In the organic media, there is a well-articulated theory that the complex world economy is essentially controlled by an invisible group of global financiers, principally consisting of powerful invisible money hands in the developed nations in the West. By labeling the money hands invisible does diminish the credibility of this theory. However, when the theory is applied to the real world situation, plausible conclusions or explanations supporting this theory can be made. In this column, we will follow this line of reasoning to discuss who is behind the international stock markets and world economy and why the Trans Pacific Partnership (TPP) is promoted and for what purpose.
The world economy is complex but the world order is more or less under control. There were financial crises but so far the crises were managed without the total collapse of the world economy. Under the above theory of "invisible group of money hands", this group essentially controls the trade, finance and the economy through their control of the multinational corporations. This group has ability to influence national policies and even governance of nations. This kind of powerful influence is accomplished through promoting and application of ‘democracy’ to nations. Such a democratic machine can be greatly influenced (lubricated) by money as seen in many small and large countries.
So long the democracy can be influenced by money, the invisible money hands can work in the name of democracy to influence the elections (electing officials), legislations (enacting laws) and administration (executing policies) to benefit the multinational corporations and the financial institutions they own. Amazingly, even the United States, a super power, seems to be controlled by this invisible international money group via her democratic system. The powerful Federal Reserve System (FED, the central bank of the U.S.) guiding and monitoring the US economy is a system consisting of a board of governors. Although the governors are appointed by the U.S. President and confirmed by the U.S. Senate, the FED is a privately owned organization, not a part of the government. The governors are selected based on a “fair representation of the financial, agriculture, industrial and commercial interests” from the twelve geographically defined Federal Reserve Districts (each has a regional self-supported bank). They answer to a board not a government agency. The ‘visible’ FED is a politically appointed system appointed by a democratically elected president influenced by money, hence in essence, FED is controlled by the invisible money hands.
The invisible money hands influence all key elections through controlling political action groups and mass media. Therefore, the invisible money hands will promote and defend democracy and advocate a value system in which the economical power is controlling the political power. In principle, this value system is not a bad concept. If people can exercise democracy wisely without being influenced by the invisible money hands, the voting people can be the master of their own destiny. Unfortunately, in the democratic world, the invisible money hands are always present but invisible. Through money spent on mass media and political action groups, voters are led by the invisible money hands to produce its favored results.
The above-described process does not work in an authoritarian system, unless the authority (dictator) is bought by the invisible money hands. Often most small countries under a dictatorship can be easily bought by the invisible money group, then the country’s economy would be essentially controlled by them. Large authoritarian countries such as Russia and China cannot be bought easily. Hence, the invisible money hands must topple the authoritarian governments if they couldn’t be bought for the purpose of controlling the world economy or world order. Therefore it is no surprise that the invisible money hands only promote democracy selectively in different regions or nations in the world.
When China was a poor country with a small size of economy compared to the size of the world economy, she had no significant impact on the world economy. Hence she was left alone. Today, China's economy has grown to over ten trillion dollars, second largest in the world. It is obvious to the money group that in order to control the world economy they must control China’s economy. However, China practices, under one controlling Chinese Communist Party (CCP), a tightly government planned and government controlled economic development plan, allowing little external influence, essentially shutting out the possibility of influence and control by the global invisible money hands.
China’s central economic planning group practices a collective planning process gathering inputs from grassroots, local governments and government owned as well as privately owned enterprises. In China, political power controls economical power. People of China benefitted from China's rising economy through the political system – the government. If the government were corrupt, the economic benefits would not reach the people. People would eventually revolt. Apparently China recognizes this potential problem hence mounting a serious anti-corruption drive and system reform, but interestingly, the West does not seem to be jubilant or eager to assist China in her anti-corruption drive nor in her system reform.
Perhaps China also understands the value system of borderless free economy the invisible money hands are promoting, that is, an economy not under political control. In another words, the economical power controls political power. So China is gingerly conducting her financial and economic system reform, gradually privatizing government controlled enterprises and slowly opening for external investment. When trade and economy are mostly in the hands of the government established organizations and corporations, the Chinese economy is pretty much off the hands of external money, the invisible money hands. When China reforms and opens up, she is also vulnerable to the invisible money hands in more ways than one.
As said earlier, the borderless economic system is nothing wrong in principle, if the invisible money hands would play a fair game. Unfortunately, the powerful invisible hands are omnipresent, controlled by the West. They influence and control the economies and international stock markets and dominate the global financial institutions, such as international banks, International Monetary Fund (IMF) and the World Bank. Recognizing the unfair current environment, China fights for entering RMB into the currency basket of the IMF, proposes new banks such as BRICS Development Bank and AIIB to assist her economic development. Opening her stock markets to the world attracts investments to China but also invites the invisible money hands. Apparently, China is willing to take the risk and learning to regulate her stock markets to avoid manipulation by the invisible money hands.
The push for TPP is highly motivated by the invisible money hands following the philosophy of establishing a borderless economic system with economic power controlling the political power. By having twelve countries agreeing to a set of rules above national laws, the multi-national corporations (and the invisible money hands) gain the power and control the trade and economy. Even though TPP brings disadvantages to some nations from several aspects such as market access, tariff rules, IP protection and settling investment disputes, the Obama administration, despite of many protests, still promotes it. Why? The invisible money force is pushing it for the benefit of multi-national corporations they own and for curtailing China’s economy. TPP presents other problems in the borderless economic system, for one, the employment/immigration issue and another, income and wealth inequality. A socialistic China is sure to be leery about these problems.
China needs time to develop her own sustainable economic system. It is understandable that China adopts a controlled and measured reform agenda rather than throwing her system wide open. Correctly, China is establishing the RMB as one of the world trade currencies and opening her stock markets to the outside world carefully. China is wise to continue to develop her bilateral and local multilateral agreements to defy TPP and to develop an acceptable trade and investment system.
The world economy is complex but the world order is more or less under control. There were financial crises but so far the crises were managed without the total collapse of the world economy. Under the above theory of "invisible group of money hands", this group essentially controls the trade, finance and the economy through their control of the multinational corporations. This group has ability to influence national policies and even governance of nations. This kind of powerful influence is accomplished through promoting and application of ‘democracy’ to nations. Such a democratic machine can be greatly influenced (lubricated) by money as seen in many small and large countries.
So long the democracy can be influenced by money, the invisible money hands can work in the name of democracy to influence the elections (electing officials), legislations (enacting laws) and administration (executing policies) to benefit the multinational corporations and the financial institutions they own. Amazingly, even the United States, a super power, seems to be controlled by this invisible international money group via her democratic system. The powerful Federal Reserve System (FED, the central bank of the U.S.) guiding and monitoring the US economy is a system consisting of a board of governors. Although the governors are appointed by the U.S. President and confirmed by the U.S. Senate, the FED is a privately owned organization, not a part of the government. The governors are selected based on a “fair representation of the financial, agriculture, industrial and commercial interests” from the twelve geographically defined Federal Reserve Districts (each has a regional self-supported bank). They answer to a board not a government agency. The ‘visible’ FED is a politically appointed system appointed by a democratically elected president influenced by money, hence in essence, FED is controlled by the invisible money hands.
The invisible money hands influence all key elections through controlling political action groups and mass media. Therefore, the invisible money hands will promote and defend democracy and advocate a value system in which the economical power is controlling the political power. In principle, this value system is not a bad concept. If people can exercise democracy wisely without being influenced by the invisible money hands, the voting people can be the master of their own destiny. Unfortunately, in the democratic world, the invisible money hands are always present but invisible. Through money spent on mass media and political action groups, voters are led by the invisible money hands to produce its favored results.
The above-described process does not work in an authoritarian system, unless the authority (dictator) is bought by the invisible money hands. Often most small countries under a dictatorship can be easily bought by the invisible money group, then the country’s economy would be essentially controlled by them. Large authoritarian countries such as Russia and China cannot be bought easily. Hence, the invisible money hands must topple the authoritarian governments if they couldn’t be bought for the purpose of controlling the world economy or world order. Therefore it is no surprise that the invisible money hands only promote democracy selectively in different regions or nations in the world.
When China was a poor country with a small size of economy compared to the size of the world economy, she had no significant impact on the world economy. Hence she was left alone. Today, China's economy has grown to over ten trillion dollars, second largest in the world. It is obvious to the money group that in order to control the world economy they must control China’s economy. However, China practices, under one controlling Chinese Communist Party (CCP), a tightly government planned and government controlled economic development plan, allowing little external influence, essentially shutting out the possibility of influence and control by the global invisible money hands.
China’s central economic planning group practices a collective planning process gathering inputs from grassroots, local governments and government owned as well as privately owned enterprises. In China, political power controls economical power. People of China benefitted from China's rising economy through the political system – the government. If the government were corrupt, the economic benefits would not reach the people. People would eventually revolt. Apparently China recognizes this potential problem hence mounting a serious anti-corruption drive and system reform, but interestingly, the West does not seem to be jubilant or eager to assist China in her anti-corruption drive nor in her system reform.
Perhaps China also understands the value system of borderless free economy the invisible money hands are promoting, that is, an economy not under political control. In another words, the economical power controls political power. So China is gingerly conducting her financial and economic system reform, gradually privatizing government controlled enterprises and slowly opening for external investment. When trade and economy are mostly in the hands of the government established organizations and corporations, the Chinese economy is pretty much off the hands of external money, the invisible money hands. When China reforms and opens up, she is also vulnerable to the invisible money hands in more ways than one.
As said earlier, the borderless economic system is nothing wrong in principle, if the invisible money hands would play a fair game. Unfortunately, the powerful invisible hands are omnipresent, controlled by the West. They influence and control the economies and international stock markets and dominate the global financial institutions, such as international banks, International Monetary Fund (IMF) and the World Bank. Recognizing the unfair current environment, China fights for entering RMB into the currency basket of the IMF, proposes new banks such as BRICS Development Bank and AIIB to assist her economic development. Opening her stock markets to the world attracts investments to China but also invites the invisible money hands. Apparently, China is willing to take the risk and learning to regulate her stock markets to avoid manipulation by the invisible money hands.
The push for TPP is highly motivated by the invisible money hands following the philosophy of establishing a borderless economic system with economic power controlling the political power. By having twelve countries agreeing to a set of rules above national laws, the multi-national corporations (and the invisible money hands) gain the power and control the trade and economy. Even though TPP brings disadvantages to some nations from several aspects such as market access, tariff rules, IP protection and settling investment disputes, the Obama administration, despite of many protests, still promotes it. Why? The invisible money force is pushing it for the benefit of multi-national corporations they own and for curtailing China’s economy. TPP presents other problems in the borderless economic system, for one, the employment/immigration issue and another, income and wealth inequality. A socialistic China is sure to be leery about these problems.
China needs time to develop her own sustainable economic system. It is understandable that China adopts a controlled and measured reform agenda rather than throwing her system wide open. Correctly, China is establishing the RMB as one of the world trade currencies and opening her stock markets to the outside world carefully. China is wise to continue to develop her bilateral and local multilateral agreements to defy TPP and to develop an acceptable trade and investment system.
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