THE current heir to the Rothschild banking dynasty, Lord Jacob Rothschild, has pronounced that the game is up, the world’s central banks have shot their bolt as far as rescuing world capitalism through manipulating the monetary system is concerned, and he is jumping ship, dumping the dollar and buying up as much gold as he can get hold of.
This was the underlying message of his latest six month review to shareholders in his global investment company RIT Capital Partners. What Rothschild said was that he was unloading stocks and drastically reducing the company’s exposure to the currency markets while increasing his holdings in gold and other, unspecified, precious metals.
The reasoning behind this dramatic move, by what is unarguably the biggest, wealthiest investment company in the world, was that: ‘The six months under review have seen central bankers continuing what is surely the greatest experiment in monetary policy in the history of the world. We are therefore in unchartered waters and it is impossible to predict the unintended consequences of very low interest rates, with some 30% of global government debt at negative yields, combined with quantitative easing on a massive scale.’
Rothschild is being disingenuous; he and his fellow multi-billionaire bankers know all too well what the consequences are of the failure of the central banks to rescue a bankrupt capitalist system that is drowning under a sea of debt. It can only lead to the most catastrophic crash of the banking and financial system in history.
Equally he is less than honest when he blames central banks for being the architects of disaster with their monetary policies of QE and negative interest rates – the Rothschild’s and their ilk control the central banks and have done since the start of the modern capitalist banking system.
His great-great-great-great grandfather, Mayer Amschel Rothschild, founded the banking empire that became the wealthiest bank in the world. So when the head of the global investment arm of this bedrock of finance capitalism decides to dump shares and currencies, especially the dollar, it is clear that a crash of seismic proportions is imminent.
Rothschild may be the most important banker but he is not alone. Some months ago it was revealed that fellow investment speculator George Soros, the man who ‘broke the Bank of England’ in 1992 by speculating against the pound, was also rushing to dump currencies and shares in favour of buying up gold.
The fact is that is is not just individual bankers that are thirsting after gold – capitalist nation states are also buying up the precious metal, as a hedge against the collapse of the dollar. The European Central Bank holds nearly 11,000 tonnes of gold, China nearly 4,000 tonnes while Russia holds nearly 1,500 and has been buying over 200 tonnes a year.
In contrast Britain under Gordon Brown sold over half its gold reserves at rock bottom prices in 1999-2002. In his report, Rothschild gave his reasons for this stampede into gold, saying: ‘In times like these, preservation of capital in real terms continues to be as important an objective as any in the management of your Company’s assets.’
All that the measures to keep the banks from going under, and the attempts to ‘kick-start’ a collapsing capitalist system, have done, is to vastly inflate share prices and create a massive bubble that is set to explode the capitalist world.
Having sneered at Karl Marx, and his insistence that only gold represented real value because of the enormous amount of human labour required to mine it and refine it, and having maintained that the value of a thing was just as much as it would bring, (this moved Gordon Brown to sell the gold reserves) the capitalists believed that vast profits could be generated by ‘creative’ speculations and swindlings. Now these same ‘Masters of the Universe’ are scrambling to possess gold and nothing but gold.
By their conduct they are spelling out to the workers of the world that the time has come to expropriate the expropriators, that is to put an end to capitalism and the capitalist class with a socialist revolution. There is no other way to resolve the world crisis in the interests of the working class.