are very few people available who could do a greater job than she has done. She took over at Transnet in 2003 and then it was making a loss of R6.3 billion but now Transnet has posted a profit of R4.3 billion. A great turnaround in such a short space of time. Of note in this transformation was Ramos’ decision to move ownership of loss-making SAA (South Africa Airways) back to the government and sell the Victoria & Alfred Waterfront property in Cape Town for $1 billion (R11 billion).
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Many people were surprised when they heard there was no Western Union in South Africa. Western Union are a world leader in global money transfers. It seemed that in almost every country across the world there was a Western Union but come to South Africa and you could not find Western Union. Well now that situation is finally over. Western Union together with local bank ABSA will from this month be rolling out the Western Union transfer service at selected branches across the country.

The rollout kicked off with a pilot run at the Carlton Centre branch in Gauteng during September 2008. Now it looks set that there will be Western Union transfer services at almost 200 branches within the next 12 months. This will not only mean good news for ABSA as it will be getting more business by having Western Union on board but also for people in South Africa who want to transfer money outside the country and receive money from those in foreign countries. Standard Bank have a similar arrangement with the Moneygram transfer service which has proved to be very useful for consumers. Now with the ABSA and Western Union link, the competition between ABSA and Standard Bank is set to continue.

The JSE remains to be on a downward trend. The all share index closed 0.12% lower today. The major looser today were the banks, which shed 1.28%. Banks continue to be under pressure due to the interest rate worries being imposed by the rising inflation in South Africa. There is a possibility that interest rates in South Africa could be increased by as much as 200 basis points when the MPC meets on June 12 to make a decision on interest rates. Financials also lost 0.44% today so to did resources which closed 0.10% in the red.

Looking at the rand today, at 18:00 the rand was bid at R7.7053/$ from a previous close of R7.7197 having reached the R7.7845 mark during the day. Against the other currencies, the rand was bid at R11.9116/€ from a previous level of R12.0028 and at R15.1190/£ from R15.1517 before.

Many people in South Africa today rely heavily on internet banking. Internet banking came as a life line to many people as it meant that their trips to the bank became fewer and fewer and a lot of transactions they would do at the banking hall could now be done whilst on the internet. It took some time for people to get to grips with internet banking but credit must go to the banks that developed relatively reliable and simple to use interfaces for the online banking portal. Read the rest of this entry »