In a gloomy reminder of how deeply in a depression the U.S. economy is, Jacob Rothschild, the controversial financial magnate dramatically toned down his exposure to what he called a risky, unstable US capital market.
One of his major business corporations is RIT Capital Partners plc, a large British investment trust to which he is the founder and chairman. In the bi-annual financial report for the trust, Rothschild put a special emphasis on the company’s aggressive effort to decrease its exposure to U.S. assets.
Lord Rothschild made, perhaps, the gloomiest forecast for his entire career!
“We do not believe this is an appropriate time to add to risk. Share prices have in many cases risen to unprecedented levels at a time when economic growth is by no means assured,” Rothschild stated in the report.
Additionally, he expressed his opinion that programs deployed by central banks such as the Federal Reserve or World Bank to support the hollow markets, such as quantitative easing (QE) will not last very long.
In the report, he was quoted to have said: “The period of monetary accommodation may well be coming to an end.”
In addition, Rothschild continues to withdraw from the American capital markets, which he announced a year ago. “We have a special interest in investments, which will bear fruit as a result of the development of new technologies, as well as in investments in the markets of the East, which are characterized by growing demand from Asian consumers.”
It’s amazing how aggressively Rothschild reduced his position in assets denominated in dollars over the past 6 months. He decreased the investments of RIT Capital Partners in the US dollar by NEARLY 50%!
At the end of last year, his trust RIT Capital Partners reported a 62% net value asset investment in the US dollar. Only six months later, the trust reported only 37% net value asset investment.
From 62% to 37% in just half a year, with Rothschild still saying that the trust needs to sell even more of their US assets, is a dramatic indication: especially coming from a business figure as powerful as the grim Rothschild.
People think it’s all just a fuss when it comes to Rothschild’s money, but if you look at the actual members of the Rothschild family and their positions at the most powerful financial establishments, you begin to grasp the whole picture more clearly. Yes, they do have a lot of talk about the Rothschild name, but it’s not without a reason. The Rothschilds tend to hold a lot of power and control in their hands.
Why do some people think the United States are on the verge of economic collapse? Maybe it’s because essentials are being monopolized, and the only economic opportunities people at the lowest level of society have involve commodities. Sadly, no one can afford to support their fellow citizens selling commodities when they only have enough cash to pay for their very necessities.
Since people don’t grow their own food or produce essentials very often anymore, preferring to buy food from stores, the average person’s capacity to support themselves doing some decent job anyone can do is very low.
As long as the average U.S. Citizens are forced to scrape by working with commodities (unless they become “players” in the system and get a corporative job), there will never be an economy of the people.